All categories

3 years ago

When a company has extensive product diversity and complex overhead, it is best to assign overhead using ______.

Business

1 answer:

sveta [45]3 years ago

8 0

When a company has extensive product diversity and complex overhead, it is best to assign overhead using

activity-based costing

<h3>What is Product Diversity?</h3>

This refers to the differentiation in product as there is a need for expansion in the market for a product in order to increase sales.

With this in mind, we can state that when a company has extensive product diversity and <em>complex overhead,</em> it is best to <em>assign overhead </em>using activity-based costing.

Read more about product diversity here:
brainly.com/question/11427393

You might be interested in

(mango electronics inc.) mango electronics inc. is a fortune 500 company that develops and markets innovative consumer electroni

Sonja [21]

1. 53.33% U = p/(a*m) = 16/(10*3) =16/30 = 53.33%

2. Ca=10 months / 10months = 1, Cp = 32 months / 16 months = 2 Tq= (16/3)*[(0.5333)^(sqrt(2*(3+1))-¬‐1)/(1-¬‐(0.5333))]*(1^2 + 2^2)/2= 9.0 months
T= Tq + p = Tq + 16 months = 25 months

3. p = p / a = 16 / 10 = 1.6

7 0

3 years ago

A company currently pays a dividend of $3.4 per share (D0 = $3.4). It is estimated that the company's dividend will grow at a ra

ArbitrLikvidat [17]

Answer:

Current price of stock =$128.06

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

The model is given as

P = D× g/(r-g)

P- price, D- dividend payable in year 1, r -cost of equity, g - growth rate in dividend

Cost of equity

The cost of equity can be calculated using the Capital Asset Model (CAPM).

Ke= Rf +β(Rm-Rf)

Ke =? , Rf- 6.5%, (Rm-Rf)- 1.5, β- 1.3

Ke=6.5% + 1.3× (1.5)= 8.45%

Stock price

PV of dividend in year 1 = 3.4× 1.17× 1.0845^(-1)=3.668

PV of dividend in year 2 = 3.4× 1.17^2× 1.0845^(-2) = 3.9572

<em>PV of dividend in year 3</em>

This will be done in two(2) steps:

Step 1- PV in year 2 terms

3.4× 1.17^2× 1.05/(0.0845- 0.05)= 141.651

Step 2- PV in year 0

141.6513913× 1.0845^(-2)= 120.4375

Current piece of stock = 3.668 + 3.957 + 120.4375 = 128.062

Current price of stock =$128.062

5 0

3 years ago

Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the iss

Ronch [10]

Answer and Explanation:

The journal entries are shown below:

1. Bank Dr $36,000,000 (36 million × $1)

To Share application $36,000,000

(Being the application received)

2. Share application $36,000,000

To Share capital $30,000,000

To bank $6,000,000

(Being the allotment is recorded)

3. Share allotment $30,000,000

To SHare capital $30,000,000

4. Bank Dr $25,000,000

To Share allotment $25,000,000

(being allotment is recorded)

5. Share capital $10,000,000

To SHare forfeited $5,000,000

To Share allotment $5,000,000

(Being share forfetied is recorded)

6. Bank Dr $9,500,000

Share forfeited Dr $500,000

To Share capital $10,000,000

(Being share forfeited is recorded)

7. Share forfeited Dr $4,500,000

To Bank $4,500,000

(Beng share forfeited is recorded)

4 0

3 years ago

Explain control entry

Eduardwww [97]

Answer:

Control Accounts are the total accounts in the cost ledger which summarizes the totals of individual accounts (subsidiary ledger). In these accounts, entries are made once at the end of each accounting period based on the periodical totals of transactions in related subsidiary ledgers and books.

8 0

3 years ago

JRN Enterprises just announced that it plans to cut its dividend from $ 3.00$3.00 to $ 1.10$1.10 per share and use the extra fun

kolbaska11 [484]

Answer:

The value of a share of JRN after the announcement is closest to $2

Explanation:

P = D1/(r-g)

24= 3 /(r-0.55)

r= 0,675

now when Dividend is changed

Price = 1.1/(0,675 -0.1) = $ 1,91, approximately $2

4 0

4 years ago