A factor having a "cause and effect" relationship with a cost object is called a(n):
A. cost driver
B. direct cost
C. allocation base
D. indirect cost
Answer: A
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You are considering buying a discount bond that costs $1,000 today and pays you $1,200 in one year. However, there is a 10 percent chance that the company issuing the bond will go bankrupt and not pay you your interest or return your principal. What is the expected return on the bond?
A. 20 percent. B. 10 percent. C. 8 percent. D. ?4 percent.
Most studies have indicated that what percent of a product's total life-cycle costs are determined in the development/design stage?
a. 60%-70% b. 70%-80% c. 80%-90% d. 90%-95%
Flagler Corporation replaces a roof damaged in a hurricane. The new roof is purposefully designed to be stronger than the old one so that it will support the air conditioning equipment the firm plans to install. Which of the following is/are true?
a. Part of the expenditure represents repair and part represents improvement. b. The expenditure represents repair, only. c. The expenditure represents improvement, only. d. The expenditure represents asset, only. e. The expenditure represents expense, only.
Issued shares that have been repurchased by the corporation are referred to as ________
A) outstanding shares B) liquidated shares C) unissued shares D) treasury shares