False
Credit Bureau supplies ratings based off of prior credit history. Companies / banks decide if you are worthy of loans based off of these ratings.
Answer:
100 shirts
Explanation:
Borrowing from the contribution margin concept, the level where the marginal benefit is greater than total costs is the break-even point.
Break-even point = fixed cost / contribution margin per unit.
For this retailer,
Fixed costs are $500,
The contribution margin per unit = selling price- variable cost
=$10-$5
=$5
Break-even point
= $500/$5
= 100units
Answer: The capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price.
Explanation:
The Capital Gains on a security refers to the increase in the price of the security from the cost that it was bought at. The Yield can therefore be calculated by dividing the difference between the Security Price now and the Security Price at cost by the Security Price at Cost.
If the price is higher than the cost, that is a Capital Gain. The reverse is a loss.
Therefore, a Company's future stock price is directly related to the Capital Gains Yield of an investor who is already holding the stock. If the future price increases, the Capital Gains Yield on that stock will go up. The reverse is true.
Answer:
1. Once a month, the sales department sends sales invoices to the accounting department to be recorded.
⇒ documentation procedures
Unless all of the company's sales take place only once a month, sales should be recorded as soon as possible. Accounting records must be as precise and accurate as possible, and they must be processed on time. Stacking invoices makes no sense, since sales might be on cash or the collection period might be very short. Who holds the money until the sales records are made?
2. Leah Hutcherson orders merchandise for Rice Lake Company; she also receives merchandise and authorizes payment for merchandise.
⇒ segregation of duties
One single person cannot be responsible for the whole process, since this creates a huge opportunity for fraud. Imagine if the person in charge of the inventory is also in charge of making new purchases, paying for them and reporting ending inventory. No company would be able survive one year, while the person in charge would get rich.
3. Several clerks at Great Foods use the same cash register drawer
⇒ establishment of responsibility
If everyone is allowed to collect money, no one can be responsible for any loss.
Calculation of Total Manufacturing Overhead Costs:
Manufacturing overhead costs are indirect costs incurred in relation to the production.
From the given information manufacturing overhead costs shall include factory Utilities $5,000, Indirect labor $ 25,000, depreciation of production equipment $ 20,000
Hence the Total Manufacturing Overhead Costs shall be (5000+25000+20000)=<u>$50,000</u>
