Answer:
Range is : (0, 0.1x)
Explanation:
Problem has no information about amount of salary, so I will just use 'x' and 'y'.
Problem says that vehicle payment should be no more than 10% of gross monthly salary. This means that vehicle payment (Y) equals to 0.1 (10%) multiplied by gross monthly salary, which is stated as 'X'.
From this y = 0.1 X;
Next, if we want to identify range of payments: (0; 0.1X).
This means that any amount of money between 0 and 0.1X is acceptable.
Answer:
The inequality is
0< y<= 0.1x
Explanation:
If X represent the gross monthly salary and and y represent your monthly car payment the inequality.
10% of x= 0.1x
no more than 10% of your gross monthly salary means
Y <= 0.1x
The inequality therefore is 0< y<= 0.1x
Why would a free market never operate at a quantity greater than the equilibrium quantity? Hint: What would be required for a transaction to occur at that quantity?
Answer:
This is because in a free market, the prices of goods and services are determined by market forces, and the price mechanism will always keep the market at equilibrium.
Explanation:
The free market is a market without government intervention, equilibrium price and quantity are determined by the interaction of the market forces, also called price mechanism , which Adams Smith referred to as the invisible hands in the market.
The free market cannot operate outside the equilibrium because, the market forces will always keep the market towards equilibrium. Even if equilibrium is distorted, as a result of any shock, the market forces will bring the market towards equilibrium all things being equal, except there is market failure.
a free market is a market in which prices of goods and services are set by demand and supply and are allowed to reach their point of equilibrium without government intervention
The Fiesta Royale Corporation payroll for the first week in January was $14,000. The amount of income tax withheld was 20 percent and the FICA, state unemployment, and federal unemployment tax rates were 8 percent, 5 percent, and 1 percent, respectively. The amount of the employees' withholding taxes are________________.
a. $4,760.b. $3,920.c. $2,800.d. $5,100.
Answer:
Explanation:
Income taxes withheld 2800 [$14000*0.2]
FICA taxes withheld 1120 [$14000*0.08]
Employees' withholding taxes total 3920 [2800+1120]
Suppose the growth of production in Country B follows Solow Model. Country B's production function is Y = F(K,L) = K0.5 L0.5 . Country B has 100 people(labors) and 64 units of capital K in Year 1. For Country B, what is the aggregate production in Year 1?
Answer:
80
Explanation:
Given the Solow Formula Y = [tex]K^{0.5} *L^{0.5}[/tex] in the question, we have:
Capital K = 64
Labors L = 100
Substituting the number for K and L into the equation, we have:
[tex]Y=64^{0.5} *100^{0.5}[/tex]
Y = 8 * 10
Y = 80
Please Note:
Country B's production function is Y = F(K,L) = K0.5 L0.5 is not correctly stated as the real Solow Model using equation format in the question. This has therefore been done under the explanation above and now correctly stated as Y = [tex]K^{0.5} *L^{0.5}[/tex] .
On December 1, Year 1, Axel Financial purchased $50,000 of bonds issued by Lamb Company at face value. The bonds mature in ten years. Axel’s intent was to sell the bonds soon to earn a profit on any short-term price fluctuations. The fair value of those bonds decreased by $5,000 to $45,000 on December 31, Year 1. Which of the following statements are correct with regards to this investment?
The bonds should be reported among current assets in the balance sheet at December 31, Year 1.
The bonds should be reported among current assets in the balance sheet at December 31, Year 1.
At December 31, Year 1, the $5,000 decrease in fair value should be ignored.
At December 31, Year 1, the $5,000 decrease in fair value should be ignored.
The bonds should be reported at their fair value of $45,000 in the balance sheet at December 31, Year 1.
The bonds should be reported at their fair value of $45,000 in the balance sheet at December 31, Year 1.
An unrealized holding gain in the amount of $5,000 should be included in net income in the income statement prepared for Year 1.
Answer:
Explanation:
Answer - Bonds should be The bonds should be reported among current assets in the balance sheet at December 31, Year 1; reported at their fair value of $45,000 in the balance sheet
Bonds are purchased at $50000. Intent was to sell the bonds soon to earn a profit on any short-term price fluctuations. The fair value of those bonds decreased by $5,000 to $45,000. It should be reported as current asset, because it is an investment made and also it is sold in short time making it current asset.
But in the balance sheet it should be reported at the fair value $45000
Answer:
1. True
2. False
3. True
4. False
Explanation:
1.The first statement is True because the intention of Axel is to sell the financial asset soon to earn short term gain which qualifies as a current asset.
2.The change in fair value of the financial asset should not be ignored as per fair value method.
3.The Financial asset of Bonds should be reported at fair value which is $45000 in the Balance Sheet according to Fair Value Method
4.There is a loss of $5000 in the fair value of the financial asset. The gain or loss are not included in the Net Income until it is realized.
As a newly appointed human resource manager, what is MOST necessary to have an understanding of that provides the basis for all other actions? A) organizational objectives B) the work of your predecessor C company finances future staffing needs
Answer:
Letter A is correct. Organizational objectives.
Explanation:
A human resources manager is responsible for meeting a company's staffing needs and activities, such as the recruitment and selection process, training and development, development of policies and procedures, performance management, salaries and benefits.
For this, it is necessary to consider organizational objectives as a basis for assisting in the process of developing the function. An effective human resources manager, must base all his decisions prioritizing the strategic plan of obtaining objectives and goals of a company, ensuring that there is the correct allocation of resources and trained and motivated personnel to increase business productivity and generate a climate positive organizational structure in order to achieve organizational goals.
The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. The fixed costs are $900,000 per year. Variable costs are $0.30 per unit.
Consider each case separately:
1a. What is the current annual operating income?
b. What is the present breakeven point in revenues?
Compute the new operating income for each of the following changes:
2. A $0.04 per unit increase in variable costs
3. A 10% increase in fixed costs and a 10% increase in units sold
4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit and a 40% increase inunits sold.
Compute the new breakeven point in units for each of the following changes:
5. A 10% increase in fixed costs
6. A 10% increase in selling price and a $20,000 increase in fixed costs
Answer:
Operating Income = $100,000
Explanation:
1 a. What is the current annual operating income?
Revenue - 5,000,000* $0.5 = 2,500,000
Less: Variable Costs - 5,000,000*$0.3 = 1,500,000
Contribution = 1,000,000 (margin = 1m/2.5m = 40%)
Less: Fixed Costs ....$900.000
Operating Income = $100,000
b. What is the present break even point in revenues?
BEP = FC/Contribution Margin = 900,000/0.4 = $2,250,000
2. A $0.04 per unit increase in variable costs
Revenue - 5,000,000* $0.5 = 2,500,000
Less: Variable Costs - 5,000,000*$0.34 = 1,700,000
Contribution = 800,000
Less: Fixed Costs ....$900.000
Operating Income = ($100,000)
3. A 10% increase in fixed costs and a 10% increase in units sold
Revenue - 5,500,000* $0.5 = 2,750,000
Less: Variable Costs - 5,500,000*$0.3 = 1,650,000
Contribution = 1,100,000
Less: Fixed Costs ....$990.000
Operating Income = $110,000
4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit and a 40% increase inunits sold.
Revenue - 7,000,000* $0.4 = 2,800,000
Less: Variable Costs - 7,000,000*$0.27 = 1,890,000
Contribution = 910,000
Less: Fixed Costs ....$720.000
Operating Income = $190,000
5.Compute the new breakeven point in units for each of the following changes: A 10% increase in fixed costs
BEP = FC/Contribution Margin = 810,000/0.4 = $2,025,000
6. A 10% increase in selling price and a $20,000 increase in fixed costs
Revised Contribution Margin = 0.55 - 0.3 = 0.25; 0.25/0.55 = 0.4545
BEP = FC/Contribution Margin = 1080,000/0.4545 = $2,376,238
Answer:
1 a) Operating Income $ 100,000
1 b) Breakeven point in revenues $ 2,250,000
2) Operating Loss : $ 100,000
3) Operating Income $ 60,000
4) Operating Income $ 190,000
5) Breakeven point in revenues $ 2,475,000
Explanation:
Explanation for Answer 1a
Revenues (5,000,000*.5) = $ 2,500,000
Fixed costs $( 900,000)
Variable Cost ( 5,000,000 *.30) $( 1,500,000)
Operating Income $ 100,000
Explanation for Answer 1b
Revenues (4,500,000*.5) = $ 2,250,000
Fixed costs $( 900,000)
Variable Cost ( 4,500,000 *.30) $( 1,350,000)
Operating Income $ 0
Explanation for Answer 2
Revenues (5,000,000*.5) = $ 2,500,000
Fixed costs $( 900,000)
Variable Cost ( 5,000,000 *.34) $( 1,700,000)
Operating Loss $( 100,000)
Explanation for Answer 3
Revenues (5,500,000*.5) = $ 2,750,000
Fixed costs (900,000*110%) $( 990,000)
Variable Cost ( 5,000,000 *.34) $( 1,700,000)
Operating Income $ 60.000
Explanation for Answer 4
Revenues (5,000,000*140% * 80 %) = $ 2,800.000
Fixed costs (900,000*80%) $ ( 720,000)
Variable Cost ( 7,000,000 *.27) $ ( 1,890,000)
Operating Income $ 190,000
Explanation for Answer 5
Revenues (4,950,000*.5) = $ 2,475,000
Fixed costs $( 990,000)
Variable Cost ( 4,950,000 *.30) $( 1,585,000)
Operating Income $ 0
Explanation for Answer 6
Revenues (3,680,000*.55) = $ 2,024,000
Fixed costs $( 920,000)
Variable Cost ( 3,680,000 *.30) $( 1,104,000)
Operating Income $ 0
International tradea. raises the standard of living in all trading countries.b. lowers the standard of living in all trading countries.c. leaves the standard of living unchanged.d. raises the standard of living for importing countries and lowers it for exporting countries.
Answer:
A. Raises the standard of living in all trading countries.
Explanation:
International trade would benefit both countries and raise the standard of living of both producers and consumers
Which of the following basic elements of financial statements is more associated with the balance sheet than the income statement? a. equityb. revenuec. gainsd. expenses
Answer:
a. equity
Explanation:
A balance sheet is one of the main financial statements of a company. It is used to determine the financial position of a business at a particular point in time. The items in the balance sheet include current assets, fixed assets, current liabilities , long term liabilities and shareholders' equity. The total assets should be equal to the sum of total liabilities and shareholders' equity. Among the choices, only equity is an item included in the balance sheet.
Answer:
A
Explanation:
Assume that an investment in bonds classified as trading securities is sold. Which of the following would be included in the two entries to record the sale? (Select all that apply.)
a. An update of the Fair value adjustment account
b. An update of the Fair value adjustment account
c. Removal of the related investment account balances
d. Removal of the related investment account balances
e. The total amount of gain or loss that has occurred since the securities were purchased
f. The total amount of gain or loss that has occurred since the securities were purchased
g. The amount of the unrealized holding gain or loss that has occurred since the end of the prior accounting period
h. The amount of the unrealized holding gain or loss that has occurred since the end of the prior accounting period
Answer:
An update of the fair value adjustment account,
Removal of the related investment account balances
The total amount of gain or loss that has occurred since the securities were purchased
Explanation:
The activities that occurred between the purchase and during the sales of bonds classified as trading securities will determine the entries to be recorded.
First, since it was an investment, it means, it had an entry already in the books. Its sales therefore, will mean the books needs to be updated and this will be done through the Fair value adjustment account.
Secondly in updating the fair value, there is the need to remove the related investment account balance. This is because the investment has been sold so it should not be reflected any more.
Thirdly, since the investment was bought at a point, carried for a while and then eventually sold, some gain or loss would have been generated between its acquisition and its sales, therefore the entry for total amount of gain or loss that occurred since the purchase should be made.
Part 4
The items such as the
Which of the following statements is most correct? a. One disadvantage of being a sole proprietor is that you must pay corporate taxes, even though you don’t realize the benefits of being a corporation. b. One advantage of forming a corporation is that you have limited liability. c. Corporations face fewer regulations than sole proprietorships. d. Statements b and c are correct. e. None of the statements above is correct.
Answer:
b. One advantage of forming a corporation is that you have limited liability
Explanation:
In the Company form of Business Organization the Shareholders have Limited Liability as compared to Sole Proprietorship and Partnership where the Proprietor and Partners have Unlimited Liability. If the company goes Bankrupt then it’s the Creditors who do not get paid.
Answer:
i'm sorry i cant help
Explanation:
i don't know the answer
In which method of sales compensation is salespersons pay totally determined as a percentage of sales?
Answer:
The correct answer is: straight commission.
Explanation:
The straight commission compensation method consists of giving employees a payment based on the percentage of the sales they process instead of providing them a fixed amount for salary every month. This is done to push salespeople to sell more so their income strictly depends on their performance.
Product deletion can best be described as the process of deleting a product from the product mix when it a. no longer responds to promotional efforts. b. is reviewed negatively by a systematic review board. c. no longer satisfies a sufficient number of customers. d. increases production costs and decreases profits. e. is perceived as a failure by top management.
Answer:
(c). no longer satisfies a sufficient number of customers
Explanation:
Product deletion refers to removal or discontinuance of a product from the product line when such a product has been consistently incurring losses since a number of years and it's further continuation would adversely affect the other products and profitability.
A product is usually deleted from the product line on the grounds of it's failure in satisfying a sufficient number of customers.
Hence, the correct option is (c). no longer satisfies a sufficient number of customers.
Mr. and Mrs. Underhill operate a hardware store in a jurisdiction that levies both a sales tax on retail sales of tangible personalty and an annual personal property tax on business tangibles. The personal property tax is based on book value as of December 31. This year, Mr. and Mrs. Underhill purchased $840,000 of inventory for their store.
(a) Are Mr. and Mrs. Underhill required to pay sales tax on the purchase of the inventory?
(b) How can Mr. and Mrs. Underhill minimize their personal property tax by controlling the timing of their inventory purchases?
Answer:
Sales Tax:
Sales tax is levied only on retail sales. Since the inventory is purchased by Mr. & Mrs. CS for their store, it will not qualify to be a retail sale. Property tax is calculated on the property. In our question, property tax will be calculated on the book value as on 31st December.
Step-I: Solution to the problem where sale is not a retail sale:
No, Mr. and Mrs. CS are not required to pay any sales tax on the purchase of inventory, since it is purchased for store and not qualifies to be a retail sale.
Step-II: Property Lax liability on Inventory:
Now, Mr. and Mrs. CS will be required to pay property tax on the book value of inventory left on 31st December. They can minimize their property tax liability by adjusting the time of their purchases. If they could have purchased the inventory in January, then the inventory could have been sold throughout the year and the book value of the stock left as on 31st December would have been lesser. Thus, the amount of tax would also be lesser
Pedrotti Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $40 per unit, management projects sales of 30,000 units. The new product would require an investment of $300,000. The desired return on investment is 16%. The target cost per unit is closest to: (Do not round intermediate calculations.)
Answer:
$38.40
Explanation:
Target Cost = Selling Price per Unit - Profit Margin per Unit
Here, Selling Price per Unit = $40
Profit Margin = 16% of the Investment in Product
Investment = $ 300,000
Profit Margin = 16% × 300,000
= $48,000
Number of Units Sales = 30,000 Units
Profit Margin per Unit:
= Profit Margin ÷ Number of Units Sales
= $48,000 ÷ 30,000
= $1.6
Therefore,
Target Cost per Unit:
= Selling Price per Unit - Profit Margin per Unit
= $40.00 - $ 1.60
= $38.40
Can a set of indifference curves be upward sloping? If so, what would this tell you about the two goods?A set of indifference curves
A.
cannot be upward sloping because this violates the assumption that more is better than less, indicating that one of the goods is a "neutral."
B.cannot be upward sloping because this violates the assumption of transitivity, indicating that one of the goods is a "neutral good."
C.cannot be upward sloping because this violates they the assumption of completeness, indicating that one of the goods is a"bad."
D.
cannot be upward sloping because this violates the assumption that more is better than less, indicating that one of the goods is a "bad."
E.
cannot be upward sloping because this violates the assumption of transitivity, indicating that preferences are not consistent.
Answer:
D. cannot be upward sloping because this violates the assumption that more is better than less, indicating that one of the goods is a "bad."
Explanation:
The curve of indifference is the curve at which the mixture of two goods is represented that the consumer achieves identical satisfaction making the consumer unique.
This can't be sloping upwards, as it makes the contrast between the good and the bad item that describes the good item stronger than the bad item that depicts one of the bad items.
D. Cannot be upward sloping because this violates the assumption that more is better than less, indicating that one of the goods is a "bad."
By standard economic theory, indifference curves are typically downward sloping, reflecting the idea that as you consume more of one good, you have to consume less of another good to maintain the same level of utility.
Monotonicity states that more is always better, which means that a consumer would prefer having more of both goods rather than less. Transitivity implies that if a consumer prefers bundle A over bundle B and bundle B over bundle C, then they should also prefer bundle A over bundle C.If you were Marshall, what types of concerns would you want to be sure to bring up with the accountant?
Answer:
If I would be a Marshal, I would like succeeding apprehensions should to be indisputable with accountant.
Recognize the environment- accountant must appreciate the industry, responsibility or the organization in very clear style. He should clearly recognize and go with the administrative goals. Communication capability- Accountant must have resilient communication capability to talk with other individual and to make him recognize about any request of that individual. Flexibility- as the rules and policies are changes time to time, accountant must flexible enough to accept the changes easily. Strong Ethics- moreover the applied ethics, accountant should also have durable moral ethics. He should have durable confidence. Furthermore he should confirm to keep personal information secure. Precise and Detailed evidence- the accounts organized by accountant must be precise and very clear. It also should be thorough. Proper foot notes should be stated in financial statements. Inspiration- account must have competence of rational thinking to come up with fresh clarifications for given problems. Trustworthiness- the accountant should be dependability. He knows the secrets of the responsibility. So he should not to reveal these secrets to anyone without prior specialist.
The concerns Marshall should bring up with the accountant include the accuracy and completeness of financial statements, analysis and interpretation of financial data, and tax planning and compliance.
Explanation:If I were Marshall, there are a few concerns I would want to bring up with the accountant:
The accuracy and completeness of the financial statements. I would want to make sure that all the transactions and financial information have been properly recorded and that the statements present a true and fair view of the company's financial position.The analysis and interpretation of the financial data. I would want to understand the trends and patterns in the company's financial performance, identify any areas of concern or improvement, and make data-driven decisions to drive the company's success.Tax planning and compliance. I would want to ensure that the company is maximizing its tax savings opportunities and complying with all applicable tax laws and regulations.By addressing these concerns with the accountant, Marshall can ensure the financial health and success of the company.
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For each of the following costs incurred in a manufacturing firm, indicate whether the costs are most likely fixed (F) or variable whether they are most likely period costs (P) or product costs (M) under full absorption costing: Fixed (F) Variable (V) Period (P) Product (M) Cost Item a. Depreciation on the building for administrative staff offices. b. Cafeteria costs for the factory c. Overtime pay for assembly workers. d. Transportation-in costs on materials purchased e. Salaries of top executives in the company. f. Sales commissions for sales personnel g. Assembly line workers' wages h. Controller's office rental. i. Administrative support for sales supervisors j Energy to run machines producing units of output in the factory. Reterences eRook & Resources
Answer:
a. Depreciation on the building for administrative staff offices. (F) (P)
b. Cafeteria costs for the factory. (F) (M)
c. Overtime pay for assembly workers. (V) (M)
d. Transportation-in costs on materials purchased (V) (M)
e. Salaries of top executives in the company. (F) (P)
f. Sales commissions for sales personnel (V) (P)
g. Assembly line workers' wages (V) (M)
h. Controller's office rental. (F) (P)
i. Administrative support for sales supervisors (F) (P)
j Energy to run machines producing units of output in the factory. (V) (M)
Explanation:
Fixed Cost (F): Fixed cost is cost which is fixed and does not vary on the basis of production.
Variable Cost (V): Variable cost is cost which is not fixed and varies on the basis of production i.e. with the change in production, it also changes.
Product Cost (M): Product cost is a direct cost which is attributable directly in the creation of the product such as Direct Material, Direct Labour, etc.
Period Cost (P): A period cost is associated with the passage of time and is not included in the product cost, and is treated as an expense.
In manufacturing, certain costs are fixed and others vary with production levels. These can further be classified as period or product costs. Examples include executive salaries (fixed, period), assembly line wages (variable, product), and energy costs (variable, product).
Explanation:For a manufacturing firm, costs can be classified in different categories: Fixed (F) or Variable (V), Period (P) or Product (M) costs.
Depreciation on the building for administrative staff offices: Fixed (F), Period (P) Cafeteria costs for the factory: Variable (V), Product (M) Overtime pay for assembly workers: Variable (V), Product (M) Transportation-in costs on materials purchased: Variable (V), Product (M) Salaries of top executives in the company: Fixed (F), Period (P) Sales commissions for sales personnel: Variable (V), Period (P) Assembly line workers' wages: Variable (V), Product (M) Controller's office rental: Fixed (F), Period (P) Administrative support for sales supervisors: Fixed (F), Period (P) Energy to run machines producing units of output in the factory: Variable (V), Product (M) Learn more about Cost Classification here:https://brainly.com/question/33447487
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When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.
Answer:
1) stretch goal
2) (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership.
(d) when managers come up with their own plans, they are likely to be more committed to following through on them.
Explanation:
1) A stretch goal is a radical, ambitious goal that aims to drastically change (improve) certain KPIs and outcomes in the organization. Usually these goals are deemed as impossible. However, their ultimate cause is not to actually be reachable, but to provide great motivation for employees. Since Alcoa has had substantial accidents in the past, a genuine stretch goal is to have zero workplace accidents.
2) This example demonstrated the debate and choice between centralizing decision power on the one hand, or distributing it across the organization on the other hand. Doing the latter has some benefits. The first one is related to responsiveness, as front-line managers would lose a lot of time when communicating a certain problem to senior managers. They would tackle problems more quickly if they had the decision power. Additionally, when they do have the power to make decisions, they are more likely to stick to created plans and strategies.
Final answer:
Executives might opt for managers across the organization to make their plans as it can lead to a) a more dynamic response to environmental changes, b) better coordination of resources, c) more control and d) a stronger commitment from managers to implement and follow through on these plans.
Explanation:
When determining why executives might opt for department and frontline managers to make their plans, the following reasons stand out:
(a) Dynamic environment: Having managers at different levels create plans allows for more responsive and agile strategies that can adapt quickly to environmental changes.(b) Resources might not necessarily be better coordinated across the organization as a result of decentralized planning, which could potentially be a drawback of this approach.(c) Senior leadership might have less direct control over the organization’s direction, as decentralized planning empowers lower-level managers.(d) Manager commitment: Managers are more likely to be committed to the execution of plans that they have developed, leading to better implementation and follow-through.Comparing to cases like Alcoa's safety success and Herzog Electric's zero accident rate, allowing managers to make plans shaped by their immediate understanding of their departmental needs and hazards can be very effective. This is supported by a safety culture where leadership encourages employee involvement in safety measures and demonstrates the value of bottom-up planning.
Which of these activities does not contribute to lean construction? Select one: a. Including factory-like production methods b. Decentralizing decision making c. Sequential construction d. Using BIM e. Streamlining workflows and supply methods
Answer: C- Sequential construction
Explanation: Sequential construction analysis is a nonlinear static analysis which takes into account the concept of incremental loading.
when sequential construction is ignored, the analysis assumes that the entire loads are carried by the entire structure. Sequential construction is also important on analysis of high rise buildings where creep and shrinkage must be considered.
General Motors determined that it would close down divisions that were in low-growth markets that had relatively low market shares. According to the BCG Product Portfolio Analysis, GM was identifying divisions in the _____ category for closure.
a. Question Marks
b. Dogs
c. Stars
d. Clunkers
e. Cash Cows
Answer:
b. Dogs
Explanation:
The BCG matrix is used to analyse the performance of an organization's product in terms of the market growth and market share. Going by the BCG matrix, there are 4 types of products based on the measurement criteria mentioned earlier. These are Star, Cash cow, Question mark and Dogs.
Stars are high performers with high market growth and high market share. Cash cows have high market share but low market growth. Question marks are products with high market growth but low market share. Dogs are the poor performing products with low market share and low growth rate. Hence the division as identified by General Motors for closure is in the division of Dogs.
Option b
According to the IMA Code of Ethics, what should a management accountant do if a significant ethical situation can't be resolved?
(A) The accountant should confront the guilty party and demand the unethical action be stopped.
(B) The accountant should try to rationalize and understand the position of the other party
(C) The accountant should say nothing about the matter until he or she has retired.
(D) The accountant should first discuss the matter with the immediate supervisor
Answer:
The correct answer is letter "D": The accountant should first discuss the matter with the immediate supervisor.
Explanation:
The Institute of Management Accountants (IMA) Code of Ethics is a set of good practices that rule the accountants' work in benefit of themselves and their organization. The IMA Code of Ethics Integrity principle states that accounts must communicate unfavorable as well as favorable communication.
Following that principle, if an account finds an ethical situation that cannot be resolved, the professional must communicate it to their leads.
Esquire Corp. uses the periodic inventory system. During its first year of operations, Esquire made the following purchases (list in chronological order of acquisition):
• 20 units at $50
• 35 units at $40
• 85 units at $30
Sales for the year totaled 135 units, leaving 5 units on hand at the end of the year.
Ending inventory using the LIFO method is
A. $150
B. $177
C. $250
D. $1,540
Answer:
C. $250
Explanation:
The LIFO stands for Last in first out. It means the last units are first sold and the remaining units are later sold
We know that
Sales for the year = 135 units
Closing inventory = 5 units
The 135 units is sold from 85 units at $30 and 35 units at $40 and 15 units at $50
So, for 5 units, the closing inventory would be
= 5 units × $50
= $250
When products are completed:
Multiple Choice:
1. Finished Goods Inventory is credited.
2. Work in Process Inventory is credited.
3. Cost of Goods Sold is debited.
4. Work in Process Inventory is debited.
Option(2) When products are completed, Work in Process Inventory is credited to indicate that products have moved from being in production to being finished goods, reflecting a transition in inventory stages.
When products are completed and ready to move out of production, the accounting department needs to reflect this in the company's financial records. The correct handling of these transactions involves an adjustment to inventory accounts. Specifically, when products are completed, Work in Process Inventory is credited to reflect the decrease due to the transfer of costs from Work in Process to Finished Goods. This means that the value of the goods that were in the process of being manufactured is now transferred to Finished Goods, as they are ready for sale. Accordingly, Finished Goods Inventory is debited to reflect the increase in inventory that is ready for sale.
Therefore, when products are completed:
Finished Goods Inventory is debited.
Work in Process Inventory is credited.
Cost of Goods Sold is not debited until the goods are actually sold.
Work in Process Inventory is not debited but credited.
The merchandise balance and current account balance, as well as the general accounting for Gross Domestic Product (GDP), can be affected by how inventory valuations and changes are recorded.
When production finishes, Work in Process Inventory is credited, and Finished Goods Inventory is debited. This reflects the transfer of costs from incomplete to complete inventory, ready for sale. Cost of Goods Sold is not affected until the sale of the finished goods.
When products are completed and moved from production to inventory, this entails a transfer from one accounting category to another. As production concludes, the cost associated with the Work in Process Inventory (WIP) decreases because the goods are no longer in process; they're finished. Consequently, the WIP is credited because the costs to produce the goods are transferred out of WIP. This action completes the production accounting phase and prepares for the goods' costs accounting when they are sold. At the same time, the Finished Goods Inventory is debited, reflecting the addition of the newly completed goods ready for sale. The Cost of Goods Sold account is not affected until the finished goods are actually sold. Therefore, the correct answer to the question is 4.
As part of thinking about the _____, managers track the Consumer Price Index, manufacturing and retail inventory levels, and consumer confidence measures.
Answer:
Economic Dimension
Explanation:
Economic dimension implies that the effect of economic factors on a particular circumstance which a company faces are taking into consideration while making a decision.
In the question, the three economic factors mentioned to be considered by the company as part of the economic dimension are Consumer Price Index, manufacturing and retail inventory levels, and consumer confidence measures.
The Consumer Price Index (CPI) measures the weighted average of prices of a basket of commodities like cloth, food, transportation, etc. This is calculated as average of the changes in prices of the chosen basket of goods and services.
Manufacturing inventory are raw material or work-in-progress items kept in stock to produce goods, while retail inventory are the finished goods kept in stock to be sold.
Consumer confidence measure can also be referred to as the Consumer Confidence Index (CCI) and it is the level of assurance which consumers display about general economic condition in a country through the way they spend or save.
How a company monitor and prepare for each of the three factors will determine its success or failure.
Final answer:
Managers monitor the economic environment, including the Consumer Price Index, to make informed decisions on business production, strategy, and grasp elements affecting the company's bottom line.
Explanation:
As part of thinking about the economic environment, managers track the Consumer Price Index (CPI), manufacturing and retail inventory levels, and consumer confidence measures. The CPI is an essential measure as it helps businesses understand price changes and inflation, which affect purchasing power and consumer behavior, ultimately impacting a company's sales and profitability. Managers must comprehend these economic indicators to make informed decisions on production, pricing, and strategy, ensuring they focus on elements that directly influence the company's bottom line.
Wendy sells ice-making machines. She can sell 6 per week at a price of $2,000. If she charges $2,100, she will only sell 5 per week. The marginal benefit of selling the 6th ice-making machine is
Answer:
$1500
Explanation:
Marginal benefit = ($2,000 × 6) - ($2,100 × 5) = $12,000 - $10,500 = $1500
Final answer:
The marginal benefit of selling the 6th ice-making machine is $1,500.
Explanation:
The marginal benefit of selling the 6th ice-making machine can be calculated by comparing the change in revenue when selling the 6th machine at a price of $2,000 with the change in revenue when selling only 5 machines at a price of $2,100.
Let's calculate the revenue for selling 6 machines at $2,000: 6 machines x $2,000 = $12,000.
Now, let's calculate the revenue for selling 5 machines at $2,100: 5 machines x $2,100 = $10,500.
The marginal benefit is the difference in revenue between the two scenarios: $12,000 - $10,500 = $1,500.
Households receive transfers from ________ and firms receive transfers from.________A) government; governmentB) firms; householdsC) government; government and householdsD) firms and government; governmentE) government; no one
Answer:
A) government; government
Explanation:
Transfer payments are payments made to either the household, the firm or government from either the household, the firm or government without any exchange of goods or service in return. It is a one-way payment where the receiver gives nothing in return.
Government makes transfer payments to redistribute income and for other political and economic reasons.
Households and firms typically receive transfers from the government, known as 'transfer payments', such as unemployment benefits, social security, and grants that help stimulate the economy.
The correct option is a.
Explanation:Households typically receive transfers from government, and firms receive transfers from the government.
This is due to what we refer to as 'transfer payments'. These payments, null of exchanges of good or services, are typically made by the government to both households and firms.
Examples of these would be unemployment benefits, social security, and grants, helping to stimulate the economy by increasing the purchasing power of households and supporting firms' activities.
Learn more about Transfer Payments here:https://brainly.com/question/32988441
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If private investment is relatively sensitive to interest rates, then a fiscal expansion financed by government bond sales will:
Answer:
The correct answer is letter "C": raise output by a relatively large amount.
Explanation:
Typically, to boost production in the economy, the government tends to sell securities of its treasury causing the interest rate to fall. Lower interest rate promotes private investments increasing the country's growth. If the investment in that country is sensitive to the interest rate, the output rise is likely to be significant.
Use the following information to calculate the sales price of a boat under both GAAP and for internal decision purposes:
Number of boats to be sold 500
Upstream costs $5,000,000
Direct materials per boat $50,000
Direct labor per boat $30,000
Overhead per boat $ 20,000
Downstream costs $2,000,000
(1). Assume the company wants to sell each boat for 20% more than the cost to produce the boat. Which of the following would be the sales price under GAAP and for internal decision purposes?
GAAP Internal Decision
(A) $120,000 $136,800
(B) $ 136,800 $136,800
(C) $ 120,000 $114,000
(D)) $136,800 $ 114,000
Answer:
(A) $120,000 ; $136,800
Explanation:
The computation is shown below:
The sales price under GAAP would be
= (Direct materials per boat + Direct labor per boat + Overhead per boat) + (Markup percentage of total cost)
= ($50,000 + $30,000 + $20,000) + 20% × $100,000
= $100,000 + $20,000
= $120,000
The sales price under Internal decision purposes would be
= (Direct materials per boat + Direct labor per boat + Overhead per boat + Upstream costs per boat + downstream cost per boat ) + (Markup percentage of total cost)
= ($50,000 + $30,000 + $20,000 + $10,000 + $4,000) + 20% × $114,000
= $114,000 + $22,800
= $136,800
The upstream per boat would be
= $5,000,000 ÷ 500
= $10,000
And, the downstream per boar
= $2,000,000 ÷ 500
= $4,000
Assume you own more than one business. The financial records are prepared separately for each business. The records are also separate and distinct from your personal finances. This methodology relies on the going concern concept. (If false, identify error and correct.)
a. True.
b. False.
Answer:
The correct answer is letter "B": False.
Explanation:
The Accounting Entity principle states that the transactions of a business must be recorded separately from the personal transactions of the owners or other businesses. This principle relies on the fact that businesses are recognized as separate economic units.
Thus:
Assume you own more than one business. The financial records are prepared separately for each business. The records are also separate and distinct from your personal finances. This methodology relies on the Accounting Entity principle.
Jack has $60 to spend on lunch each week. He eats either at the Taco Hut, which costs $10, or the Pizza Shack, which costs $12. Which of the following combinations is on Jack’s budget line?
Final answer:
Jack can either make 6 visits to Taco Hut and 0 visits to Pizza Shack, or 5 visits to Pizza Shack and 0 visits to Taco Hut.
Explanation:
Jack has $60 to spend on lunch each week. He eats either at the Taco Hut, which costs $10, or the Pizza Shack, which costs $12. To find which combinations are on Jack's budget line, we can divide his total budget by the cost of each option.
If Jack spends all his money on Taco Hut ($60 / $10 = 6), he can eat there 6 times a week. If he spends all his money on Pizza Shack ($60 / $12 = 5), he can eat there 5 times a week.
So, the combinations on Jack's budget line are: 6 visits to Taco Hut and 0 visits to Pizza Shack, or 5 visits to Pizza Shack and 0 visits to Taco Hut.