Answer: Business model
Explanation: A successful business model is one which makes more profits than it costs to produce the product. A person opening a restaurant only needs a standard business model while concentrating on significant techniques on different types of customers.
However, it is not used by new companies alone but can also be used by established companies who want to go into a new market. It helps to capture where a company is headed and the direction it will take you to get there.
Answer:
It really depends on the person and how they cope with it.
Explanation:
Answer: Whether a particular cost is classified as direct or indirect does not depend on the cost object - <u>FALSE. BECAUSE "A particular cost may be direct or indirect, depending on the cost object".</u>
A direct cost is one that can be easily traced to the particular cost object -<u>TRUE.</u>
The factory manager’s salary would be classified as an indirect cost of producing one unit of product.<u> - TRUE.</u>
A particular cost may be direct or indirect, depending on the cost object. <u>- TRUE.</u>
Answer:
$1,138.92
Explanation:
Current bond price can be calculated present value (PV) of cash flows formula below:
Current price or PV of bond = C{[1 - (1 + i)^-n] ÷ i} + {M × (1 + i)^-n} ...... (1)
Where:
Face value = $1,000
r = coupon rate = 7.2% annually = (7.2% ÷ 2) semiannually = 3.6% semiannually
C = Amount of semiannual interest payment = Face value × r
C = $1,000 × 3.6% = $36
n = number of payment periods remaining = (12 - 1) × 2 = 22
i = YTM = 5.5% annually = (5.5% ÷ 2) semiannually = 2.75% semiannually = 0.0275 semiannually
M = value at maturity = face value = $1,000
Substituting the values into equation (1), we have:
PV of bond = 36{[1 - (1 + 0.0275)^-22] ÷ 0.0275} + {1,000 × (1 + 0.0275)^-22}
PV of bond = $1,138.92.
Therefore, the current bond price is $1,138.92.