In order to maximize its shareholders' value, a firm's management must attempt to maximize the stock price in the long run, or the stock's "intrinsic value."
Answer the following statement true (T) or false (F)
True
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The total landed cost approach represents what?
The interest expense recorded on an interest payment date is increased
A) only if the market rate of interest is less than the stated rate of interest on that date. B) by the amortization of premium on bonds payable. C) by the amortization of discount on bonds payable. D) only if the bonds were sold at face value.
Direct expenses require allocation across departments because they cannot be readily traced to one department.
Answer the following statement true (T) or false (F)
Placker 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 total fixed manufacturing overhead cost of $155,000, variable manufacturing overhead of $3.40 per machine-hour, and 50,000 machine-hours. Recently, Job A881 was completed with the following characteristics: Total machine-hours 100Direct materials$645Direct labor cost$2,300 The total job cost for Job A881 is closest to:
A. $2,950 B. $3,595 C. $2,945 D. $1,295