Answer:
The Basco per unit cost is $5.65
The Shimano per unit cost is $3.24
The profit of Basco is $99,900. The profit of Shimano is $193,640
Explanation:
In order to calculate the per-unit cost for each product we would have to make the following calculations according to the given data:
Basco boards Shimano boards
Direct material $25.40 $38.80
Direct labor $31.40 $53.80
Allocated overhead $15.70 $20.80
Delivery expenses and sales commission $5.65 $3.24
Unit cost $78.15 $116.64
Allocation of delivery expenses and sales commission on an equal basis = $61,000 / 2 = $30,500.
Basco per unit cost = $30,500 / 5,400 = $5.65
Shimano per unit cost = $30,500 / 9,400 = $3.24
To calculate the profit for each product we would have to make the following calculations:
Basco Shimano
Sales $491,400 $1,259,600
Cost of goods sold $391,500 (5,400 * 72.5) $1,065,960 (9,400 * 116.64)
Profit $99,900 $193,640
If tea and coffee are substitute goods, which of the following is likely to occur if the price of coffee has increased?
A. The demand curve for tea shifts to the right.
B. A rightward or downward movement along the demand curve for tea.
C. The supply curve for coffee shifts to the right.
D. The demand curve for coffee shifts to the right.
Answer:
A. The demand curve for tea shifts to the right
Explanation:
Demand is defined as the measure of sensitivity of quantity demanded is a group with changes in price.
However when there is an increase or decrease in demand as a result of other factors except for price it is called shift in demand.
In the given scenario if the price of coffee increases, it will result in less amount of coffee being demanded. People will look for a substitute (tea).
Demand for tea will increase as a result of shift of the demand curve for real to the right.
This is illustrated in the attached diagram.
Answer:
A. The demand curve for tea shifts to the right.
Explanation:
In the above condition where tea and coffee are substitute goods amongst themselves, it is easily to explain according to the supply and demand theories that when price of coffee increases, the demand curve for tea shifts to the right.
It can be easily seen that a relation showing the amounts of a commodity
there is an increase or decrease in demand as a result of other factors that buyers purchase at alternative prices during a given period of time, and the fact that these goods are substituted against each other made it possible.
Ellen's tax client, Tom, is employed at a large company that offers health care flexible spending accounts to its employees. Tom must decide at the beginning of the year whether he wants to put as much as $2,700 of his salary into the health care flexible spending account. He expects that he will have to pay for at least $8,000 of medical expenses for his family during the year since his wife is seeing a psychiatrist every week and his daughter and son are both having their teeth straightened. Tom does not itemize deductions. Should Ellen recommend that Tom put the maximum in his medical flexible spending account, and if so, why?
Karen is a wealthy retired investment advisor who is in the 35 percent tax bracket. She has a choice between investing in a high-quality municipal bond paying 5 percent or a high-quality corporate bond paying 7 percent. Which investment do you think she will make and why?
Answer: 1. Yes he should
2. Municipal.
Explanation:
1. Tom seems to have a lot of medical expenses coming up and so he should set aside as much as he can to cover them.
Another reason he should is that contributions to this type of account are treated as tax deductible. This means that not only does he get to cover his medical expenses, they can also reduce the taxes that he pays for the year.
2. Municipal Bonds are tax exempt and so Karen stands to gain by investing in Municipal Bonds given her tax bracket.
With her tax bracket, the interest earned on the Corporate bond would be,
After tax interest earned = 7% ( 1 - 0.35)
= 4.55%.
This is less than the 5% she would receive from the high quality Municipal bond so she should invest in the Municipal Bond.
Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Fees Earned (402); Salaries Expense (601); and Utilities Expense (602).
Answer:
Eric Pense Journal Entries:
a. Dr Cash$23,000
Dr Office Equipment12,000
Cr Pense, Capital$35,000
b. Dr Land $8,000
Dr Building $33,000
Cr Cash$15,000
Cr Notes payable$26,000
c.Dr Supplies 600
Cr Accounts payable$600
d.Dr Automobile$7,000
Cr Capital$7,000
e.Dr Office Equipment$1,100
Cr Accounts payable$1,100
f.Dr Salary $800
Cr Cash$800
g.Dr Cash$2,700
Cr Fees Earned$2,700
h. Dr Utilities Expense$430
Cr Cash$430
i.Dr Account payable$600
Cr Cash$600
J. Dr Office Equipment $4,000
Cr Cash$4,000
k. Dr Accounts receivables$2,400
Cr Fees Earned$2,400
l. Dr Salary$800
Cr Cash$800
m. Dr Cash$1,000
Cr Accounts Receivable$1,000
n.Dr Pense, Withdrawal$1,050
Cr Cash$1,050
Explanation:
On January 1, 2021, purchased $100,000 of Anand Company bonds at face value. The Anand bonds pay 6% coupon rate. On the purchase date, the market interest rate was 6% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. Rupar accounts for the bonds as a held-to-maturity investment, and uses the effective interest method. On June 30, 2021, Rupar would record a credit to interest revenue of:
Answer: $3,000
Explanation:
On June 30, 2021, Rupar would have held the bond for 6 months. The coupon rate is an annual figure and so must be translated to a semi annual figure.
To do that simy divide by 2.
= 6% /2
= 3%.
The bond is paid interest on at face value as well.
Therefore the interest on June 30 is,
= 100,000 * 3%
= $3,000
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates:________.
Direct labor-hours required to support estimated production 95,000
Machine-hours required to support estimated production 47,500
Fixed manufacturing overhead cost $ 266,000
Variable manufacturing overhead cost per direct labor-hour $ 2.60
Variable manufacturing overhead cost per machine-hour $ 5.20
During the year, Job 550 was started and completed. The following information is available with respect to this job:________.
Direct materials $ 273
Direct labor cost $ 237
Direct labor-hours 15
Machine-hours 5
Required:
1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach:_______.
a. Compute the plantwide predetermined overhead rate.
b. Compute the total manufacturing cost of Job 550.
c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?
2. Assume that Landen's controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:________.
a. Compute the plantwide predetermined overhead rate.
b. Compute the total manufacturing cost of Job 550.
c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 5507 (Round your intermediate calculations to 2 decimal places. Round your "Predetermined Overhead Rato" answers to 2 decimal places and all other answers to the nearest whole dollar.)
1. Direct labor hours:
a. Predetermined overhead rate per DLH
b. Total manufacturing cost of Job 650
c. Selling price
2. Machine hours:
a. Predetermined overhead rate per MH
b. Total manufacturing cost of Job 660
c. Selling price
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct labor-hours required to support estimated production 95,000
Machine-hours required to support estimated production 47,500
Fixed manufacturing overhead cost $ 266,000
Variable manufacturing overhead cost per direct labor-hour $ 2.60
Variable manufacturing overhead cost per machine-hour $ 5.20
Job 550:
Direct materials $ 273
Direct labor cost $ 237
Direct labor-hours 15
Machine-hours 5
1) a. First, we need to calculate the predetermined overhead rate based on direct labor hours:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (266,000/95,000) + 2.6
Predetermined manufacturing overhead rate= $5.4 per direct labor hour
b. Total manufacturing cost= direct material + direct labor + allocated overhead
Total manufacturing cost= 273 + 237 + 5.4*15
Total manufacturing cost= $591
c. Selling price= 591*2= $1,182
2) a.
Predetermined manufacturing overhead rate= (266,000/47,500) + 5.2
Predetermined manufacturing overhead rate= $10.8 per machine hour
b. Total manufacturing cost= direct material + direct labor + allocated overhead
Total manufacturing cost= 273 + 237 + 10.8*5
Total manufacturing cost= $564
c. Selling price= 564*2= $1,128
A7X Corp. just paid a dividend of $1.70 per share. The dividends are expected to grow at 20 percent for the next eight years and then level off to a growth rate of 5 percent indefinitely. If the required return is 15 percent, what is the price of the stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
$41.64
Explanation:
The computation of the price of the stock today is shown below
Price of stock today = Dividend per share × (1 + growth rate)^n ÷ (1 + required rate of return)^n + Dividend per share × (1 + growth rate)^n ÷ (1 + required rate of return)^n + Dividend per share × (1 + growth rate)^n ÷ (1 + required rate of return)^n + Dividend per share × (1 + growth rate)^n ÷ (1 + required rate of return)^n + Dividend per share × (1 + growth rate)^n ÷ (1 + required rate of return)^n + Dividend per share × (1 + growth rate)^n ÷ (1 + required rate of return)^n + Dividend per share × (1 + growth rate)^n ÷ (1 + required rate of return)^n + Dividend per share × (1 + growth rate)^n ÷ (1 + required rate of return)^n + Dividend per share × (1 + growth rate)^n × 1 + decreased growth rate ÷ (required rate of return - decreased in growth rate) ÷ (1 + required rate of return)^n
= ($1.70 × 1.2 ÷ 1.15) + ($1.70 × 1.2^2 ÷ 1.15^2) + $1.70 × 1.2^3 ÷ 1.15^3) + $1.70 × 1.2^4 ÷ 1.15^4) + ($1.70 × 1.2^5 ÷ 1.15^5) + ($1.70 × 1.2^6 ÷ 1.15^6) + ($1.70 × 1.2^7 ÷ 1.15^7) + ($1.70 × 1.2^8 ÷ 1.15^8) + (1.70*1.2^8*1.05 ÷ (15% - 5%)) ÷ 1.15^8)
= $41.64
We simply applied the above formula
The N represents the time period
Northwest Catering owns and operates several restaurant services in Oregon, Washington, and Idaho. One restaurant chain has experienced sharply declining profits. The company's management has decided to test the operational assets for possible impairment. The relevant information for these assets is presented:Book value $4.3 millionEstimated total future cash flows 5.4 millionFair value 3.0 million. Determine the amount of the impairment loss, if any.
Answer:
1.3 million Impaired asset is the determined amount
Explanation:
Asset impaired as the estimated fair value cash flows is lower than book value
Impairment loss = Fair value - Book value
= 3.0 million - 4.3 million
= 1.3 million Impaired asset
An impaired asset is an asset that has a market value less than the value which was disclosed on the organisation balance sheet. When an asset is said to be impaired, it will need to be written down on the company's balance sheet to its current market value.
Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 ½. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 87 ½, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What is the amount of bond interest expense recorded on the first interest payment date?
Answer: 1. $218750 ; 2. $231, 250 ; 3. $11562.50
Explanation:
1. The bonds with a par value of $250,000 and implied selling price of 87 ½.
Cash proceed = 250,000 × 87.5%
= $218,750
2. Since it's semiannual interest payments, the total amount of bond interest expense that will be recognized over the life of these bonds will be:
[20 × (250,000 × 8% × 6/12)]+ $250,000 - $218,750
= $200,000 + $250,000 - $218,750
= $231, 250
3. The amount of bond interest expense recorded on the first interest payment date will be:
= Total bond interest expense/number of payments
= $231,250/20
= $11562.50
1. The issuer cash proceed should be $218,750.
2. The total amount of bond interest expense is $231,250.
3 The amount of bond interest expense is $11,562.50.
The calculation is as follows:1. Cash proceed = 250,000 × 87.5%
= $218,750
2. The total amount of bond interest expense is
= [20 × (250,000 × 8% × 6/12)]+ $250,000 - $218,750
= $200,000 + $250,000 - $218,750
= $231, 250
3. The amount of bond interest expense is
= Total bond interest expense ÷ number of payments
= $231,250 ÷ 20
= $11,562.50
Therefore we can conclude that
1. The issuer cash proceed should be $218,750.
2. The total amount of bond interest expense is $231,250.
3 The amount of bond interest expense is $11,562.50.
Learn more: brainly.com/question/13549064
A company produces a single product. Variable production costs are $12.30 per unit and variable selling and administrative expenses are $3.30 per unit. Fixed manufacturing overhead totals $39,000 and fixed selling and administration expenses total $43,000. Assuming a beginning inventory of zero, production of 4,300 units and sales of 3,750 units, the dollar value of the ending inventory under variable costing would be:
Answer:
Ending inventory= $6,765
Explanation:
Giving the following information:
Variable production costs are $12.30 per unit
Assuming a beginning inventory of zero, production of 4,300 units, and sales of 3,750 units.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead) to calculate production costs.
Units in ending inventory= 550
Ending inventory= 12.3*550= $6,765
March 1, 2014 Cardullo's purchased an order of German chocolate from a supplier for $250, but didn't pay cash for the order until March 31, 2014. How would you record this transaction at the time of the purch
Answer:
Dr Inventory Purchases $250
Cr Trade Payables $250
Explanation:
At the time of the purchase, Inventory purchases which is an asset in nature has been increased and hence must be debited by $250 and similarly the Payable has been increased which is liability in nature and hence must be credited with $250. The entry would be as under:
Dr Inventory Purchases $250
Cr Trade Payables $250
Alpha Company has sales revenue of $5,000,000, cost of goods sold of $2,000,000, and net income of $750,000. For the last three years, the company has 1,000,000 shares of common stock authorized and 200,000 shares of common stock issued and outstanding. The company does not have any preferred stock. What is basic EPS for Alpha Company
Answer:
The basic EPS for Alpha Company is $3.75 per share
Explanation:
The earnings per share are the net income for the year divided by the weighted average number of common stock issued and outstanding.
Net income here belongs to only common stockholders since the company has no debt finance nor preferred stock.
the net income is $750,000
The weighted average number of common stock issued and outstanding is 200,000
earnings per share=$750,000/200,000=$3.75 per share
A city assesses property owners $50 million to extend sewer lines to their neighborhood. By year-end, however, it has not begun construction of the new lines and has not collected any of the assessments. It accounts for its wastewater services in an enterprise fund. What should the government do in its year-end enterprise fund financial statements:
Answer:
Recognize the assessments as assessments receivable and revenue.
Explanation:
Practically, this will result in a receivable in the reserve fund, if the amounts are not received when due.
This could be seen when an/a corporation may decide on the amount of an assessment years before the cash is been used.
But cannot really obtain the revenue at the time of the decision, since the corporation can change its decision up until the day the amount is due. Also there are no specific parties being assessed, until the owner on record is known on the day the assessment is due, also the assessment should be recognized as revenue of the reserve fund when due.
Mountain View Resorts purchased equipment at the beginning of 2021 for $46,000. Residual value at the end of an estimated four- year service life is expected to be $6,100. The machine operated for 2,100 hours in the first year and the company expects the machine to operate for a total of 12,000 hours over its four-year life. Calculate depreciation expense for 2021, using each of the following depreciation methods: (1) straight-line, (2) double-declining- balance, and (3) activity-based. (Round your intermediate calculations to 2 decimal places.) Depreciation Expense Straight-line Double-declining-balance Activity-based
Answer:
(1) straight-line = $9,975
(2) double-declining- balance = $23,000
(3) activity-based = $6,982.50
Explanation:
purchase cost $46,000
useful life 4 years
residual value $6,100
total operating hours 12,000
(1) straight-line = ($46,000 - $6,100) / 4 years = $9,975 fo 2021
(2) double-declining- balance = 2 x ($46,000 / 4 years) = $23,000 fro 2021
(3) activity-based = 2,100 hours x [$46,000 - $6,100) / 12,000 hours] = 2,100 x $3.325 = $6,982.50
The double declining method is considered an accelerated depreciation method, that is why it is so high.
Just as depository institutions differ from non-depository Institutions, there are also differences between the structure and activities of, and the financial products and services provided by, various depository institutions. Read the following statements and indicate which, if any, are true.
A) Mutual savings Banks and credit unions are similar in that both are owned by their depositors, who share in their profits.
B) Demand deposit accounts created by commercial banks are usually called checking accounts or negotiable order of withdrawal (NOW) accounts, while those created by Credit unions are called share draft accounts
C) Members of both credit unions and mutual savings banks share a common bond or affiliation
Answer: A. True
B. True
C. False
Explanation:
A. Both Mutual Savings Banks and Credit Unions are owned by the their depositors. Credit Unions are owned and operated by members for the purpose of creating banking services for themselves at a cheaper cost.
Mutual Savings Banks are also owned by members who felt that traditional banks did not favour them.
B. Demand Deposit accounts exist in both commercial banks and Credit Unions but with different names. In Commercial banks they are known as Checking accounts for the most part but Credit Unions call them Share Draft Accounts and members of the Union can use these accounts by writing drafts like Commercial banks allow cheques.
C. While Credit Unions were formed usually for people in the same organisations or people with a common bond, Mutual Savings Banks were generally meant to uplift the lower economic classes so they did not share a common bond as Credit Union members do.
One difference between a monopoly and a competitive firm is that A. a monopoly faces a downward sloping demand curve. B. a monopoly is a price taker. C. a monopoly maximizes profit by setting marginal revenue equal to marginal cost. D. None of the above.
Answer:
A. a monopoly faces a downward sloping demand curve.
Explanation:
In business, it is seen to occur because they have no competition, monopolists have no incentive to improve their products. A lot of their focus is instead placed on maintaining monopolistic conditions through bribing their way and other tactics that dissuade competitors from entering the market.
Demand curve slopes downward, this is said to decreases with each unit of production beyond the profit maximizing quantity and in the eyes of the monopolist, cash is lost with each additional unit been produced, causing marginal cost exceeds marginal revenue. This causes the restricted output and higher costs that characterize products produced by monopolists.
Because the demand curve slopes downward, marginal revenue decreases with each unit of production beyond the profit maximizing quantity. Thus, the monopolist loses money with each additional unit produced, as marginal cost exceeds marginal revenue.
Schumpeter’s process of "creative destruction" challenges Porter’s five forces of competition framework by:_______. A. Introducing concepts of renewal and rebirth into the analysis of industrial change.B. Recognizing that cooperation is as important in business as competition.C. Proposing that competitive behavior determines industry structure rather than the other way round.D. Viewing competition is essential for the renewal of mature and declining industries.
Answer:
C. Proposing that competitive behavior determines industry structure rather than the other way round.
Explanation:
The Porter’s five forces of competition is a framework developed by Michael E. Porter in 1979, it is used to measure and analyze an organization's competitiveness in a business environment.
The Porter's five forces of competition framework are:
1. The bargaining power of suppliers.
2. The bargaining power of customers.
3. Threat posed by substitute products.
4. Threats posed by new entrants.
5. Threats posed by existing rivals in the industry.
Joseph Alois Schumpeter was born on the 8th of February 1883 in Moravia, and he later became an Austrian political economist.
Joseph Schumpeter’s process of "creative destruction" challenges Porter’s five forces of competition framework by proposing that competitive behavior determines industry structure rather than the other way round.
From Schumpeter’s perspective, competition among organizations is a process of "creative destruction." He argued that, the essential fact about capitalism is the process of "creative destruction."
Hence, the competitiveness of a business environment causes market dominating organizations to face constant challenges from their counterparts through innovations.
Dawn Manufacturing’s records show a journal entry was made debiting Work in Process Inventory and crediting Raw Materials Inventory for $100. The journal entry was made to record which of the following events? 1. Direct materials were placed into production 2. A materials requisition slip was prepared and approved A : 1 only B : 1 and 2 C : 2 only D : Neither 1 nor 2
Answer:
The correct answer is option (B) 1 and 2
Explanation:
Solution
The journal entry for Direct materials were set into production or materials requisition slip was approved or prepared.
JOURNAL ENTRY FOR DAWN MANUFACTURING RECORDS
Debit ($) Credit ($)
Work in Process Inventory 100
The raw Material Inventory 100
Therefore from the journal stated above the entry was made to record direct materials and materials requisition slip prepared
The option B is the right choice.
An employee of JHT Holdings, Inc., a trucking company, was responsible for resolving roadway accident claims under $25,000. The employee created fake accident claims and wrote settlement checks of between $5,000 and $25,000 to friends or acquaintances acting as phony "victims." One friend recruited subordinates at his place of work to cash some of the checks. Beyond this, the JHT employee also recruited lawyers, whom he paid to represent both the trucking company and the fake victims in the bogus accident settlements. When the lawyers cashed the checks, they allegedly split the money with the corrupt JHT employee. This fraud went undetected for two years.Answer the following True or False questions concerning the fraud.1. Frauds that are perpetrated with multiple parties in different positions of control make detecting fraud more difficult.2. Claims should be authorized and verified before payment is made.3. The employee made sure each claim had a phony "victim."4. Corrupt lawyers were brought into the fraud to act as attorneys for the claimants.
Answer:
1) true
2) False
3) True
4) True
Explanation:
When multiple parties collaborate to make a fraud successful, it is extremely difficult to detect and prove the fraud.
Claims were authorized and verified. Each individual's background can't be verified in depth.
The employee made sure each claim had a phony victim to verify claims
Only corrupt lawyers would let this fraud be undetected. Lawyers while questionning are able to find out the truthfulness in the claim.
Dmitri and Frances Cuttner live in Swarthmore, PA. Frances's father, Jake, lives in Sweden.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M).
Transaction CIGXM
Dmitri's employer upgrades all of its computer systems
using U.S.-made parts.
Frances gets a new refrigerator made in the United States.
Dmitri buys a bottle of Italian wine.
The state of Pennsylvania repaves highway PA 320, which
goes through the center of Swarthmore.
Frances's father in Sweden orders a bottle of Vermont
maple syrup from the producer's website.
Answer and Explanation:
As we know that
Gross domestic product = Consumption + Investment + Government purchase + Net exports
where,
Net exports = Exports - imports
It is the finailzed value of all goods and services that are produced and consumed within the boundary
These are the 5 parts of the gross domestic product. by this we can easily calculate the gross domestic product
Based on the above, the classifications are as follows
Dmitri's employer upgrades all of its computer systems using U.S.-made parts. = Investment as it upgrades all the computer system
Frances gets a new refrigerator made in the United States. = Consumption. As the new refrigerator consume accrodinhg to the need
Dmitri buys a bottle of Italian wine. = Import and consumption. It is an import plus consumption first it is purchased and then after purchasing it is consumed
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. = Government purchase as it is for the benefit of the general public
Frances's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. = export as it is for the third party so the same come under the export
Odeletta Corporation is considering an investment of $ 506 comma 000 in a land development project. The investment will yield cash inflows of $ 212 comma 000 per year for five years. The company uses a discount rate of 9%. What is the net present value of the investment? Present value of an ordinary annuity of $1: 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 4 3.312 3.24 3.17 5 3.993 3.89 3.791
Answer:
$318,680
Explanation:
initial investment ($506,000)
cash flow year 1 = $212,000
cash flow year 2 = $212,000
cash flow year 3 = $212,000
cash flow year 4 = $212,000
cash flow year 5 = $212,000
discount rate 9%
present value of an ordinary annuity for 5 years and 9% discount rate = 3.89
the net present value = (yearly cash flow x annuity value) - initial investment = ($212,000 x 3.89) -$506,000 = $824,680 - $506,000 = $318,680
The net present value of an investment equals the difference between the present value of the cash flows generated by the investment minus the initial cost of the investment.
Sponsored by five U.S. financial organizations, ___________ is a nonprofit organization that was established in 1985 to identify factors that contributed to fraudulent financial reporting.
Answer:
The Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Explanation:
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is sponsored by five U.S. financial organizations. It is a non-profit organization that was established in 1985 to identify factors that contributed to fraudulent financial reporting, as well as internal control and guidance on enterprise risk management, business ethics, financial reports and business risk management.
The five (5) U.S financial organizations that sponsored COSO are;
1. Institute of Management Accountants (IMA).
2. American Accounting Association (AAA).
3. American Institute of Certified Public Accountants (AICPA).
4. Institute of Internal Auditors (IIA).
5. Financial Executives International (FEI).
In an industry that is dominated by a few large companies, incentives are
used to attract customers rather than price changes. What type of business
market is this?
O
A. An oligopoly
B. An entrepreneurship
O
C. A subsidiary
O
D. A conglomerate
SUBMIT
Answer:
An Oligopoly
Explanation:
An Oligopoly is a type of business in which a few number of large organisations have total control over the market. In this type of business, the price of each goods sold in the market depends mostly on the conduct of each companies this factor can prevent new competitors from entry into the market, this is done to protect the amount of profit generated by each firm.
There is a high rate of competition in the market as each companies are bringing up new ways to advertise their products. Therefore, if a particular firm reduces their price another firm will follow suit by futher reducing their products, this is why incentives is used in this type of business to attract customers. This can be done by giving discounts on the purchase of a product or giving out free samples of the product to customers. All these are carried out to increase sales.
Farmers rotate their crops between corn and soybean to increase crop yields. This behavior exhibits a. Economies of scale b. Diseconomies of scale c. Economies of scope d. Diseconomies of scope
Answer:
c. Economies of scope
Explanation:
In business, economies of scope refers to producing more than one product or service because you can earn higher profits by diversifying your production. The cost of producing these products together or one after another is lower or yields more benefits than producing them separately.
In agriculture economies of scope refers to producing as many different crops as you can on the same fields. In the case of soybean and corn (or wheat), the crops are rotated because each crop required different nutrients from the soil.
Suppose Big Bank offers an interest rate of 10.0% on both savings and loans, and Bank Enn offers an interest rate of 10.5% on both savings and loans. a. What profit opportunity is available? b. Which bank would experience a surge in the demand for loans? Which bank would receive a surge in deposits? c. What would you expect to happen to the interest rates the two banks are offering? a. What profit opportunity is available? A. Take a loan from Big Bank at 10.0% and save the money in Bank Enn at 10.5%. B. Take a loan from Bank Enn at 10.5% and save the money in Big Bank at 10.0%. C. Take a loan from Big Bank at 10.5% and save the money in Big Bank at 10.0%. D. Save at both banks.
Answer:
Option A. Take a loan from Big Bank at 10.0% and save the money in Bank Enn at 10.5%.
Explanation:
Take a loan from Big Bank and deposit in Bank Enn. This activity can lead to a profit of 0.5% on the amount.
Assuming you take a Loan of $3000 from Big Bank at 10% interest rate. Present cash in hand is $3000 and the interest to be paid will be 10% of $3000 which is $300 every period.
If you deposit this amount with Bank Enn who pays an interest of 10.5%. You will receive $315 (10.5% of $3000) every period.
Doing this, you have a gain of $15 by the gap in the interest rates.
LCH is a leading electronics company that produces and markets its own brand of desktop and laptop computers, for both individual consumers and businesses. During the planning process, LCH conducts a ________, which profiles all interactions customers in the target market may have with LCH, its computers, and its services.
Answer:
Communication audit
Explanation:
Communication audit is done to determine how effective communication tools are. It also profers solutions on how to improve on an organisation's communication infrastructure.
Apart from improving internal processes it is used to determine the best way to communicate to the external world.
In this scenario a communication audit is done to measure an external party (the customer) and their interaction with LCH, it's computers, and services.
Knowledge gained can better imporve products and services provided to the customer by LCH
Answer:
Communication audit
Explanation:
A communications audit can be described as a process that is employed to identify the the strength and weakness of the internal and external communication of an organization.
The aims of communication of audit are to obtain level of information the target market has about the company, have the knowledge of past communication practices, the extent of efficiency and effectiveness of the current communication, and the determination of the best communication technique to employ in the future.
Therefore, a communication audit is conducted to profiles all interactions customers in the target market may have with LCH, its computers, and its services.
Item 13Item 13 Jacques relies on a cost-benefit analysis to decide if moving operations overseas is better than increasing the size of the current manufacturing facility in the United States. He is using the ________ approach to ethics to determine his answer.
Answer:
Utilitarian approach.
Explanation:
Utilitarian approach evaluates actions to be taken in terms of its consequences and outcomes.
The aim of the utilitarian approach is to ensure the largest number of people benefit while the lowest number of people are harmed.
In this scenario Jacques uses a cost-benefit analysis to decide if moving operations overseas is better than increasing the size of the current manufacturing facility in the United States.
Cost benefit tries to determine if the benefit of an action outweighs it's cost. Based on findings the best option that has the greatest benefit is selected.
Activists believe that ________. it takes a very long time to reach the long run frictions to the self-correcting mechanism of markets prevent prices and wages from being very flexible Keynes was right with his statement "in the long-run, we are all dead" all of the above none of the above
Answer: All of the above
Explanation:
The Long run is a period of time where all the factors of production of a firm are variable. For example, a firm can establish a bigger factory. It takes a longer period of time than the short run.
John Maynard Keynes also believed that in the long run, we are all dead. Also, an economy will self-correct because shocks matter in the short run and not the long run. The self-correction mechanism talks about price adjustment. When there is a shock, prices will adjust and the economy will be brought back to the long-run equilibrium.
Answer:
All of the above.
Explanation:
Activism is used in both politically and also in academic research. Its usage academically means only the willingness of a judge to strike down the action of a certain branch of government or to overturn a judicial precedent, with no implied judgment as to whether the activist decision is correct or not.
Therefore in the scenario above, activism totally believes that it takes a very long time to reach the long run. Their research also welcomes that frictions to the self-correcting mechanism of markets prevent prices and wages from being very flexible. And aslo that Keynes was right with his statement "in the long-run, we are all dead".
Most companies are unlikely to intentionally provide shoddy, harmful, or unsafe products because _______. A. they want to develop long-term relationships with customers B. it costs more to provide quality products C. they know that customers will shrug off errors for a while D. they won't face liability lawsuits and expensive awards for damages E. they are confident they can appease consumer groups and regulators
Answer:
Most companies are unlikely to intentionally provide shoddy, harmful, or unsafe products because they want to develop long-term relationships with customers.
Option: (A)
Explanation:
The merit of a company is determined by the end consumers based on the quality of the products that the company manufactures.Though other factors like timely delivery of the product, the soundness of the distribution channel put to work by the company, a prompt feedback system, etc., are also important for developing long-term relationships with customers, they do not play a role as significant as the 'quality' of the product. Only if the quality of the product delivered by the company is unparalleled, it is subject to gain the trust of its customers and build better relationships with them.The majority of companies deliberately provide damaging or inferior products because:
A). They want to develop long-term relationships with customers.
Several companies intentionally deliver poor-quality products to the customers and the key reason behind this is that they aim to develop long-term associations with the customers. They do it by providing effective customer support to the customers and opportunities for home pick-up exchange or return of the product without any additional charges. This helps them develop customers' trust in their company which will help open the gateway for more future orders from them.Thus, option A is the correct answer.
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Tructuring a Special-Order Problem Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ4 at a price of $3.80 each. The new customer is geographically separated from the company's other customers, and existing sales would not be affected. Harrison normally produces 75,000 units of IJ4 per year but only plans to produce and sell 60,000 in the coming year. The normal sales price is $12 per unit. Unit cost information for the normal level of activity is as follows:
Direct materials: $1.75
Direct labor: 2.50
Variable overhead: 1.50
Fixed overhead: 3.25
Total: $9.00
Fixed overhead will not be affected by whether or not the special order is accepted. By how much will operating income increase or decrease if the order is accepted?
Answer:
Effect on income= $19,500 decrease
Explanation:
Giving the following information:
Offer:
Purchase 10,000 units of its model IJ4 for $3.80 each.
Direct materials: $1.75
Direct labor: 2.50
Variable overhead: 1.50
Unitary variable cost= $5.75
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs:
Effect on income= 10,000* (3.8 - 5.75)= $19,500 decrease
Choose the most accurate statement concerning the workplace: If wages conform with the law, they are fair wages. Employers have no obligation to dismiss workers as painlessly as possible. An employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees. All instances of nepotism raise serious moral concerns.
Answer:
An employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees.
Explanation:
It is known by a lot of workers who are aquainted with their working ethics logs even if you’re not given a written contract, you are entitled to a written statement that contain your main employment terms. This basically gives you details of your:
*job title
*pay
*hours of work
*access to in work benefits such as sick pay and holiday entitlement.
That is why in the written statements above, it is noted that an employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees. This is because, no matter your employment status, if you’re working, you are entitled to an employment contract.
These contracts at some points could be verbal agreements, though they have the same legal authority and can sometimes be hard to prove.
The most accurate statement concerning the workplace among the options provided is: An employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees. Hence, option C is the correct answer.
This statement acknowledges that an employer's financial capabilities play a role in determining what can be considered a fair wage scale for their employees.
Different employers may have varying financial capacities, and they may need to take into account factors such as the industry, market conditions, and their own financial situation when setting wages. Fairness in wages is subjective and can be influenced by these factors.
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