Assume the Time from Acceptance to Maturity on a $4,000,000

question 77

Multiple Choice

Assume the time from acceptance to maturity on a $4,000,000 banker's acceptance is 180 days.Further assume that the importing bank's acceptance commission is 1.25 percent and that the market rate for 90-day B/As is 6.0 percent.Calculate the amount the exporter will receive if he holds it to maturity.

• A)$3,993,750
• B)$3,999,375
• C)$3,975,000
• D)$3,009,375

Recognize the mutual influence between stakeholders and an organization's environmental and social practices.

Describe how sustainability can be integrated into the strategic priorities of an organization's balanced scorecard.

Understand the classification of environmental costs as defined by the United States Environmental Protection Agency.

Appreciate the difficulty in quantifying intangible benefits of sustainability efforts.

---

Definitions:

Process Costing

A costing method used in industries where production is continuous and units are identical, assigning costs to units of product based on the process they go through.

Inventory

An asset that represents the total amount of goods and or materials a company holds for sale or production in the normal course of business.

Equivalent Units

A concept in process costing that converts partially completed units into a number of equivalent full units.

Direct Method

An approach used in cost accounting or cost allocation in which costs are directly assigned to cost objects, such as departments or products, without any allocation of indirect costs.