Answer:
See explanation section
Explanation:
Req. A & B
If there is an increase in the net income over the year, the company is in profitability condition. As Omega industries are getting increased net income, it suggests their profitability.
EVM or enterprise value multiplier allows a company to compare the capital structure that the company uses. It is commonly used for valuing a business.
Req. C, D & E
In a financial plan, if the sales increase, it should be because of increasing working capital and fixed assets. We know, additional assets can generate more revenues.
A firm can collect approximately 8% of its annual sales at any given time. It can be found through the following way-
since the days' sales in receivables for 30 days in a year, the percentage of annual sales = (30 ÷ 365) × 100 = 8.22% or 8%
The manager of Dukey’s Shoe Station estimates operating costs for the year will include $360,000 in fixed costs.
Required:
a. Find the break-even point in sales dollars with a contribution margin ratio of 40 percent.
b. Find the break-even point in sales dollars with a contribution margin ratio of 25 percent.
c. Find the sales dollars required to generate a profit of $100,000 for the year assuming a contribution margin ratio of 40 percent.
Answer:
(a) $900,000
(b) $1,440,000
(c) $1,150,000
Explanation:
a) Break-even point($):
= Fixed cost ÷ Contribution Margin ratio
= $360,000 ÷ 0.40
= $900,000
b)Break-even point($):
= Fixed cost ÷ Contribution Margin ratio
= $360,000 ÷ 0.25
= $1,440,000
C)Target sales ($):
= [Fixed cost + desired profit ] ÷ Contribution Margin ratio
= [$360,000 + $100,000] ÷ 0.40
= $ 1,150,000
Using the break-even point formula, the sales required for Dukey’s Shoe Station to cover fixed costs with a 40% contribution margin is $900,000, $1,440,000 with a 25% contribution, and $1,150,000 to achieve a profit of $100,000 with a 40% contribution margin.
Explanation:This problem is solved by using the break-even point formula in sales dollars which is the Fixed Costs / Contribution Margin Ratio.
To find the break-even point in sales dollars with a contribution margin ratio of 40 percent, the calculation would be $360,000 / 0.40 = $900,000. So, Dukey’s Shoe Station would have to make $900,000 in sales to cover the fixed costs.The break-even point in sales dollars with a contribution margin ratio of 25 percent is $360,000 / 0.25 = $1,440,000. This means the company needs to make $1,440,000 in sales to break even.To find the sales dollars required to generate a profit of $100,000 for the year, given a contribution margin ratio of 40 percent, you'll simply add the desired profit to the fixed costs and divide by the contribution margin ratio. This equals ($360,000 + $100,000) / 0.40 = $1,150,000.Learn more about Break-Even Analysis here:https://brainly.com/question/31319621
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An important similarity between the Keynesian model and the AD/AS model is that:
A. in both models, prices change when there is a change in spending.
B. both models allow for government intervention in the short run.
C. both models predict that the economy will move towards full employment automatically.
D. in both models, the price level stays constant when there is a change in spending.
E. in both models real GDP stays constant when there is a change in spending.
Answer:
B. both models allow for government intervention in the short run.
Explanation:
Keynesian model - this model encourages the demand to increase the economy. This model believes that to boost the economy, an increase in consumer demand is a must.
it believe larger the investment in the demand more will be output, supply and less will be inflation. so for the increase in demand, Keynesians advise lowering the tax value.
AD-AS model is often called as demand-aggregate supply model. This model explain the relationship between the demand and aggregate supply.
Sometimes word of mouth and expert recommendations cause a product to become more popular. However, the firm that produces this product may find it difficult to get parts to increase production, and it might have to pay higher prices to receive an adequate supply of parts.
In this case, what will happen to the future price of the product?
A. The equilibrium price should rise as the supply curve shifts to the left and the demand curve shifts to the right
B. The equilibrium price should fall as the supply curve shifts to the right and the demand curve shifts to the left.
C. The equilibrium price does not change as the supply curve shifts to the left and the demand curve shifts to the right.
D. The equilibrium price changes in an unknown direction as the supply curve shifts to the left and the demand curve shifts to the right.
Answer:
A. The equilibrium price should rise as the supply curve shifts to the left and the demand curve shifts to the right.
Explanation:
due to the product being popular, the demand rises and the demand curve shifts to the right.
Hunter is the founder and CEO of a website development firm. Clients are typically small to midsized companies that are seeking an offbeat, innovative approach to their online design, as well as functionality that offers customers surprising ways to interact with the site.What is the more appropriate style of leadership, given the type of work Hunter wants his website designers to do?a. Either transactional or transformational b. Transformational c. Transactional
Answer:
b. Transformational
Explanation:
b. Transformational because a constant change may be needed in online working .Transformational leadership allows one to determine any changes that may be required overtime to use better and enhanced to make it grow bigger and better.It is a an important part of the complete leadership strategy. Business may require changes very often and use of latest developing tools makes transformational leadership a guided approach.
For which pairs of goods would most people likely have convex indifference curves
Answer:
Movie tickets and concert tickets .
Explanation:
The indifference curve is a chart showing a mixture of two products providing equal value and usefulness for the customer.
That point on a graph of indifference indicates a customer is oblivious here between two and all points offer him the very same value.The indifference curve method was used not only to describe the actions and demand of customers but also to evaluate and clarify numerous other economic issues.On January 2, 2017, the Matthews Band acquires sound equipment for concert performances at a cost of $67,800. The band estimates it will use this equipment for five years. It estimates that after five years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that due to concert bookings beyond expectations, this equipment will last only a total of three years. The salvage value remains unchanged. Compute the revised depreciation for both the second and third years. Book value at point of revision Remaining depreciable cost Depreciation per year for years 2 and 3
Answer:
Book value at point of revision = $54,640
Remaining depreciable cost = $54,640
Depreciation per year for years 2 and 3 = $28,320
Explanation:
Depreciation expense using the straight line depreciation method = ( Cost of asset - Salvage value) / useful life
Depreciation expense before the revision = ($67,800 - $2000) / 5 = $13,160
Book value at point of revision = $67,800 - $13,160 = $54,640.
Depreciation expense after the revision = ($54,640 - $2000) / 2 = $28,320
Milena has a gross biweekly income of $2,200. She pays 18% in federal and state taxes, puts aside 10% of her income to pay off her school loan, and puts 5% of her income aside for savings. She is considering an apartment that rents for $1,200 per month. Based on her expenses, can she make the monthly payments?
Answer:
2,2000* 26/12=4,776.67
4776.67-18%*4766,67-10%*4776.67-5%*4776.67=3193.67
Explanation:
A large foreign automobile manufacturer was considering where to build a new manufacturing plant in the United States. They were making which type of decision?
Answer:
They made Unstructured choices
Explanation:
Unstructured decisions are the kinds of decisions that involve judgment, observation, and perspective to fix the problem.
Unstructured implies "decision processes not occurring in quite the same manner and for which there is no fixed and clear collection of orderly answers in the organization."Therefore, this decision must be count in an Unstructured decision.
If the retained earnings account decreases from the beginning of the year to the end of the year, then?
(A) net income is less than dividends
(B) there was a net income and no dividends
(C) additional investments are less than net losses
(D) net income is greater than dividends
Answer:
(A) net income is less than dividends
Explanation:
We know that
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
Since the beginning balance of the retained earning is more than the ending balance of the retained earning which represents that the dividend amount is more than the net income
Therefore, the most appropriate option is a.
If the retained earnings account decreases from the beginning of the year to the end of the year, it usually means that the company's net income is less than the dividends it paid out. Therefore, the correct answer to this question is option (A).
Explanation:If a company's retained earnings account decreases from the beginning of the year to the end of the year, it generally indicates that the total amount of dividends paid out to shareholders is greater than the company's net profit for that period. In simpler terms, it means that the company's net income is less than its dividends. So, the correct answer to this multiple-choice question is option (A).
Let's consider an example. If a company starts the year with $500,000 in retained earnings and ends the year with $400,000, and it distributed $150,000 in dividends, this would mean the company had a net income of $50,000 for the year ($150,000 in dividends minus the $100,000 decrease in retained earnings).
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On April 1, 2014, Cyclone's Backhoe Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value of $40,000.
1. Compute depreciation expense for both 2014 and 2015 assuming the company uses the straight-line method.
Answer:
2014 - $ 36,000
2015 - $ 48,000
Explanation:
Depreciation Basis
Cost $ 280,000
Salvage Value $ 40,000
Depreciable Basis $ 240,000
Useful Life 5 years
Annual depreciation charge = $ 48,000 ( 240,000/5)
Charge for 9 months of 2014 $ 36,000
Charge for full year 2015 $ 48,000
The stock of Flop Industries is trading at "$37" You feel the stock price will decline, so you short 400 shares at an initial margin of 60 percent. If the maintenance margin is 30 percent, at what share price will you receive a margin call?
Answer:
$45.54
Explanation:
Given that,
Stock of Flop Industries is trading at $37
Initial margin = 60 percent (short 400 shares sale)
Maintenance margin = 30 percent
Amount received from short sale:
= shares short × Stock trading price
= 400 × $37
= $14,800
Initial deposit:
= Amount received from short sale × Initial margin
= $14,800 × 60%
= $8,880
Account value = Amount received from short sale + Initial deposit
= $14,800 + $8,880
= $23,680
Margin call price:
= Account value ÷ [short sale + (short shares sale × maintenance margin)]
= $23,680 ÷ [400 + (400 × 30%)]
= $23,680 ÷ (400 + 120)
= $23,680 ÷ 520
= $45.54
g For the most part, the 1st Amendment does not protect the right to join organizations. Group of answer choices True False
Answer:
True
Explanation:
The 1st Amendment does not protect the right to freedom of association.
Beth sells candles from her website. She can get a candle from her suppliers at a cost of $3 to her. The candles have been selling for $5, and at this price, consumers have been buying a steady 4000 per month. Beth would like to raise prices, but a market surveyor told her that for each increase of $1 in the price of an candle, she would lose 300 more sales each month. At what price should she sell the candles to maximize her profit?
Answer:
$10.67
Explanation:
Data provided in the question:
Initial cost = $3
Initial selling cost = $5
Initial sales = 4000
with $1 increase in price she loses 300 sales per month
Now,
Let the increase in price which maximizes the profit be '$x'
Therefore,
Final selling price = $5 + x
Final sales = 4000 - 300x
Thus,
Revenue = Final selling price × Final sales
= ( 5 + x)( 4000 - 300x)
= 20,000 - 1500x + 4000x - 300x²
= 20,000 + 2500x - 300x²
Total Cost = Initial cost × Final sales
= 3(4000 - 300x )
= 12,000 - 900x
Now,
Profit = Total revenue - Total cost
or
P = [ 20,000 + 2500x - 300x² ] - [ 12,000 - 900x ]
or
P = 8,000 + 3400x - 300x²
for point of maxima [tex]\frac{dP}{dx}=0[/tex]
Thus,
0 = 0 + 3400 - 300(2x)
or
0 = 3400 - 600x
or
600x = 3400
or
x = [tex]\frac{17}{3}[/tex]
Hence,
The price will be = $5 + x = [tex]5 + \frac{17}{3}[/tex]
= $10.67
Roscoe signs a written agreement with Philip, giving Philip the right to cast Roscoe's votes for a certain group of people nominated by the Stillbar Corporation board of directors. The agreement between Roscoe and Philip is known as a .
Answer: Proxy
Explanation:
The proxy agreement is one of the type of legal or the authorized act which is done of the behalf of another person. By using this type of agreement we can easily done various types of legal formalities in the business management firm.
The proxy agreement should in the written format and specifically signed by the other member or party in the management. The proxy agreement is valid 10 months starting from the the date of issue.
According to the given question, the agreement between the Philip and the Roscoe is basically know as the proxy agreement in the corporation.
Therefore, Proxy is the correct answer.
A company's beta (from the CAPM) is affected by its capital structure. a. True b. False
Answer:
True
Explanation:
We know that
Risk-free rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
where,
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.
Plus we know that the capital structure is composed of debt and equity. If the debt is increasing, the market risk is also increased, and therefore the volatility is also increasing.
The beta is the volatility which can affect due to market movements so it automatically affect the capital structure
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $ 6.25 . Michelle was willing to pay up to $ 8.25 for the cappuccino, and Paul's Cafe and Bakery was willing to accept $ 1.75 for the cappuccino. Based on this information, answer the questions..
a)Michelle\'s consumer surplus is equal to?
b) Paul\'s Bakery\'s producer surplus is equal to?
Answer:
a. $2
b. $4.5
Explanation:
The computation of the producer and consumer surplus is presented below:
a. The consumer surplus = Willing to pay - Market price
= $8.25 - $6.25
= $2
b. Producer surplus = Market price - willing to accept
= $6.25 - $1.75
= $4.5
Hence all the given information is to be considered.
a. The consumer surplus of Michelle is $2.
b. The producer surplus of Paul bakery is $4.5.
Consumer surplus is represented by determining the difference between consumers' willingness to pay for a product and the price paid for it actually by them. On the other hand, producer surplus shows the difference in market prices and actual prices received by the producers.
The consumer's willingness to pay is given as $ 8.25 producer's willingness is given $ 1.75. Finally, the price paid or market price is $ 6.25.
Now, the consumer surplus would be:
[tex]8.25 - 6.25\\=2[/tex]
The producer surplus would be:
[tex]6.25 - 1.75\\=4[/tex]
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Comment on the statement that "Independence is not easily achieved where an auditor is hired, paid, and fired by the same corporate managers whose activities are the subject of the audit." Can you think of a way around this dilemma?
Answer:
Independence can be achieved by reporting to Board or its Audit Committee.
Explanation:
Independence of an auditor is key element in performance of audits. Reporting to the management whose activities are subject to audit creates threats to the independence of the auditor. As per the code of corporate governance, auditors should be reporting to the Board or its Audit Committee.
Maintaining auditor independence in situations where an auditor is hired by the management they audit is difficult due to potential conflicts of interest. Solutions include audit committees, rotation of audit firms, and fostering an ethical organizational culture. Additionally, external investors and government regulatory bodies serve as additional oversight mechanisms.
Explanation:It's indeed challenging to maintain auditor independence when the auditor is hired by the same corporate managers whose activities they audit. This scenario leads to a potential conflict of interest as the auditor might feel pressured to issue a favorable report to retain their employment. To deal with this dilemma, best practices and regulations, such as hiring auditors through an audit committee of the board of directors, who are elected by shareholders and have a duty to them rather than to corporate managers directly, may be implemented. Moreover, ensuring a rotation of audit firms as well as individual auditors can minimize familiarity risks.
In terms of overcoming ethical pressures, like the one mentioned in the mini-case study, auditors should stand firm on their ethical grounds and adhere to professional standards that prioritize accurate and honest reporting over managerial interests. Fostering a strong ethical culture within the organization that supports moral development and independence can also help mitigate such pressures.
In the larger scope of corporate governance, institutions such as external investors and government regulatory bodies also play a crucial role in monitoring the company's activities and providing additional layers of accountability.
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Using a cost chart, estimate the current purchased cost of a cast-steel centrifugal pump that requires 100 kW of power. What is the cost if the pump is made of 316 stainless steel?
Answer:
$94,500
Explanation:
Given the attached chart and table, we have
Purchased cost of cast-steel centrifugal pump that requires 100kw of power = $45,000
Cost if pump is made of 316 stainless steel = 2.1 * 45,000 = $94,500
Note: see the attached images.
Hope this helps!
You have found an asset with a 13.60 percent arithmetic average return and a 10.44 percent geometric return. Your observation period is 30 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years?
Answer:
Return on assets = 10.87 %
Return on assets = 11.42%
Return on assets = 12.51 %
Explanation:
given data
arithmetic average return = 13.60 percent = 0.1360
geometric return = 10.44 percent = 0.1044
observation period N = 30 years
solution
we will use here Blume formula for return of the asset for 5 , 10 and 20 year
Return on assets = Arithmetic average return × (N - T) ÷ (N - 1) + Geometric average × (T - 1) ÷ (N - 1) ....................1
here N is observation period and t is time period i.e 5, 10 and 20
put here value for all 3 we get
Return on assets = [tex]\frac{5-1}{30-1}*0.1360 +\frac{30-5}{30-1}*0.1044[/tex]
Return on assets = 0.108759 = 10.87 %
and
Return on assets = [tex]\frac{10-1}{30-1}*0.1360 +\frac{30-10}{30-1}*0.1044[/tex]
Return on assets = 0.114207 = 11.42%
and
Return on assets = [tex]\frac{20-1}{30-1}*0.1360 +\frac{30-20}{30-1}*0.1044[/tex]
Return on assets = 0.125103 = 12.51 %
Cole purchased a car for business and personal use. In 2019, he used the car 60% for business (13,000 total use miles) and used the standard mileage rate to calculate his vehicle expenses. He also paid $1,500 in interest and $360 in county property tax on the car. What is the total business deduction related to business use of the car rounded to the nearest dollar
Answer:
The total business deduction related to business use of the car rounded to the nearest dollar is $5367.
Explanation:
Amount of business deduction
= (13000 miles*$0.54.5/mile + $1500 + $360)*60%
= $5367
Therefore, The total business deduction related to business use of the car rounded to the nearest dollar is $5367.
When interest rates in a given economy are reduced, it causes firms to employ __________ capital goods. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis), this then causes _________________ .
Answer:
More; A movement up along a given production function
Explanation:
A reduction in the interest rate of a given economy causes firms to increase their borrowing in order to make investement in projects that are more profitable. This cause firms to employ More capital goods.
Also, once firms increase capital goods, this increase in capital causes the Economoy's Gross Domestic Product (GDP) to rise along the production function.
It is however, important to note that a rise in the GDP along the production function does not lead to a shift in the production function. A shift in production function occurs when their is either improvement in labour skills or technological access or where there is an improvement in both factors.
Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,550 of direct materials, $6,990 of direct labor, and $10,146 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $19.90 per direct labor-hour.
During May, the following activity was recorded:
Raw materials (all direct materials):
Beginning balance $ 9,250
Purchased during the month $ 38,750
Used in production $ 40,050
Labor:
Direct labor-hours worked during the month 2,650
Direct labor cost incurred $ 25,260
Actual manufacturing overhead costs incurred $ 34,050
Inventories:
Raw materials, May 30 ?
Work in process, May 30 $ 17,132
Work in process inventory on May 30 contains $3,876 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.
The balance in the raw materials inventory account on May 30 was:
Answer:
The balance in the raw materials inventory account on May 30 was $ 7,950.
Explanation:
This question requires us to calculate the balance in the raw materials inventory account on May 30. The detail about inventory purchase during the period, inventory consumed in production and opening inventory balance is given in the problem. We can easily calculate closing balance using following equation.
opening inventory + purchase = closing balance + inventory cosumed
9,250 + 38,750 = closing balance + 40,050
closing balance = $ 7,950
Which of the following functions includes identifying the sources of risk and may include offering advice on controls that can reduce risk?Risk managementRisk assessmentSystems testingVulnerability assessment
Answer:
It is Risk Assessment
Explanation:
Risk Assessment is process of identifying and analyzing potential events that may negatively impact on the business either as individual or in aggregate and prevent the company from achieving its objectives.
Each business has its own inherent risks and a conscious efforts must be made to identify and analyse them using impact assessment. Necessary measures must be put in place to prevent or reduce their impacts.
Ikea is a very Sweden âcentric that is they like doing it the Swedish way, from the names of the furniture to the management of the company. Sweden is a neutral country so maybe this is the way to go for a global company but really is it smart to be centric to a specific country when you are a global corporation?
Answer and explanation:
For a business to be successful, nowadays it is important to diversify and adjust not only the goods or services the firm provides but also the organizational structure according to the territory where the operations take place. However, IKEA has shown that even having a Swedish-centralized organization scheme, they can handle operations in 25 countries with 276 stores including 37 more franchised stores.
IKEA's country-centric approach helps it stand out in the global market, but it's also important for corporations to adapt to local cultures to maintain market relevance.
Explanation:IKEA's strategy to stay Sweden-centric while being a global corporation could be seen from two perspectives. On one hand, this strategy helps the company differentiate itself in a crowded market, as it brings unique Swedish values and aesthetics to its products, thereby nurturing its uniqueness in a global marketplace. However, on the other hand, being too country-centric might lead to a lack of local adaptability in different markets, as cultural differences might cause customers to interpret the same products or processes differently. Therefore, it's important for any global corporation to find a balance between maintaining the core brand identity and accommodating local cultures.
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The manager at Tom's Taxidermy expects to sell 1,000 units at $70 each unit. In order for the manager to breakeven, the manager must sell100 units.
What is the margin of safety in dollars?
A.$63,000
B.$75,900
C.$70,000
D.$ 77,000
Answer:
A.$63,000
Explanation:
The margin of safety is defined as the difference between the actual sales volume and the breakeven volume.
In this case, Tom's Taxidermy expects to sell 1,000 units at $70 each and their breakeven volume is 100 units, the margin of sales, in dollars, is:
[tex]MS = (1,000-100)*\$70\\MS=\$63,000[/tex]
The answer is A.$63,000.
The following information has been extracted from the financial statements of a company. Use it to answer the 7 questions that follow it. When answering the questions (filling in the blanks), DO NOT use dollar signs, USE commas to separate thousands, DO NOT use parenthesis to denote negative numbers, USE the negative sign and place it in front of first digit of your answer when your answer is a negative number. Round to the nearest dollar. Total Current Assets in 2016 = $20,000 Net Fixed Assets in 2016 = $150,000 Total Current Liabilities in 2016 = $10,000 Net Income in 2016 = $10,000 Common dividends in 2016 = $2,000 Retained earnings in Balance Sheet 2015 = $20,000 Common Stock in 2015 = $70,000 There is no other items in the stock owners section in the balance sheets of 2015 and 2016. There is no issuance of equity in 2016. 1. What is the amount for Total Assets in 2016?
Answer:
$170,000
Explanation:
Given that,
Total Current Assets in 2016 = $20,000
Net Fixed Assets in 2016 = $150,000
Total Current Liabilities in 2016 = $10,000
Net Income in 2016 = $10,000
Common dividends in 2016 = $2,000
Retained earnings in Balance Sheet 2015 = $20,000
Common Stock in 2015 = $70,000
Total Assets in 2016:
= Total current assets in 2016 + Net Fixed Assets in 2016
= $20,000 + $150,000
= $170,000
Therefore, the amount for Total Assets in 2016 is $170,000.
Marion Klatt, CFA, is a representative for Thiel Financial Network. Klatt received a phone call at home from William Kind, a junior executive at Westtown Development Company, asking whether Klatt had heard that Westtown had just reached an agreement to acquire a major shopping mall chain at a very favorable price. (Klatt had not heard this news, and Klatt was able to confirm that the information had not yet been made public.) Kind requested that Klatt acquire 10,000 shares of Westtown for Kind's personal account. Klatt should:
A) not acquire the shares until he has contacted Westtown's management and encouraged them to publicly announce the merger discussion.
B) not acquire the shares.
C) not acquire the shares until the information is made public.
Answer:
(A) Klatt should not acquire the shares until he has contacted Westtown's management and encouraged them to publicly announce the merger discussion. Kind might do fraud because he want Klatt to but 10000 for Kind's personal account.
The correct action for Marion Klatt, CFA, to take is C) not acquire the shares until the information is made public.
According to the CFA Institute's Code of Ethics and Standards of Professional Conduct, members are required to keep information confidential unless it has been made public or is in the public domain. In this scenario, Klatt has received material nonpublic information (MNPI) about Westtown Development Company's plans to acquire a major shopping mall chain at a favorable price. Trading on this information before it is publicly disclosed would constitute insider trading, which is both unethical and illegal.
Option A suggests that Klatt should contact Westtown's management to encourage them to publicly announce the merger discussions. While it is important for the company to disclose material information to the public, it is not Klatt's responsibility to prompt the company to make such an announcement. Klatt's primary responsibility is to maintain confidentiality and not act on the information until it is publicly available.
Option B states that Klatt should not acquire the shares at all. While this action would prevent insider trading, it is not necessary to avoid trading in Westtown shares indefinitely. Once the information is public, Klatt would be free to trade in the shares without violating any ethical standards.
Therefore, the most appropriate course of action is option C, which aligns with the ethical and legal obligations of a CFA charterholder. Klatt must wait until the information regarding Westtown's acquisition is made public before executing any trades for Kind's personal account. This ensures that Klatt adheres to the principles of fairness, transparency, and integrity that are central to the CFA Institute's Code and Standards."
Total variable costs A. always increase with output. B. initially decrease and then increase with output. C. initially increase as output increases and then decrease. D. always decrease with output.
Answer:
A. always increase with output.
Explanation:
There are basically 2 groups of cost namely; Fixed and variable cost.
The fixed cost are usually like sunk cost that will be incurred irrespective of how many units are produced.
Total variable costs refers to all elements of cost that vary proportionately with the level of activities or output. A good example is the direct material cost.
It is the total of the marginal cost over the units produced. The right answer is A. always increase with output.
Total variable costs, such as raw materials and labor costs, always increase with output. This is due to the need for additional resources as production increases. However, the per-unit variable cost remains constant.
Explanation:The correct answer to this question is (A) Total variable costs always increase with output. This is because variable costs are expenses that change in proportion to the activity of a business. Examples of variable costs include raw materials, direct labor costs, and sales commissions. If a business produces more goods or services, the total variable costs will increase accordingly due to the need for additional materials, labor, and so forth.
However, it's important to note that the per-unit variable cost remains constant. That is, the cost of making one additional unit remains the same.
The other options listed do not correctly describe the behaviour of total variable costs in relation to output. Options (B) and (C) might be mistaken for the description of how average total costs behave in the short run due to economies of scale and diseconomies of scale. Option (D) is incorrect because total variable costs do not decrease with an increase in output.
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A CPA can accept a contingent fee in providing tax services for an attest client if:
a. The CPA discloses this fact to the tax client
b. The CPA receives the permission of the client to accept such a form of payment
c. The CPA's tax services will be reviewed by a taxing authority
d. All of the above
Answer:
c. The CPA's tax services will be reviewed by a taxing authority.
Explanation:
The requirement of the commissions and contingent fees rule is that, the CPA is prohibited from accepting such a form of payment when engaged in attest services for a client.
Therefore, The CPA’s tax services will be reviewed by a taxing authority.
A CPA can accept a contingent fee in providing tax services for an attest client if the CPA's tax services will be reviewed by a taxing authority. The correct answer is option C.
According to the AICPA Code of Professional Conduct, contingent fees are generally prohibited for attest clients. However, an exception exists for tax services that are reviewed by a taxing authority. This ensures that the CPA's independence is not compromised, as the fee depends on the outcome of the taxing authority's review rather than the client's preferences.
Contingent fees generally prohibited for attest clients.Exception for tax services reviewed by a taxing authority.Ensures CPA's independence and objectivity.This rule helps maintain the integrity of the CPA's work and adherence to professional standards, particularly when dealing with attest clients.
Interview Notes ⢠Gail is single and earned $28,000 as a cashier, her only income. ⢠Gail's son Tony is 17 years old and a full-time student in high school. ⢠Tony received Social Security survivor benefits of $5,000 in 2019. None of those benefits were taxable. He earned $10,000 during the summer working as a website developer. Tony had no withholding in box 2 of his Form W-2. ⢠He used his Social Security survivor benefits and wages to provide over half of his own support. ⢠Gail and Tony lived together all of 2019 and are U.S. citizens with valid Social Security numbers. 6. Which of the following statements is true?
OA. Tony is not required to file a tax return because his gross income is below the filing requirement.
OB. Tony is required to file because his total income is over $12,200.
C. Tony is required to file because Gail can claim him as a dependent and his income is over $4,200.
OD. Tony is not required to file because his Social Security benefits are reported on Gail's return.
Answer:
Tony is not required to file a tax return because his gross income is below the filing requirement.
Explanation:
As per 2019 tax rules, the tax filing is not mandatory toa single filer if the gross income is below $12,200, it is standardized.