Answer:
Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as Product costs and expenses when the goods are sold, Option D.
Explanation:
Indirect costs are also manufacturing overheads which cannot be directly put on the product but they have to be allocated in some way. So, these are treated as 'product costs' and 'expenses' when the goods are sold. They are not period costs as per Option A and option C. Option B which says that it is product costs when incurred, which is also incorrect.
Examples of indirect costs can be accounting and legal expenses, rent, telephone expenses, salaries of administrative.
Direct costs includes the costs of direct 'labor', materials and commissions.
Answer:
A. cost-plus regulation
Explanation:
When a local regulator calculates the average cost of production for the public water utility or any other service and allow an adjustment for the normal rate of profit the firm should expect to earn, and then set the price that consumers can be charged accordingly, this is known as cost-plus regulation.
It is usually carried out by the government.
Answer:
Under the accrual basis, it should recognize $1,000,000 as property tax revenue for the year 2019. The remaining $45,000 that it does not collect in year 2019 will be accounted for as Property Tax Receivable while the $5,000 will be recorded as Uncollectible Expense in 2019.
Explanation:
The accrual concept or basis of accounting requires that all revenues and expenses relating to a fiscal year be recognized in that accounting year. It is not only the actual cash receipts and payments that should be recognized. This means that any revenue that is due but not yet received will be accounted for in the year that the revenue arises. And all the related expenses for raising the revenue will also be accounted for in the same year.
Answer:
Regency Bank
A = $98577.46
king Bank
A = $81832.68
Explanation:
Given Data:
principle amount =$ 5000
rate of interest = 15%
n =12 {compounded months}
t = 20 year
for Regency Bank
investment amount obtained as
![A =P\times [1 + \frac{r}{n}]^{nt}](https://tex.z-dn.net/?f=A%20%3DP%5Ctimes%20%5B1%20%2B%20%5Cfrac%7Br%7D%7Bn%7D%5D%5E%7Bnt%7D)
![A = 5000 [1 + \frac{0.15}{12}]^{12\times 20}](https://tex.z-dn.net/?f=A%20%3D%205000%20%5B1%20%2B%20%5Cfrac%7B0.15%7D%7B12%7D%5D%5E%7B12%5Ctimes%2020%7D)
A = $98577.46
for King Bank
Investment amount obtained as
Here n = 1
![A = 5000 [1 + \frac{0.15}{1}]^{1\times 20}](https://tex.z-dn.net/?f=A%20%3D%205000%20%5B1%20%2B%20%5Cfrac%7B0.15%7D%7B1%7D%5D%5E%7B1%5Ctimes%2020%7D)
A = $81832.68
