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3 years ago

Evaluating and rewarding managers based on absorption basis income can lead to overproduction. true or false

Business

1 answer:

nikklg [1K]3 years ago

5 0

Answer:

True

Explanation:

The absorption basis of income, profits are always high when the production is greater than income because more fixed costs will have been deferred in closing inventory.

So, managers will focus more on increasing production which create huge balances of closing stocks and consequently results in large profits.

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January 1, 2021, Woody Forrest Corporation granted executive stock options to purchase 30,000 of its common shares at $7 each. T

Anton [14]

Answer:

169,000

Explanation:

Calculation to determine what The number of shares to be used in computing diluted earnings per share for the quarter is:

First step is to calculate the amount assumed to be exercised

Exercised amount= 30,000*$7 / $15avg

Exercised amount= 14,000

Second step is to calculate the Net

Net=30,000-14,000

Net= 16,000

Now let calculate The number of shares to be used in computing diluted earnings per share

Using this formula

Number of shares=Outstanding+Net

Let plug in the formula

Number of shares=153,000 +16,000

Number of shares= 169,000

*diluted eps=$28,000 /169,000

Therefore The number of shares to be used in computing diluted earnings per share for the quarter is: 169,000

8 0

2 years ago

A company borrowed $15,000 by signing a 120-day promissory note at 10%. The total interest due on the maturity date is: (Use 360

topjm [15]

Answer: $500

Explanation:

Interest for the period = Amount borrowed * Interest rate * 120/360 days

= 15,000 * 10% * 120/360

= $500

7 0

3 years ago

PLZ HELP ASAP !! Econ !!

alexandr402 [8]

I'm pretty sure B

Explanation:

I dont knowing I'm correct but give meh a rating if I'm right

7 0

3 years ago

If a store has a “buy one, get one free” sale and an item costs $10, what is the marginal cost of the second item?

Charra [1.4K]

The marginal cost of the second item is $0

5 0

3 years ago

Read 2 more answers

Jessica Marshall, the CEO of ABD Oil Drilling Inc., decides to set aside an amount of $10,000 from the company's annual profits

Travka [436]

Answer:

corporate philanthropy.

Explanation:

Corporate philanthropy refers to an act done by a corporation or business organization with a motive to promote the welfare of a society by charitable donations of funds

Since in the question it is mentioned that the Jessica already aside the amount of $10,000 for the nonprofit organization and already it meets the requirement of government to contribute 4% of the company revenue for the social benefits

So this given situation represents the corporate philanthropy.

3 0

3 years ago