Answer:
d) Both of these answers are correct.
Explanation:
Base on the scenario been described in the question, Operating income can differ materially between the results for the weighted-average and FIFO methods when the physical inventory levels of work in process are large relative to the total number of units transferred out and direct materials or conversion costs per unit vary significantly from period to period.
Answer:
Rate of return < current YTM
Explanation:
In order to determine whether the current YTM is greater or less,we need to first of all determine the current YTM using excel rate formula as shown below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon payments the bond pay which is 15
pmt is the annual coupon payment of $100(10%*$1000)
pv is the current price of $890
fv is the face value of $1000
=rate(15,100,-890,1000)=11.58%
Since the rate of return is 8.8% while the current YTM is 11.58%,the third option is correct
