Answer:
Business risk.
Explanation:
Business risk (uncertainty associated with the ability to forecast EBIT due to factors such as sales variability and operating leverage).
The answer is “Bond Maturity Date”.
Answer:
The correct answer is: Manufacturers use predetermined overhead rates to allocate to production jobs the production costs that are not directly traceable to specific jobs.
Explanation:
If we are able to trace a cost directly to a product we will not include it in manufacturing overhead. Manufacturing overhead was created to allocate costs that are not directly traceable to a product. It helps manufacturers to allocate costs with certain precision.
Answer:
2016: $300 million; 40%; $60 million
2017: $450 million; 60%; $90 million
Explanation:
Total costs:
= Costs incurred in 2016 + Costs incurred in 2017
= $240 + $360
= $600
In 2016:
Percent of total excepted costs:
= Costs incurred in 2016 ÷ Total costs
= $240 ÷ $600
= 0.4 or 40%
Revenue recognized:
= Percent of total excepted cost × Contract price
= 0.4 × $750 million
= $300 million
Income = Revenue recognized - Costs incurred in 2016
= $300 million - $240 million
= $60 million
In 2017:
Percent of total excepted costs:
= Costs incurred in 2017 ÷ Total costs
= $360 ÷ $600
= 0.6 or 60%
Revenue recognized:
= Percent of total excepted cost × Contract price
= 0.6 × $750 million
= $450 million
Income = Revenue recognized - Costs incurred in 2017
= $450 million - $360 million
= $90 million
<span>Minimizing the risk is the most important principle in the television business. So True.
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