Answer:
The effective annual rate (EAR) of the paper to Magna is 5.47%
Explanation:
interest rate = [1000000 - 973710]/[973710]
= 2.7%
EAR = (1 + interest rate)^2 - 1
= (1 + 2.7%)^2 - 1
= 5.47%
Therefore, The effective annual rate (EAR) of the paper to Magna is 5.47%
Answer:
The type of scenario which is explained in which their is competition based pricing is called COMPETITIVE BID.
Explanation:
Here, it has been given that E-bay is a popular website. From this particular website people can buy and choose a variety of objects such as games, toys, face potato chips, game tickets, cars and many other interesting things.
The people on this site enter their amounts which they are willing to pay for that particular object on that site. By seeing this amount entered another one and other more people will enter some higher amounts for that particular object on the site.
Similarly some more other people will do same and choose more higher amount to be entered that they are willing to pay for that item or object.
SO, the type of scenario which is explained in which their is competition based pricing is called COMPETITIVE BID.
COMPETITIVE BID: This is referred to a process which is carried out by companies or individuals for the bid issuing that the companies or individual put together for a particular project, item or an object to get its best proposal.
It is also been passed by law and made mandatory for all the government agencies to follow it and does issual of the bid.
There are six processes in Bidding :
- First step goes in allocating the bigger opportunities.
- Second step is for determination of the process of bidding.
- Pre participation in bidding issues.
- submission of the bid
- Evaluating the bidding process and participate in the process
- contract winning.
Answer:
a lack of incentive to control costs because they are simply passed to another department
a lack of departmental profit for the supplying department
suboptimization that may occur as fixed costs per unit may push the transfer price above market price
Explanation:
The limitation that could come after using the variable or full costing in order to set the transfer price involved the lack of the incentive for controlling cost, lack of departmental profit and the supoptimization that could be arise when the fixed cost per unit force the transfer price i.e. over and above to the market price
Therefore the above statements should be considered
Answer:
B - Extrapolate
Explanation:
Extrapolate means to extend the application of (a method or conclusion, especially one based on statistics) to an unknown situation by assuming that existing trends will continue or similar methods will be applicable.
Answer:
Dr Sales Discount $63
Cr Allowance for Sales Discount $63
Explanation:
Preparation of the June 30 fiscal-year-end adjusting journal entry for future sales discounts.
Based on the information given the June 30 fiscal-year-end adjusting journal entry for future sales discounts will be:
30-June
Dr Sales Discount $63
Cr Allowance for Sales Discount $63
(3%*$2,100)
(To record future sales discounts)
