Answer:
Weighted-average cost of treasury shares is 16 per share amounting 48 million dollars in total. (W-1)
Explanation:
(W-1) 16 * 3M i.e total number of share sold (W-1.1)
(W.1.1)
Calculations
Date Purchase Sale Closing stock WA method
12-Feb-18 2M/19/38M* 2M/19/38M
09-Jun-19 3M/14/42/M 5M/16/80M
25-May-20 3M/22/42/M 2M/16/32M
Date Purchase Sale Closing Stock FiFo method
12-Feb-18 2M/19/38M* 2M/19/38M
09-Jun-19 3M/14/42/M 2M/19/38M
3M/14/42/M
25-May-20 3M/22/42/M 2M/14/28M
*Key 2M/19/38M means 2 millions share at the rate of 19 each totaling 88 million dollars.
Answer: A - Market development
Explanation: Marketing development is a marketing strategy used by businesses to penetrate new markets with their products.
There are different types of market development and they are:
1. Price: new prices are offered for the product to attract new customers/consumers to the product thereby increasing income.
2. Distribution: The distribution of the product through new channel will aid the development of the product in the new market.
3. Product development: the development of a new product will help penetrate the new market as the product is new and customers might like to try it out.
Answer:
The reasons for using the variable-cost approach include all of the following except
this approach provides the most defensible bases for justifying prices to all interested parties.
Explanation:
This is not part of the reasons for using the variable-cost approach. But options b, c, and d are certainly the reasons why the variable-cost approach is used. The variable-cost approach provides a differential analysis for decision-making. It assigns overhead costs to the period in which they are incurred, while other variable costs are assigned to the merchandise produced within that period. Thus, by excluding fixed manufacturing overhead cost, only the direct costs associated with production are used in accounting for the product's costs.
