Author name: Administrator

2985. Under which method of wage payment, wages are influenced by idle time?

Straight piece rate
Differential piece rate
Premium and bonus plan
Time wage rate
✅ The correct answer is D.
Under Time wage rate method of wage payment, wages are influenced by idle time. Under time wage system, wages are paid on the basis of time spent on the job irrespective of the amount of work done.

2995. In the long run, any firm will eventually leave the industry if

Price does not at least cover average total cost
Price does not equal marginal cost
Economies of sale are being reaped
Price is greater than long run average cost
✅ The correct answer is A.
In the long run, any firm will eventually leave the industry if Price does not at least cover average total cost. Exit is the long-run process of firms reducing production and shutting down in response to industry losses.

2976. Asset allocation affects the investor’s return by______________.

altering the returns on individual assets
weighting the portfolio return by the allocation
assuring diversification
increasing the investor’s use of mutual funds
✅ The correct answer is B.
Asset allocation affects the investor’s return by weighting the portfolio return by the allocation. Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon.

2977. Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate

normal spoilage rates
abnormal spoilage rates
normal scrap rates
abnormal scrap rates
✅ The correct answer is A.
Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate normal spoilage rates. The normal spoilage will be calculated as the total number of spoiled units, divided by the total units produced, and multiplied by 100.

286. The trade discount on purchases is recorded

When it is received
When the inventory is purchased
When the inventory is sold
Not at all recorded in the books
✅ The correct answer is D.
The trade discount on purchases are not all recorded in the books. Trade discount is not separately shown in the books of accounts, and all amounts recorded in a purchases or sales book are done in the net amount only.
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