Answer:
One of the great dangers in allocating common fixed corporate costs is that such allocations can make a product line look less profitable than it really is.
Explanation:
Therefore, care must be exercised so that a product line is not eliminated because the common fixed costs have been allocated to it such that it becomes unprofitable. This is why it is necessary to identify activity cost pools into which such fixed costs can be accumulated and from which they can be allocated to product lines. Using ABC costing approach, for instance, offers a means of escape because the system tries to allocate costs based on the level of usage or consumption of such common costs by each product line instead of using arbitrary allocation formulas.
Answer:
Unemployment rate is 25%
Explanation:
The percentage of people eligible for job and not currently involved in paid work or self employed and available for work as well is called rate of unemployment. It is the percentage of people who is not currently woking seeking the job.
Labor Force = Employed persons + Unemployed persons
Labor Force = 24 million + 8 million
Labor Force = 32 million
Unemployment rate = ( Unemployed persons / Labor force ) x 100
Unemployment rate = ( 8 million / 32 million ) x 100 = 25%
Answer:
The Supreme Court ruled that the name Coke was so well known around the world, that it is effectively a common term for the trademarked Coca Cola. If other companies try to use similar terms like Koke for other types of products, e.g. bakery items, there is a risk that the Coca Cola company would be negatively affected by that product's image since consumers might associate Koke directly to Coca Cola.
It doesn't matter if the products were low quality or not, the courts cannot determine that, what matters is that the use of the term may negatively impact another company.
Answer: The correct answer is "D. Goods in Process and Factory Overhead."
Explanation: Direct labor: it is the labor consumed in the areas that are directly related to production. It is generated by the workers or operators of the company. It is part of the cost that is incorporated directly into the product. Therefore it is registered as goods in process.
Indirect labor: it is the labor consumed in the administrative areas of the company or that production staff that does not participate directly in the production of the good. As it is part of the cost that is indirectly incorporated into the product, it is considered factory overheads.
Answer: Balloon Loan
A balloon loan is a type of loan where the final payment is usually much larger than the payment preceding it.
In a balloon loan, the entire loan amount is given to the borrower as soon as the loan is approved and the contract is signed.
The interest falls due and is paid during the life of the loan.
The principal however, is paid as a balloon payment on the final day of the life of the loan.
