Answer:
Refer To The attached screen shot. It contains the Income Statement Prepared under Absorption Costing.
Explanation:
Absorption Costing assumes that the Manufacturing Costs include Direct Material, Direct Labor, Variable Overhead, and Fixed Overhead. Whereas, Selling and Administrative Expenses are classified as period Costs. These period costs are recognized in the period in which they are incurred. On the other hand, the manufacturing costs are recognized when the goods on which the costs were incurred are sold. That's why we don't recognize $78,000 as a Fixed Overhead because these overhead costs were incurred to produce 6,000 rackets. We have to calculate the fixed overhead cost per unit and multiply it with the units sold.
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Answer:
The purchases and the sales of equipment must be shown separately as a decrease to cash for $342,000 (purchase) and an increase of $70,000 (sale).
Explanation:
Since the cash is paid for purchased an equipment so the same should be shown in the investing activities as the cash outflow and the company sold $70,000 cash equipment so this also to be shown as the investing activities as the cash inflow
Therefore the last option is correct
Answer: Option B
Explanation: Systematic risk points to the uncertainty of the industry or market segment as a whole. Systematic risk, often recognized as "undiversifiable danger," "fluctuation," or "market risk," affects not only a single share or sector, but the market at large. It is both uncertain and impossible to remove this type of risk altogether.
Thus, from the above we can conclude that the correct option is B as the changes in tax rates impacts the whole industry. Also such changes are in the hands of government therefore,. these are both unpredictable and unavoidable.