Answer:
This method encourages the selling division to operate efficiently.
Explanation:
Absorption cost transfer pricing is very essential to determine the right amount in which goods and services will be sold in the market. It involves setting a price for a particular product with inclusion of all its variable costs.
Absorption cost transfer pricing enables an organization to maximise profit this is because all the different cost incurred during production are added to the price of the product.
Answer:
First National Bank = 14.6%
First United Bank.= = 14.8%
Explanation:
<em>Effective annual rate is the equivalent annual rate o where interest rate is compounded at an interval shorter than a year.</em>
It can be calculated as follows:
EAR = ( (1+r)^(n) -1) × 100
r -interest rate per period
n- number of period
EAR - Effective annual rate
First National Bank
r - interest rate per month = 13.7%/12 = 1.141%
number of period = 12 months
EAR =( (1+011141)^(12) - 1) × 100
= 0.145938395 × 100
= 14.59
= 14.6%
First United Bank.
r- interest rate per quarter - 14%/4 = 3.5% per quarter
n- number of quarters = 4
EAR = ((1+0.035)^(4)- 1) × 100
= 0.147523001 × 100
= 14.8%
Answer and Explanation:
Fair value refers to the current market price of the asset while historical cost is the cost at which the asset was acquired. Fair market value will always be higher than historical cost so it reflects the actual worth of the asset.
One of the qualities that makes valuing current assets at fair value rather than historical cost is the availability and reliability of current market price or fair value of current assets.
Answer:
$93,750
Explanation:
Required: "<em>Calculate the overhead assigned to the fabric case using the traditional costing system based on direct labor hours."</em>
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Total estimated overhead costs (A) = 150,000
Total labor hours (B) = 15,000 + 9,000 = 24,000
Overhead allocation rate (C) = A/B = 150,000/24,000
Overhead allocation rate (C) = $6.25 Per labor hour
Total labor hours used by Fabric case (D) = 15,000 Hours
Overhead assigned to the fabric case (C*D) = $6.25 Per labor hour * 15,000 Hours = $93,750
Answer:
E. Sales, accounting, and manufacturing and production.
Explanation:
Order fulfillment first takes place in the Sales department - where the Sales team makes known to the customer the products and services available. then the human resources selects talent to help with the production and manufacturing. Accounting function helps determine the cost.