Answer:
B) The amount that would be paid today in order to receive a series of equal payments in the future
Explanation:
Present value of a cashflow by itself is its dollar value today. An Ordinary annuity is a series of recurring equal cashflows ; they occur at the end of each period like at the end of the year, end of the month, end of each quarter etc. This is unlike an Annuity due whose recurring payments occur at the beginning of each period like beginning of the year, beginning of the month, beginning of each quarter etc.
Answer:
Hazel Company
The incorrect statement is:
A. While the actual processing of Job 1 was not affected by automation, it received an increase of $9,900 in its overhead allocation.
Explanation:
Option A is the correct answer because Job 1's overhead cannot increase by $9,900. Therefore, this purported increase cannot be verified as correct. Most likely the overhead allocation of Job 1 will decrease since Job 2 has another basis for allocating overhead to it, which Job 1 does not incur. Overhead allocation using ABC system is more efficient than the traditional method of using a predetermined rate because overhead is now allocated based on consumption rather than using some arbitrary basis.
Answer:
True
Explanation:
Gross wage is the pay before adjusting for taxes and other deductions. The term gross means before deductions. For example, when calculating profits, gross profits means the earnings before deducting expenses.
Net wages contrast gross wages. While gross wages do not include deductions, net wages is the income after adjusting for all deductions. Calculating the gross wage will include involves adding basic pay and other earnings such as commissions, allowances, and bonuses.