Thank you for visiting Rose has preferred stock selling for 97 8 percent of par that pays a 10 2 percent annual coupon What is Rose s component cost. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
The correct answer is that Rose's component cost of preferred stock is 10.2%.
What is cost component?
A cost component is user-defined or externally sourced and maps to a cost element that the quoting application uses to track the cost of an item.
Use cost component groups to map cost components to cost elements and source cost elements to target cost elements when transferring items from one inventory organization to another.
A cost component is the most detailed representation of an item cost. Examples of cost elements include order line price, materials, freight, taxes, and overhead.
What is cost element?
The level at which an item's expenses are tracked throughout the inventory accounting life cycle is called a cost element.
Cost components are mapped to cost elements, allowing you to determine item costs at various degrees of granularity depending on the needs of your organisation.
For high-value items, for instance, you might desire more detail than for low-value items.
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