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True [87]
2 years ago
14

Which of the following is an example of a period cost in a company that makes clothing? Multiple Choice Monthly depreciation on

production equipment. Advertising cost for a new line of clothing. Factory supervisor’s salary. Fabric used to produce men’s pants.
Business
1 answer:
abruzzese [7]2 years ago
3 0

An example of a period cost in a company that makes clothing is monthly depreciation on production equipment.

<h3>What is a period cost?</h3>

Period costs are all costs that cannot be capitalised on a company's balance sheet. It is a cost that cannot be tied to the production of the goods made by the company.

Example of period costs are:

  • Travel and entertainment expenses.
  • Commissions.
  • Depreciation expense.
You might be interested in
The price index in the first year is 110, in the second year is 100, and in the third year is 96. The economy experienced
Digiron [165]

Answer:

a. 9.1 percent deflation between the first and second years, and 4 percent deflation between the second and third years.

Explanation:

To calculate the rate of inflation/deflation, we have to divide by the oldest price index.

The second year, the variation of the price index was:

\Delta PI/PI=\frac{PI_2-PI_1}{PI_1}=\frac{100-110}{110}=\frac{-10}{110}=-0.909=-9.1\%

This means a 9.1% deflation.

The third year, the variation of the price index was:

\Delta PI/PI=\frac{PI_3-PI_2}{PI_2}=\frac{96-100}{100}=\frac{-4}{100}=-0.04=-4\%

This means a 4% deflation.

8 0
3 years ago
Select the correct answer from the drop-down menu.
MissTica

Answer: Macro, External

Explanation:

Macroeconomics effect the entire world, while it scrutinizes the external forces that affect the company.

3 0
3 years ago
Which $1,000 bond has the higher yield to maturity, a twenty-years bond selling for $800 with a current yield of 15% or a one-ye
lesantik [10]

Answer:

30%

Explanation:

The computation is shown below:

Here we considered a long term bond that time period should be 15 years or more

Now as we know that

Current yield is

= Current payment ÷ Pb

5% = Current payment ÷ $800

The Current payment is $40

Now the yield to maturity is

-$800 = $50 ÷  (1 + i) + $1,000 ÷ (1 + i) + $1,040 ÷ (1 + i)

So, i = 30%

The same is to be chosen

3 0
3 years ago
Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $550,000. In addition to the purchase price, FVI makes the followi
maw [93]

Answer:

Land 594,500

Explanation:

We must include all cost necessary to acquire the land and lelave it ready to use.

But, the demolition cost are associate with the old warehouse thus, as thsis asset is being destroyed It will be considered period cost, It will not be capitalized through land.

Acquisition cost    550,000

broker commission 35,000

title insurance            2,500

closing cost       <u>         7,000   </u>

Total cost               594,500

8 0
3 years ago
In an establishment that serves alcohol for on premise consumption and gets less than 50% of its gross receipts from alcohol sal
klemol [59]

Answer:

True

Explanation:

An on premise establishment is one in which goods and services are used accordingly within the grounds of the establishment.

In an establishment where alcohol is sold and its not 50% of gross receipts it is safe for a 16year ol to be a cashier in such establishment since alcohol like any other goods or service is taken or used accordingly in the establishment.

Cheers.

7 0
3 years ago
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