Answer:
Correct option is (5)
Explanation:
Financial leverage refers to including debt in the acquiring financial assets of the company. Source of funds includes a mix of equity and debt. The more the debt content, more is the company financially leveraged.
As proportion of debt increases, cost of equity increases as investors assume more risk. Volatility of stock increases so investors need to be compensated more for risk assumed by them. As such, their return increases.
Answer:
D. All of the above are correct.
Explanation:
Carry Cost : This is the total cost incurred by an entity for taking ownership and storing inventory items, some of these costs are rent of warehouse, inventory insurance, salary of warehouse staff e.t.c.
Stock-out Costs : The is the lost of income and all the expenses associated with the inability to meet customers' orders due to shortage in inventory.
Quality Costs : This is cost incurred by a firm for ensuring that product conforms to established quality standard as well as cost incurred in investigating and correcting substandard products produced.
Shrinkage Costs :
This is the monetary value of the inventory items lost as a result of sharp practices or poor storage environment.
Purchasing Costs : This is the actual cost incurred in buying inventory and bringing it to its present location less any sales discount.
Ordering Costs : This is the entire cost incurred in processing and placing order for inventory.
We can see that all of the above are important in managing goods for sale in a retail company.
Answer:
O D. $24.000
Explanation:
Under the straight-line depreciation method, the depreciation amount is a constant figure throughout the life of an asset. It means that every year, the amount charged as depreciation is the same throughout the life of the asset.
For the stone pizza, the depreciation per year is $8000. In three years, the amount of accumulated depreciation will be $8000 multiplied by three years.
=$8000 x 3 years
=$24,000
Answer:
C.
Explanation:
The sistem of assigning manufacturing overhead to jobs, is based on the fact that actual overhead costs are accumulated in the manufacturing overhead account.
The overhead costs are essential to production. They must be assigned to determine full cost.
To do this, first the calculation of overhead allocation rate must be done. It is important to identify the allocation base, is the primary cost driving like direct labor hours, direct labor cost or machine hours.
After that, the rate must be multiplied by the actual quantity of allocation base used on the job. The application rate is multiplied by the actual quantity of allocation base used on the job. For example, if the rate is based on direct labor hours, rate is multiplied by the direct labor hours used on each job.
The formula is:
MOR=MOC/MOAB
Predetermined manufacturing overhead rate (MOR)
Total estimated manufacturing overhead costs (MOC)
Total estimated quantity of the manufacturing overhead allocation base (MOAB)
I'm not sure, but I think that it is D. Lawyer
