Answer: A project charter contains:
Project manager assigned, his responsibility and authorization level. Project Objectives Project justification. Project general description. High level requirements High level risks. Summary of the most important milestones in the schedule. Budget Summary List of Stakeholders or stakeholders of the Project. Requirements for project approval. Name and level of authorization of the Sponsor or the person authorizing the Project Charter.The important thing with the generation of this document is that there is a formal record of the initiation, limits and completion of the project being of great importance for its success.
In this way, with all this information established with security, it allows the manager to obtain funds from third parties for the realization of the project.
Answer:
by communicating the project manager's authority for the project
The marginal product of labor is the:
a. additional amount of output that can be produced from hiring one more worker.
b. additional amount of inputs a firm demands based on a change in consumer demand for the output.
c. decreasing amount of output that can be produced from hiring one more worker.
d. value of production from the last worker hired.
e. additional amount of consumer goods that can be bought from an additional hour’s worth of work.
Answer:
Option (a) is correct.
Explanation:
The Marginal product of labor is defined as the extra units of output produced from hiring one more labor. The formula for marginal product of labor is as follows:
Change in output per unit change in labor:
[tex]MP_{L}=\frac{Change\ in\ o/p}{change\ in\ Labor}[/tex]
Graphically, the marginal product of labor is the slope of the production function for a particular firm and it is calculated by differentiating production function with respect to labor.
Net sales for the year were $1,100,000 and cost of goods sold was $781,000 for the company�s existing products. A new product is presently under development and will have an expected selling price of not more than $69 per unit in order to remain competitive with similar products in the marketplace.
Required:
a.
Calculate gross profit and the gross profit ratio for the year.
Net Sales $1,100,000 ? %
Cost of Goods Sold $781,000 ? %
Gross Profits $319,000 29 %
Answer:
Gross Profits $319,000 and percentage is 29 %
Explanation:
The computations are shown below:
For gross profit:
= Net sales - cost of goods sold
= $1,100,000 - $781,000
= $319,000
And, the gross profit ratio would be
= (Gross margin ÷ net sales) × 100
= ($319,000 ÷ $1,100,000) × 100
= 29%
The gross margin is computed by deducting the cost of good sold from the net sales figure amount
And, the ratio is computed by considering the gross margin and net sales
All other information which is given is not relevant. Hence, ignored it
As the owner of a small business, Sally would like to move the sale of her candles from storefronts to the Internet. Why is it possible for her to so easily make that move for the success of her business?a. The Internet and the World Wide Web are not for everyone. Small companies struggle to get started and move slower.b. The Internet and the World Wide Web allow almost anyone to be global, with two varying results: Small companies can get started more easily but move slower.c. The Internet and the World Wide Web allow almost anyone to be global, with two important results: Small companies can get started more easily and can maneuver faster.d. The Internet and the World Wide Web allow few to be global. Small companies struggle to get started but once started can maneuver faster.e. The Internet and the World Wide Web allow almost anyone to be global, with differing important results: Small companies struggle to get started yet, they can maneuver faster.
Answer:
The answer is: letter c. The Internet and the World Wide Web allow almost anyone to be global, with two important results: Small companies can get started more easily and can maneuver fast.
Explanation:
Sally, as a small business owner, would have an easier time to sell on the Internet and the World Wide Web because anyone can access it. This will make her online store more global since anyone can visit her site or can see her online advertisement.
For small business owners like her, it will be easier to display her items according to their own styles. This can also become readily available for anyone to buy. It will then allow her to maneuver fast because she can connect with her customers easily at the touch of her fingers.
Selling via Internet and the web will largely depend on her skill in advertising her products.
Thus, this explains the answer.
Answer:
C. The Internet and the World Wide Web allow almost anyone to be global, with two important results: Small companies can get started more easily and can maneuver faster
Explanation:
Internet is a global platform which allows people and businesses to connect with each other efficiently. If small businesses like Sally shift towards internet instead of store display, it would save her a lot of physical cost. She would be able to expose her candles to buyer from all around the globe due to increased access and visibility on the internet.
Her business would be expected to grow faster due to increased outreach around the globe.
In 2021, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2020, CPS’s inventories were $38 million (FIFO). CPS’s records indicated that the inventories would have totaled $28.6 million at December 31, 2020, if determined on an average cost basis. Required: 1. Prepare the journal entry to record the adjustment. (Ignore income taxes.)
CPS Company changed its inventory valuation method, resulting in decrease of inventory value from $38 million to $28.6 million. To record this change, debit a loss on change in inventory valuation method by $9.4 million and credit inventory for the same amount, to reflect the new lower average cost basis.
Explanation:In this case, CPS Company is changing its inventory valuation method from the FIFO (First In First Out) method to the Average Cost method. This change resulted in a decrease in the value of the inventory from $38 million to $28.6 million. To record this change in the company's accounting system, we would need to make an adjustment entry.
Here is how to prepare the journal entry:
Debit a loss on change in inventory valuation method account by $9.4 million (which is the difference between the FIFO and average cost amounts). Credit inventory for the same amount, $9.4 million, thus reducing the inventory account to reflect the lower average cost basis.In journal entry form:
Loss on change in inventory valuation $9.4 million
To Inventory $9.4 million
This reflects the decrease in company’s assets due to valuation method change.
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Which of the following should not be considered as an opportunity cost of attending college?
(A) money spent on living expenses that are the same wether or not you attend the college
(B) lost salaries
(C) Business lunches
(D) Interest that could have been earned on your money had you put the money into a saving account instead of spending it on tuition
(E) opportunities sacrificed in the decision to attend college.
Answer:
Option (A) is correct.
Explanation:
Opportunity cost refers to the cost that is incurred by selecting some other alternative. It is the benefit that is foregone from the next best alternative.
Therefore, the opportunity of attending college is as follows:
(a) Salary amount that could have been earned from the job.
(b) Interest income from depositing money into savings account
(c) The satisfaction obtained from the business lunches.
(d) Opportunities that were sacrificed for attending college.
Bourne Incorporated reports a cash balance at the end of the month of $2,395. A comparison of the company's cash records with the monthly bank statement reveals several additional cash transactions: bank service fees ($76), an NSF check from a customer ($260), a customer’s note receivable collected by the bank ($1,000), and interest earned ($26).Required:Record the necessary entries the balance of cash. Transaction #1 record the entries that increase cash. Transaction #2 record the entries that decrease cash.
Answer:
Increase in Cash/bank = $1000+ $26 = $1026
Decrease in Cash/bank = $76+$260 = $336
Explanation:
The entries for each transaction is as follows:
1- Bank service charges:
Service charges exp Dr $76
Bank Cr $76
(Note: Bank has provided us with banking services, the charges of which is an expense for Bourne incorporated and the settlement of which will reduce our bank balance, a credit.)
2- NSF check from a customer:
Entry:
Acc receivable Dr $260
Bank Cr $260
(Note: A NSF check is a non-sufficient funds check which implies that the customer doesn't have sufficient funds to pay for whatsoever services rendered by us. Upon receipt of such a check we must have increased our bank and decreased our receivable but since it has been dishonored we need to reverse the entry by decreasing our bank and increasing our receivable balance until it's settled by the customer.)
3- Customer's note receivable collected by the bank:
Entry:
Bank Dr $1000
Receivable Cr $1000
(Note: Bank has received a note against a receivable which results in an increase in our bank balance and decrease in or respective customer account and/or receivable.)
4- Interest earned:
Entry:
Bank Dr $26
Interest income Cr $26
(Note: The money deposited by Bourne Incorporated has earned interest which by nature is an income for Bourne. So Bank is debited and interest income is credited to increase both bank and income simultaneously.)
Bourne Incorporated debits Cash by $1,000 and $26 for the notes receivable collected and the interest earned, respectively, and credits matching accounts. For the NSF check and the service fee, they debit respective expense and account receivable accounts by $260 and $76, respectively and credit Cash.
Explanation:In accounting, when Bourne Incorporated records its cash transactions, it must consider both increases and decreases in cash balance. Let's take a look at these transactions separately:
Entries that increase cash:For Bourne Incorporated, the cash transactions that increase their balance is the customer's note receivable collected by the bank. Thus, they would debit Cash by $1,000 and credit Notes Receivable by $1,000. Additionally, they earned $26 of interest, thus they would debit Cash by $26 and credit Interest Revenue by $26.
Entries that decrease cash:The bank service fees and the NSF check from a customer are cash transactions that decrease their balance. For the bank service fees of $76, they would debit Bank Service Expense by $76 and credit Cash by $76. For the NSF check, they would debit Accounts Receivable by $260 and credit Cash by $260.
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During 2017 the inflation rate increased slightly but remained in the "comfort zone" and the unemployment rate was low. Why might the Fed decide to try to lower interest rates (or stimulate in other ways) in this situation? In this situation, the Fed might lower the interest rate if _______.
A. it thought that the rising inflation rate was a greater problem than unemployment
B. it thought that unemployment was a greater problem than the rising inflation rate
C. the quantity of loanable funds demanded exceeded the quantity of loanable funds supplied
D. the quantity of money was growing too quickly
Answer:B It thought that unemployment was a greater problem than the rising inflation rate
Explanation:
Inflation is the continuous rise in price of goods and services which is as a result of large volume of money in circulation used for the few available goods and services.
Unemployment is a situation where all that are willing and capable of being employed are unable to get employment.
In the above scenario lowering Interest rates will increase the volume of money in circulation which will invariably increase inflation and we equally increase level of investment as the cost of fund will be cheaper thereby lowering unemployment.
This action means unemployment is of greater problem than rising inflation.
It does not mean inflation is of more concern than unemployment otherwise it will have increase the interest rate, it will make loanable fund demanded to exceed supply and the quantity of money in supply will increase.
Correct identification of the underlying root cause is the desired outcome of the ________________ approach to problem solving.
A. Cause-oriented
B. Symptom-oriented
C. Historical
D. Regression analysis
Answer:
Letter A is correct. Cause-oriented.
Explanation:
A cause-oriented approach to problem solving is a method characterized by focusing on the history of the problem and then thereafter finding the root cause that originated it.
It is a very effective method when used to find solutions to various organizational problems that are apparently unsolved.
The Chief Marketing Officer of the Kimberly-Clark Company will be using a percentage of sales method to set the advertising budget for the year. Historically, the company uses 7% of sales for promoting their brand of toilet paper each year. Based on market data, the company estimates to achieve $2.8 million dollars in sales this coming year. What will their budget be for promoting the brand?
Answer:
The budget for promoting the brand
= 7% x $2.8 million
= $0.196 million
Explanation:
Since the budget for promoting the brand is estimated at 7% of sales, thus, the budget for promoting the brand is 7% x $2.8 million.
Final answer:
To calculate the advertising budget for Kimberly-Clark's brand of toilet paper using the percentage of sales method, multiply 7% by the estimated sales of $2.8 million, resulting in an advertising budget of $196,000 for the year.
Explanation:
The question at hand requires applying the percentage of sales method to calculate the advertising budget for a specific product within the Kimberly-Clark Company. With historical data indicating that the company spends 7% of its sales on advertising for their brand of toilet paper, and projected sales of $2.8 million for the upcoming year, the calculation is straightforward. By multiplying 7% (or 0.07 in decimal form) by the projected sales amount of $2.8 million, we can determine the advertising budget allocated for the brand.
Calculating this gives us: 0.07 x $2,800,000 = $196,000. Therefore, the budget for promoting the Kimberly-Clark brand of toilet paper will be $196,000 for the coming year.
Worthington Chandler Company purchased equipment for $12,000. Sales tax on the purchase was $800. Other costs incurred were freight charges of $200, repairs of $350 for damage during installation, and installation costs of $225.
What is the cost of the equipment?
a. $12,000b. $12,800c. $13,225d. $13,575
Answer:
d. $13,575
Explanation:
The cost of the equipment includes all the cost incurred to bring the equipment to a state where it becomes available for use.
These costs are the cost of the equipment, sales tax, freight, repairs during installation and installation cost.
Therefore,
Cost of the equipment = $12,000 + $800 + $200 + $350 + $225
= $13,575
The right option is d. $13,575.
Sunway Megamall is a planned shopping center in Cebu city with nearly 400,000 square feet of shopping space, and it serves around 300,000 people who stay within 30 minutes driving time from the shopping center. It contains many department stores that provide a wide assortment of convenience, shopping, and specialty goods, plus many personal service facilities. Sunway Megamall is most likely to be an example of a:
Answer: regional shopping center
Explanation: Simply put, a regional shopping center refers to the major retail shopping center covering a city or state's separate geographic area, containing at least one large full-line department store, as well as a variety of other merchants and service companies.
It is designed along at least one complete-size department store and sometimes several; there are several specialty shops and boutiques, and typically there are several establishments.
Hence from the above we can conclude that the given case depicts regional shopping center.
Suppose on January 1 Adam's Tavern prepaid rent of $ 20 comma 400 for the full year. At March 31, how much rent expense should be recorded for the period January 1 through March 31?
Answer:
$5,100
Explanation:
Assuming a constant monthly rent rate throughout the year, the amount that should be recorded as rent expense, per month, is:
[tex]M = \frac{\$20,400}{12}\\M=\$1.700[/tex]
From January 1st through March 31st there are three full months. Therefore, the amount that should be recorded is:
[tex]A = 3*\$1,700\\A = \$5,100[/tex]
Based on Modigliani and Miller's Propositions I and II in a perfect world without taxes nor distress costs, if the original unlevered firm value is $100 million and the CFO is planning to carry out a leveraged recapitalization to a debt equity ratio of 1:2. What’s the levered firm value? If the unlevered equity requires 11% annual return and the debt requires a 5% of annual return, what’s the required return for the levered equity? Please show all steps and equations.
Answer:
Consider the following calculations
Explanation:
Value of levered firm = Value of unlevered firm + debt*tax rate
As tax rate = 0
Value of levered firm = Value of unlevered firm =100m
Levered cost of equity = Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)
Levered cost of equity = 11+0.5*(11-5)*(1-0)
Levered cost of equity = 14
The levered firm value is the same as the unlevered firm value, which is $100 million. The required return for the levered equity is calculated to be 14% using MM Proposition II.
Based on Modigliani and Miller's Propositions I and II in a perfect world (no taxes or distress costs), the value of an unleveled firm remains constant irrespective of its debt-equity structure. Hence, the levered firm value is the same as the unlevered firm value, which is $100 million.
To determine the required return for the levered equity, we use the following formula based on MM Proposition II:
rE = rU + (rU − rD) × D/E
Where:
rE = Required return on levered equity
rU = Required return on unleveled equity = 11%
rD = Return on debt = 5%
D/E = Debt/Equity ratio = 1/2 = 0.5
Plugging in the values:
rE = 11% + (11% − 5%) × 0.5
rE = 11% + 6% × 0.5
rE = 11% + 3%
rE = 14%
Thus, the required return for the levered equity is 14%.
The island country of Mauritius is small but has lowered its barriers for international trading partners. Its location in the Indian ocean is close to Madagascar and the African continent. Mauritius trades between countries close by, and larger countries such as India. How does Mauritius benefit from lowering its trading barriers?
1)
Workers and companies can now specialize in competitive areas because other goods and services are imported through international trade.
2)
Its economy produces all the goods and services the country requires and thus helps the local business grow.
3)
It maintains a very high standard of living because of the domestic dominance over other products and services.
Answer:
Workers and companies can now specialize in competitive areas because other goods and services are imported through international trade.
Explanation:
The countries trade through comparative advantage as they produce the goods in which they have a specialization in and exports them in exchange for goods in which they don't have a comparative advantage in.
Final answer:
Mauritius benefits from lowered trading barriers by allowing workers and companies to specialize, expanding market access beyond nearby countries to larger economies like India, and fostering economic growth through Special Economic Zones that offer tax advantages for international trade.
Explanation:
The island country of Mauritius benefits from lowering its trading barriers in several ways:
Workers and companies can specialize in areas where they have a competitive advantage, allowing other goods and services to be imported, which promotes economic efficiency.
By being open to international trade, Mauritius can tap into larger markets such as India, allowing for a diverse range of trade partnerships beyond nearby countries.
Mauritius has experienced above-average economic growth, significant due to its government-supported Special Economic Zones (SEZ), which offer tax advantages and encourage international trade.
Through policies like these, Mauritius has seen more economic opportunities and a reduction in the pressures that domestic firms might face if they only served a local market. This has culminated in overall growth and diversification of its economy.
In January, 2020, Yager Corporation purchased a mineral mine for $5,100,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of $300,000 after the ore has been extracted. The company incurred $1,500,000 of development costs preparing the mine for production. During 2020, 600,000 tons were removed and 480,000 tons were sold. What is the amount of depletion that Yager should expense for 2020?
Yager Corporation should expense $1,890,000 for mineral depletion in 2020. This is calculated using the units of production method, where the depletion rate per ton is determined and then multiplied by the number of tons removed during the year.
Explanation:To calculate the amount of depletion expense for Yager Corporation for the year 2020, we need to apply the units of production method. This method allocates the cost of the natural resource based on the proportion of total estimated units extracted during the period.
The total cost of the mine less the residual value gives us the depletable cost basis:
Purchase price: $5,100,000Residual value: $300,000Development costs: $1,500,000Total depletable cost: ($5,100,000 - $300,000) + $1,500,000 = $6,300,000The depletion rate per ton is calculated by dividing the total depletable cost by the total estimated reserves:
Depletion rate per ton = $6,300,000 / 2,000,000 tons = $3.15 per ton
The depletion expense for the tons removed in 2020 is:
Depletion expense = 600,000 tons removed x $3.15 depletion rate per ton = $1,890,000
Therefore, Yager Corporation should expense $1,890,000 for mineral depletion in 2020.
if technology improves in producing computers, what will happen to the eualibrillim price and quantity of computers?
(A) Both the equilibrium price and quantity will increase.
(B) Both the equilibrium price and quantity will decrease.
(C) The equilibrium price will increase and the equilibrium quantity will decrease.
(D) the equilibrium price will decrease and the equilibrium quantity will increase
Answer:
(D) the equilibrium price will decrease and the equilibrium quantity will increase
Explanation:
Since the technology improvement will lead to a decrease in the cost of production and an increase in the ability to produce computers. The firm can produce more computers at a lower cost so there are more computers in the market. The supply curve shifts right. The consumer demand more computer as a result of the lower price. In conclusion, the equilibrium price will decrease, the equilibrium quantity will increase.
The price of a dozen roses in the United States is $30. If $0.2597 can purchase 1.00 Israeli shekel, how much does the same dozen roses cost in Israel if purchasing power parity holds? shekels
Part 2 (1 point)See Hint If the actual price of a dozen roses in Israel is more than the answer you found in Part 1, how might you account for the discrepancy? Choose one or more:
A. The roses are not identical products.
B. Purchasing power parity exists only for manufactured products.
C. Transportation costs are higher for the roses bought in Israel.
D. Prices may not have fully adjusted.
Answer:
Part 1: If power parity holds, a dozen of roses in Israeli shekel price is 115.5179. Part 2: C. Transportation costs are higher for the roses bought in Israel.
Explanation:
A rose is a primary product that has the same production process everywhere. Nevertheless, it requires climate conditions that Israel does not have, so the potential difference in price is transportation cost
Complete the following statement with the correct answer. ___________ is a supply chain strategy which recognizes that all items are not the same, and that different item and market characteristics require different procurement and support strategies, as well as different relationships with suppliers
Explanation:
supply chain types: efficient, fast, continuous-flow, agile, custom-configured, and flexible
Supply chain management is a supply chain strategy recognizing different item and market characteristics require different procurement and support strategies.
Explanation:Supply chain management is a supply chain strategy which recognizes that all items are not the same, and that different item and market characteristics require different procurement and support strategies, as well as different relationships with suppliers. This strategy helps businesses optimize their supply chain processes by tailoring their approach to each specific product or market.
For example, perishable goods like fruits and vegetables require a shorter supply chain with faster delivery times, while durable goods like furniture may have a longer supply chain with more emphasis on quality control and supplier relationships. By understanding the unique characteristics of each item and market, businesses can make strategic decisions that improve efficiency and customer satisfaction.
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The stockholders’ equity section of Indigo Corporation’s balance sheet at December 31 is presented here.INDIGO CORPORATIONBalance Sheet (partial)Stockholders’ equity Paid-in capital Preferred stock, cumulative, 11,833 shares authorized, 7,100 shares issued and outstanding $ 710,000 Common stock, no par, 717,672 shares authorized, 555,000 shares issued 1,665,000 Total paid-in capital 2,375,000 Retained earnings 1,151,000 Total paid-in capital and retained earnings 3,526,000 Less: Treasury stock (7,000 common shares) 37,333Total stockholders’ equity $3,488,667From a review of the stockholders’ equity section, answer the following questions.(a) How many shares of common stock are outstanding?Common stock outstanding shares(b) Assuming there is a stated value, what is the stated value of the common stock?The stated value of the common stock $per share(c) What is the par value of the preferred stock?The par value of the preferred stock $per share(d) If the annual dividend on preferred stock is $49,700, what is the dividend rate on preferred stock?The dividend rate %(e) If dividends of $71,400 were in arrears on preferred stock, what would be the balance reported for retained earnings?The Retained Earnings balance $
Answer:
a) shares outstanding: 548,000
b) $3 per share
c) $10 per share
d) 7% return
e) zero as if there were retained earnings they should be used to pay the dividends in arrears to preferred stock
Explanation:
issued shares: 555,000
treasury stock: (7,000)
outstanding 548,000
b)
common stock balance: $ 1,665,000
shares issued: 555,000
face value per share: $3
c) 710,000 preferred stock blaance / 7,100 shares = 100
d)
dividend/face value of preferred stock:
49,700 / 710,000 = 0.07
Tyrol Company creates a subsidiary, Venice Company. Tyrol transfers cash of $50,000, land with both a cost and book value of $175,000, and a building with a cost of $150,000 and a book value of $100,000 to Venice, in exchange for all 500,000 shares of Venice’s $1 par common stock. Tyrol’s journal entry to record the transfer would include:
Answer:
The journal entry is provided below:
Explanation:
The journal entry which is to be recorded for transfer is as:
Common Stock A/c............................Dr $500,000
Land A/c...........................................Cr $175,000
Building A/c.....................................Cr $150,000
Cash A/c...........................................Cr $50,000
Paid in Capital A/c...........................Cr $125,000
Working Note:
Common Stock A/c = Number of Shares × Rate per share
= 500,000 × $1
= $500,000
Paid in Capital A/c = Common stock -(Land + Building +Cash)
= $500,000 - ($175,000 + $150,000 + $50,000)
= $500,000 - $375,000
= $125,000
Note: As the options are missing, so providing the journal entry.
The journal entry for Tyrol Company would include debiting Investment in Venice Company for $325,000 and crediting Cash, Land, and Building for the respective amounts transferred, aligning with historical cost accounting.
The subject of this question is the journal entry Tyrol Company would make to record the transfer of assets to its subsidiary, Venice Company, in exchange for common stock. Given the values of cash, land, and building transferred, and assuming there are no other considerations like liabilities or costs involved in the transaction, the journal entry on Tyrol Company's books would likely include:
Debit Investment in Venice Company for the total value of assets transferred ($325,000).
Credit Cash for the amount of cash transferred ($50,000).
Credit Land for the book value of the land transferred ($175,000).
Credit Building for the book value of the building transferred ($100,000).
This entry reflects the initial investment at historical cost, which is the amount paid for the assets at the time of the transaction. It is important to note that in other contexts, such as subsequent valuations or disposals, fair value accounting could be relevant, which represents the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.
However, the specifics of the transaction could vary, and additional entries might be necessary if there were other considerations such as liabilities assumed by the subsidiary or costs directly attributable to the transaction.
Describe the meaning and the components of a financial reporting system. Explain the budget process. Describe a budget contingency plan. Give an example of financial guidelines that ICBI should follow to successfully plan for finance management. Identify and describe at least 5 basic financial guidelines.
Answer:
Consider the following explanation
Explanation:
Financial Reporting System is the means of guidance by which the management team can have an idea about the financial standings in the near future or current state. usually with the help of an excel.
Budget Process
Processing of the required spending over a future time by each department inside a company with justifiable proof based on past spending and future inflation. It will presented to the top level and needs to approved to have a budget. Usually it will be have once a year in a detailed way and 5 year plan in a brief.
Budget Contingency plan
the best way to have a foolproof is to considered more than one financial ratio. The available ratios includes IRR, EBIT, EBITDA,P/E,ROCE,NPV. Based on the size of the company and the nature of the product, we should carefully select the ratios required.
i would suggest to refer IRR and EBITDA for ICBI, IRR should be 10% or more, which ensure the return of the investments done and combined with EBITDA 15% or above, this needs to be referred to have the knowledge about the profit which the ICBI will have before spending on the Interest,tax and depreciation.
5 Basic Financial guidelines.
1, Know all the costs, and record all, don't ignore any while budgeting
2. Have a standard rule, and never deviate
3. Keep check on the interest rate, and tax
4. Have a monitoring system on the spending, least a monthly report on the performance
5. Track your net worth, and see the performance and compare it with the market
A country that trades internationally imports a good at a price ______ than the price of the good in the domestic market before the country began to trade internationally. And it exports a good at a price ______ than the price of the good in the domestic market before the country began to trade internationally. A. higher; higher B. higher; lower C. lower; higher D. lower; lower
Answer:
C. lower; higher
Explanation:
A country that trades internationally, imports a good at a price lower than what domestic producers could produce the good for before the country began to trade internationally and exports a good at a price higher than what domestic producers could sell a good for before the country began to trade internationally.
Duval Inc. uses only equity capital, and it has two equally-sized divisions. Division A’s cost of capital is 10.0%, Division B’s cost is 14.0%, and the corporate (composite) WACC is 12.0%. All of Division A’s projects are equally risky, as are all of Division B's projects. However, the projects of Division A are less risky than those of Division B. Which of the following projects should the firm accept?1. A Division B project with a 13% return.2. A Division B project with a 12% return.3. A Division A project with an 11% return.4. A Division A project with a 9% return.5.A Division B project with an 11% return.
Answer:
The answer is 3. A Division A project with an 11%.
Explanation:
The projects Duval Inc. should accept is the projects generating an expected return higher than its Cost of Capital.
Because all of Division A’s projects are equally risky, as are all of Division B's projects, each project of Division A will have Cost of capital of 10.0% and each project of Division B will have a Cost of capital of 14%.
For 5 projects given, only project described in (3) has expected return higher than its cost of capital ( 11% in comparison to 10%).
As a result, (3) is the correct answer.
Business-to-consumer companies are more likely to emphasize a ________ promotion strategy, while business-to-business companies are more likely to emphasize a ________ promotion strategy.
A) pull; pushB) push; pullC) pulse; pullD) blitz; pullE) push; blitz
Answer:
Letter A is correct. Pull; Push.
Explanation:
The pull strategy is most emphasized by business-to-consumer companies because it is used to attract consumers through intense marketing and advertising communication, whose primary goal is to create brand value through customer loyalty.
The push strategy is more commonly used in business-to-business as it means pushing and bringing the products or services to the customer, is a strategy that involves direct selling usually exposed to the potential customer in showrooms and involves negotiations with retailers for example, offering discounts and special conditions to sell your products at your points of sale.
B2C companies usually employ a pull promotion strategy, creating direct consumer demand. B2B companies often use a push strategy, where products are promoted along the supply chain. The correct answer is option A) pull; push
Business-to-consumer (companies) are more likely to emphasize a pull promotion strategy, where the aim is to attract consumers directly, often through methods that make the product appealing and easy for consumers to acquire, such as e-commerce platforms. This aligns with the modern trend of giving power to the consumers, allowing them to direct their demand toward manufacturers. On the other hand, business-to-business companies usually utilize a push promotion strategy, where products are pushed through the marketing channel from manufacturers to wholesalers, and then retailers. In this type of strategy, the goal is to create demand at the supplier or retailer level, pushing the products toward the end user through the supply chain.
Which of the following is NOT a limitation of the payback rule?A) It is difficult to calculate.B) It does not consider the time value of money.C) It does not consider cash flows occurring after the payback period.D) Lacks a decision criterion that is economically based.
Answer:
C) It does not consider cash flows occurring after the payback period
Explanation:
Although the payback period (payback rule) is a convenient and easy way of determining the break-even point of an investment (when will the cash inflows cover the initial expenditure), the truth is that it does not take into consideration what happens with the cash flows after the payback period.
For example, when comparing two investments with a similar payback period. It would be a mistake to immediately opt for the one with a lower payback period without assessing and determining the cash flows after the payback period for both of them.
The district magistrate of a city has decided to reconstruct the most frequented street of the city. He plans to block the street for the duration of the work, which will cause considerable inconvenience to the people of the city. The project has three parallel paths defined as the following:
Path A-B-C-H will take 16 days.
Path A-D-E-H will take 22 days.
Path A-F-G-H will take 30 days.
In the given scenario, which of the following statements is true?
a.
The expected duration of the project is 68 days.
b.
Activities B, D, and F have an earliest starting time of 0.
c.
Path A-D-E-H has the largest slack time.
d.
Path A-F-G-H is the critical path.
It is estimated that there are 34 deaths for every 10 million people who use airplanes. A company that sells flight insurance provides $100,000 in case of death in a plane crash. A policy can be purchased for $1. Calculate the expected value and thereby determine how much the insurance company can make over the long run for each policy that it sells.
Answer:
Explanation:
The probablility of having to pay a death claim on the policy is
[tex]\frac{34}{10,000,000}[/tex]
insurance companys loss = $1 - $100,000 = -$99,999
Consider the outcome in which there is no death claim on the policy.
1 − Probability of death claim = Probability of no death claim
1 - [tex]\frac{34}{10,000,000} = 0.9999966[/tex]
If the insurance company does not need to pay a death claim, its gain is:
Profit − Cost = Gain or Loss
The expected value is calculated by multiplying the gain or loss for each possible outcome by its probability, and then adding these products together.
-$99,999 [tex]\frac{34}{10,000,000}[/tex]+$1(0.9999966) = $0.66
Over the long run, the insurance company can expect to make $0.66 on each policy that it sells.
Final answer:
The expected value for each policy sold by the insurance company is $1,000,000.4, meaning that the insurance company can make approximately $1,000,000.4 for each policy sold.
Explanation:
To determine the expected value, we need to multiply the probability of each outcome by its associated value and sum them up. In this case, we have two outcomes: death and no death.
Since 34 out of 10 million people die, the probability of death is 34/10,000,000. The value associated with death is $100,000. The probability of no death is 1 - (34/10,000,000). The value associated with no death is $0.
The expected value is calculated as follows:
Expected Value = (Probability of death * Value of death) + (Probability of no death * Value of no death)
= (34/10,000,000 * $100,000) + (1 - (34/10,000,000) * $0)
= $3.4 + $999,997
= $1,000,000.4
Therefore, the expected value for each policy sold by the insurance company is $1,000,000.4. This means that over the long run, the insurance company can make approximately $1,000,000.4 for each policy sold.
Bobby purchased a new machine for use in his business. He incurred the following costs with the purchase: $3,300 cash paid, $12,500 financed, a $450 delivery charge, and a $330 installation charge. Bobby's basis in the machine is __________.
Answer:
$16,580
Explanation:
Bobby's basis in the machine is the amount of cash paid by Bobby for the machine.
Given that,
incurred costs with the purchase:
$3,300 cash paid
$12,500 financed
$450 delivery charge
$330 installation charge
Bobby's basis in the machine:
= Cash paid + Amount financed + Delivery charge + Installation charge
= $3,300 + $12,500 + $450 + $330
= $16,580
Fighting Irish Incorporated pays its employees $3,640 every two weeks ($260/day). The current two-week pay period ends on December 28, 2018, and employees are paid $3,640. The next two-week pay period ends on January 11, 2019, and employees are paid $3,640.1. Record the adjusting entry on Dec. 31, 20182. Record the payment of salaries on Jan. 11, 20193. Calculate the 2018 year-end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2018 is $0)
Answer:
1. Salaries expense A/c $780
To Salaries payable A/c $780
(Being adjusting salary is recorded)
2. Salaries expense A/c Dr $2,860 ($260 × 11 days)
Salary payable A/c Dr $780
To Cash A/c $3,640
(Being the payment is recorded)
3. $780
Explanation:
1. The adjusting entry is presented below:
Salaries expense A/c $780
To Salaries payable A/c $780
(Being adjusting salary is recorded)
The salaries expense is calculated below:
= Salary per day × number of days
= $260 × 3 days
= $780
The number of days is calculated from Dec 28 to Dec 31
2. The entry would be
Salaries expense A/c Dr $2,860 ($260 × 11 days)
Salary payable A/c Dr $780
To Cash A/c $3,640
(Being the payment is recorded)
3. The year-end adjusting balance would be
= Salaries Payable before adjustment + adjustment balance
= $0 + $780
= $780
In an economy with no government and no foreign sectors, autonomous consumer spending is $250 billion, plannedinvestment spending is $350 billion, and the marginal propensity to consume is 2/3.a. Plot the aggregate consumption function and planned aggregate spending.b. What is unplanned inventory investment when real GDP equals $600 billion?c. What is Y*, income–expenditure equilibrium GDP?d. What is the value of the multiplier?e. If planned investment spending rises to $450 billion, what will be the new Y*?
Answer:
Please see attachment
Explanation:
Please see attachment