Wednesday, November 16, 2011

The above interest costs would be considered a(n)

ACCOUNTING

Multiple Choice

The Hassan Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $20,000,000 bond issuance, the Electric Mixer Division utilized $14,000,000 and the Electric Lamp Division utilized $6,000,000 for expansion. Interest costs on the bond totaled $1,500,000 for the year.



The above interest costs would be considered a(n)

a. output unit-level cost.

b. facility-sustaining cost.

c. product-sustaining cost.

d. batch-level cost.

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