Answer:
The more she is willing to trade off her integrity for money
Explanation:
An indifference curve represents different combinations of two goods which a consumer can have, which shall yield same level of satisfaction.
Opportunity cost in case of two goods, refers to the units sacrificed or traded off of one good so as to consume more units of the other good.
In the given case, the analyst is faced with the trade off between two sources of utility or satisfaction i.e money and integrity. So if the individual wants more of one, she has to sacrifice some part of other.
Since her bonus is based upon number of investments she recommends to the company, if she'll be honest or focuses upon integrity, justness and fairness, her number of recommended investments would be lesser in comparison to the number of recommended investments if she is dishonest.
So, the higher the bonus she receives, means more the number of investments recommended by her which implies lesser integrity.
So, the higher the bonus she receives, the more she is willing to trade off her integrity for money.
Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $1,500 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his car a total of 12,000 miles (a combination of business and personal travel). (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
Answer:
A.$2,250
B.$1,152
Explanation:
A.
$1500 + 3000*[3000/12000]
$1,500 + $750
= $2,250
B.
{[820/12000]*3000} + {[820/1300]*1500}
=$205 +$946
=$1,152
Suppose that on your 21st birthday you are given a $1,000,000 trust fund. What interest rate must you earn to ensure that if you withdraw $50,000 per year there is money in the account forever
Answer:
The correct answer is 5%.
Explanation:
According to the scenario, the given data are as follows:
Annual withdrawal = $1,000,000
Annual withdrawal = $50,000
So, we can calculate the interest rate by using following formula:
Interest rate = Annual withdrawal ÷ Annual withdrawal
by putting the value in the formula, we get
Interest Rate = $50,000 ÷ $1,000,000
= 0.05
Or 5%
Hence, the Interest rate should be 5%.
Moses Supply Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 16 Loaned $60,000 cash to C. Bohr on a 12-month, 7% note. Sold goods to K. R. Pine, Inc., receiving a $3,600, 90-day, 8% note. Received a $12,000, 180-day, 9% note to settle an open account from A. Murdock. 31 Accrued interest revenue on all notes receivable Instructions Journalize the transactions for Moses Supply Co. (Omit cost of goods sold entries.)
The journal entries for Moses Supply Co.'s transactions involve debiting 'Notes Receivable' for each note issued and 'Interest Receivable' for the accrued interest, and crediting 'Cash' for the loan to C. Bohr, 'Accounts Receivable' to reflect note receipts, and 'Interest Revenue' for the recognized interest income.
Explanation:Moses Supply Co. will record the following journal entries for these transactions:
Nov. 1: Notes Receivable ... 60,000 Cash ................... 60,000 [loan of $60,000 to C. Bohr] Dec. 11: Notes Receivable ... 3,600 Accounts Receivable ......... 3,600 [receipt of a note for purchase by K.R. Pine] Dec. 16: Notes Receivable ... 12,000 Accounts Receivable ........... 12,000 [note received to settle the account with A. Murdock] Dec. 31: Interest Receivable ..... 1,470 Interest Revenue ............. 1,470 [interest accrued on notes receivable]These entries account for the issuance of the notes and the recognition of interest income.
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To journalize the transactions for Moses Supply Co., record each transaction separately. The entries include notes receivable, sales revenue, accounts receivable, and interest revenue.
Explanation:To journalize the transactions for Moses Supply Co., we need to record each transaction separately. Let's break down each transaction:
On November 1, Moses Supply Co. loaned $60,000 cash to C. Bohr on a 12-month, 7% note. The journal entry would be:https://brainly.com/question/30273292
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Stock Y has a beta of 1.59 and an expected return of 25%. Stock Z has a beta of 0.44 and an expected return of 12%. If the risk free rate is 6% and the market risk premium is 11.3%. Which of the following statements is correct:
a. Stock Y and stock Z are correctly priced
b. Stock Y is underpriced and stock Z is overpriced
c. Stock Y is overpriced and Stock Z is underpriced
d. Both stock Y and stock Z are underpriced
Answer:35%
Explanation:
Stock Y is overpriced and Stock Z is underpriced based on the Capital Asset Pricing Model calculations.
Stock Y is overpriced and Stock Z is underpriced. We can determine this by comparing the expected return of each stock with their required returns calculated using the Capital Asset Pricing Model (CAPM).
The required return for Stock Y = Risk-Free Rate + Beta of Stock Y * (Market Risk Premium) = 6% + 1.59 * 11.3% = 20.5%
The required return for Stock Z = Risk-Free Rate + Beta of Stock Z * (Market Risk Premium) = 6% + 0.44 * 11.3% = 11.9%
Since Stock Y's expected return is 25% and the required return is 20.5%, it is overpriced. Conversely, Stock Z's expected return is 12% while the required return is 11.9%, indicating it is underpriced.
Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,100 direct labor-hours will be required in May. The variable overhead rate is $1.40 per direct labor hour. The company's budgeted fixed manufacturing overhead is $100,440 per month, which includes depreciation of $8,910. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Answer:
May cash disbursement is $102,870
Explanation:
May cash disbursement for manufacturing overhead is the planned cash expenditure based on the budgeted manufacturing overhead for the month.
Cash would be paid to labor at $1.40 for every direct labor incurred for a total number of 8,100 direct labor hours i.e $11,340 cash in all($1.40*8100)
Also,company budgeted fixed manufacturing overhead would also require $91,530 in cash,which is the budgeted manufacturing fixed overhead of $100,440 minus the depreciation charge included in it ($100,440-$91530)
In total cash disbursement is $102,870($11,340+$91,530)
Suppose that you use duration to approximate the changes in bond price. When interest rate goes up, the absolute value of duration approximation is ____ than the absolute value of actual bond price changes. When interest rate goes down, the absolute value of duration approximation is ____ than the absolute value of actual bond price changes. A. smaller, larger B. smaller, smaller C. larger, larger D. larger, smaller
Answer:
Smaller , Larger A
Explanation:
When interest rates are changed , the shorter the duration , the less the volatility and the higher the duration , the more the volatility. This explains the reason that duration decrease at a higher rate when interest increases and vice versa.
A slight increases in the interest rate triggers a higher fall in the duration and an slight decrease in the interest rate triggers a higher rise in the duration
Entrepreneurship starts with an idea. Without being critical or judgmental, brainstorm a set of 10 ideas that could lead to the start up of a new business. Screen your ideas and select those that would enjoy the greatest market demand, the most attractive market structure and size, and the best profit margins. which if these screens caused most of the ideas to be discarded? What additional information would you need to seek out to answer all the screening questions?
Answer:
Personal or Virtual Assistant — While individual and menial helpers are not fabulous, they pay well. They are definitely not. On the off chance that you have held this activity as of now in an office, the advanced rendition gives you significantly more opportunity.
Marketing services — There is a sure level of foundation information in promoting. Putting resources into an online course isn't simply modest, yet will furnish you with the sufficient instruments to set up an internet showcasing organization you can extend in future. Numerous new promoting regions, for example, impact showcasing, are being opened up.
Social Media Advisor— Twitter and Google offer total, perceived, almost no cash requiring, proficient courses, among different stages. Online life is likewise an organization with boundless potential and a worldwide client base. This pattern most likely won't before long bite the dust, and every year new stages will be distributed, making the alternatives for extension boundless. To make your activity simple, you can utilize instruments for internet based life the board.
Affiliate marketing — Affiliate showcasing is extraordinarily simple to take part in and includes you accepting a charge by promoting the merchandise and enterprises of different organizations. Basically, you're picking an item you like, selling it, and putting forth a benefit out of your promoting attempts at each deal.
Tester or Reviewer — Companies or new businesses likewise look for organizations to audit their items and permit others and get them. You can either begin with a profile on outsourcing sites or straightforwardly approach organizations, by being an influencer, giving them an audit as an end-result of a fiscal prize.
ebay Assistant or Seller — An advertising partner is like an Ebay aide or dealer. The key distinction is that you are selling it straightforwardly to the client, rather than advertising the item. At the point when you sell on Ebay or some other stage for other people, you will sell the item and keeping a commission as remuneration.
Pina Company had the following stockholdersâ equity as of January 1, 2020.
Common stock, $5 par value, 20,800 shares issued $104,000
Paid-in capital in excess of parâcommon stock 306,000
Retained earnings 320,000
Total stockholdersâ equity $730,000
During 2020, the following transactions occurred.
Feb. 1 Pina repurchased 2,040 shares of treasury stock at a price of $18 per share.
Mar. 1 750 shares of treasury stock repurchased above were reissued at $16 per share.
Mar. 18 500 shares of treasury stock repurchased above were reissued at $13 per share.
Apr. 22 550 shares of treasury stock repurchased above were reissued at $19 per share.
Required:
a. Prepare the journal entries to record the treasury stock transactions in 2020, assuming Skysong uses the cost method.
Answer:
Journal Entry
1 Feb Debit Treasury Stock $36,720 Credit Bank $36,720
1 Mar Debit Bank $28,000 Debit Capital paid in excess-common stock $3,500 Credit Treasury stock $31,500
18 Mar Debit Bank $240,500 Debit Capital paid in excess-common stock $92,500 Credit Treasury stock $333,000
22 April Debit Bank $428,450 Credit Additional capital paid in excess - treasury stock $22,550 Credit Treasury stock $405,900
Explanation:
When using the cost method treasury stock is recorded at the cost of repurchase meaning it does not take into account the Par value and all the excess capital paid.
1 Feb Treasury stock = 2,040*$18 = $36,720
If Treasury stock is reissued for less than its cost then Bank increases with what is received treasury stock decreases by its original cost and the difference is set off against capital paid in excess-Treasury stock and if there is no previous capital paid in excess for treasury stock it is set off against capital paid in excess- common stock then retained earnings if capital paid in excess- common stock is also not available
Answer:
1 Feb DEBIT CREDIT
Treasury stock $36720
cash $36720
1 Mar
Cash $28000
Paid in Capital Access $3500
Treasury Stock $31500
1 Mar
Cash $ 240 500
Paid in Capital Access $92 500
Treasury stock $333000
1 Apr
Cash $ 428450
Paid in Capital Access $22 550
Treasury Stock $405900
Explanation:
If the shares from treasury stock are reissued at a price that is higher than their cost, the difference is credited to additional paid-in capital If the shares from treasury stock are reissued at a price that is lower than their cost, the difference is debited to additional paid-in capital. lso at the issue of treasury we record that price and not the par value
Alpha Company sells prefabricated pools that cost $80,000 to customers for $154,000. The sales price includes an installation fee, which is valued at $20,000. The fair value of the pool is $140,000. The installation is considered a separate performance obligation and is expected to take 2 months to complete. The transaction price allocated to the pool and the installation is:
Answer:
The correct answer is $134,750 and $19,250.
Explanation:
According to the scenario, computation of the given data are as follows:
We can calculate the price allocated to the poll by using following formula:
Price allocated to the pool = Selling price × fair value ÷ ( Fair value + Installation fees)
= $154,000 × $140,000 ÷ ( $140,000 + $20,000)
= $154,000 × 0.875
= $134,750
Now, We can calculate the price allocated to the installation by using following formula:
Price allocated to the installation = Selling price × Installation fees ÷ ( Fair value + Installation fees)
= $154,000 × $20,000 ÷ ( $140,000 + $20,000)
= $154,000 × 0.125
= $19,250
The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment includes a number of businesses, examples of which are indicated in parentheses. Time Warner, Inc. Segment Revenues (in millions) Turner (cable networks and digital media) $49,500 Home Box Office (pay television) 54,100 Warner Bros. (films, television, and videos) 85,300 Assume that the variable costs as a percent of sales for each segment are as follows: Turner 38% Home Box Office 35% Warner Bros. 23% a. Determine the contribution margin and contribution margin ratio for each segment from the information given. When required, round to the nearest whole millionth (for example, round 5,688.7 to 5,689). Round contribution margin ratio to whole percents for each segment from the information given. Turner Home Box Office Warner Bros. Revenues $ $ $ Variable costs Contribution margin $ $ $ Contribution margin ratio (as a percent) % % %
Answer:
Contribution margin for Turner is $30,690
Contribution margin for Home Box Office is $35,165
Contribution margin for Warner Bros is $65,681
CM ratio:
Turner 62%
Home Box Office 65%
Warner Bros 77%
Explanation:
The computations of contribution margin and contribution margin ratio are as follows:
Time Warner Inc.
Turner Home Box Office Warner Bros total
$(miilion) $(miilion $(miilion) $(miilion)
Segment revenue 49,500 54,100 85,300 188,900
Variable costs (18,810) (18,935) (19,619) (57,364)
Contribution margin 30,690 35,165 65,681 131,536
CM ratio 62% 65% 77%
Variable costs as % of sales 0.38 0.35 0.23
CM ratio=contribution margin ratio=contribution margin/sales revenue
Find attached as well.
Under what circumstances might a long-term strategic alliance with a key supplier enable a company to capture most of the benefits associated with vertical integration, without bearing the associated risks and costs?
Answer:
It would be better to enter a new business area by acquisition when a company is considering implementing horizontal integration or when they are pursuing vertical integration and the company is lacking the distinctive competencies to establish a quick presence and reputation. Acquisition allows a company to purchase quicker than it takes to establish its own company that is similar. Also, acquisitions are less risky because there is less commercial uncertainty and the company is able re-search the turn get are interested and get have unpublished reputation, lastly, they are attractive because there are high barriers to entry
Explanation:
Culture creation occurs in all of the following ways exceptwhen ________.
A) founders hire and keep employees who think and feel the way they do
B) founders indoctrinate and socialize employees to their way of thinking and feeling
C) founders develop their vision covertly
D) founders' behavior acts as a role model
E) founders refuse to be constrained by previous ideologies
Answer:
C) founders develop their vision covertly.
Explanation:
Culture can be defined as the general way of life of people and it is the essence of an organization.
Culture creation occurs in all of the following ways;
- founders hire and keep employees who think and feel the way they do.
- founders indoctrinate and socialize employees to their way of thinking and feeling.
- founders' behavior acts as a role model, thereby causing employees to adopt and implore their beliefs, ethics, assumptions and core values.
Culture creation does not take place when founders develop their vision covertly. Founders influence culture by hiring like-minded employees, socializing them into the company's mindset, and serving as role models. Values that provide competitive advantages, such as those of Ben & Jerry's and Microsoft, become integral to corporate culture.
Culture creation occurs in unique ways within a company, but it does not happen when founders develop their vision covertly. Founders play a crucial role in shaping their organization's culture, particularly during its early years, by hiring employees who share their mindset, indoctrinating and socializing employees to their way of thinking and feeling, and by acting as role models. For example, the culture at Ben & Jerry's Homemade Holdings Inc. reflects the founders' values of social activism and sustainability, attributing to the company's ongoing devotion to these principles even after its acquisition by Unilever PLC. Moreover, the early success of businesses like Microsoft highlights how founders' values, when they confer a competitive advantage, become ingrained in the corporate culture and guide business practices.
On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc., for $540,000 cash. The acquisition-date fair value of the noncontrolling interest was $60,000. At January 1, 2016, Star’s net assets had a total carrying amount of $420,000. Equipment (eight-year remaining life) was undervalued on Star’s financial records by $80,000. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on its books. Star recorded net income of $70,000 in 2016 and $80,000 in 2017. Each year since the acquisition, Star has declared a $20,000 dividend. At January 1, 2018, Pride’s retained earnings show a $250,000 balance. Selected account balances for the two companies from their separate operations were as follows: Pride Star 2018 Revenues $498,000 $285,000 2018 Expenses 350,000 195,000 LO 4-4 What is consolidated net income for 2018? $194,000 $197,500 $203,000 $238,000
The consolidated net income for the year 2018 of pride corporation is $203000
Explanation:
Consideration transferred by Pride $540,000
Non controlling interest fair value 60,000 =
Star acquisition-date fair value $600,000 -Star book value 420,000
= Excess fair over book value $180,000
Amort.
To equipment (8 year remaining life) $ 80,000/8= $10,000
To customer list (4 year remaining life) 100,000/4 =$25,000
= $35,000
Combined revenues=$498000+$285000= $783,000
Combined expenses =$350000+$195000=$545,000
Excess fair value amortization =$35,000 -$545000=$ 580,000
Consolidated net income =Combined revenues-Excess fair value amortization
Consolidated net income=$783,000 -$ 580,000 =$203,000
Hence the consolidate net income for the year 2018 is $203000
To calculate consolidated net income for 2018 between Pride Corporation and Star Inc., consider Pride Corporation's net income and 90% of Star Inc.'s net income due to Pride's ownership. The consolidated net income is $229,000.
Explanation:To start with, we calculate consolidated net income for 2018. Pride Corporation's net income for 2018 is calculated by subtracting its expenses from its revenues: $498,000 - $350,000 = $148,000.
Star Inc.'s net income is calculated in a similar way: $285,000 - $195,000 = $90,000. For the consolidation, we only need to include 90% of Star's net income (based on Pride's ownership): $90,000 * 0.90 = $81,000.
Thus, the consolidated net income for 2018 is: $148,000 (Pride's net income) + $81,000 (90% of Star's net income) = $229,000
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Peg and Al Fundy have a limited food budget, so Peg is trying to feed the family as cheaply as possible. However, she still wants to make sure her family members meet their daily nutritional requirements. Peg can buy two foods. Food 1 sells for $7 per pound and, each pound contains 3 units of vitamin A and 1 units of vitamin C. Food 2 sells for $1 per pound, and each pound contains 1 unit of each vitamin. Each day, the family needs at least 12 units of vitamin A and 6units of vitamin C.
(a) Verify that Peg should purchase 12 units of food 2 each day and thus oversatisfy the vitamin C requirement by 6 units.
(b )Al has put his foot down and demanded that Peg fulfill the family’s daily nutritional requirement exactly by obtaining precisely 12 units of vitamin A and 6 units of vitamin C. The optimal solution to new problem will involve ingesting less vitamin C, but it will be more expensive. Why?
Answer:
A) we requiere to fulfill the Vitamint contrains or surpass them A => 12 C=>6
B) we request that instead of fullfilling the vitaming requirement to be 12/6 or more
to be exactly for this amount.
Explanation:
We set up the situation in excel Solver with the following constraing:
1 2 3 4
A 3 3 1 7
B 3 1 1 1
C 12 6 24
C2 = A1*A2 + B1*B2
C3 = A1*A3 + B1*B3
C4 = A1*A4 + B1*B4
common constraing:
C4 min
A1 = integer
B1 = integer
A) constraing
C2 => 12
C3 =>6
B) contraing to achieve the exact value for each vitamin:
C2 = 12
C3 = 6
Purchasing 12 units of Food 2 everyday meets the nutritional requirements but oversatisfies vitamin C requirement. Achieving the precise nutritional balance using Food 1 and 2 is costlier due to the higher cost of Food 1.
Explanation:(a) Let's verify your first inquiry. If Peg buys 12 units of Food 2 each day, it will cost her $12. This will provide 12 units of vitamin A (1 unit per pound) and 12 units of vitamin C (1 unit per pound), perfectly covering the vitamin A requirement and exceeding the vitamin C requirement by 6 units.
(b) Let's consider the second scenario: precisely hitting the nutritional targets. To do this, Peg could buy 1 unit of Food 1 (which gives 3 units of vitamin A and 1 of vitamin C), and then 9 units of Food 2. This gives exactly 12 units of vitamin A and 6 of vitamin C. However, this strategy costs $16 ($7 for Food 1 and $9 for Food 2), making it more expensive. This is because Food 1 is considerably more costly per unit of food than Food 2, but both the requirements of vitamin A and vitamin C must be met exactly.
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A company's production department was experiencing a high defect rate on the assembly line, which was slowing down production and causing a higher waste of valuable direct materials. The production manager decided to recruit some highly skilled production workers from another company to bring down the defect rate. This would produce a(n) ________. A. unfavorable direct materials cost variance B. favorable direct labor cost variance C. unfavorable direct materials efficiency variance D. favorable direct labor efficiency variance
Option D
This would produce a(n) Favorable direct labor efficiency variance
Explanation:The direct labor efficiency variance relates to the variance that occurs due to the variation within the standard and actual time utilized to compose finished products.
If operators produce a specified amount of units in a measure of time that is shorter than the measure of time provided by standards for that quantity of units, the variance is identified as favorable direct labor efficiency variance. There is favorable direct labor efficiency variance when the exact hours applied is less than the expected or usual hours.
Aegis Industries Inc., is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions): 2012 2013 2014 2015 Net Sales Revenue $ 3,300 $ 2,760 $ 2,090 $ 1,670 Cost of Goods Sold 2,380 2,000 1,560 1,270 Average Inventory 330 280 220 210 Required: 1-a. Calculate the inventory turnover ratio for 2015, 2014, and 2013. 1-b. Calculate the average days to sell inventory for 2015, 2014, and 2013. 2. Is Aegis performing better than its competitor Snow Pack Corporation where the inventory turned over is 5.5 times in 2015 (66.4 days to sell). Both companies use the same inventory costing method (FIFO).
Answer:
The calculations are shown below:
Explanation:
The computation is shown below:
As we know that
Inventory turnover ratio is
= Cost of goods sold ÷ Average inventory
So
For year 2015, it is
= $1,270 ÷ $210
= 6.05 times
For year 2014, it is
= $1,560 ÷ $220
= 7.09 times
For year 2013, it is
= $2,000 ÷ $380
= 7.14 times
1-b Average days to sell inventory is computed by considering the
= Total number of days in a year ÷ inventory turnover ratio
So
For year 2015, it is
= 365 ÷ 6.05
= 60.33 days
For year 2014, it is
= 365 ÷ 7.09
= 51.48 days
For year 2013, it is
= 365 ÷ 7.14
= 51.12 days
2. As we can see that the aegis industries inc is performing better than the Snow Pack Corporation as aegis industries has 7.14 times in 2015 as compare to the 5.5 times in 2015
A company is preparing its cash budget for the coming month. All sales are on account. Given the following: Beginning Balances Budget Amounts Cash $ 50,000 Accounts Receivable 180,000 Sales $ 800,000 Cash disbursements 780,000 Depreciation 25,000 Ending accounts receivable balance 210,000 What is the expected cash balance of the company at the end of the coming month
Answer:
$40,000
Explanation:
The calculation of cash balance is shown below:-
For computing the ending cash balance first we will compute the total cash inflow which is here below:-
Total cash inflow = Opening cash receivable + Sales - Ending cash receivable
= $180,000 + $800,000 - $210,000
= $980,000 - $210,000
= $770,000
Ending cash balance = Opening cash balance + Total cash inflow - Cash disbursement
= $50,000 + $770,000 - $780,000
= $40,000
Chelsea Paper Products is a large manufacturer that employs nearly 800 workers. Executives at the company are interested in implementing a training and development program in order to improve employee competencies and enhance the firm's overall performance. Which of the following most likely supports the plan to establish a training and development program at Chelsea? Firms of similar size typically provide mentors to new employees. Other firms in the paper industry are implementing T&D programs. The firm's new CEO established a T&D program at a previous firm. The firm has consistently had a high turnover rate in all departments.
Answer: The firm has consistently had a high turnover rate in all departments.
Explanation:
If the firm has a high turnover rate in all departments this means that there is a high number of employees leaving the company.
For this reason, it would be best to initiate a Training and Development program at Chelsea Paper Products.
Some of the benefits of T&D programs include, increased job satisfaction, morale and motivation amongst employees. This would reduce the high turnover rate as employees would be happier to work at Chelsea PP as they feel more fulfilled.
Additional benefits include a better bottomline and increased innovation in the company which can give them an edge in the industry.
If you require any clarification do react or comment.
Final answer:
The most likely support for establishing a training and development program at Chelsea Paper Products comes from other firms in the paper industry implementing similar programs, along with the practice of providing mentors to new employees. The previous experience of the firm's new CEO in establishing a T&D program also supports the plan.
Explanation:
To establish a training and development program at Chelsea Paper Products, the most likely support would come from other firms in the paper industry implementing T&D programs. This indicates that training and development programs are a common practice in the industry, and Chelsea would benefit from implementing one as well.
Furthermore, firms of a similar size typically provide mentors to new employees, which suggests that Chelsea can also adopt a mentorship program as part of their training and development efforts.
The fact that the firm's new CEO established a T&D program at a previous firm is another supportive factor, as it demonstrates the CEO's belief in the effectiveness and importance of such programs for overall performance improvement.
An advantage of absorption cost transfer pricing arises from the fact that Select one: A. This method keeps the purchasing division content. B. This method encourages the selling division to operate efficiently. C. This method allows the selling division to make a contribution toward covering long run fixed costs. D. This method is not as easy to implement as other methods.
Answer:
This method encourages the selling division to operate efficiently.
Explanation:
Absorption cost transfer pricing is very essential to determine the right amount in which goods and services will be sold in the market. It involves setting a price for a particular product with inclusion of all its variable costs.
Absorption cost transfer pricing enables an organization to maximise profit this is because all the different cost incurred during production are added to the price of the product.
Absorption cost transfer pricing's advantage allows the selling division to contribute towards long-term fixed costs. This doesn't necessarily encourage operational efficiency.
Explanation:An advantage of absorption cost transfer pricing is that it allows the selling division to contribute towards covering long-term fixed costs (option C). This method is based on the idea that every cost associated with producing a product, both variable and fixed, is absorbed into the product cost. Hence, when the selling division sells the product, part of the sale also covers fixed costs, thus contributing to the overall company income. It’s important to note that while this method encourages financial efficiency, it does not necessarily incentivize operational efficiency (option B).
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Cambridge Company has three divisions that all report to the vice president of manufacturing. Each division has two departments. On Cambridge's organization chart, there will be three lines leading to the vice president of manufacturing, one for each division.
a. True
b. False
Answer: a. True
Explanation: Three lines would lead to the vice president of manufacturing of Cambridge Company with each line representing each division that reports to the vice president. An organization chart is a graphic display of reporting relationships in an organization, sometimes displaying position titles and position holders connected by lines.
Answer:
True.
Explanation:
An organization chart shows the reporting in order or hierarchy. This is true because the vice president will only be reported by the three division representatives and below those representatives we can find further two lines of departments which will report to the divisional heads.
Thank You.
Goodluck
The World Income Appreciation Fund has current assets with a market value of $10.1 billion and has 440 million shares outstanding. What is the net asset value (NAV) for this mutual fund?
Answer:
$22.95
Explanation:
Given that,
Market value of the current assets = $10.1 billion
Number of shares outstanding = 440 million
The net asset value is determined by the ratio of Market value of the current assets and Number of shares outstanding.
Net asset value (NAV) for this mutual fund:
= Market value of the current assets ÷ Number of shares outstanding
= $10,100,000,000 ÷ 440,000,000
= $22.95
Therefore, the net asset value (NAV) for this mutual fund is $22.95.
The rule of 70 applies in any growth-rate application. Let’s say you have $3500.00 in savings and you have three alternatives for investing these funds. How many years would it take to double your savings in each of the following three accounts? In all cases, give your answers to two decimals.a. a savings account earning 0.50% interest b. a U.S. Treasury bond earning 3.50% interest c. a stock market mutual fund earning 8.00% interest years years years
Answer:
(a)140 years
(b)20 years
(c)8.75 years
Explanation:
The Rule of 70 is used in accounting to estimate the duration(number of years) it will take for the initial investment (P) to double in value given a particular interest rate (r) and an annual compounding period.
The Formula for the Rule of 70 is:
[tex]\text{Number of Years to Double}=\frac{70}{\text{Annual Rate of Return}}[/tex]
(a)Savings account earning 0.50% interest
[tex]\text{Number of Years to Double}=\frac{70}{0.5}=140 years[/tex]
(b)A U.S. Treasury bond earning 3.50% interest
[tex]\text{Number of Years to Double}=\frac{70}{3.5}=20 years[/tex]
(c)A stock market mutual fund earning 8.00% interest
[tex]\text{Number of Years to Double}=\frac{70}{8}=8.75 years[/tex]
How is foreign exchange management (FEM)the core issue in international finance and how does it affect balance of payment
Answer:
Foreign Exchange Management (FEM) is the core issue in international finance in that it helps facilitate external trade and maintenance of foreign exchange.
FEM is a tool used by Central bank to adjust currency flows to offset the international exchange of funds thereby effecting balance of payment equilibrium.
Explanation:
Foreign exchange management is a protective measure against the adverse impact of unanticipated changes in exchange rates. It is at the core of International Finance.
The central bank liaises with the International Monetary Fund, World Bank and other financial bodies to hedge against these unanticipated changes as a way of stabilizing exchange rates.
The balance of payments does not impact the exchange rate in a fixed-rate system because central banks adjust currency flows to offset the international exchange of funds.
Bay City uses the purchases method to account for supplies. At the beginning of the year the city had no supplies on hand. During the year the city purchased $600,000 of supplies for use by activities accounted for in the general fund. The city used $400,000 of those supplies during the year. Assuming that the city maintains its books and records in a manner that facilitates the preparation of its fund financial statements, at fiscal year-end the appropriate account balances related to supplies expenditures and supplies inventory would be Expenditures $600,000; Supplies inventory $200,000 Expenditures $600,000; Supplies inventory $0 Expenditures $400,000; Supplies inventory $200,000 Expenditures $400,000; Supplies inventory $0
Answer:
Expenditures $600,000; Supplies inventory $200,000
Explanation:
Expenditures $600,000; Supplies inventory $200,000
Purchased supplies for use - Part of the supplies used.
$600,000-$400,000=$200,000
If at the beginning of the year the city had no supplies on hand in which it purchased $600,000 of supplies for use by activities accounted for in the general fund that means city used $400,000 out of the $600,000 of those supplies during the year in which the balance left of those supplies is $200,000 which will be the supplies inventory while the Purchased supplies for use of $600,000 will be the expenditure .
Suppose an unexpected freeze in Florida destroys 20% of the Florida orange crop. Using supply and demand theory answer each of the following. Be sure to explicitly state your assumptions in your response.a. What are the likely effects of the crop damage on Florida orange prices and output levels?b. How will the freeze affect the equilibrium price of California oranges?
Suppose an unexpected freeze in Florida destroys 20% of the Florida orange crop.-This results in the shift of the supply curve to the left resulting in an increase in the prices.
Explanation:
Suppose an unexpected freeze in Florida destroys 20% of the Florida orange crop.
a) What are the likely effects of the crop damage on Florida orange prices and output levels?
As a consequence of the unexpected freeze in Florida , the orange crops will get damaged. This will result in a decline in the supply of oranges in the market. Which will lead to a shift in the supply curve of orange to the left, resulting in an increase in the price of oranges, and a decline in its output level or the quantity sold/supplied in the market
b) How will the freeze affect the equilibrium price of California oranges
Due to the unexpected freeze the supply curve of the California oranges will shift to the left,which will result in an increase in the price of the California oranges(In this case the quantity demanded is more than the quantity supplied/sold)
A sudden 20% decrease in the supply of Florida oranges due to freeze damage will drive up prices and lower output levels. Additionally, increased demand could also raise the prices of California oranges.
Explanation:The supply and demand theory is crucial in this scenario. The freeze damage can be viewed as a sudden decrease in the supply of Florida oranges. Given the demand for oranges remains the same, a reduction in supply will lead to higher prices for Florida oranges, assuming the price elasticity of demand for the product is less than one (inelastic demand). Also, the output level, in terms of quantity of oranges, will certainly drop due to the 20% loss in crop.
Regarding California oranges, assuming they are substitutable goods for Florida oranges, the decreased supply and heightened price of Florida oranges could shift demand to California oranges. This added demand could push up the equilibrium price for California oranges.
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Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for distribution to its retail sales department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some fillets are spoiled due to nondetectible defects. Inspection occurs when units are 100% completed. Spoiled fillets generally constitute 3.5% of the good fillets.
Data for April 2013 are as follows:
WIP, beginning inventory 4/1/2013 40,000 fillets
Direct materials (100% complete)
Conversion costs (50% complete)
Started during April 75,000 fillets
Completed and transferred out 4/31/2013 100,000 fillets
WIP, ending inventory 431/2013 8,000 fillets
Direct materials (100% complete)
Conversion costs (20% complete)
Costs for April:
WIP, beginning Inventory:
Direct materials $55,000
Conversion costs 40,000
Direct materials added 145,100
Conversion costs added 188,065
Required:
a) What is the number of total spoiled units? Normal spoilage totals? Abnormal spoilage totals?
b) Compute the equivalent units for both direct materials and conversion costs using the weigh average method of process costing? What is the total cost per equivalent unit? Show computations.
c) How much costs are assigned to cost of goods manufactured and cost of ending inventory of work in process? Show computations.
Answer:
Total spoiled units = 7000
Normal spoilage total = 3500
Abnormal spoilage total = 3500
Total cost per equivalent unit = $3.80
Cost of goods manufactured = $224,000
Ending WIP = $201,165
Explanation:
Kindly check attached pictures
Final answer:
The solution involves calculating normal spoilage based on the percentage provided, computing equivalent units for direct materials and conversion costs using the weighted average method, and assigning costs to manufactured goods and ending inventory based on these computations.
Explanation:
To address the question regarding Fish Fillet Incorporated and its production process, let's break down the inquiry into parts for clarity. The problem involves calculating spoiled units, determining normal and abnormal spoilage, computing equivalent units using the weighted average method, and finally assigning costs to goods manufactured and ending inventory of work in process.
a) Spoiled Units Calculation
Given that spoiled fillets constitute 3.5% of the good fillets and 100,000 fillets were completed and transferred out, we can calculate the normal spoilage totals. Assuming all spoilage is considered normal, the calculation would be (100,000 / (1 - 0.035)) * 0.035 to find the spoiled units. However, without knowing the exact total produced before spoilage, a precise number for spoiled units cannot be readily provided without assumptions.
b) Equivalent Units for Direct Materials and Conversion Costs
To compute equivalent units for both direct materials and conversion costs using the weighted average method, one must account for the percentage completion of beginning work in process, units introduced and completed during the period, and the ending inventory's stage of completion. Direct materials are added at the beginning, making their equivalent units the total units started plus beginning inventory. Conversion costs, incurred evenly, would be calculated by weighting the percentage completion.
c) Cost Assignment to Goods Manufactured and Ending Inventory
The costs are assigned based on the equivalent units computed for direct materials and conversion costs, considering the costs added during the period and the beginning inventory costs. The total cost per equivalent unit would guide the allocation to the cost of goods manufactured and the ending inventory.
onas is the only history tutor in his town. He has three potential customers. Xavier is willingto pay $70 for tutoring, Yasha is willing to pay $50 and Zander is willing to pay $25. SupposeJonas has to charge the same price to each of his customers, and each student he tutors costshim $15 (which mostly consists of the opportunity cost of his time). What price will Jonasset, and what will be the consumer surplus, producer surplus, and deadweight loss? AssumeJonas has no fixed costs to operate his tutoring bu
;
Answer:
a. $25
b. & c. $45, $25, $0
Explanation:
a. To charge the same price to each of his customers, Jonas will charge the least amount= $25 (offered by Zander)
b. Consumer surplus
I) For Xavier = $70 - $25 = $45
II) For Yasha = $50 - $25 = $25
III) For Zander = $25 - $25 = $0
c. Producer Surplus
I) For Xavier = $70 - $25 = $45
II) For Yasha = $50 - $25 = $25
III) For Zander = $25 - $25 = $0
A company pays $19,000 per period to rent a small building that has 10,400 square feet of space. This cost is allocated to the company's three departments on the basis of the amount of the space occupied by each. Department One occupies 2,080 square feet of floor space, Department Two occupies 3,120 square feet of floor space, and Department Three occupies 5,200 square feet of floor space. If the rent is allocated based on the total square footage of the space, Department One should be charged rent expense for the period of:
Answer:
Rent charged on department one = $3,800
Explanation:
As per the data given in the question,
Department Square Feet
1 2,080
2 3,120
3 5,200
Total space 10,400
If rent is allocated on the basis of total square footage of space then
Rent of small building = $19,000 per period
Rent charged on Department one = (2,080 feet ÷ 10,400 feet) × $19,000
= $3,800
Why might fiscal stimulus crowd out investment? Fiscal stimulus that increases an existing government budget deficit ______ loanable funds, which ______ investment. A. decreases the demand for; decreases the real interest rate and increases B. increases the demand for; decreases the real interest rate and increases C. increases the demand for; increases the real interest rate and decreases D. decreases the supply of; increases the real interest rate and decreases
Answer:
C. increases the demand for; increases the real interest rate and decreases
Explanation:
Market congestion is an event that occurs when government involvement in one sector significantly affects the rest of the market, the supply or demand side of the market. A type of expansionary economic policy is often discussed when the private sector reduces investment costs. Government spending "out" investments because it seeks more borrowable funds and increases interest rates and therefore reduces investment spending. This basic analysis has been extended to multiple channels, which can change the overall output very little or very little.The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $30 comma 00030,000 for installation and will have an estimated economic life of 1212 years and a $2 comma 0002,000 MV at that time. It is estimated that annual expenses will average $16 comma 00016,000 per year. The defender has a present BV of $6 comma 0006,000 and a present MV of $40004000. Data for the defender for the next three years are given below. Using a before-tax interest rate of 1515% per year, make a comparison to determine whether it is economical to make the replacement now.
Answer:
During the first year, the marginal cost equals approximately the minimum EUAC cost. This is why the minimum cost of EUAC to maintain the defender throughout the year is $21,000. Since the minimum EUAC cost to maintain the defender the first year is less than the minimum EUAC cost to the challenger, the defender should not be substituted. This means, it is not economically feasible to make the replacement at this time.
Explanation:
According to the exercise, it is necessary to evaluate to know if it is economic to replace the defender by the challenger. For the calculation, the defender's information is: the defender's market value up to $3000. The expenses are $20000. The information regarding the challenger is: the installation cost $30000, the annual expenses $ 16000, the surrender value $ 2000, the economic life is 12 years, and the interest rate before taxes is 15%.
The minimum EUAC for the challenger is equal to:
[tex]M_{EUAC} =installation-cost(A/P,i,n)+annual-expenses-salvage-value(A/F,i,n)\\M_{EUAC}=30000(A/P,15percent,12)+16000-2000(A/F,15percent,12)\\M_{EUAC}=(30000*0.1845)+16000-(2000*0.0345)=21466[/tex]
The minimal cost is equal to:
[tex]M_{cost} =loss-in-marker-value-during-first-year+expenses-during-first-year\\M_{cost}=1000+20000=21000[/tex]