Answer:
d. A debit to Work-in-Process Inventory, Finishing Department of $140,000.
Explanation:
Cost of unit transferred = $4 x 35,000 = $140,000
Cost incurred by mixing department is $4 which so the transfer of cost from mixing department to finishing department will be $140,000 for 35000 units. This cost will be recorded in the work in process inventory account of finishing department. As we know that WIP account has debit nature so same entry will be done to record an expense incurred in mixing department.
DPS Calculation Weston Corporation just paid a dividend of $1.00 a share (i.e., ). The dividend is expected to grow 12% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years?
Answer:
The correct answer for 1st year is $1.12, 2nd year is $1.25, 3rd year is $1.40, 4th year is $1.48 and 5th year is $1.55.
Explanation:
According to the scenario, the given data are as follows:
Dividend for beginning = $1.00
Growth rate for 3 year = 12%
For 4th and 5th year = 5%
So, we can calculate the dividend per share for each year by using following formula:
Dividend = Beginning dividend × (1 + Growth percentage)
So, by putting the value we get,
Dividend for 1st year = $1 × (1+12%)
= $1 × 1.12
= $1.12
Dividend for 2nd year = $1.12 × (1+12%)
= $1.12 × 1.12
= $1.25
Dividend for 3rd year = $1.25 × (1+12%)
= $1.25 × 1.12
= $1.40
Dividend for 4th year = $1.40 × (1+5%)
= $1.40 × 1.05
= $1.48
Dividend for 5th year = $1.48 × (1+5%)
= $1.48 × 1.05
= $1.55
he constant dividend growth model: I. assumes that dividends increase at a constant rate forever. II. can be used to compute a stock price at any point of time. III. states that the market price of a stock is only affected by the amount of the dividend. IV. considers capital gains but ignores the dividend yield.
Answer:
The correct answer is letter "D": I and II only.
Explanation:
The Constant Dividend Growth model, also known as the Gordon Growth Model (named after Myron J. Gordon), is used to calculate the intrinsic value of a stock at any given point in time, based on the stock's expected future dividends. Investors and analysts use it frequently to compare the expected stock value to the real market price. Analysts interpret the difference between the two prices as proof that the stock could be below market value or overvalued.
The Constant Dividend Growth model assumes that the dividends grow at a constant rate for undetermined periods of time.
A perfectly elastic demand curve a. Is a horizontal line parallel to the x axis b. Has an elasticity of demand between 0 and 1 c. Is the demand curve of a product that usually has no substitutes d. None of the above
Answer:
a. Is a horizontal line parallel to the x axis
Explanation:
The perfectly elastic demand curve is a demand curve that is horizontal to the X-axis. Moreover, there is a fixed price but the quantity demanded is changing at the same price.
And we already know that The price and the quantity demanded are inversely proportional to each other. It shows a negative relationship that means if the price is increased, the quantity demanded is decreased and vice versa
Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will administer it. As you’ve committed to fund a $15,000 scholarship every year beginning one year from tomorrow, you’ll want to set aside the money for the scholarship immediately. At tomorrow’s meeting with your grandfather and the bank’s representative, you will need to deposit (rounded to the nearest whole dollar) so that you can fund the scholarship forever, assuming that the account will earn 4.50% per annum every year.
Answer: The correct answer is $333,333.33
Explanation: Perpetuity is a cashflow that is payable or receivable forever.
In calculating the present value of a Perpetuity, the cash flow will be divided by the rate.
That is $15,000/ 4.5%
=$15,000/ 0.045
=$333,333.33
The money to be set aside now to be able to pay $15,000 every year is $333,333.33
Bronze Company's sales forecast for April is 12,000 units, for May is 22,000 units, and for June is 25,000 units. Sales totaled 10,000 units in March. The finished goods inventory for March was 2,000 units. End-of-month finished goods inventory levels are planned to be equal to 15 percent of the next month's planned sales. The planned ending inventory of finished goods for May is:
A. 3,750 units.
B. 2,470 units.
C. 5,640 units.
D. 6,320 units.
Answer:
A. 3,750 units.
Explanation:
Since the inventory level is planned in such a way that the ending inventory of finished goods for a specific month is always equal to 15% of the units which will be sold during the next month, therefore, the ending inventory for month of May will be equal to the 15% of units which will be sold in the month of the June and shall be determined as follow:
May Ending inventory=0.15*units to be sold in June
=0.15*25,000
=3,750 units
So based on the above discussion and calculations, the answer is A. 3,750 units.
"You can afford car payments of $265 a month for three years. The interest rate is 7.5 percent, compounded monthly. How much can you afford to borrow to buy a car
Given Information:
Monthly payment = $265
Interest rate = 7.5 %
time period = 3 years
Required Information:
Annual Present Value = ?
Answer:
Annual Present Value = $8,519
Explanation:
Monthly interest rate = 7.5/12 = 0.625 %
n = 12*3 = 36
Annual Present Value = $265 (1 - [1/(1+0.00625)³⁶]/0.00625)
Annual Present Value = $265 (32.147)
Annual Present Value = $8518.95 ≅ $8519
Therefore, you can afford to borrow $8,519 to buy a car.
Answer:
$8519.19
Explanation:
They used the future value discount formula of annuity
A=P(1-(1/1+r/n)^nt)/
( r/n )
Where
A=Final amount
P=initial amount
r=interest rate
n=number of times the interest will be paid
t=number of times the annuity will last
A =265(1-(1/1 + r/n)^12*3
Divide by
(0.075/12)
Equals
A=265*32.1479
A=$8519.19
The following events occur for Morris Engineering during 2021 and 2022, its first two years of operations. February 2, 2021 Provide services to customers on account for $26,000. July 23, 2021 Receive $17,000 from customers on account. December 31, 2021 Estimate that 20% of uncollected accounts will not be received. April 12, 2022 Provide services to customers on account for $39,000. June 28, 2022 Receive $6,000 from customers for services provided in 2021. September 13, 2022 Write off the remaining amounts owed from services provided in 2021. October 5, 2022 Receive $35,000 from customers for services provided in 2022. December 31, 2022 Estimate that 20% of uncollected accounts will not be received.
Answer:
See explanation section.
Explanation:
Requirement 1
February 2 2021 Account receivable debit $26,000
Service revenue credit $26,000
Note: To record the sale on the account.
July 23, 2021 Cash debit $17,000
Account receivable credit $17,000
Note: To record the receive from customers.
December 31, 2021 Bad debt expense debit $1,800
Allowance for Bad debt credit $1,800
Note: [($26,000 - $17,000) × 20%] = $1,800.
Assuming the company uses the allowance method.
Requirement 2
April 12, 2022 Account receivable debit $39,000
service revenue credit $39,000
Note: To record the sale on the account.
June 28, 2022 Cash debit $6,000
Account receivable credit $6,000
Note: To record the receive from customers.
September 13, 2022 Bad debt expense debit $3,000
Account receivable credit $3,000
Calculation: Remaining amount that cannot be received = ($26,000 - $17,000 - $6,000) = $3,000
October 5, 2022 Cash debit $35,000
Account receivable credit $35,000
Note: To record the receive from customers.
December 31, 2021 Bad debt expense debit $800
Allowance for Bad debt credit $800
Calculation: [($39,000 - $35,000) × 20%] = $800
The subject of this question is Business and it is appropriate for High School level. Morris Engineering engages in providing services to customers on account, receiving payments, estimating uncollected accounts, and writing off remaining amounts owed. These events are related to the accounting and financial management aspects of the business.
Explanation:The subject of this question is Business and it is appropriate for High School level.
Throughout the given events, Morris Engineering engages in providing services to customers on account, receiving payments from customers, estimating uncollected accounts, writing off remaining amounts owed, and estimating future uncollected accounts. These events are related to the accounting and financial management aspects of the business.
Keywords: business, accounting, customers, payments, uncollected accounts, financial management
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foreign project in Hungary and another in Japan had the same perceived value from the U.S. parent's perspective. Then, the exchange rate expectations were revised, downward for the value of the Hungarian forint and upward for the Japanese yen. The break-even salvage value for the project in Japan would now be ____ from the parent's perspective.
Answer:
The correct answer is higher than that for the Hungarian project.
Explanation:
The break-even point is defined as that point or level of sales in which the total income is equal to the total costs and, therefore, no accounting profit or loss is generated in the operation. It is a mechanism for determining the point at which sales will exactly cover total costs. The breakeven point is also known as the Cost-Volume-Profit ratio, and emphasizes the different factors that affect profit. The break-even point allows determining the minimum number of units that must be sold or the minimum value of sales to operate without losses. The analysis of the break-even point answers the question related to the decisions that must be made about the planning of the profits of a company or an investment project. In this regard, it is convenient to say that the study of any investment project must include the calculation of the sales levels (either in units or in pesos) that are required for reach operational balance.
Candle Shop, Inc. has net sales on account of $1,700,000. The average net accounts receivable are $630,000. Calculate the days' sales in receivables. (Use 365 days for any calculations. Round any intermediate calculations and your final answer to two decimal places.) 328.50 days 365.00 days 135.19 days 2.70 days
The days' sales in receivables or the average collection period for Candle Shop, Inc. is approximately 135.19 days. This is calculated by dividing the average net accounts receivable by net sales on account and multiplying the result by the number of days in a year.
Explanation:The days' sales in receivables, also known as 'average collection period', is a measure of the average number of days it takes for a company to collect its receivables after a sale has been made. It's a good indicator of how effectively a company is managing its accounts receivable. In this case, we will divide the average net accounts receivable by the net sales on account and multiply the result by 365.
Using the given figures:
Days' sales in receivables = (Average Net Accounts Receivable / Net Sales on Account) x 365
= ( $630,000 / $1,700,000 ) x 365 = 135.19 days.
So, the Candle Shop, Inc.'s average collection period is approximately 135.19 days.
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The marginal productivity theory states that if a firm operates in a perfectly competitive factor market, it pays each factor of production its marginal revenue product. However, this theory may fail to hold if factor markets are not competitive.
One circumstance under which factor markets may fail to be competitive is if there is imperfect information.
Which of the following are ways in which firms seek to overcome information problems? Select all that apply.
a) Only hiring workers who have earned good grades in college.
b) Always hiring from the outside to avoid being accused of discrimination.
c) Promoting workers from within the company who have shown themselves to be productive, rather than hiring from outside.
Answer:
The answer is A.
Explanation:
A perfectly competitive factor market can be defined as a perfectly competitive market where all the products produced by different manufacturers are the same, the product cost and the price of the product are known to all parties etc.
Imperfect information in economics refers to a situation where the information among different parties such as manufacturer, consumer etc is not equal and balanced.
The correct answer among the given options is A, hiring workers that have earned good grades in college to make up for the information imbalance and overcome the imperfect information problem.
I hope this answer helps.
To overcome imperfect information in factor markets, firms may rely on academic achievements as indicators of productivity or promote from within to assess worker capabilities based on observed performance.
Explanation:The marginal productivity theory suggests that firms operating in a perfectly competitive factor market pay each factor of production its marginal revenue product. However, when these markets are not perfectly competitive, firms may face imperfect information, resulting in various strategies to overcome this issue.
Firms seek to overcome information problems through different methods, such as:
Only hiring workers who have earned good grades in college as a signal of their potential productivity.Promoting workers from within the company who have proven their productivity, rather than hiring from outside, which can also help to reduce the imperfect information about worker capabilities.These strategies help firms to approximate the marginal productivity of potential and current employees, thereby assisting in making informed hiring and promotion decisions.
_____ is characterized by intangible outputs. Group of answer choices Service technology Mass production Large-batch production Small-batch production Continuous process production
Answer:
The correct answer is letter "A": Service technology.
Explanation:
Service technology is referred to as the customer service support companies provide using online-based applications where consumers can submit requests, file claims or ask for general inquiries. As the interaction between organizations and their clients is based on chat software interactions, it is considered intangible. However, it does not imply the outcome will be different or not beneficial for consumers.
Service technology allows fastening customer service assistance time.
Which of the following is the most direct and professional revision of the second sentence? The new conference system would allow them to conduct a remote discussion of the budget with colleagues in Chicago. The new conference system would allow them to discuss the budget remotely with colleagues in Chicago. It would allow them to discuss the budget with the whole group.
The most direct and professional revision of the sentence is: "The new conference system would allow them to discuss the budget remotely with colleagues in Chicago." The revision is concise and specific.
Explanation:The most direct and professional revision of the second sentence would be: "The new conference system would allow them to discuss the budget remotely with colleagues in Chicago." This revision is more concise and precise, using the word "remotely" to indicate a remote discussion. The phrase "with colleagues in Chicago" provides specific information about who they would be discussing the budget with.
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What is the yield to maturity, to the nearest percent, for the following bond: current price is $928, coupon rate is 10 percent, $1,000 par value, interest paid annually, fifteen years to maturity
Answer:
Yield to maturity 10.87%
Explanation:
Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.
Face value = F = $1,000
Coupon payment = $1,000 x 10% = $100
Selling price = P = $928
Number of payment = n = 15 year
The coupon rate can be calculated using following formula
Yield to maturity = [ $100 + ( $1,000 - $928 ) / 15 ] / [ ( $1,000 + $928 ) / 2 ]
Yield to maturity = $104.8 / $964
Yield to maturity = 0.1087 = 10.87%
A company manufactures 1,200 cylinders per day, each requiring a pressure gauge. The purchase price of the pressure gauge is $3.20. The company controller estimated annual holding costs at 25 percent per year, while the cost of placing an order was estimated at $55.00. Assuming that the plant operates 45 weeks per year, the EOQ for the pressure gauge is:
a.3,000 units
b.2,929 units.
c.2,872 units.
d.2,725 units.
e.1,200 units.
Answer:
Explanation:
Given weekly demand = 1200 units
Number of weeks per year = 45
Annual demand (D) = weekly demand × number of weeks per year = 1200 × 45 = 54,000 units
Ordering cost(C) = $55
Holding cost (H) = 25% of purchase price = 25% of $3.20 = 0.25*$3.20 = $0.8
EOQ = √(2DC/H) = √[(2 × 54,000 × 55) / 0.8] = √(5,940,000/0.8) = √7,425,000 = 2,725 units
Answer is D - 2,725 units
Answer:
Option D is correct.
Economic order quantity = 2725 units.
Explanation:
We will use the following variables:
Q = Quantity ordered/made
EOQ = the optimal order Quantity
D = annual Demand over the year
P = unit Production cost
S = cost of setting up a production run, regardless of the number of units in the production run (fixed cost per production run), also the ordering cost for goods that are usually ordered.
H = cost to Hold one unit for a year in the warehouse.
It is important to note which variables are based on per-order and per-unit basis.
Total Cost, TC = PC + SC + HC
PC = P x D : Production Cost = unit Production cost × the annual Demand
SC = (D x S)/Q : Setting up Cost = (annual Demand) × (cost per production setup)/(Order Quantity)
HC = (H x Q)/2: Holding Cost = (annual unit Holding cost × order Quantity)/2 (it ks divided by 2 because throughout the year, the warehouse is half full on average).
So TC = PC + SC + HC = (P x D) + ((D x S)/Q) + ((H x Q)/2) = PD + (DS/Q) + HQ/2
To obtain the optimal order quantity, EOQ, that minimizes TC, at the minimum TC, dTC/dQ = 0
dTC/dQ = (H/2) – (D x S)/(Q²) = 0
(H/2) – (D x S)/(Q²) = 0
Solving for Q, which is EOQ at this point.
(EOQ)² = 2DS/H
EOQ = √(2DS/H)
D = annual Demand for the item, over the year = 1200 × 45 = 54000 units
S = cost of setting up a production run, regardless of the number of units in the production run (fixed cost per production run) or for one order = $55
H = Holding cost = 25% of $3.2 = $0.8
EOQ = √(2×54000×55/0.8) = 2725 units
Country X has currency C1 and Country Y has currency C2. The nominal exchange rate C2/C1 and GDP deflator P for Country X and P* for Country Y for various years is as follows: Year: 2010; nominal exchange rate: 0.58; P=1.88; P* =3.8. Year 2011; nominal exchange rate: 0.79; P=2.06; P*=3.88. Year: 2012; nominal exchange rate:0.95; P=2.16; P*=3.95. Year 2013; nominal exchange rate 1.13; P=2.22; P*=4.3. Assuming C1 is the domestic currency and the previous year is the base year, find the year in which the real exchange rate appreciation is greatest and calculate the percentage increase.
a)The Year=( )and percentage increase=?
b) Assuming C1 is the domestic currency, an increase in E will cause price of C2 in term of C1 to (?)
c) If the value of e decrease, given that E is increasing, then Country Y would be experiencing a (?) rate of inflation compared to Country X
d) if foreign goods are relatively less expensive compared to the domestic goods and assuming that the nominal exchange rate of the currencies is equity, then there is (?) in the real exchange rate.
The year with the greatest real exchange rate appreciation can be determined by calculating the real exchange rate for each year and identifying the year with the largest percentage increase from the previous year. An increase in E (nominal exchange rate) makes C2 more expensive in C1 terms. A decrease in e with an increase in E implies a higher inflation rate in Country Y.
Explanation:To find out when the real exchange rate appreciation is greatest between Country X and Country Y, we need to calculate the real exchange rate for each year and then find the percentage increase from the base year (previous year). The real exchange rate (R) can be calculated using the formula: R = (E x P) / P*, where E is the nominal exchange rate, P is the GDP deflator for Country X, and P* is the GDP deflator for Country Y. Comparing these would allow us to identify the year with the greatest real exchange rate appreciation.
For the other parts:
An increase in E, assuming C1 is the domestic currency, makes the foreign currency C2 more expensive in terms of C1.If the value of e (real exchange rate) decreases while E (nominal exchange rate) is increasing, this suggests that Country Y would be experiencing a higher rate of inflation compared to Country X.A decrease in the real exchange rate indicates that foreign goods are relatively less expensive compared to domestic goods, given that the nominal exchange rate is equitable.Learn more about Real Exchange Rate Appreciation here:https://brainly.com/question/15085637
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An investor considers investing $20,000 in the stock market. He believes that the probability is 0.20 that the economy will improve, 0.46 that it will stay the same, and 0.34 that it will deteriorate. Further, if the economy improves, he expects his investment to grow to $26,000, but it can also go down to $17,000 if the economy deteriorates. If the economy stays the same, his investment will stay at $20,000. What is the expected value of his investment?
Answer:
$20,180
Explanation:
The expected value (EV) refers to the future value of an investment that is being anticipated.
In probability distribution, EV of an investment is calculated by adding all the multiplications of each of the possible outcomes and the probability of occurrence of each of the outcome.
Therefore, the expected value of the investment of the investor can be calculated as follows:
EV of Investment = (0.20 × $26,000) + (0.46 × $20,000) + (0.34 × $17,000)
= $5,200 + $9,200 + $5,780
= $20,180.
Therefore, the expected value of his investment $20,180.
The expected value of the $20,000 investment, given the probabilities of economic improvement, stagnation, or deterioration, is calculated to be $20,800.
Explanation:The expected value of an investment is calculated by multiplying each possible outcome by its respective probability and summing the results. In this scenario, the investor expects his investment to grow to $26,000 with a probability of 0.20 if the economy improves, and it can decrease to $17,000 with a probability of 0.34 if the economy deteriorates.
If the economy stays the same, his investment remains at $20,000 with a probability of 0.46.
Using these probabilities and outcomes, the expected value is calculated as
(0.20 * $26,000) + (0.46 * $20,000) + (0.34 * $17,000) = $20,800.
McCann Co. has identified an investment project with the following cash flows.
Year Cash Flow
1 $860
2 1,210
3 1,470
4 1,625
a. If the discount rate is 11 percent, what is the present value of these cash flows?
b. What is the present value at 16 percent?
c. What is the present value at 30 percent?
Answer:
The present value at 11% is $3,902.13,$3,479.85 at 16% and $2,615.57 at 30%
Explanation:
The present value formula is given as :
PV=FV/(1+r)^n
Where FV is the future value of cash flows such as the ones given in the question
r is the rate of return at 11%,16% and 30%
n is the applicable time horizon relevant to each of the cash flow.
Find attached spreadsheet for detailed calculations.
Answer:
Present values @ 11%
Years Present Value
1 $775
2 $982
3 $1075
4 $1070
Present values @ 16%
Years Present Value
1 $741
2 $899
3 $942
4 $897
c.
Present values @ 30%
Years Present Value
1 $662
2 $716
3 $669
4 $569
Explanation:
Cash flows that will be received in future do not have same value as today, because if received today there is an opportunity to reinvest it and get some return. For this reason we calculate the present value of future cash flow.
Discounting method is used to calculate the present values. using following formula of discounting we calculate the PV.
PV = FV / ( 1 + r )^n
a.
Present values @ 11%
Years Cash Flows Discounting Present Value
1 $860 860 x ( 1 + 11%)^-1 $775
2 $1,210 1,210 x ( 1 + 11%)^-2 $982
3 $1,470 1,470 x ( 1 + 11%)^-3 $1075
4 $1,625 1,625 x ( 1 + 11%)^-4 $1070
b.
Present values @ 16%
Years Cash Flows Discounting Present Value
1 $860 860 x ( 1 + 16%)^-1 $741
2 $1,210 1,210 x ( 1 + 16%)^-2 $899
3 $1,470 1,470 x ( 1 + 16%)^-3 $942
4 $1,625 1,625 x ( 1 + 16%)^-4 $897
c.
Present values @ 30%
Years Cash Flows Discounting Present Value
1 $860 860 x ( 1 + 30%)^-1 $662
2 $1,210 1,210 x ( 1 + 30%)^-2 $716
3 $1,470 1,470 x ( 1 + 30%)^-3 $669
4 $1,625 1,625 x ( 1 + 30%)^-4 $569
As the discount rate increase the Present value of the cash flows decreases because of discounting factor.
Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight line basis since 2009, when it was acquired at a cost of 9 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit company over a total of six years rather thanf the nine year life being used to amortize its costs. The decision was made at the end of 2013 (before adjusting and closing entries).
Answer: debit amortization expense account $2.5million
Question:
Required: Prepare the appropriate adjusting entry for patent amortization in 2013 to reflect the revised estimate.
Explanation: Amortization is the deduction made every period to reflect the cost of an intangible asset such as patent and intellectual property.
When amortization uses a straight line method, which is usually the case in patents, we deduct equal usefulness over its useful life and deduct equal amounts every period.
The patent has already been amortized at an amount of $1 million ($9 million divided by 9 years) annually for 4 years (2009, 2010, 2011, 2012).
This leaves us with $5 million to be amortized ($9 million - $4 million ). However the useful life has been adjusted to 6 years instead of 9, so $5 million has to be amortized in 2 years, making the amount to be deducted $2.5million per year.
On December 31, 2013, we will debit amortization expense account $2.5million and credit the patent account with $2.5million
g Which of the following is produced when firms transform raw materials into a new product? A. Accessories B. Equipment C. Processed materials D. Maintenance products E. Specialized services
Answer: C
Processed materials
Explanation:
Processed materials are materials that have been refined or built from raw materials by humans. Processed products include, paper, steel and glass.
Exercise 4-5 In its first year of operations, Cullumber Company recognized $31,800 in service revenue, $6,600 of which was on account and still outstanding at year-end. The remaining $25,200 was received in cash from customers. The company incurred operating expenses of $17,100. Of these expenses, $12,830 were paid in cash;丰4,270 was still owed on account at year-end. In addition, Culumber prepaid $2,720 for insurance coverage that would not be used until the second year of operations.(a) Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting. Cash Basis Accrual Basis Net Income (b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
Answer with its Explanation:
PART A
Using The Cash Basis:
Net Income = Cash received - Cash paid
Net Income = $25,200 - $12,830 - $2720 = $9650
Using The Cash Basis:
Net Income = Revenue earned during the year - Expense incurred during the year
Net Income = $31,800 - $17,100 = $14,700
The insurance paid is not for the year as it relates to the coming year and must not be included in deducting the expenses.
PART B
Both of the methods provid useful informations provide useful insight of the case.
The cash basis tells about what actually the company possesses, from where the resources had flow inwards and where the company has spent its resources in cash amounts. The cash basis accounting doesn't tells the substance of the transaction because it all tells which expenses are actually been paid and what revenue has been received. The cash basis says that the revenue is the one that we have received and the expenses are the one that are paid in cash.
Accrual basis says that the company must recognize the earning and expenses when they are earned and when they are incurred respectively. The accrual basis tells the substance of the transaction. It tells what sales are related to the year and how much they have incurred in the year.
GDP does not count: Group of answer choices
the estimated value of homemaker production.
state and local government purchases.
spending for new homes.
changes in inventories.
Answer:
tththhr
Explanation:
GDP does not count: A. the estimated value of homemaker production.
What is GDP?GDP (Gross Domestic Product) is a measurement of a country's overall economic output which includes the value of all goods and services produced inside its boundaries.
Certain activities, however, such as the estimated value of homemaker output (unpaid household work), are often excluded from GDP calculations. This is due to the fact that GDP concentrates on market transactions and monetary values, but domestic work is not always immediately exchanged in markets.
Therefore the correct option is A.
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The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the: a. industry life-cycle stage. b. age of the market. c. standardized market price. d. degree of market segmentation. e. market trajectory.
Answer:
The correct answer is letter "D": degree of market segmentation.
Explanation:
Low-cost strategies consist of manufacturing products at the lowest cost and offering them to relatively lower prices than competitors attracting consumers' attention massively. A broad low-cost strategy implies reducing costs and increasing the market segmentation so more products are sold. A focus low-cost strategy refers to conducting a market segmentation but focusing on selling a lower-cost product specialized for one or a few sectors of the market.
Thus, the difference between the broad and focus low-cost strategy relies on their market segmentation.
The primary difference between broad low-cost and focus low-cost strategies in business is the degree of market segmentation targeted. Broad strategies aim for cost leadership across a wide market, while focus strategies concentrate on specific segments to serve them more efficiently.
Explanation:The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy lies in the degree of market segmentation they target. A broad low-cost strategy aims at achieving cost leadership across an entire market or industry, benefiting from economies of scale and attracting price-sensitive customers. In contrast, a focus low-cost strategy zeroes in on a specific market segment or niche, tailoring its operations to serve this segment at a lower cost or with unique product variations valued by the target audience. Such companies utilize market segmentation to maintain a competitive edge, understanding that each segment of buyers has different needs and price sensitivities.
While a broad strategy seeks to dominate the general market by minimizing costs, a focused approach sacrifices broad market participation for concentrated efforts on particular customer segments. This strategic choice often depends on a firm's assessment of the market, its resources, and its capability to serve segmented needs more efficiently than competitors. Moreover, it reflects an understanding that attempting to combine both low-cost leadership and product differentiation can leave a firm "stuck in the middle", unable to fully satisfy either the cost or differentiation segment adequately.
A supply chain management (SCM) system is an IT system that supports supply chain management activities by: a. helping decision makers compile useful information to identify and solve problems and make decisions. b. automating the tracking of inventory and information among business processes and across companies. c. collecting, storing, modifying, and retrieving the transactions of an organization. d. providing easy access to both internal and external information relevant to meeting the strategic goals of the organization
Answer:
The correct answer is letter "B": automating the tracking of inventory and information among business processes and across companies .
Explanation:
Supply Chain Management (SCM) comprises all the steps companies take from gathering raw materials until the delivery of a final good to consumers. In the process, several resources are used such as Information Technology (IT) systems which allow measuring numerically materials, components, labor hand and hours, and the necessary resources for the manufacturing company given a period.
Besides, IT systems are useful to keep track of the flow of the units being produced when they hit the warehouse shelves and when they leave the company for sale. This information is useful for the plant and its suppliers.
A SCM is a supply chain system that manages the flow of the goods and the services. They manage the flow and movement along with the storages of raw materials.
Work in progress and the inventory of the finished goods from origin to point of consumption. Thus being an IT-driven system supports the supply chain and manages the activities by automating the tracking of inventory and information of processes across companies.Hence the option B is correct.
Learn more about the is an IT system that supports SCM activities.
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Sunny Mountain Company will make 1920 snow blowers available when the unit price is $660. At a unit price of $820, they will market 5260 snow blowers. Find the equation relating the unit price of a snow blower to the quantity supplied if the relationship is known to be linear.
Answer:
P= $660 + $0.0479/sb *(Q-1920 sb )
Explanation:
since the relationship between unit price and quantity is linear the following equation applies
P = P₁ + (P₂-P₁)/(Q₂-Q₁)*(Q-Q₁)
where P is the price for any quantity Q , while 1 and 2 represent the reference points. Thus
at P₁ =$660 → Q₁= 1920 snow blowers
at P₂=$820→ Q₂= 5260 snow blowers
we get
P = $660 + ($820-$660 )/(5260 -1920 )*(Q-1920) = $660 + $0.0479/sb *(Q-1920 sb )
P= $660 + $0.0479/sb *(Q-1920 sb )
Note:
- We can verify from the original equation that for Q=Q₁
P = P₁ + (P₂-P₁)/(Q₂-Q₁)*(Q₁-Q₁) = P₁ + 0 = P₁
and for Q=Q₂
P = P₁ + (P₂-P₁)/(Q₂-Q₁)*(Q₂-Q₁) = P₁ + P₂ -P₁ = P₂
thus the equation is correct
Two countries, Foodland and Drinkland, produce food and drinks. In Foodland, one resource unit produces 20 tons of food and one resource unit produces 10 tons of drinks. In Drinkland, one resource unit produces 12 tons of food and one resource unit produces 24 tons of drinks.
Which of the following statements is true of the above scenario?
Select one:
a. Drinkland cannot trade with Foodland because trade is too expensive.
b. Foodland has a comparative advantage in producing drinks.
c. Foodland should stop producing food and just produce drinks.
d. Drinkland has an absolute advantage in producing drinks.
Answer:
d. Drinkland has an absolute advantage in producing drinks.
Explanation:
The absolute advantage is determined as the difference in production volume for the same quantity of resources. In the given situation, Drinkland can produce 24 tons of drink with one resource unit, while Foodland can produce 10 tons of drink with one resource unit. Therefore, Drinkland has an absolute advantage over Foodland in producing drinks of 14 tons of drink per resource unit.
The answer is d. Drinkland has an absolute advantage in producing drinks.
Answer:
. Drinkland has an absolute advantage in producing drinks
Explanation:
A country has absolute advantage in the production of a good or service If it produces more quantity of the good when compared with other countries.
Drinkland produces 24 drinks when compared to the 10 produced by foodland. Thus, Drinkland has an absolute advantage in the production of drinks.
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.
The comparative advantage of foodland in producing drinks is 2 and it is 0.5 in producing food.
The comparative advantage of drinkland in producing drinks is 0.5 and 2 in producing food.
Drinkland has a comparative advantage in the production of drinks and foodland has a comparative advantage in the production of food.
A country should specialise in the production of the good in which it has comparative advantage in its production.
I hope my answer helps you
Presented below are a number of independent situations.
For each individual situation, determine the amount that should be reported as cash.
1. Checking account balance $937,790; certificate of deposit $1,444,000; cash advance to subsidiary of $983,730; utility deposit paid to gas company $188.
Cash balance
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2. Checking account balance $514,570; an overdraft in special checking account at same bank as normal checking account of $18,300; cash held in a bond sinking fund $246,580; petty cash fund $308; coins and currency on hand $1,370.
Cash balance
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3. Checking account balance $617,620; postdated check from a customer $13,030; cash restricted due to maintaining compensating balance requirement of $117,680; certified check from customer $9,640; postage stamps on hand $625.
Cash balance
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4. Checking account balance at bank $46,220; money market balance at mutual fund (has checking privileges) $52,790; NSF check received from customer $859.
Cash balance
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5. Checking account balance $716,200; cash restricted for future plant expansion $517,960; short-term Treasury bills $190,700; cash advance received from customer $937 (not included in checking account balance); cash advance of $7,840 to company executive, payable on demand; refundable deposit of $29,700 paid to federal government to guarantee performance on construction contract.
Cash balance
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Answer / Explanation:
(1) Cash balance of $937,790. Only the checking account balance should be reported as cash. The certificates of deposit of $1,444,000 should be reported as a temporary investment, the cash advance to subsidiary of $983,730 should be reported as a receivable, and the utility deposit of $188 should be identified as a receivable from the gas company.
(2) Cash balance is $584,650 computed as follows:
Checking account balance $514, 570
Overdraft (18,300)
Petty cash 308
Coin and currency 1,370
$534, 548
Cash held in a bond sinking fund is restricted. Assuming that the bonds are non current, the restricted cash is also reported as non current.
(3) Cash balance is $617, 620 computed as follows:
Checking account balance $617, 620
Certified check from customer 9, 640
$627, 260
The post dated check of $13,030 should be reported as a receivable. Cash restricted due to compensating balance should be described in a note indicating the type of arrangement and amount. Postage stamps on hand are reported as part of office supplies inventory or prepaid expenses.
(4) Checking account balance $46,220
Money market mutual fund 52, $790
$99, 010
The NSF check received from customer should be reported as a receivable.
(5) Cash balance is $700,900 computed as follows:
Checking account balance $716,200
Cash advance received from customer 937
$717, 137
Cash restricted for future plant expansion of $517,960 should be reported as a non current asset. Short-term treasury bills of $190,700 should be reported as a temporary investment. Cash advance received from customer of $937 should also be reported as a liability; cash advance of $7,840 to company executive should be reported as a receivable; refundable deposit of $29,700 paid to federal government should be reported as a receivable.
On the same day, a customer buys 100 shares of ABC at $40 and sells short 100 shares of XYZ at $50. The customer then buys 1 ABC Jan 40 put @ $4 and 1 XYZ Jan 50 @ $5. XYZ rises to $60 and the customer exercises the call. ABC falls to $25 and the customer exercises the put. The net gain or loss on all transactions is:
a. $500 loss
b. $900 gain
c. $900 loss
d. breakeven
Answer:
C) $900 loss
Explanation:
The customer shorts stock because he thinks the market for ABC will go down. However, he also wants to protect himself from unlimited loss potential if the market should rise, so he buys a call which gives the right to buy stock at the strike price. Here, the market goes up suddenly, and the customer exercise the call. The stock that was sold originally for $40 is purchased for $50 for a 1 point loss on the stock. Since $9 was paid in premiums, the total loss is 9 points or $900 for the 100 shares. Therefore, the net loss on all the transaction is $900. The customer lost $500 premium for call lost and $400 premium for the put lost.
According to its Form 10-K, Macrosoft recorded bad debt expense of $100 and there were no bad debt recoveries during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.) Required: 1. What amount of bad debts was written off during the current year?
Answer: This question is incomplete. There should be information on the opening balance and closing balance of allowance for bad debt. See below guidance to solve the question.
Explanation: Typically, account receivable is shown as net of allowance for bad debt. In the question above, there would be an opening balance (for preceding year) and closing balance (for current year) of the allowance for bad debt.
If the information above are present, the movement schedule will be: opening balance + bad debt expense - bad debt written off = closing balance.
To get the bad debt written off, you need to change the subject of the formula and rewrite the equation as: opening balance + bad debt expense - closing balance = bad debt written off. Substituting with those figures would give you the bad debts written off amount required.
Recently, our managers have suggested making a variety of changes. Which of the following changes should not be implemented if we want to achieve a high level of relational coordination?" Check all that apply.
A. Provide employees with training on the technical aspects of their jobs and in negotiating skills so they can win in conflict situations.
B. Redesign office floorplans to include more private offices so employees have quiet time for strategic thinking.
C. Give frontline supervisors narrower spans of control so they have time to coach and mentor their employees.
D. Write job descriptions so they outline very specific tasks and reward each employee based on how well they achieve their designated tasks.
Answer:
Options A, B & D
Explanation:
Relational coordination refers to integration of tasks and better synchronization of activities between employees.
The process relates to inter linking tasks and communication for better processing and efficient performance.
In the context of the given case,
Providing skills to employees so as they win in conflicting situations rather than resolving them would lead to lower level of relational coordination.
Similarly, by providing private offices would reduce the level of coordination between employees.
Assigning specific tasks and laying out job description again would lead to reduced coordination and integration of activities.
The changes that should not be implemented should be
When the employees are providing the training.When the floor plans of the office are redesigned.And when the job descriptions are written.Options A, B & D is considered.
What is relational coordination?It means the integration of tasks so that the synchronization of activities between employees could be done in a better way. In this, the tasks and the communications are inter-connected so that it provides efficient performance.
Therefore, we can conclude that Options A, B & D is considered.
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Goods and services are scarce because: a. they are produced using scarce resources. b. they are produced by firms that seek profits. c. firms keep production low in order to earn higher profits. d. the government wants to maintain its power over the economy. e. people are greedy.
Answer:
The correct answer is letter "A": they are produced using scarce resources.
Explanation:
Scarcity is the basic economic problem by which people have unlimited needs but rely on limited resources to fulfill them. Scarcity pushes individuals and organizations to allocate their resources efficiently to maximize their benefits. Trade-offs are the results of scarcity since people must give up on the satisfaction of part of some of their needs so others can be fulfilled.