Which of the following types of expenditures is not subject to capitalization under the UNICAP rules?
A. Selling expenditures
B. Cost of manufacturing labor
C. Cost of raw materials
D. Compensation of managers who supervise production
E. All of the choices are subject to capitalization under the UNICAP rules
Answer: A
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Underapplied or overapplied factory overhead that is not large is normally charged or credited to which account?
a. Materials Inventory; b. Work In Process Inventory; c. Finished Goods Inventory; d. Cost of Goods Sold; e. Factory Overhead.
Weick and Westley (1999) identify three metaphors through which organizational learning can be fostered. One of those is ________, which involves changing things by encouraging people to play around with everyday patterns and to change them slightly. It is not a one-person show but rather a team event that relies upon the instant response, feelings, and feedback of others.
a. Disorganization b. Improvisation c. Humor d. Small wins
Grossnickle Corporation issued 20-year, noncallable, 7.4% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity?
A. $1,281.57 B. $1,000.85 C. $1,013.05 D. $1,220.55 E. $1,196.13
Which of the following statements is CORRECT?
A. As a rule, the optimal capital structure is found by determining the debt-equity mix that maximizes expected EPS. B. The optimal capital structure simultaneously maximizes EPS and minimizes the WACC. C. The optimal capital structure minimizes the cost of equity, which is a necessary condition for maximizing the stock price. D. The optimal capital structure simultaneously minimizes the cost of debt, the cost of equity, and the WACC. E. The optimal capital structure simultaneously maximizes the stock price and minimizes the WACC.