Answer:
1. fixed and indirect
2. variable and direct
3. variable and direct
4. fixed and indirect
5. fixed and indirect
6. variable and direct
Explanation:
<u>Fixed and variable costs</u>
A fixed cost is expected to be constant for a short term period whilst a variable cost is expected to vary in direct proportion to the number of units produced in this case it is the individual classes.
Depreciation expense on classroom building and on computers is a fixed cost that is expected to remain constant and the instructor wage varies with the number of classes thus a variable cost.
<u>Direct and Indirect costs</u>
A direct cost can be directly traced to the cost object by observation whist the indirect cost can not be directly traced on a cost object.
The instructors wage is a direct cost, his effort is seen with the success of the classes whist the depreciation expenses are indirect costs.
Answer:
Option B.. $50,000
Explanation:
DATA
Coupon rate = 5%
issue value = 2000,000
Time period = 6months ( April 1 to October 1)
Expenditure = ?
Solution
Expenditure recorded by the debt service fund can be calculated as
Expenditure = Issue value x Coupon rate x time period
Expenditure = 2,000,000 x 5% x6/12
Expenditure = 50,000
Option B.. $50,000 would be the correct answer
Answer:
$6,900 to preference shareholders
Explanation:
The computation of the amount of dividends paid to preferred and common shareholders in Year 2 is shown below:
The Preference dividend is
= 8,050 shares × $10 × 5%
= $4,025
And, since the preference dividend is cumulative plus the in year 1 there is no dividend paid and in year 2 the dividend amount given is $6,900
But the total value is
= $4,025 + $4,025
= $8,050
So the total amount i.e $6,900 is paid to preferred shareholders only
Answer:
the essential terms of the contract.
Explanation:
Generally contracts that involve large transactions like selling a company must be made in writing and must be signed by all the parties. In this case, the sort of wrote a summary of the basic terms of the sale on the back of an invoice, and at least they signed it. As it is, the contract might not be enforceable because it probably lacks a lot of important details, since the amount of space used to write it down was very small specially considering that most of the space was used for the signatures.
So in order to prevent any future problems, and to comply with the statute of frauds, they should make a written memorandum that includes the essential and important terms of the contract, which must be signed also. They could also write down a proper sales contract since they are signing it again.
The statute of frauds establishes that certain contracts must be done in writing, and since this contract probably involves a significant amount of money, it probably falls under it.
