Volume-based rates are appropriate in situations where the incurrence of factory overhead is related to a single, common cost driver.
A volume-based totally allocation is an allocation of manufacturing facility overhead fees based on a unit of pastime, in preference to a cost. Examples of such allocation bases are the number of rectangular pictures used, the wide variety of hard work hours used, the variety of gadget hours used, and the number of devices produced.
Volume-primarily based fee drivers assign costs via the run sports simplest. the alternative sports are not noted for costing purposes due to the fact that may not be associated with the quantity of output. Ordering charges are a terrific example.
Volume settlement manner is a settlement of carriage that provides for the carriage of a specific quantity of products in a chain of shipments in the course of an agreed period of time. The specification of the quantity may consist of a minimum, a maximum, or a certain variety.
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Answer:
Accrued Interest = 53 days x Daily interest of 191.78 = $10,164.34
Explanation:
Suppose that a Treasury coupon security is purchased on April 8 and that the last coupon payment was on February 15. Assume that the year in which this security is purchased is not a leap year.
If the coupon rate for this Treasury security is 7% and the par value of the issue purchased is $1 million, what is the accrued interest?
Interest per day = 0.07 x 1,000,000 / 365 =191.78
Feb 15 to Apr 8 = 53 days
Accrued Interest = 53 days x Daily interest of 191.78 = $10,164.34
The reduction in
long-run average and marginal costs arising from an increase in size of
an operating unit (a factory or plant, for example). Economics of scale
can be internal to an organization (cost reduction due to technological
and management factors) or external (cost reduction due to the effect of
technology in an industry).
D is the answer. okkkkkkkkkk
Answer:
1. A firm's sustainable growth rate represents the:
highest growth rate without increasing financial leverage.
2. The sustainable growth rate of a firm with net income of $2.90 million, cash dividends of $1.90 million, and return on equity of 16% is:
= c. 5.52%
Explanation:
a) Data and Calculations:
Sustainable growth rate = Return on equity * Retention rate
Net income = $2.90 million
Cash dividends 1.90 million
Retained earnings = $1.0 million
Retention rate = $1.0/$2.90 * 100 = 34.48%
Return on equity = 16%
Therefore, the sustainable growth rate = 16% * 34.48%
= 5.5168%
= 5.52%
b) Sustainable growth rate is the rate of revenue growth, which an entity can attain without increasing its financial leverage (debts). The sustainable growth rate answers the question of how much a company can grow without additional equity or debt financing. It is a ratio that investment analysts and investors widely seek. There are four main ways of increasing an entity's sustainable growth rate, including sale of debt, issue of equity, increased profitability through efficient sales revenue, and reduced dividends payout to increase retained earnings.
