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Alona [7]
3 years ago
6

Indicate for each of the following costs whether it is a product cost or a period cost.

Business
1 answer:
MAVERICK [17]3 years ago
5 0

Answer and Explanation:

The classification of the following cost i.e. either product cost or period cost is

1. Period cost as it deals with the operating expense

2 Product cost as it directly linked with the product

3  Product cost as it directly linked with the product

4  Product cost as it directly linked with the product

5  Product cost as it directly linked with the product

6  Product cost as it directly linked with the product

7  Product cost as it directly linked with the product

8 period cost as it does not directly linked with the product

9  Product cost as it directly linked with the product

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Bay Manufacturing Co. purchased a 3-month U.S. Treasury bill. In preparing Bay's statement of cash flows, this purchase would:A.
Lesechka [4]

Answer:

A. have no effect.

Explanation:

The US Treasury Bill was purchased at short-term

So it would not affect the company's cash balance.

The rule for short-term invstment is to have litle risk

and a mature of less than 90 days

the US TB fullfil both, it has no risk and matures within 90 days It is considered a cash equivalent.

7 0
3 years ago
Sally opened her own business and resigned from a job paying $25,000 per year. Her savings acccount pays 8% interest, but she wi
DiKsa [7]

Answer:

A) They would be indifferent, as Sally's income net of costs equals $25,000.

Explanation:

Sally's economic profit = accounting profit - opportunity costs

  • accounting profit = $12,000
  • opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000

economic profit = $12,000 - $12,000 = $0

Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.

7 0
3 years ago
Evaluate this statement: "If the yield of two bonds having equal maturity changes the same amount, the price of the lower coupon
AfilCa [17]

Answer:

FALSE

Explanation:

As the lower coupon means there is less amount of cash subject to variation of interest rate.

We must understand that in the end of the life of a bond(maturity), the value should always match the face value thus, the difference in bond market price arise from coupon payment.

If a bonds coupon payment is 40 dollars while another bond coupon payment  is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.

8 0
3 years ago
What is the difference between a shortage and a scarcity?
Nata [24]
Based on economic theory, scarcity is limitation of a resource which cannot be replenished. Shortage is used to indicate a market condition.
When applying this definition to your question, A is your answer.
6 0
4 years ago
A system of accounting for manufacturing operations that produces timely information about inventories and manufacturing costs p
sasho [114]

Answer:

The answer is cost accounting system.

Explanation:

Cost accounting is a tool that allows you to estimate the actual price of the products, which allows you to establish a profit margin for each unit sold. Depending on the activity of the company, several techniques are used such as production costing, process costing, standard costing, absorption costing, etc.

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3 years ago
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