Answer:
B) It accumulates product costs by production departments.
Explanation:
Process cost is used to ascertain the cost of a product at all stages of production. Total cost is an addition of all the individual process costs. Usually this is used in companies that produce homogeneous goods.
For example manufacturers for processed foods, and chemicals.
Answer:
D
Explanation:
Foreign exchange rate is the rate at which one currency is exchanged for another currency.
If there is a surplus in the market for foreign-currency exchange, it means that the supply of foreign currency exceeds the demand. This would lead to the exchange rate appreciating and the domestic goods been more expensive.
If the foreign currency is moving from a surplus to equilibrium, it means that the supply is falling and is almost equal to demand. This would lead to a depreciation of the exchange rate and domestic good would become less expensive
Answer: a. $0
b. $7,760
c. $1,440
d. $1,200
Explanation:
a. The family have a $500 a year deductible so the $200 will go out from there.
The insurer will therefore pay $0.
b. The remaining Deductible of $300 ( 500 - 300) will be applied to this.
There is also the 80% Coinsurance clause which means the insurer will pay for 80% of the losses. In total the Insurance company will pay,
= (10,000 - $300) * 80%
= 9,700 * 80%
= $7,760
c. The Deductible has been used up so the Insurance company pays 80% of the loss.
= 80% * 1,500
= $1,200
However, the Stop-loss provision of $2,500 kicks in. This is the maximum amount that the family is to pay for any losses during the year.
So far on January 1 2013 and July 1 2013 they have paid,
= 200 + (10,000 - 7,760)
= $2,440
The maximum left till the family pays the maximum is,
= 2,500 - 2,440
= $60
The family will therefore pay only $60 meaning that the insurer will cover,
= 1,500 - 60
= $1,440
d. This is a new year so the Deductible resets back to $500.
Insurer will therefore pay,
= (2,000 - 500) * 80%
= 1,500 * 80%
= $1,200
Answer:
$2,500
Explanation:
The maximum amount that can be deducted from the taxable income against the student loan interest paid is $2,500.
Hence,
For the given the amount paid by Wesley as the student loan interest i.e $5,000 exceeds the maximum limit of $2,500
Therefore,
Wesley can deduct maximum of $2,500 from her taxable income.
