Answer:
$14.88
Explanation:
The computation of the stock price is given below:
A total return of 12% means that
= 0.12 × 14
= $1.68 in a year.
Now
The total dividend payments for 4 quarters is
= 0.2 × 4
= $0.8.
Now the price of the stock should increase by
= 1.68 - 0.8
= 0.88
So the stock price one year from now is
= 14 + 0.88
= $14.88
It's time to buy pet food again and Lisa heads to the grocery store with $40 in her purse, leaving her four hungry dogs and seven hungry cats at home. Dog food costs $1 per can and cat food costs $0.50 per can. Lisa wants to minimize her pet food cost. What is an appropriate objective function for this scenario?
Answer: Min Z = X1 + 0.50X2
Explanation:
Based on the information given in the question, the appropriate objective function for this scenario will be explained this:
Let X1 be the number of dog food cans which will be bought
Let X2 be the number of cat food cans which will be bought
Then, the objective function will be:
Min Z = 1X1 + 0.50X2
The appropriate objective function for this scenario is Min Z = X1 + 0.50X2
Objective function:Since in her purse there is $40 also there is four hungry dogs and seven hungry cats at home. Dog food costs $1 per can and cat food costs $0.50 per can.
So based on this, here we assume that X1 be the no of dog And, X2 should be no of cat
So, the objective function is Min Z = X1 + 0.50X2
Learn more about function here: https://brainly.com/question/22958464
You run a hospital with 100 rooms. Fixed daily cost is $935.00 which includes staff salary, property charges, maintenance etc. Variable cost per room is $10.00 which includes cleaning, equipment rentals, utility cost etc. which is incurred only when the room is full. You charge $77.00 per room per day. You sold 40.00 rooms today, how much profit/loss did you earn for today.
Answer: $1,745
Explanation:
Profit ( loss) = Sales - Fixed costs - Variable costs
Sales = Rate per room * number of rooms rented
= 77 * 40
= $3,080
Variable costs = 40 * 10 per room
= $400
Profit (loss) = 3,080 - 935 - 400
= $1,745
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours 30,900 Total fixed manufacturing overhead cost $ 154,500 Variable manufacturing overhead per machine-hour $ 3
Recently, Job T687 was completed with the following characteristics:
Number of units in the job 10 Total machine-hours 30 rect materials $740 Direct labor cost $1,480
The amount of overhead applied to Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)
a. $240.00
b. $154.50
c. $48.00
d. $338.40
Answer:
a. $240.00
Explanation:
Total variable overhead estimated = $3 * 30,900
Total variable overhead estimated = $92,700
Total overhead estimated = Total variable overhead estimated + Total fixed overhead estimated
Total overhead estimated = $92,700 + $154,500
Total overhead estimated = $247,200
Predetermined overhead rate = $247,200 / 30,900
Predetermined overhead rate = $8
Total machine-hours = 30
Amount of overhead applied to Job T687:
= $8 * 30 hours
= $240.00
An American worker is hired by a German consulting firm operating in New York. They pay him $50,000 in wages. The new worker's contribution is to bring a new client to the firm that buys consulting services for $70,000 . Assume no other new cost was involved in this other than the wage. The client is a Mexican firm located in Mexico City. Which of the following is correct
a. National income increases by $50,000 and factor payments to abroad increase by $20,000, so US GDP increases by $70,000
b. Consumption increases by $70,000 and imports increase by $70,000,50 US GDP remains unchanged
c. Consumption increases by $50,000 and exports increase by $20,000, so US GDP increases by $70,000
d. National income increases by $50,000 and factor payments from abroad increase by $50,000, so US GDP remains unchanged
Answer:
a. National income increases by $50,000 and factor payments to abroad increase by $20,000, so US GDP increases by $70,000
Explanation:
The German firm hired an American worker and paid him $50,000. That means that American national income will increase by $50,000.
Since the company is German, that would increase factor payments ot abroad by the difference = $70,000 - $50,000 = $20,000.
Total GDP increases by the amount of $50,000 + $20,000 = $70,000
Joshua has been working as a project manager in an information technology company for three years. Martha is a delivery team lead in the same company. When the company receives a project that has to be completed in a short span of time, Joshua decides to increase the daily work hours of the delivery team to accommodate the project. Martha, however, insists that Joshua request the client for a time extension. Not willing to reach an agreement, Joshua and Martha ignore each other's opinions and begin working on the project individually. Which of the following conflict-handling intentions does this scenario portray? Collaborating Accommodating Avoiding Compromising
The conflict-handling deals with collaborating
A farmer sells a bushel of corn to the supermarket for $12. The supermarket then sells the corn to customers for $25. What is the total contribution to GDP?
Answer:
$ 25
Explanation:
As per the description, the exact amount that is being contributed from the corn bushel to the Gross Domestic Product would be $ 25. The price at which the farmer sold it to the supermarket would not be included in the GDP because it would be considered as an intermediary good because the good purchased for the resale purpose is not included in GDP as it leads to double-counting. Thus, only the price of the final good i.e. $ 25 would be included in GDP as it will now be used for final consumption by the customers.
Should the firms' overseas operations be judged by the standards (legal, economic, cultural, and moral) of the country in which it is operating or should they be judged by the standards of the U.S. market?
Answer: Standards of the country they operate in
Explanation:
Various countries have differing norms on what is legally, socially, morally and culturally acceptable. In order to be able to operate in those countries, companies would have to adapt to these requirements in order to maximize business operations.
It would therefore be illogical to judge these overseas operations in terms of the U.S. market which would be different from them. They should be judged on their own merit and then a standardizing factor can be used to relate them to the U.S. market to see whether they are performing well given their unique circumstances.
An investment offers $6,700 per year for 15 years, with the first payment occurring one year from now. a. If the required return is 6 percent, what is the value of the investment today
Answer: $65070
Explanation:
Based on the information given in the question, the value of the investment today will be:
= amount × pvaf , 1/(1+ rate )^t
= 6700 × pvaf (1/1+6%) ^15
= 6700 × pvaf (1/1.06)^15
= 6700 × 9.712
= $65070
Therefore, the value of the investment today is $65070
Identify the following is structural, frictional, cyclical and seasonal employment.
a. Andrew recently lost his job as an accountant for a large firm because he only knows how to perform the job using a general ledger (paper and pencil), and has been unwilling to learn how to use newly invented accounting software provided by the company.
b. Sam recently lost his job as an accountant for a large firm because he only knows how to perform the job a using a general ledger and has been unwilling to learn how to use newly invented accounting software provided by the company.
c. Teresa just graduated from college and is looking for a full time position with an investment banking firm.
d. A recent recession has reduced the number visitors to a local theme park. The park has had to lay off many of its employee, including Beth.
Answer:
Frictional unemployment occurs when people decided to leave their jobs and look for another or people join the labor force for the first time.
Structural unemployment arises from a situation where there is a mismatch between the skills needed in an economy and the skills possessed by people. Happens a lot when employees need to adapt to new technology.
Cyclical unemployment happens as a result of the economy either growing or shrinking.
a. Andrew recently lost his job as an accountant for a large firm because he only knows how to perform the job using a general ledger (paper and pencil), and has been unwilling to learn how to use newly invented accounting software provided by the company. ⇒ STRUCTURAL UNEMPLOYMENT.
b. Sam recently lost his job as an accountant for a large firm because he only knows how to perform the job a using a general ledger and has been unwilling to learn how to use newly invented accounting software provided by the company. ⇒ STRUCTURAL UNEMPLOYMENT.
c. Teresa just graduated from college and is looking for a full time position with an investment banking firm. ⇒ FRICTIONAL UNEMPLOYMENT.
d. A recent recession has reduced the number visitors to a local theme park. The park has had to lay off many of its employee, including Beth. ⇒ CYCLICAL UNEMPLOYMENT.
Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area: Cost of new equipment and timbers $ 370,000 Working capital required $ 115,000 Annual net cash receipts $ 130,000 * Cost to construct new roads in year three $ 43,000 Salvage value of equipment in four years $ 68,000 *Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth. The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company’s required rate of return is 18%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: a. What is the net present value of the proposed mining project? b. Should the project be accepted?
Answer:
Windhoek Mines, Ltd., of Namibia
a. The net present value (NPV) of the proposed mining project is:
= -$117,258
b. No. The project should be rejected. It has a negative NPV.
Explanation:
a) Data and Calculations:
Cost of new equipment and timbers = $370,000
Working capital required = $115,000
Cost to construct new roads in year three = $43,000
Annual net cash receipts = $130,000
Salvage value of equipment in four years = $68,000
Company's required rate of return = 18%
Mining duration = 4 years
Annuity factor for 4 years at 18% = 2.1690
Relevant discount factors at 18%:
Year 3 = 0.712
Year 4 = 0.636
Present values of Cash Flows:
Transaction Cash Flows PV Factor PV Amount
Cost of new equipment and timbers $370,000 1.000 -$370,000
Working capital required 115,000 1.000 -115,000
Cost to construct new roads in year three 43,000 0.712 -30,616
Annual net cash receipts 130,000 2.169 281,970
Salvage value of equipment in four years 68,000 0.636 43,248
Working capital released 115,000 0.636 73,140
Net present value -$117,258
Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The amount of the cash paid on August 16 equals:___.
A. $8, 167.50.
B. $9, 652.50.
C. $9, 750.00.
D. $8, 250.00.
E. $8, 152.50.
Answer:
A. $8, 167.50
Explanation:
The fact Juniper company returned $1,500 worth of merchandise, means that it is only obliged to pay the amount of $8,250($9,750-$1,500).
However, the payment was made on 16th August, which is the discount period of 10 days, hence, the cash paid on August 16 is computed thus:
cash paid=amount of merchandise owed*(1-discount rate)
discount rate=1%(1% discount if payment is made within 10 days of the purchase date)
cash paid=$8,250*(1-1%)
cash paid=$ 8,167.50
Bonita Industries purchased machinery for $1030000 on January 1, 2017. Straight-line depreciation has been recorded based on a $82000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2021 at a gain of $27500. How much cash did Bonita receive from the sale of the machinery?
a. $138,000
b. $162,000
c. $198,000
d. $258,000
Answer:
$235,900
Explanation:
Depreciation p.a. = ($1030000 - $82,000) / 5 years
Depreciation p.a. = $189,600
Depreciation charged till the Jan 1 ,2021 (4 years)
= $189,600 * 4 years
= $758,400
Depreciation charged till May 1, 2021 (4 month)
= $189,600 * 4 months/12 months
= $63,200
Value of the asset = $1030000 - $758,400 - $63,200
Value of the asset = $208,400
Cash received from sale of machinery = $208,400 + $27,500 (gain)
Cash received from sale of machinery = $235,900
What is the impact on cash flow from operations in the current year based on the change in operating assets and liabilities listed below
2 Balance sheets
Prior Year Current Year
4
5 Accounts receivable 1,725 1,825
6 Inventories 1,535 1,785
7 Accounts payable 1,325 1,475
a. -200
b. 0
c. -150
d. 200
Answer:
The impact on cash flow from operations in the current year based on the changes in operating assets and liabilities is:
a. -200
Explanation:
a) Data and Calculations:
Prior Year Current Year Changes
Accounts receivable 1,725 1,825 $100
Inventories 1,535 1,785 $250
Accounts payable 1,325 1,475 $150
b) Accounts receivable increased by $100, thereby reducing cash inflows. Inventories increased by $250, thereby reducing cash inflows. Accounts payable increased by $150, thereby increasing cash inflows. The net effect or impact is a reduction of $200 in the cash from operations.
During June, Cisco Company produced 12,000 chainsaw blades. The standard quantity of material allowed per unit was 1.5 pounds of steel per blade at a standard cost of $8 per pound. The actual cost was $7 per pound. The actual pounds of steel that Cisco purchased were 19,500 pounds. All materials purchased were used. Calculate Cisco's materials usage variance.
Answer:
Direct material quantity variance= $12,000 unfavorable
Explanation:
To calculate the direct material quantity variance, we need to use the following formula:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (1.5*12,000 - 19,500)*8
Direct material quantity variance= (18,000 - 19,500)*8
Direct material quantity variance= $12,000 unfavorable
What is the role of a consumer in the economy nation
The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 200th gallon of gasoline entails the following:
• a private cost of $3.03;
• a social cost of $3.23;
• a value to consumers of $3.39.
Refer to Scenario 10-1. Suppose the equilibrium quantity of gasoline is 220 gallons; that is, Q MARKET = 220. Then the equilibrium price of a gallon could be:________
a. $3.08.
b.$2.77.
c. $2.45.
d. $3.69.
Answer:
a. $3.08
Explanation:
Calculation to determine what the equilibrium price of a gallon could be:
Based on the information given the Private cost is $3.03 while the Social cost is $3.23 which indicates that Social cost lies ABOVE the private cost and since The MARKET EQUILIBRIUM tend to occurs when Private value=Private cost which means that the EQUILIBRIUM PRICE lies between $3.03 and $3.23, Therefore the EQUILIBRIUM PRICE of a gallon would be $3.08 because it lies between $3.03 and $3.23.
NetonBe makes sweaters, which traditionally involved the following steps: dyeing (i.e., into six different colors), knitting of the dyed fabric into three sizes each (small, medium, and large) and then distributing to the stores. As such, there were 18 different sweater color & size combinations in the end, each with a demand that is normally distributed with a mean of 1,000 and a standard deviation of 100. NetonBe has just developed a new system that allows them to knit a generic color sweater first, and then dyeing this generic sweater. As such, they only need to hold safety inventory for the three sizes, each with an average demand of 6,000. What would be the standard deviation in demand for each of these three generic sweaters?
a) Approximately 600
b) Approximately 300
c) Approximately 245
d) Approximately 60
Answer:
NetonBe
The standard deviation in demand for each of these three generic sweaters is:
a) Approximately 600
Explanation:
a) Data and Calculations:
Different sweater color & size combinations in the end = 18
Normally distributed demand mean of size = 1,000
Total demand of sizes = 18,000
Standard deviation of each size = 100
Standard deviation = 10% of mean (100/1,000 * 100)
Standard deviation for the total sizes = 1,800 (18,000 * 10%)
Average demand of new three sizes = 6,000
Total demand for the three new sizes = 18,000 (6,000 * 3)
Therefore, the standard deviation in demand for each of these three generic sweaters will be = 600 (6,000 * 10%)
MC Qu. 117 Cosi Company uses a job order costing... Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Cosi expects to incur $830,000 of overhead during the next period, and expects to use 53,000 labor hours at a cost of $10.00 per hour. What is Cosi Company's overhead application rate
Answer:
157%
Explanation:
Calculation to determine Cosi Company's overhead application rate
First step is to calculate Total DL Cost
Total DL Cost = 53,000 hours * $10/hr
Total DL Cost= $530,000
Now let determine the overhead application rate
OH rate = $830,000/$530,000*100
OH rate= 157%
Therefore Cosi Company's overhead application rate is 157%
Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $7 million. If demand for new products is low, the company expects to receive $9 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, it expects $14 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $8 million. Were demand to be low, the company would expect $9 million in discounted revenues with the large plant. If demand is high, the company estimates that the discounted revenues would be $13 million. In either case, the probability of demand being high is .30, and the probability of it being low is .70. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products.
1. Calculate the NPV for the following:
Plans NPV
Small facility $million
Do nothing million
Large facility million
2. The best decision to help Expando is:_________
Answer:
Expando, Inc.
1. NPV for the following:
Plans NPV
Small facility $3.5 million
Do nothing 0 million
Large facility 2.2 million
2. The best decision to help Expando is:_________
to build a small facility.
Explanation:
a) Data and Calculations:
Small Facility Large Facility
Initial investment costs $7 million $8 million
Discounted revenues:
Low demand 9 million 9 million
High demand 14 million 13 million
Probability of low demand = 0.70
Probability of high demand = 0.30
Expected revenue 10.5 million 10.2 million
($9m * 0.7 + $14m * 0.30) ($9m * 0.7 + $13m * 0.30)
NPV 3.5 million 2.2 million
1. NPV for the following:
Plans NPV
Small facility $3.5 million ($10.5 - $7) million
Do nothing 0 million ($0 - $0) million
Large facility 2.2 million ($10.2 - $8) million
Axis Pvt. Ltd., an international financial services firm, assigns projects to employees in different nations. Since these multinational projects and careers provide employees with global exposure, they are more than willing to cooperate. With regard to organizing a multinational company, which of the following internal factors has been covered in this example?
A. Structure.
B. People.
C. Culture.
D. Management.
Answer: B. People
Explanation:
The people who work in a company are a very important internal factor because their work makes or breaks a company. When the company does something that can be expected to improve the efficiency of its workers, it is said to be investing in its people.
In the above, Axis is sending workers around the world which is giving these workers much needed exposure. In this day and age where globalization is everything, skills gained from being exposed to different nations are very important and can make workers more efficient.
MC Qu. 152 Adams Manufacturing allocates... Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $364,800; materials of $418,000 and direct labor of $228,000. During the year Adams incurred $426,000 in materials costs, $415,400 in overhead costs and $232,000 in direct labor costs. Compute the overhead application rate.
Answer:
$1.60 per direct labor hour
Explanation:
Overhead application rate = Budgeted Overheads ÷ Budgeted Activity
hence,
Overhead application rate = $364,800 ÷ $228,000
= $1.60 per direct labor hour
what is gompertz function
Answer:
The Gompertz curve or Gompertz function is a type of mathematical model for a time series, named after Benjamin Gompertz (1779–1865). It is a sigmoid function which describes growth as being slowest at the start and end of a given time period. ... It is a special case of the generalised logistic function.
A student is deciding whether to take an additional class or work extra hours. Which amounts are relevant to this decision
Answer:
a. Out-of-pocket costs
c. opportunity costs
Explanation:
Out of pocket costs are those that have to be incurred by the student for having to take the additional classes if there are any. This needs to be considered as they are a cost that the student will need to pay for to take the classes and therefore might need budgeting.
Opportunity costs are the returns offered by the next best alternative to the current decision being taken. In other words, the student needs to consider what will happen if they pick additional class over work and vice versa.
Answer:
pocket and opportunity
Explanation:
Adventure Travel signed a 14%, 10-year note for $151,000. The company paid an installment of $2100 for the first month. After the first payment, what is the principal balance
Answer:
$147,138.34
Explanation:
Interest Expense for 1 month = $151,000 * 14% * (1/12)
Interest Expense for 1 month = $151,000 * 0.14 * 0.083333
Interest Expense for 1 month = $1761.65962
Interest Expense for 1 month = $1,761.66
Principal amount = Total payment + Interest Expense for 1 month
Principal amount = $2,100 + $1,761.66
Principal amount = $3,861.66
Principal balance = $151,000 - $3,861.66
Principal balance = $147,138.34
Matching Items Reported to Cash Flow Statement Categories (Indirect Method).
Adidas AG is a global company that designs and markets sports and fitness products, including footwear, apparel, and accessories. Some of the items included in its recent annual consolidated statement of cash flows presented using the indirect method are listed here. Indicate whether each item is disclosed in the Operating Activities, Investing Activities, or Financing Activities section of the statement or use Not Applicable if the item does not appear on the statement. (Note: This is the exact wording used on the actual statement).
1. Dividends paid.
2. Repayments of short-term borrowings.
3. Depreciation and amortization.
4. Proceeds from reissuance of treasury shares to employees.
5. [Change in] Accounts payable and other liabilities.
6. Cash collections from customers.
7. Purchase of investments.
8. Net income.
9. Purchase of property, plant, and equipment.
10. Increase in receivables and other assets.
Answer:
1. Dividends paid.
Classification: Financing Activity
2. Repayments of short-term borrowings.
Classification: Financing Activity
3. Depreciation and amortization.
Classification: Operating Activities
4. Proceeds from reissuance of treasury shares to employees.
Classification: Financing Activity
5. Change in Accounts payable and other liabilities.
Classification: Operating Activities
6. Cash collections from customers.
Classification: Not Applicable
7. Purchase of investments.
Classification: Financing Activity
8. Net income.
Classification: Operating Activities
9. Purchase of property, plant, and equipment.
Classification: Investing Activities
10. Increase in receivables and other assets.
Classification: Operating Activities
During 2020, Morefield Building Company constructed various assets at a total cost of $14,700,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $10,700,000. The company had the following debt outstanding at December 31, 2020:
1. 10%, 5-year note to finance construction of various assets, dated January 1,
2020, with interest payable annually on January 1 $6,300,000
2. 12%, ten-year bonds issued at par on December 31, 2014, with interest payable
annually on December 31 7,000,000
3. 9%, 3-year note payable, dated January 1, 2019, with interest payable annually
on January 1 3,500,000
Instructions:
Compute the amounts of each of the following (show computations).
1. Avoidable interest.
2. Total interest to be capitalized during 2020.
Answer:
1. $1,015,000
2. $1,015,000
Explanation:
1. Computation for the Avoidable interest.
First step is to Compute the weighted average interest rate:
Principal Interest
12% ten-year bonds$ 7,000,000 $840,000
9% 3-year note $3,500,000 $315,000
Total $10,500,000 $1,155,000
Weighted average interest rate = $1,155,000 ÷ $10,500,000
Weighted average interest rate= 11%
Now let compute the Avoidable Interest
Weighted Average Accumulated Expenditures *Applicable interest rate = AVOIDABLE INTEREST
$6,300,000 *.10 = $630,000
$3,500,000 *.11= $385,000
Total $9,800,000 $1,015,000
Therefore the Avoidable Interest is $1,015,000
2. Computation for Total interest to be capitalized during 2020
2020 Actual interest cost
Construction note $6,300,000 × .10 =$630,000
12% ten-year bonds, $7,000,000 × .12 =$840,000
9% three-year note, $3,500,000 × .09=$315,000
Total $1,785,000
Therefore Total interest to be capitalized during 2020 will be $1,015,000 which is the LESSER of
$1,785,000
A company has an overhead application rate of 124% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $24,000?
Answer:
$29,760
Explanation:
Overhead application rate = 124% of direct labor cost
The required total labor costing = $24,000
Total overhead applied = Overhead application rate * $24,000
Total overhead applied = 124% * $24000
Total overhead applied = $29,760
Mo will receive a perpetuity of $27,000 per year forever, while Curly will receive the same annual payment for the next 40 years. If the interest rate is 7.1 percent, how much more are Mo's payments worth
Answer:
380281.69-360900.85=19380.84
Explanation:
Perpetuity present value, PV=A/rate
Ordinary Annuity present value, PV= A[(1-(1+7.1%)^40)/7.1%)]
MC Qu. 116 CWN Company uses a job order costing... CWN Company uses a job order costing system and last period incurred $70,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $85,000. It also expects to incur $100,000 of direct labor. If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be:
Answer:
85%
Explanation:
With regards to the information above, predetermined overhead will be computed as;
Predetermined overhead = (Estimated overhead / Expected labor cost) × 100
Estimated overhead = $85,000
Expected labor cost = $100,000
Then,
Predetermined overhead = ($85,000 / $100,000) × 100
Predetermined overhead = 85%
Therefore, its predetermined overhead rate for the next period should be 85%
Read the following descriptions and identify the type of risk or term being described:
a. This type of risk relates to fluctuations in exchange rates.
b. This type of risk is inherent in a firmâs operations. A standard measure of the risk per unit of return. This can be used to reduce the stand-alone risk of an investment by combining it with other investments in a portfolio.
c. A standard measure of the risk per unit of return
d. This type of risk relates to fluctuations in exchange rates
Answer:
Foreign exchange risk
Explanation:
These are the risks that an international financial transaction could accrue because of fluctuations in the currency.
A standard measure of the risk per unit of return and this type of risk relates to fluctuations in exchange rates.
Therefore, according to the following descriptions, the type of risk or term being described is Foreign exchange risk.
