Answer:
The answer is below
Explanation:
Merger is a business term that defines the major mean of concentrating businesses. It can be in two different forms, which can either be through the arrangement of a new company or through the through the unification of one or more firms into another firm.
Acquisition however is a business term that describes the purchases of a company's most or all shares, in order gain control that company, buy another company (buyer).
On the other hand, An international joint venture often referred to as IJV is a business term that describes the formation of partnership of companies based in two or more countries, without taking over the other company outright.
Hence, the formation process of a merger, acquisition and international joint venture involves the following:
1. Planning: this stage involves the signing of the letter of intent, advisor appointment, creating and documenting the timetable, transaction method and expert report
2. Resolution: this stage is also vital which involves meetings of Board of Director, extraordinary shareholder, identification of opposition party and go ahead from the antitrust authority.
3. Implementation: this is a stage involving the enrolment of the merger deed in the Company Register.
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $363,800; materials of $404,000 and direct labor of $214,000. During the year Adams Incurred $386,400 in materials costs, $382 200 in overhead costs and $218,000 In direct labor costs. Compute the amount of under- or overapplied overhead for the year.
A) $11600 overapplied.
B) $18,400 overapplied.
C) $11,600 underapplied
D) $18,400 underapplied.
E) $4.200 underapplied.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Estimated:
Overhead= $363,800
Direct labor= $214,000
Actual:
$382,200 in overhead costs
$218,000 direct labor costs
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 363,800/214,000
Predetermined manufacturing overhead rate= $1.7 per direct labor dollar
Now, we can allocate overhead based on actual direct labor costs:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.7*218,000
Allocated MOH= $370,600
Finally, we can determine the under/over allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 382,200 - 370,600
Under/over applied overhead= $11,600 underallocated
Havermill Co. establishes a $330 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on th merchandise inventory, and $30 for miscellaneous expenses. The october i, the accountant determines that the fund should be increased by $66. The journal entry to record the reimbursement of the fund on September 30 Includes a:_______
a) Debit to Office Supplies for $81.
b) Credit to Merchandise Inventory for $153
c) Credit to Cash for $330.
d) Debit Petty Cash for $264.
e) Credit to Cash for $66.
Answer: a) Debit to Office Supplies for $81.
Explanation:
Office Supplies of $81 were used in the month of September. When replenishing the fund, this asset will be accounted for by being debited and cash will be credited to reflect the reason the cash account is being reduced.
The Journal entry for the replenishment will be;
DR Office supplies Account ......................................$81
DR Merchandise inventory Account ........................$153
DR Misc. expense Account........................................ $30
CR Cash account ......................................................................$264
A company wants to create a dynamic survey that navigates users through a different series of questions based on their previous responses. What is the recommended solution to meet this requirement
Answer:
Visual force
Explanation:
Visual force is a programming language made and designed for the purpose of sales force, which shall allow the company to create and expand its horizons. It helps to create a user interface.
With the help of that user interface the company can interact with as many number of people as they want. Also it uses the defined database, that you would create with the help of such interface.
Visual force can be designed in the manner as required by the company. Simple or complex depending upon the use as required.
Below is the common equity section (in millions) of Fethe Industries' last two year-end balance sheets:
2015 2014
Common stock $2,000 $1,000
Retained earnings 2,000 2,340
Total common equity $4,000 $3,340
The company has never paid a dividend to its common stockholders. Which of the following statements is CORRECT?
a. The company's net income in 2014 was higher than in 2015.
b. The company issued common stock in 2015.
c. The market price of the company's stock doubled in 2015.
d. The company had positive net income in both 2014 and 2015, but the company's net income in 2014 was lower than it was in 2015.
e. The company has more equity than debt on its balance sheet.
Answer: b. The company issued common stock in 2015.
Explanation:
Common Stock is recorded at par value in the books and so the only things that can affect it are more stock being issued which would increase it or treasury stocks being purchased which would decrease it.
As the common stock increased in 2015 from 2014 by $1,000 more, it shows that the company issued $1,000 worth of stock in 2015.
"In 2020, a customer buys a 3% U.S. Government bond maturing in 2024 at 102. The customer elects to amortize the bond premium for tax purposes. If the bond is sold after 2 years, its cost basis at that time is:"
Answer: A. 101
Explanation:
Amortization is done on the premium of the bond if elected to be done by the owner.
Bonds at par are worth 100 so a 102 bond has a premium of 2.
If amortized, this premium will have to be amortized over the period till maturity which in this case is 4 years.
Amortization per year = 2 points / 4 years
= 0.5
In 2 years the amortization would therefore be 1 point.
Cost basis of Bond = 102 - 1
= 101
A manufacturer of tiling grout has supplied the following data: Kilograms produced and sold 380,000 Sales revenue $ 2,736,000 Variable manufacturing expense $ 1,349,000 Fixed manufacturing expense $ 336,000 Variable selling and administrative expense $ 399,000 Fixed selling and administrative expense $ 372,000 Net operating income $ 280,000 The company's break-even in unit sales is closest to:
Answer:
Break-even point in units= 272,308 units
Explanation:
Giving the following information:
Variable manufacturing expense $ 1,349,000
Variable selling and administrative expense $ 399,000
Total variable cost= 1,748,000
Fixed manufacturing expense $ 336,000
Fixed selling and administrative expense $ 372,000
Total fixed costs= 708,000
First, we need to calculate the unitary selling price and unitary variable cost:
Unitary selling price= 2,736,000/380,000= $7.2
Unitary variable cost= 1,748,000/380,000= $4.6
Now, to calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 708,000 / (7.2 - 4.6)
Break-even point in units= 272,308 units
In an effort to capture the large jet market, Wright Brothers Aviation invested $12 billion developing its 1903A, which is capable of carrying 800 passengers. The plane has a list price of $170 million. In discussing the plane, Wright Brothers Aviation stated that the company would break even when 170 1903As were sold.
a. Assuming the break-even sales figure given is the accounting break-even, what is the cash flow per plane? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole dollar amount, e.g., 32.)
b. Wright Brothers Aviation promised its shareholders a return of 30 percent on the investment. If sales of the plane continue in perpetuity, how many planes must the company sell per year to deliver on this promise? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
c. Suppose instead that the sales of the 1903A last for only 10 years. How many planes must Wright Brothers Aviation sell per year to deliver the same rate of return? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Answer:
a) $70,588,235 per plane
b) 51 planes per year
c) 54.99 planes
Explanation:
initial investment $12,000 million
unit price $170 million
break even point = 170 x $170 million = $28,900 million
cash flow per plane = initial cost / break even number = $12,000 million / 170 units = $70,588,235 per plane
$12,000 million x 30% = $3,600 million in returns
$3,600,000,000 / $70,588,235 per plane = 51 planes per year
if the project lasts only 10 years, then its yearly returns = $12,000 / 3.09154 (PV annuity factor, 30%, 10 periods) = $3,881,560,606
number of planes sold per year = $3,881,560,606 / $70,588,235 per plane = 55 planes
calculate the gross margin in dollars and percentage for the home department if net sales = 140,000, billed cost of merchandise = $84,000, cost discount = 7.5%, shipping charges = 240
Answer:
Gross Margin (dollars) = $62,060
Gross Margin % = 44.33 %
Explanation:
Calculation of Gross Margin
Net Sales $140,000
Less Cost of Sales
Opening Stock $0
Add Purchase of Merchandise $84,000
Less Trade Discount ($84,000 × 7.5%) ($6,300)
Add shipping charges $240
Cost of Goods Sold ($77,940)
Gross Profit $62,060
Gross Margin %
Gross Margin % = Gross Profit / Net Sales × 100
= $62,060 / $140,000 × 100
= 44.33 %
Bruner Stores wants to have 900 shovels in ending inventory on December 31. Budgeted sales for December are 2,500 shovels. The November 30 inventory was shovels. How many shovels should Benson Stores purchase for December?
Answer: 2,900 shovels
Explanation:
Ending Inventory = Beginning Inventory + Total Inventory Purchased - Sales
900 = 500 + Total produced - 2,500
Total Purchased = 900 + 2,500 - 500
Total purchased = 2,900 shovels
NB; There was no beginning balance in your question so I gave a random figure of 500 units. Use the equation if the figure is different.
Wha) is the name given to the operations used by most organizations to
reach their customer goals?
A. Market planning
B. Research and development
C. Universal marketing functions
D. Customer support
SUBMIT
Answer:it’s c
Explanation:A P E X
Answer:
Explanation:
c
The following information is available for a company's cost of sales over the last four months.Month Units sold Cost of salesJanuary 400 $ 31,000February 800 $ 37,000March 1,600 $ 49,000April 2,400 $ 61,000Using the high-low method, the estimated total fixed cost is:A. $25,000.B. $30,000.C. $13,692.D. $100,000.E. $50,000.
Answer:
Fixed costs= $25,000
Explanation:
Giving the following information:
January 400 $ 31,000
February 800 $ 37,000
March 1,600 $ 49,000
April 2,400 $ 61,000
To calculate the fixed costs, first, we need to determine the unitary variable cost:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (61,000 - 31,000) / (2,400 - 4,000)
Variable cost per unit= $15
Now, we can calculate the fixed costs:
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 61,000 - (15*2,400)
Fixed costs= $25,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 31,000 - (15*400)
Fixed costs= $25,000
Having recently graduated, Jack and Jill just started working for the same company. The company has offered each of them a retirement savings plan (e.g., an Individual Retirement Annuity, sometimes called an IRA) in which for each year that they save $5000 in the retirement plan, the company will also contribute $5000 to their plan. Contributions to the plan, if any, are made at the end of each year, and the money in the plan is invested in a broad index of stocks. Jill has decided to start the plan immediately-contributing $5000 at the end of each year for the next 30 years. Jack has decided postpone his starting the plan for 6 years because of his loan payments for a Tesla. Thus, Jack will make his first contribution to the plan in year 7. Use Excel to answer the following:
(a) If the return each year is exactly 10%, how much will Jill have in the account at the beginning of year 31?
(b) If the return each year is exactly 10%, how much will Jack have in the account at the beginning of year 31? (Recall Jack only contributed for 25 years)
(c) Suppose that instead the returns alternate between 30% and-10% (i.e., 30% for year 1, -10% for year 2, 30% for year 3, -10% for year 4, 30% for year 5, etc. Observe that the average return is 10%. How much will Jill have in the account at the beginning of year 31?
(d) If, similar to (c), the returns alternate between 30% and -10%, how much will Jack have in the account at the beginning of year 31?
(e) What is the difference between your answers to (a) and (b)? Also what is the difference between your answers (c) and (d)? What insight does this give?
(f) What is the difference between your answers to (a) and (c)? Also what is the difference between your answers (b) and (d)? What insight does this give?
Answer:
see attached
Explanation:
Please note that Jack foregoes contributions for 6 years, so only contributes for 24 years, not 25.
Per the attached spreadsheet, the account balances and differences at the end of year 30 (beginning of year 31) are ...
a) $822,470.11
b) $442,486.63
c) $645,266.45
d) $377,475.15
e) a-b $379,983.48
c-d $267,791.31
Jack takes quite a hit by not investing early. He could have increased his balance by about 86% (constant 10%) or 71% (alternating returns) had he started when Jill did. Ultimately, his Tesla costs him in excess of $260,000.
f) a-c $177,203.66
b-d $65,011.49
The alternating returns year to year mean the average rate for the annuity is lower than the highest return and higher than the lowest return. Over the long term, it tends toward the geometric mean of the annual rates. Here, that limit value is about √(1.30·0.90) -1 ≈ 8.17%. The returns realized by Jack and Jill in this scenario are 8.88% and 8.71%, respectively. (Jill's is lower because of the longer term.)
_____
Comment on average return
The alternating 30%, -10% returns cannot be averaged by adding them together and dividing by 2. Rather, the interest rate that corresponds to the resulting amount must be computed based on actual results.
A joint venture is an attractive way for a company to enter a new industry when:________.
A) the pool of attractive acquisition candidates in the target industry is relatively small.
B) it needs better access to economies of scope in order to be cost-competitive.
C) the industry is growing slowly and adding too much capacity too soon could create oversupply conditions.
D) the firm has no prior experience with diversification and the industry is on the verge of explosive growth.
E) the opportunity is too risky or complex for a company to pursue alone or when a company lacks some important resources or competencies and needs a partner to supply them.
Answer:
Correct Answer:
E) the opportunity is too risky or complex for a company to pursue alone or when a company lacks some important resources or competencies and needs a partner to supply them.
Explanation:
A joint venture is a process by which two or more company come together by pooling resources together in-order to venture into a business which they have common interest in.
You purchased a zero-coupon bond one year ago for $283.83. The market interest rate is now 9 percent. Assume semiannual compounding. If the bond had 15 years to maturity when you originally purchased it, what was your total return for the past year?
Answer:
2.73%
Explanation:
Price of Zero Coupon Bond now = 1,000 / (1 + 0.09 / 2)^28
Price of Zero Coupon Bond now = 1,000 / (1 + 0.09 / 2)^28
Price of Zero Coupon Bond now = 1,000 / 3.4297
Price of Zero Coupon Bond now = $291.57
Rate of Return = (291.57 - 283.83) / 283.83
Rate of Return = 2.73%
Genesee Organics has just bought a new packing machine for its warehouse.
The total cost was $750,000. The CCA rate is 25%. What is the CCA for Year 2?
Answer:
CCA for year 2 is $164,062.50
Explanation:
Total cost of machine = $750,000
CCA rate = 25%
CCA in year 1 = (Total cost / 2) * CCA rate
CCA in year 1 = ($750,000/2)*0.25
CCA in year 1 = $93,750
For year 2, CCA = (Total cost - CCA in year 1) *CCA rate
For year 2, CCA = ($750,000 - $93,750)*0.25
For year 2, CCA = $164,062.50
Hence, CCA for year 2 is $164,062.50
Gold Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product RST.
Direct material cost per unit of RST $15
Total estimated manufacturing overhead $300,000
Total cost per unit of RST $80
Total estimated machine hours 150,000 MH
Direct labor cost per unit of RST $23
A. 21 MH per unit of RST.
B. 2 MH per unit of RST.
C. 20 MH per unit of RST.
D. 37.5 MH per unit of RST.
E. 38 MH per unit of RST.
Answer:
A. 21 MH per unit of RST
Explanation:
Total cost = Direct material + Direct labor + Overhead
$80 = $15 + $23 + Overhead
Overhead = $80 - $15 - $23
Overhead = $42
Plant-wide overhead rate = Total estimated manufacturing overhead / Total estimated machine hours
Plant-wide overhead rate =$300,000 / 150,000 machine hours
Plant-wide overhead rate =$2 per machine hours
Machine hour per unit of RST = Overhead per unit of RST / Plant wide overhead rate
Machine hour per unit of RST = $42/$2
Machine hour per unit of RST = 21 machine hour per unit of RST
Thus, the machine hour per unit of RST is 21 Machine Hour per unit of RST.
Weight Return Bonds (Lehman Brothers Index) 50 % 5 % Stocks (S&P 500 Index) 50 % 15 % The total excess return on the Aggie managed portfolio was
Please see full question attached
Answer:
Option C: 4%
Explanation:
Asset allocation simply means the investors allocation of resources in acquiring a mix of assets for his portfolio that produce the best risk-return balance based on investors objectives or profile
Excess return is the excess return from an investment over another investment used in comparison usually a risk free investment such as a treasury bill
Here we will try to determine the asset allocation's contribution to the excess return.
Contribution of asset allocation across markets to total excess return is calculated by the formula =
Weight of bonds - Weight of Lehman's brothers index(bemchmark) for bonds x Lehman brothers index(benchmark) return of bonds + Weight of stocks - Weight of S&p 500 index(benchmark) for stocks x s &p 500 (benchmark)return for stocks
= (0.10 - 0.50) x 0.05 + (0.90 - 0.50) x 0.15
= 4%
Gilberto Company currently manufactures 60,000 units per year of one of its crucial parts. Variable costs are $2.30 per unit, fixed costs related to making this part are $60,000 per year, and allocated fixed costs are $45,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.50 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 60,000 and buying 60,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?
Answer:
the costs of producing the parts is $12,000 less than buying them from an outside vendor
Explanation:
production costs (60,000 units)
variable $2.30 per unit
fixed (avoidable) $1 per unit
fixed (unavoidable) $0.75 per unit
total $4.05 per unit
price from outside supplier $3.50 per unit
total incremental cost of buying from outside supplier = (60,000 x $3.50) + (60,000 x $0.75) = $210,000 + $45,000 = $255,000
production costs to manufacture = 60,000 x $4.05 = $243,000
the costs of producing the parts is $12,000 less than buying them from an outside vendor
Two Brothers Moving prepared the following sales budget: Month Cash Sales Credit Sales March $18000 April May June Credit collections are % in the month of sale, % in the month following the sale, and % two months following the sale. The remaining % is expected to be uncollectible. What are the total cash collections in June at Two Brothers Moving?
Answer: $104,360
Explanation:
The cash collections for June will be;
= June Cash sales + (50 % *June credit sales ) + (43% * May credit sales) + ( 5% of April credit sales)
= 58,000 + (0.5 * 55,000) + (0.43 * 42,000) + ( 0.05 * 16,000)
= 58,000 + 27,500 + 18,060 + 800
= $104,360
characteristics of insurance that distinguish insurance contracts from other general contract
Answer:
When attempting to get a better understanding of insurance, there are four unique characteristics that need to be done and they are conditional, unilateral, adhesion, and aleatory.
The "comparative advantage" argument for the popularity of interest rate swaps is that poorly rated firms may be pushed to borrowing in the based on the assumption floating rate market while their first choice is fixed.
a) true
b) false
Answer: Option A -- True
Explanation:
Comparative advantage can be defined as acompany which has higher credit rating pays less to raise funds. Therefore, the "comparative advantage" argument for the popularity of interest rate swaps is that poorly rated firms may be pushed to borrowing in the based on the assumption floating rate market while their first choice is fixed is TRUE
We know the following expected returns for stocks A and B, given different states of the economy:
States(s) Probability E(rAS) E(rB,)
Recession 0.2 -0.1 0.04
Normal 0.5 0.08 0.05
Expansion 0.3 0.1 0.07
1. What is the expected return for stock A?
2. What is the expected return for stock B?
Answer:
Expected Returns:
1. Stock A:
= (0.2 x 0.04) + (0.5 x 0.05) + (0.3 x 0.07)
= -0.02 + 0.04 + 0.12
= 0.14
= 14%
2. Stock B:
= (0.2 x -0.1) + (0.5 x 0.08) + (0.3 x 0.1)
= -0.008 + 0.025 + 0.021
= 0.054
= 5.4%
Explanation:
a) Data and Calculations:
States(s) Probability E(rAS) E(rB,)
Recession 0.2 -0.1 0.04
Normal 0.5 0.08 0.05
Expansion 0.3 0.1 0.07
b) An investor in Stock A's expected return is the sum of the returns under different economic scenarios of recession, normal economy, and expansion, weighed by the probabilities of each event, which the investor would expect to realize by making the investment in a security. Stock A's expected return shows that the investor in the stock would expect a 14% return on the value of the investment. Whereas, the same investor would expect a return of 5.4% in Stock B's investment.
In the Month of March, Digby received orders of 107 units at a price of $15.00 for their product Dug. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 107 units in April. They received payment for 54 units in March, and 54 units in April. In the March income statement, how much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands) Select: 1Save Answer 0, $1,605 0, $803 $803 , $803 $1,605 , 0
Answer:
0, $1,605
Explanation:
The computation of the revenue recognized in the month of March and in the month of April is shown below:
Since the Digby delivers 107 units in April so now revenue recognized should be in the month of March
But for the month of April, it would be
= 107 units × $15
= $1,605
Hence, the first option is correct
If a store sells a good at the market price, even though the government authorities have set the maximum price that can be charged for it, the store is selling the good in a(n)
Complete Question:
If a store sells a good at the market price, even though the government authorities have set the minimum price that can be charged, the store is selling the good in an?
Group of answer choices
A. black market for a market price that is higher.
B. black market for a market price that is lower.
C. effort to eliminate a surplus of the good.
D. legal market for a market price that is higher.
E. legal market for a market price that is lower.
Answer:
A. black market for a market price that is higher.
Explanation:
If a store sells a good at the market price, even though the government authorities have set the maximum price that can be charged for it, the store is selling the good in a black market for a market price that is higher.
A black market can be defined as a type of underground market that is typically characterized by illegal transactions of goods and services as against the ethical trade of finished products.
In this context, any trader selling goods at a market price other than the maximum price that the government has set is certainly selling at a higher price and would only do that in an illegal way such as a black market, so as not to be caught by the regulatory agencies of the government.
Valley Farms offers to sell Whole Harvest Bakeries, Inc., five hundred bushels of wheat. Whole Harvest responds, "We agree to buy five hundred bushels only if the wheat is Grade A quality." This statement is
Answer: a counteroffer
Explanation:
From the question, we are informed that Valley Farms offers to sell Whole Harvest Bakeries, Inc., five hundred bushels of wheat and that Whole Harvest responds by saying "We agree to buy five hundred bushels only if the wheat is Grade A quality."
The above statement is s counteroffer. A counteroffer is a response that is given based on an initial offer and it happens mostly when the initial offer is not accepted and therefore it is replaced with another offer.
__________ are broad statements describing where the organization wants to be in the future.
Answer:
official goals
The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as:
Answer:
Zero based budgeting
Explanation:
In the zero based budgeting, the budget should be prepared from the starting i.e. based on the available budgeted income. Also it is not same as traditionla budget as no previous years statements should be considered
Also new prediction could be taken in consideration due to which it is costly and time consuming process
Therefore for initiated the first time, the zero based budgeting is used
__________ is not a technology company but used technology to revamp the business process of renting movies.
Answer:
Netflix
Explanation:
Netflix is a company that uses streaming service where viewers can watch varieties of documentaries, popular films etc on their network . This type of service enables users to access latest films, TV shows, offered by Netflix over the internet. Although users get to watch and enjoy these services through a paid subscription, there are quite unlimited films that can be watched and downloaded for offline viewing.
Unlike a conventional method where people can watch and download films, documentaries online, Netflix provides a platform that warehouses collections of films, documentaries, TV shows hence revamp the business methods of renting movies.
Which statements are TRUE regarding purchase limitations under Regulation A? I Tier 1 offerings are subject to purchase limitations II Tier 1 offerings are not subject to purchase limitations III Tier 2 offerings are subject to purchase limitations IV Tier 2 offerings are not subject to purchase limitations
A. I and III B. I and IV C. II and III D. II and IV
Answer:
Tier 1 offerings are not subject to purchase limitations and Tier 2 offerings are subject to purchase limitations ( C )
Explanation:
purchase limitations under regulation A states that Non-accredited investors buying tier 2 offerings are subject to purchase limitations which simply means that Tier 2 offerings are subject to purchase limitations while Tier 1 offerings are not subject to purchase limitations according to purchase limitations under Regulation A .
Cost of goods sold is characterized by the following statements
Answer:
The interpretation of the particular context is provided in the subsection below on clarification.
Explanation:
The cost of the products sold has become a reporting liability on either the cash flow statement. The cost of the goods offered for sale includes the cost of materials expenditures and the time to prepare such a component for selling price. The cost of the goods generated is measured using gross profit. Prices of the products sold are also known as selling costs.