Answer: Option A
Explanation: Consignment refers to a business arrangement under which an an individual or an entity sends its goods to some other entity ,acting as an agent, to sell their goods. The sender is called the consignor and that agent acting on behalf is the consignee.
The profit from the sale goes to the consignor while the consignee gets other benefits like commission.
Thus, the goods actually belongs to the consignor therefore the inventory of those goods will be shown in the consignors balance sheet.
Answer:
D. Standing
Explanation:
The firm's best ground for dismissal is that Jock has no standing. This is because Jock has never bought a product from Inferior Company. Standing refers to the ability for an individual to show the court sufficient connection to and harm from the law or to bring a lawsuit in court based upon their stake in the outcome. For an individual or a party to have a standing in a case, he or she must show what is called an "injury in fact". When there's not enough sufficient connection to and harm from the law, the court can rule on lack of standing. Since Jock hasn't used their product before, no way he can claim injury in fact and that is why Inferior can request for dismissal on the grounds of no standing.
Answer:
a) direct labor cost for job order costing and machine hours for process costing.
Explanation:
As we know that the predetermined overhead rate is the rate which is to be computed by considering the total estimated manufacturing overhead cost and the estimated activity level i.e machine hours, etc
Under the traditional costing, in case of job order costing it ts based on direct labor cost while in the process costing it is based on machine hours
Hence, first option is correct
Answer:
10.85 percent
Explanation:
Return on equity = 0.045 × 1.60 ×(1 + 0.60) = 0.1152
Sustainable growth = [0.1152 × (1 - 0.15)]/{1 - [.1152 × (1 - 0.15)]} = 10.85 percent
The sustainable growth rate is the rate of growth that a company can expect to see in the long term. Often referred to as G, the sustainable growth rate can be calculated by multiplying a company’s earnings retention rate by its return on equity. The growth rate can be calculated on a historical basis and averaged in order to determine the company’s average growth rate since its inception.
The sustainable growth rate is an indicator of what stage a company is in, during its life cycle. Understanding where a company is in its life cycle is important.
