Explain the recurring costs of home ownership and why you need to budget for them
What will be an ideal response?
Answer: Making sure that you can comfortably afford your house every month is very important. The obvious recurring cost is your PITI. Don't forget the PMI premiums also. Monthly utility bills, landscape maintenance and snow removal costs can also add up. Property taxes and homeowners insurance premiums increase every year effecting your escrow requirements. Maintenance and repairs are an ongoing expense when owning a home.
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Assume the current ratio for Horizon Surf Supplies is 2 to 1 . If the company purchased supplies on credit, the effect of this transaction is to:
a. increase the current ratio b. decrease the current ratio c. have no effect on the current ratio d. decrease cash
Which of the following inventory costing methods requires the calculation of a new average cost after each purchase?
A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out
What is predictive analytics?
A. A series of devices that connect directly to other devices. B. A world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention. C. The extraction of information from data used to predict future trends and identify behavioral patterns. D. Opportunities to change the way people purchase books.
Lakeland, Inc manufactured 5,000 units during the month of March. They incurred direct materials cost of $100,000 and overhead cost of $40,000. If their per-unit prime cost was $26.00 per unit how much direct labor cost did they incur during March?
A) $20,000 B) $35,000 C) $90,000 D) $30,000