Answer:
The Journal entry is as follows:
On March 31st,
Salaries and Wages Expense A/c Dr. $79,000
To Wages Payable $59,377
To Federal Withholding Payable $9,258
To FICA Payable $6,044
To State Withholding Payable $3,827
To Union Dues Payable $494
(To record the salaries and wages expense and salaries and wages payable)
Answer:
B. The hedge is asymmetric.
Explanation:
Hedging refers to a technique or a mechanism whereby firms and individuals aim for risk reduction, arising out of uncertain and volatile business situations, which may result into a heavy loss.
For example, an exporter entering into a forward contract to eliminate or reduce the risk of arising out of a future situation wherein, future receipts denominated in a foreign currency, receivable at a future date, may be less than same receipts receivable at current spot exchange rate as on today.
Currency hedge ratio depicts the proportion of total exposure which is covered by hedge w.r.t the total exposure itself.
Asymmetrical hedge refers to covering an exposure by an opposite position wherein the chances of earning profits are higher than the losses current position can lead to. Such an hedge would be similar to covering a call option with a put option. Asymmetrical refers to being of dissimilar or non equal size. Here, it refers to the dissimilarity between prospective profits and losses.
Under a perfect hedge, the loss position in a scenario is completely covered i.e 100% by a prospective gain in other situation, with there being negative correlation between the two scenarios such as if scenario 1 yields a profit, scenario 2 would yield a loss and vice versa.
Answer:
sunk cost
Explanation:
Sunk cost is cost that has already been incurred and it cannot be recovered. When making future decisions, sunk cost should not be considered.
The money i paid for the ticket is the sunk cost. I should not consider this cost when making the decision of whether to for the concert or not to
Answer:
See below
Explanation:
From the above,
One bucket requires;
200 grams of plastic and one half of direct labor
The plastic costs $10 per 200 grams and the employees are paid $15 per hour.
Therefore, one bucket costs (material and labor) :
= $10 + $15 × (1/2)hour = $17.5 per plus 1.10 × $7.50 = $25.75
For 1,080 buckets
$25.75 × 1,080 = $27,810
Therefore, the total amount of budgeted direct material for March is $27,810
