Port Accounting Performs Two Types of Services, Audit and Tax

question 18

Multiple Choice

Port Accounting performs two types of services, audit and tax.Port's overhead costs consist of computer support, $240,000; and legal support, $120,000.Information on the two services is: $$\begin{array} { l l l } &\underline{ \text { Audit } }&\underline { \text { Tax } } \\\text { Direct labour cost } & \$ 50,000& \$ 100,000 \\\text { CPU minutes } & 40,000 & 10,000 \\\text { Legal hours used } & 200 & 800\end{array}$$ Overhead applied to audit services using traditional costing is

• A)$120,000.
• B)$144,000.
• C)$216,000.
• D)$240,000.

Identify the risk aversion levels of investors based on their choices in investment strategies.

Calculate and interpret the dividend yield and capital gain/loss on an investment.

Apply the utility-maximizing principle in portfolio selection.

Distinguish between portfolios based on risk aversion and expected return through the analysis of indifference curves.

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Definitions:

Kaiser Wilhelm II

The last German Emperor (Kaiser) and King of Prussia, reigning from 1888 to 1918, his policies are often cited as contributing to the outbreak of World War I.

Buffalo Bill

William Frederick Cody, known as Buffalo Bill, an American soldier, bison hunter, and showman who founded Buffalo Bill's Wild West show.

Sitting Bull

A notable Hunkpapa Lakota leader who played a key role in the resistance against the United States government policies towards the Native American tribes.

Vigilantism

The act of taking law enforcement into one's own hands, often in response to perceived inadequacies in the legal justice system.