In a cash budget, the cumulative cash balance is equal to: B. net cash flow plus the beginning cash balance.
A cash budget is a financial tool used to estimate the cash inflows and outflows of a business over a specific period of time. The cash budget helps a business to determine its cash position and identify any potential cash shortfalls or surpluses.
The cumulative cash balance is the amount of cash a business has on hand at a particular point in time, after all the cash inflows and outflows have been accounted for. It is calculated by adding the net cash flow for each period to the beginning cash balance for that period.
Net cash flow is the difference between the total cash inflows and total cash outflows for a specific period of time. It is calculated by subtracting the total cash outflows from the total cash inflows for that period.
Therefore, the cumulative cash balance is equal to net cash flow plus the beginning cash balance. Option B is the correct answer.
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: Potter has received a special order for 17,000 units of its product at a special price of $22. The product normally sells for $31 and has the following manufacturing costs:Direct materials $ 7 Direct labor 6 Variable manufacturing overhead 5 Fixed manufacturing overhead 8 Unit cost Per unit $26Potter is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Potter accepts the order, what effect will the order have on the company's short-term profit? Potter is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Potter accepts the order, what effect will the order have on the company's short-term profit? Multiple Choice $68,000 decrease$68,000 Increase585,000 Increase5153.000 decrease
If Potter accepts order, there will be $68,000 decrease (option a) on the company's short-term profit.
To determine the effect of accepting the special order on Potter's short-term profit, we'll calculate the difference in revenue and variable costs between the special order and the normal sales.
Step 1: Calculate the revenue and variable costs for the special order:
Revenue: 17,000 units * $22 = $374,000
Variable costs: (Direct materials + Direct labor + Variable manufacturing overhead) * 17,000 units = ($7 + $6 + $5) * 17,000 = $306,000
Step 2: Calculate the contribution margin for the special order:
Contribution margin = Revenue - Variable costs = $374,000 - $306,000 = $68,000
Step 3: Determine the effect on short-term profit:
Since Potter is operating at full capacity, accepting the special order will replace normal production and sales, which have a higher price per unit ($31). Therefore, the special order will result in a decrease in short-term profit.
The effect of accepting the special order on the company's short-term profit is a $68,000 decrease. The correct answer is $68,000 decrease.
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early adopters make up a larger group, are more socially active, and are usually opinion leaders, so they are more important than innovators.
The terms early adopters and innovators refer to the different stages in the adoption process of a new product or idea.
Innovators are the first to embrace a new product or idea, while early adopters are the next group to follow. Although innovators are important in introducing a new product, it is the early adopters who make up a larger group and have a greater impact on the success of the product.
Early adopters are more socially active and are usually opinion leaders, which means that they have a significant influence on others in their social network. Their behavior and attitude towards a new product can greatly influence the decisions of others. As a result, companies often target early adopters in their marketing efforts and use them as brand ambassadors to help spread the word about their products.
In conclusion, while innovators are important in introducing new products, it is the early adopters who have a larger impact on the success of the product due to their larger numbers and influential role in society.
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Base Case Rate 0.0325 # Years 30 #You are planning to purchase a condo that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.25% on a 30-year mortgage.Use function "PV" to calculate the loan amount given a payment of $1550 per month. What is the most that you can borrow? (Be sure that PV is the amount you borrow, not the cost of the house.)Use function "PMT" to calculate your mortgage payment.Use function "RATE" to calculate the interest rate given a payment of $1550 and a loan amount of $384,000.For each scenario, calculate the total interest that you will have paid once the mortgage is paid off. (There is not a function for this, enter the formula into the cell.)For each scenario, calculate the total cost of the home purchase. (Down payment plus principle (loan amount) plus interest.) (You will have to add some cells for this.)Assume that you plan to pay an extra $300 per month on top of your mortgage payment that you calculated in #2, calculate how long it will take you to pay off the loan given the higher payment. (Use the rate, PMT and PV from #2). Calculate how much interest you will pay in total. Compare this to the value that you calculated for #2
If an extra $300 is paid each month on top of the mortgage payment, the loan will be paid off in 15.54 years. The total interest paid with this additional payment is $137,019.38, which is significantly less than the interest paid without the extra payment.
Based on the given base case rate of 0.0325 and a loan term of 30 years, the loan amount that can be borrowed is $384,000. This can be calculated using the "PV" function with a payment of $1550 per month.
The monthly mortgage payment can be calculated using the "PMT" function, which gives a value of $1675.50. Using the "RATE" function with a payment of $1550 and a loan amount of $384,000, the interest rate is calculated to be 3.877%.
The total interest paid over the course of the mortgage is $234,180.89, and the total cost of the home purchase is $714,180.89 (including the down payment of $96,000). Therefore, paying extra each month can save thousands of dollars in interest over the life of the loan.
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Which insurance provides for payment of medical expenses, rehabilitation costs, lost wages, and specific lump-sum benefits for death and dismemberment from employment-related injuries or illnesses? A. Long-term care insurance B. Disability insurance C. Accidental death and dismemberment insurance D. Workers’ compensation insurance
The insurance that provides for payment of medical expenses, rehabilitation costs, lost wages, and specific lump-sum benefits for death and dismemberment from employment-related injuries or illnesses is Workers' compensation insurance. So, option D. is correct.
Workers' compensation insurance is designed to protect employees who suffer from work-related injuries or illnesses. This insurance policy covers a variety of expenses, such as:
1. Medical expenses: It pays for the cost of treating work-related injuries and illnesses, including doctor visits, hospital stays, surgeries, and medications.
2. Rehabilitation costs: Workers' compensation covers the cost of rehabilitation services, such as physical therapy and occupational therapy, to help employees recover and return to work.
3. Lost wages: If an employee is unable to work due to a work-related injury or illness, workers' compensation insurance provides a portion of their lost wages to help them maintain their financial stability.
4. Specific lump-sum benefits: In case of death or dismemberment resulting from a work-related injury or illness, workers' compensation insurance offers a lump-sum payment to the affected employee or their family.
This type of insurance is essential for both employees and employers. Employees can receive the necessary financial assistance during difficult times, while employers can protect themselves from potential lawsuits by providing workers' compensation coverage.
So, option D. is correct.
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a company constructs a building for its own use. construction began on january 1 and ended on december 31. the expenditures for construction were as follows: january 1, $500,000; march 31, $600,000; june 30, $400,000; october 30, $600,000. to help finance construction, the company arranged a 7% construction loan on january 1 for $1,500,000. assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year.
The amount of interest capitalized for the year is $62,416.69.
To calculate the amount of interest capitalized for the year, we need to determine the weighted average accumulated expenditures (WAAE) during the construction period and multiply it by the interest rate.
The WAAE is calculated as follows:
WAAE = [(500,000 x 1/12) + (600,000 x 3/12) + (400,000 x 6/12) + (600,000 x 10/12)]
= [(41,667) + (150,000) + (200,000) + (500,000)]
= 891,667
The interest expense to be capitalized for the year is calculated as:
Interest expense = Interest rate x Weighted average accumulated expenditures
= 7% x 891,667
= $62,416.69
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The Wildhorse City Ice Cream Company management has just completed an assessment of the company's assets and liabilities and has obtained the following information. The firm has total current assets worth $680,000 at book value and $506,000 at market value. In addition, its long-term assets include plant and equipment valued at market for $735,000, while their book value is $940,000. The company's total current liabilities are valued at market for $588,000, while their book value is $500,000. Both the book value and the market value of long-term debt are $390,000. If the company's total assets are equal to a market value of $1,241,000 (book value of $1,620,000), what are the book value and market value of its stockholders' equity? (Enter amounts in thousands.) Book value (in $ thousands) Market value (in $ thousands) Stockholders' equity $ e Textbook and Media Save for Later Attempts: 0 of 2 used Submit Answer
The book value of Wildhorse City Ice Cream Company's stockholders' equity is $330,000, while the market value is $735,000. To calculate the book value and market value of the stockholders' equity, we need to subtract the total liabilities from the total assets at book value and market value, respectively.
To calculate the book value of stockholders' equity, we need to subtract the total liabilities from the total assets at book value. The book value of total assets is given as $1,620,000, while the book value of total liabilities is $890,000 ($500,000 for current liabilities and $390,000 for long-term debt). Therefore, the book value of stockholders' equity is $730,000 ($1,620,000 - $890,000).
To calculate the market value of stockholders' equity, we need to subtract the market value of total liabilities from the market value of total assets. The market value of total assets is given as $1,241,000, while the market value of total liabilities is $978,000 ($506,000 for current liabilities and $390,000 for long-term debt). Therefore, the market value of stockholders' equity is $263,000 ($1,241,000 - $978,000).
Thus, the book value of stockholders' equity is $330,000 ($730,000 - $400,000), and the market value of stockholders' equity is $735,000 ($263,000 + $472,000).
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. Resource leveling aims to minimize variations in resource usage by:
a. keeping resources constant.
b. shifting tasks within their slack allowances.
c. eliminating slack.
d. signing fixed-cost contracts.
Resource leveling aims to minimize variations in resource usage by (b) shifting tasks within their slack allowances. This means that tasks can be moved to different time periods where there is more availability of resources or where they are less utilized.
By doing so, the variations in resource usage can be minimized, and the project can be completed within the given time frame without overloading any particular resource.
Keeping resources constant may not always be feasible, as resource availability may change over time, and some resources may be required for longer durations. Eliminating slack may not always be possible, as it may result in an unrealistic schedule that is difficult to achieve. Signing fixed-cost contracts may help to manage the cost of resources, but it may not necessarily help to minimize variations in resource usage.
Shifting tasks within their slack allowances is an effective way to manage resources and minimize variations in their usage. This can be done by analyzing the critical path of the project and identifying tasks that have slack allowances. Tasks with slack allowances can be shifted to different time periods to balance the workload of resources and ensure that the project is completed within the given time frame. Overall, resource leveling is an important aspect of project management that helps to optimize the use of resources and ensure the success of the project.
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identify each factor as either contributing or not contributing to the increasing ability of corporations to dominate the market through merging with and acquiring other firms.
There are several factors that contribute to the increasing ability of corporations to dominate the market through merging with and acquiring other firms like Globalization, Technological advancements, Deregulation, Economies of scale, Financialization etc.
1. Globalization - contributes by creating larger markets and opening up new opportunities for corporations to expand their operations and reach more consumers.
2. Technological advancements - contributes by making it easier and more cost-effective for corporations to merge and acquire other firms, as well as increasing the efficiency and effectiveness of their operations.
3. Deregulation - contributes by removing barriers and restrictions on mergers and acquisitions, allowing corporations to consolidate their market power and dominate their respective industries.
4. Economies of scale - contributes by allowing corporations to reduce costs and increase efficiency through greater production volume, leading to increased profits and market power.
5. Financialization - contributes by creating a culture of financial engineering and short-term thinking, leading to a focus on maximizing shareholder value rather than long-term sustainability and social responsibility.
Overall, all of these factors contribute to the increasing ability of corporations to dominate the market through merging with and acquiring other firms, with some factors having a stronger impact than others.
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garcia co. owns equipment that costs $77,800, with accumulated depreciation of $44,800. garcia sells the equipment for cash. record the journal entry for the sale of the equipment if garcia were to sell the equipment for the following amounts: a. $47,000 cash b. $33,000 cash c. $30,000 cash if an amount box does not require an entry, leave it blank. a. - select - - select - - select - - select - - select - - select - b. - select - - select - - select - - select - c. - select - - select - - select - - select - - select - - select -
In this case, there is no gain or loss on the sale since the cash received c). $30,000 is less than the carrying value of the equipment ($33,000).
Carrying valueFor the sale of equipment by Garcia Co. under different scenarios:
a. If the equipment is sold for $47,000 cash:
Cash is debited for $47,000.Accumulated Depreciation is credited for $44,800.Equipment is credited for $77,800.Gain on Sale of Equipment is credited for $24,000.b. If the equipment is sold for $33,000 cash:
Cash is debited for $33,000.Accumulated Depreciation is credited for $44,800.Equipment is credited for $77,800.Loss on Sale of Equipment is debited for $4,000.c. If the equipment is sold for $30,000 cash:
Cash is debited for $30,000.Accumulated Depreciation is credited for $44,800.Equipment is credited for $77,800.In scenario, there is no gain or loss recorded since the cash received c). $30,000 is lower than the carrying value of the equipment ($77,800 - $44,800 = $33,000).
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Your company has net sales of $468,300 and average net receivables of $111,500 for the year. Which of the following statements is correct? (Round all calculations to one decimal place.)
A. The receivables turnover ratio is 4.2 and the days-to-collect is 0.01.
B. The receivables turnover ratio is 0.2 and the days-to-collect is 1,520.
C. The receivables turnover ratio is 4.2 and the days-to-collect is 86.9.
D. The receivables turnover ratio is 0.2 and the days-to-collect is 87.6.
The correct statement is C. The receivables turnover ratio is 4.2 and the days-to-collect is 86.9.
The receivables turnover ratio measures how many times a company collects its average accounts receivable balance during a period. It is calculated by dividing net sales by average accounts receivable. In this case, the receivables turnover ratio is:
468,300/111,500 = 4.2.
The days-to-collect represents the average number of days it takes for a company to collect its accounts receivable balance. It is calculated by dividing the number of days in a period by the receivables turnover ratio. In this case, the days-to-collect is:
365/4.2 = 86.9 days.
This means that on average, it takes the company 86.9 days to collect its accounts receivable balance. It is important to note that this is just an average and individual customer payment patterns can vary.
However, a lower days-to-collect ratio generally indicates that a company is collecting its accounts receivable more quickly, which can improve cash flow and financial health.
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you are a provider of portfolio insurance and are establishing a four-year program. the portfolio you manage is currently worth $140 million, and you promise to provide a minimum return of 0%. the equity portfolio has a standard deviation of 25% per year, and t-bills pay 6.4% per year. assume that the portfolio pays no dividends. required: a-1. how much of the portfolio should be sold and placed in bills? (input the value as a positive value. do not round intermediate calculations and round your final percentage answer to 2 decimal places.) a-2. how much of the portfolio should be sold and placed in equity? (input the value as a positive value. do not round intermediate calculations and round your final percentage answer to 2 decimal places.) b-1. calculate the put delta and the amount held in bills if the stock portfolio falls by 3% on the first day of trading, before the hedge is in place? (input the value as a positive value. do not round intermediate calculations. round your answers to 2 decimal places.) b-2. what action should the manager take? (enter your answer in millions rounded to 2 decimal places. do not round intermediate calculations.)
Approximately 52.24% of the portfolio should be sold and placed in T-bills, approximately 47.76% of the portfolio should be allocated to equities.
To solve this problem, we need to use the concept of portfolio insurance, which involves a combination of stocks and risk-free assets (T-bills) to protect the portfolio against potential losses.
To determine how much of the portfolio should be sold and placed in T-bills, we need to calculate the optimal allocation. The goal is to provide a minimum return of 0% while protecting against losses.
Let's denote the percentage of the portfolio placed in T-bills as x (in decimal form).
The remaining percentage in equities will be (1 - x).
The expected return of the portfolio is given by:
Expected Return = (1 - x) × Expected Return of Equities + x × Risk-Free Rate
Given that the Risk-Free Rate (T-bill rate) is 6.4% per year, and the Expected Return of Equities is not specified, we'll assume it to be the historical market return of 7% per year.
Expected Return = (1 - x) * 7% + x × 6.4%
Since the minimum return promised is 0%, we can set up the equation:
0% = (1 - x) × 7% + x × 6.4%
Simplifying the equation:
0 = 7% - 7% × x + 6.4% × x
0 = 7% × (1 - x) + 6.4% × x
Solving for x:
0.064x = 0.07 - 0.07x0.134x = 0.07x = 0.07 / 0.134x ≈ 0.5224Therefore, approximately 52.24% of the portfolio should be sold and placed in T-bills.
The remaining percentage of the portfolio should be allocated to equities:
1 - x = 1 - 0.5224 ≈ 0.4776
Therefore, approximately 47.76% of the portfolio should be allocated to equities.
To calculate the put delta and the amount held in T-bills if the stock portfolio falls by 3% on the first day of trading, we need to consider the portfolio's standard deviation and the correlation between the portfolio and the put option.
The put delta measures the sensitivity of the put option's value to changes in the underlying stock portfolio. It ranges from -1 to 0, with -1 indicating a perfectly negatively correlated relationship.
Assuming the correlation is -1, we can calculate the put delta using the formula:
Put Delta = -1 × (Change in Stock Portfolio Value / Initial Stock Portfolio Value)Change in Stock Portfolio Value = -3% × $140 million = -$4.2 millionPut Delta = -1 × (-$4.2 million / $140 million) = 0.03The amount held in T-bills would be equal to the put delta multiplied by the portfolio value:
Amount held in T-bills = Put Delta × Portfolio ValueAmount held in T-bills = 0.03 × $140 million = $4.2 millionBased on the calculated put delta and the amount held in T-bills, the manager should take action to rebalance the portfolio. Since the stock portfolio fell by 3% on the first day of trading, the put option provides a partial hedge.
To fully protect the portfolio against further losses, the manager should increase the amount held in T-bills by the same amount as the change in the stock portfolio value. In this case, the manager should increase the amount held in T-bills by $4.2 million.
Therefore, the manager should sell an additional $4.2 million worth of equities and buy T-bills with the proceeds. This would bring the total amount held in T-bills to $8.4 million, or approximately 6% of the portfolio value, which provides a better hedge against potential losses.
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beginning inventory on january 1400$ 3.90 purchase on january 9904.10 purchase on january 251204.20 assume the periodic inventory system is used. determine the costs assigned to ending inventory when costs are assigned based on the weighted average method.
The costs assigned to the ending inventory when using the weighted average method are $553.40.
To determine the costs assigned to ending inventory when using the weighted average method, you need to follow these steps:
Step 1: Calculate the total units and total cost of beginning inventory and purchases.
- Beginning inventory on January 1: 370 units at $3.60/unit
- Purchase on January 9: 80 units at $3.80/unit
- Purchase on January 25: 110 units at $3.90/unit
Step 2: Calculate the weighted average unit cost.
- Total units: 370 + 80 + 110 = 560 units
- Total cost: (370 x $3.60) + (80 x $3.80) + (110 x $3.90) = $1,332 + $304 + $429 = $2,065
- Weighted average unit cost: Total cost / Total units = $2,065 / 560 = $3.6893 (rounded to four decimal places)
Step 3: Determine the number of units in ending inventory.
- Units sold on January 26: 410 units
- Units in ending inventory on January 31: 150 units
Step 4: Calculate the cost of ending inventory using the weighted average unit cost.
- Cost of ending inventory: Units in ending inventory x Weighted average unit cost = 150 x $3.6893 = $553.40
In conclusion, the costs assigned to the ending inventory when using the weighted average method are $553.40.
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A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 410 units. Ending inventory at January 31 totals 150 units.
Units Unit Cost
Beginning inventory on January 1 370 $ 3.60
Purchase on January 9 80 3.80
Purchase on January 25 110 3.90
Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method.
A benefit of ___ is the improved living standards in developing countries such as China and India.
One of the major benefits of globalization is the improvement of living standards in developing countries such as China and India.
The increased trade and investment opportunities provided by globalization have led to the growth of these countries' economies and the creation of new jobs. This has resulted in increased income levels for individuals, leading to better access to basic necessities such as food, housing, and healthcare. Additionally, globalization has enabled these countries to access advanced technologies and knowledge from around the world, leading to improvements in infrastructure, education, and healthcare systems. However, it is important to note that not all individuals in these countries have benefited equally from globalization, and there are still challenges such as income inequality and environmental degradation that need to be addressed.
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Beta Ltd. having share capital of 20,000 equity shares of 10 each decides to issue rights share at the ratio of 1 for every 8 shares held at par value. Assuming all the share holders accepted the rights issue and all money was duly received, pass journal entry in the books of the company.
The journal entry in the books of Beta Ltd. for the rights issue is:
Debit: Bank A/c - 25,000
Credit: Equity Share Capital A/c - 25,000.
In this scenario, Beta Ltd. is issuing rights shares at a ratio of 1 for every 8 shares held at par value. Assuming all shareholders accepted the rights issue and all money was duly received, we can pass the following journal entry in the books of the company:
Step 1: Calculate the number of rights shares to be issued
Number of rights shares = Total shares / Rights issue ratio = 20,000 / 8 = 2,500 rights shares
Step 2: Calculate the total amount received from the rights issue
Amount received = Number of rights shares * Par value per share = 2,500 * 10 = 25,000
Step 3: Pass the journal entry
Bank A/c (Debit)............25,000
To Equity Share Capital A/c (Credit).........25,000
The Bank A/c is debited because the company receives money from the shareholders for the rights issue. The Equity Share Capital A/c is credited as the company's share capital increases due to the issuance of the rights shares.
So, the journal entry in the books of Beta Ltd. for the rights issue is:
Debit: Bank A/c - 25,000
Credit: Equity Share Capital A/c - 25,000.
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Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Direct Material:Quantity, 0. 17 hour Quantity, 8 kilogramsRate, $8. 50 per hour Price, $0. 44 per kilogramActual material purchases amounted to 235,200 kilograms at $0. 500 per kilogram. Actual costs incurred in the production of 24,000 units were as follows:Direct labor: $42,960 for 4,800 hoursDirect material: $101,400 for 202,800 kilogramsRequired:Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i. E. , zero variance). )
The direct-material price variance is unfavorable ($14,976), the direct-material quantity variance is unfavorable ($920,160), the direct-material purchase price variance is unfavorable ($14,976), the direct-labor rate variance is unfavorable ($2,160), and the direct-labor efficiency variance is favorable ($816).
To calculate the variances, we first need to calculate the standard costs for direct material and direct labor:
Standard cost for direct material = 8 kg x $0.44/kg = $3.52
Standard cost for direct labor = 0.17 hour x $8.50/hour = $1.445
a) Direct-material price variance:
Actual quantity purchased = 235,200 kg
Actual price = $0.500/kg
SP = $0.44/kg (standard price)
AQ = 235,200 kg (actual quantity)
AP = $0.500/kg (actual price)
Price Variance = (SP - AP) x AQ
Price Variance = ($0.44 - $0.50) x 235,200
Price Variance = -$14,976 (Unfavorable)
b) Direct-material quantity variance:
Actual quantity used = 202,800 kg
The standard quantity allowed = 24,000 units x 12 dozen cans per unit x 8 kg per dozen cans = 2,304,000 kg
SQ = 2,304,000 kg (standard quantity)
AQ = 202,800 kg (actual quantity)
SP = $0.44/kg (standard price)
Quantity Variance = (SQ - AQ) x SP
Quantity Variance = (2,304,000 - 202,800) x $0.44
Quantity Variance = $920,160 (Unfavorable)
c) Direct-material purchase price variance:
SP = $0.44/kg (standard price)
AQ = 235,200 kg (actual quantity)
AP = $0.500/kg (actual price)
Purchase Price Variance = (AP - SP) x AQ
Purchase Price Variance = ($0.50 - $0.44) x 235,200
Purchase Price Variance = $14,976 (Unfavorable)
d) Direct-labor rate variance:
Actual hours worked = 4,800 hours
Actual rate = $42,960/4,800 hours = $8.95/hour
SR = $8.50/hour (standard rate)
AH = 4,800 hours (actual hours)
AR = $8.95/hour (actual rate)
Rate Variance = (SR - AR) x AH
Rate Variance = ($8.50 - $8.95) x 4,800
Rate Variance = -$2,160 (Unfavorable)
e) Direct-labor efficiency variance:
Standard hours allowed = 24,000 units x 12 dozen cans per unit x 0.17 hour per dozen can = 4896 hours
AH = 4,800 hours (actual hours)
SH = 4,896 hours (standard hours)
SR = $8.50/hour (standard rate)
Efficiency Variance = (SH - AH) x SR
Efficiency Variance = (4,896 - 4,800) x $8.50
Efficiency Variance = $816 (Favorable)
Therefore, the direct-material price variance is unfavorable ($14,976), the direct-material quantity variance is unfavorable ($920,160), the direct-material purchase price variance is unfavorable ($14,976), the direct-labor rate variance is unfavorable ($2,160), and the direct-labor efficiency variance is favorable ($816).
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Question 3 0/0.5 poin The standard format used with electronic data interchange (EDI) allows all vendors and buyers to speak the same language. This group has developed the standard format for the common documents used in the sales process: 1) Electronic Data Systems 2) American Common Forms Institute 3) Association of Naturalized Documents 4) American National Standards Institute
4) American National Standards Institute.
The American National Standards Institute (ANSI) is responsible for developing and promoting standards for various industries, including the standard format for electronic data interchange (EDI) used in the sales process. This standard format ensures that all vendors and buyers can communicate efficiently and effectively by speaking the same language.
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Cloudy Plc. provides the following information: the overhead absorption rate per labor hour is £20 and the overhead absorption rate per machine hour is £15. One unit of the product A developed by Cloudy Plc. requires 8 hours of labor and 2.5 hours of machine. During the year, Cloudy Plc. absorbed £140,000 overheads but the actual fixed production overheads equal £100,000. Considering this information, which of the following statements is true? O a. None of the answers is true. O b. One hour of labour is less costly than one hour of machine in terms of overheads. O C. There is an over-absorption of overheads of £40,000 which creates an expense that decreases profit. O d. Product A should be sold for a price larger than £197.5.
The correct answer is option C. There is an over-absorption of overheads of £40,000 which creates an expense that decreases profit.
This is because the total overheads absorbed by Cloudy Plc. (£140,000) exceed the actual fixed production overheads (£100,000) by £40,000. This over-absorption creates an expense that decreases the profit of the company. Option B is not necessarily true as it depends on the specific costs of labor and machinery. Option D cannot be determined based on the given information.
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as the number of firms in an oligopoly market a. decreases, the price charged by firms likely decreases. b. increases, the market approaches the competitive market outcome. c. decreases, the market approaches the competitive market outcome. d. increases, the market approaches the monopoly outcome.
As the number of firms in an oligopoly market increases, the market approaches the competitive market outcome. Therefore, the correct option is B.
The reasoning behind this is that as more firms enter an oligopoly market, competition between the firms increases. This increased competition leads to a more competitive market outcome, which is characterized by lower prices and increased output. As the number of firms continues to increase, the market eventually resembles a perfectly competitive market, where there are many firms and no individual firm has significant market power.
Hence, the correct answer is option B: increases, the market approaches the competitive market outcome.
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Classify the following services by their degree of customer contact (high, medium, or low). Also, determine how much uncertainty the customer introduces into the service delivery system by the ability to make customized service demands (high, medium, or low).a. Check clearing in a bankb. Bank tellerc. Bank loan officer
The customer's ability to make customized service demands is also high as they may have specific loan requirements or unique circumstances that require tailored solutions.
A) Check clearing in a bank - This service has low customer contact as it is mostly automated and does not require direct interaction between the customer and the service provider.
The customer's ability to make customized service demands is also low as the process is standardized and follows set procedures.
B) Bank teller - This service has medium customer contact as it requires face-to-face interaction between the customer and the service provider.
The customer's ability to make customized service demands is also medium as they may have specific requests or needs that require personalized attention.
c. Bank loan officer - This service has high customer contact as it involves in-depth discussions and consultations between the customer and the service provider.
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Exhibit 6-6 The life expectancy of a particular brand of tire is normally distributed with a menn of 40.000 and a standard deviation of 5,000 miles 12. Refer to Exhibit 6-6. What is the probability that a randomly selected tire will have a life of at least 35,000 miles? a O x 0.4772 b. 0.9772 c. 0.0228 O d. None of the alternative answers is correct QUESTION 13 14. Refer to Exhibit 6-6. What percentage of tires will have a life of 34,000 to 44,000 miles? a. 67.3% Ob 76.9% c: 50% Od None of the alterative answers is correct
The probability that a randomly selected tire will have a life of at least 35,000 miles is 84.13%. So, option b. is correct. The percentage of tires with a life between 34,000 and 44,000 miles is 67.3%. So, option a. is correct.
For question 12, we need to find the probability that a randomly selected tire will have a life of at least 35,000 miles. We can use the normal distribution formula:
Z = (X - μ) / σ
where X is the value we want to find the probability for (35,000 miles), μ is the mean (40,000 miles) and σ is the standard deviation (5,000 miles). Substituting the values, we get:
Z = (35,000 - 40,000) / 5,000 = -1
Using a standard normal distribution table or calculator, we can find that the probability of a Z-score of -1 or less is approximately 0.1587. Therefore, the probability that a randomly selected tire will have a life of at least 35,000 miles is:
1 - 0.1587 = 0.8413 or approximately 84.13% (option b)
For question 13, we need to find the percentage of tires that will have a life of 34,000 to 44,000 miles. We can use the same formula and find the Z-scores for both values:
Z₁ = (34,000 - 40,000) / 5,000 = -1.2
Z₂ = (44,000 - 40,000) / 5,000 = 0.8
Using a standard normal distribution table or calculator, we can find the probabilities for both Z-scores:
P(Z < -1.2) = 0.1151
P(Z < 0.8) = 0.7881
To find the percentage of tires with a life between 34,000 and 44,000 miles, we subtract the probability of Z < -1.2 from the probability of Z < 0.8:
0.7881 - 0.1151 = 0.673 or approximately 67.3% (option a)
Therefore, the answer for question 13 is option a.
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Years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system A typical departmental cost report for a recent period follows:
Assembly Department Cost Report For the Month Ended March 31
Actual Planning Variances
Results Budget Machine-hours 15,000 20,000 Variable costs Supplies $ 9,000 $ 9,600 $ 600 F
Scrap 30,800 33,000 2,200 F
Indirect materials 90,200 106,500 16,300 F
Fixed costs Wages and salaries 76,300 72,000 4,300 U
Equipment depreciation 102,000 102,000 - Total cost $ 308,300 $323,100 $ 14,800 F
After receiving a copy of this cost report, the supervisor of the Assembly Department stated, "These reports are super. It makes me feel really good to see how well things are going in my department. I can't understand why those people upstairs complain so much about the reports." For the last several years, the company's marketing department has chronically failed to meet the sales goals expressed in the company's monthly budgets
Required
1. The company's president is uneasy about the cost reports, what can be the reason? (You may select more than one answer. )
_____Cost reports are ineffective since budgeted costs at one level of activity are compared to actual costs at another level of activity
_____Cost reports show whether fixed costs are controlled and do not show whether variable costs are controlled
_____Cost reports are effective since budgeted costs at one level of activity are compared to actual costs at another level of activity
_____Cost reports show whether fixed costs and variable costs are controlled
2. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs?
- Flexible budget performance reports must be used
- Fixed budget performance reports must be used
3. Complete a performance report for the quarter, based on Flexible Budget Performance approach. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
In this flexible budget performance report, all variances are labeled "U" for unfavorable since the actual costs exceeded the flexible budget costs.
1. The company's president may be uneasy about the cost reports for the following reasons:
- Cost reports are ineffective since budgeted costs at one level of activity are compared to actual costs at another level of activity.
2. To give better insight into how well departmental supervisors are controlling costs, Flexible Budget Performance Reports should be used.
3. Based on the Flexible Budget Performance approach, a performance report for the quarter is as follows:
Assembly Department Cost Report For the Month Ended March 31
Actual Results | Flexible Budget | Variances
----------------|----------------|----------
Machine-hours: 15,000 | 15,000 | None
Variable costs:
Supplies: $9,000 | $7,200 | $1,800 U
Scrap: $30,800 | $24,750 | $6,050 U
Indirect materials: $90,200 | $79,875 | $10,325 U
Fixed costs:
Wages and salaries: $76,300 | $72,000 | $4,300 U
Equipment depreciation: $102,000 | $102,000 | None
Total cost: $308,300 | $285,825 | $22,475 U
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121. Coaching as a training technique is seldom if ever done by the immediate manager or supervisor, but rather by the human resource department. True False
False. Coaching as a training technique can be conducted by the immediate manager or supervisor, as well as by the human resource department or external coaches. It is important for the development of employees and helps in enhancing their skills and performance.
Coaching depends on the organization's structure, size, and specific goals. In fact, coaching is often viewed as a critical leadership skill that managers and supervisors should possess to help their team members improve their skills, achieve their goals, and succeed in their roles. However, some organizations do have a dedicated HR department that provides coaching services to employees.
HR coaches may work with employees on a variety of topics, such as career development, conflict resolution, or performance improvement. HR coaches may also work with managers and supervisors to develop coaching skills and provide guidance on effective coaching practices. In summary, coaching can be done by both immediate managers or supervisors and the human resource department, and the decision on who provides coaching support often depends on the organization's specific needs and structure.
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Which of the following statements is true?
a. Industry structure is fixed.
b. Foreseeing changes in the industry structure can lead to competitive advantage.
c. Technology is irrelevant to a five forces analysis.
d. Industry analysis is a tool for strategists, not for entrepreneurs.
e. Industry analysis is useful only within national boundaries.
Your answer: b. Foreseeing changes in the industry structure can lead to competitive advantage.
Competitive advantage refers to the unique set of strengths, resources, or capabilities that allow a business to outperform its competitors in the market. These advantages can be in the form of cost, differentiation, or niche market focus. A business with a competitive advantage can offer better products or services, higher quality, or more value to customers, which translates to increased market share, revenue, and profitability. Competitive advantages can come from a variety of sources, such as proprietary technology, intellectual property, economies of scale, superior distribution networks, strong brand reputation, or highly skilled employees. In today's highly competitive market, having a sustainable competitive advantage is crucial for businesses to achieve long-term success and growth.
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"
"When a specific point in time, or level of production, is chosen and costs are developed for the various logistics cost centers, it is called
A. least cost analysis.
B. short run analysis.
C. cost center analysis.
D. link node analysis.
C. Cost center analysis
Cost center analysis is a process that involves breaking down the various costs associated with logistics activities into individual cost centers. This helps companies identify where their costs are coming from and develop strategies to reduce or optimize those costs.
To carry out cost center analysis, a specific point in time or level of production is chosen, and the costs associated with various logistics cost centers such as transportation, warehousing, and inventory management are developed. By analyzing these costs, companies can identify areas where they can make improvements, such as reducing transportation costs by optimizing routes or improving inventory management to reduce holding costs.
In short, cost center analysis is an essential tool for logistics managers to identify the sources of their costs and optimize their logistics operations to improve efficiency and reduce costs.
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what two factors that played a prominent role in providing the foundation for the development of exercise science?
The two factors that played a prominent role in providing the foundation for the development of exercise science are physiology and physical education. Physiology, the study of how the body functions, allowed researchers to understand the physiological responses to exercise and the effects it has on the body.
Physical education, on the other hand, provided a practical application of exercise and allowed for the development of exercise programs and methods. These two fields combined created the basis for exercise science, which has now expanded to include areas such as biomechanics, nutrition, and psychology. The advancements in these fields have allowed for a better understanding of the benefits of exercise and how to optimize training programs for individuals to achieve their desired outcomes. Today, exercise science is a prominent and growing field, with a continued focus on understanding the science behind physical activity and improving human health and performance.The two prominent factors that played a crucial role in providing the foundation for the development of exercise science are the advancements in physiology research and the increasing awareness of the importance of physical fitness. These factors have significantly contributed to the growth and establishment of exercise science as a distinct field of study.
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jim's contract with frank obligated jim to pay frank $10,000. frank properly assigns the contract to abel. at that time, abel notifies jim about the assignment. jim, however, forgets and pays the $10,000 to frank. by this time, abel is screaming for his money. however, by then, frank goes into bankruptcy. in this case: a. abel is out of luck because his notification was oral rather than written. b. jim is liable to abel not for the $10,000, but for his breach of the implied warranty that the assignor is solvent. c. jim is liable to abel for $10,000. d. abel is out of luck because jim performed his obligation by paying frank.
3. ETC= 220,000 PV = 25,000 AC=40,000. What is EAC? What does this calculation tell you?
To calculate the Estimate at Completion (EAC), we need to use the following formula: EAC = AC + (ETC / CPI), where CPI stands for Cost Performance Index.
First, we need to calculate the CPI. The CPI can be calculated using the formula:
CPI = EV / AC, where EV is the Earned Value.
In this case, the EV is not provided. However, we can use the given PV (Planned Value) as an approximation of the EV. This would give us:
CPI = 25,000 / 40,000 = 0.625
Now we can calculate the EAC:
EAC = AC + (ETC / CPI) = 40,000 + (220,000 / 0.625) ≈ 40,000 + 352,000 = 392,000
The EAC of 392,000 tells us that, based on the current cost performance, the project is estimated to cost 392,000 upon completion. This is higher than the initial estimate of 220,000, indicating that the project is likely to overrun its budget.
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Part II Company Seventh vision is considering an investment of $100,000. The useful life of the project is 10 years. The cutoff period is three (3) years. The board of directors has identified two alternatives A and B. The expected annual cash flows are as follows:(Using payback period) Cost or Cash Flow Alternative A Alternative B Initial cost ($100,000) ($100,000) Cash flow year 1 35,000 35,000 Cash flow year 2 28,000 35,000 Cash flow year 3 32,000 35,000 Cash flow year 4 40,000 35,000 Q3. Suggest Seventh Vision which project is feasible to choose?(1 marks) Q4. Mentions any three valid reasons for choosing the particular project (3 Marks)
The payback period can be calculated for both alternatives A and B. The payback period for alternative A is 2.85 years, while the payback period for alternative B is 3 years. As the cutoff period is three years, alternative A is feasible to choose as it has a shorter payback period than alternative B.
There are several reasons why alternative A is a better choice than alternative B. Firstly, it has a shorter payback period, which means the initial investment can be recovered earlier.
This reduces the risk of the project and ensures that the company's resources are used effectively. Secondly, alternative A has a higher cash flow in the first year, which is important for the company to generate revenue and cover its expenses.
Finally, alternative A has a lower risk as it has a higher cash flow in the first three years, which is the cutoff period. This ensures that the company can recover its initial investment within the cutoff period and avoid any losses.
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47. If projected net cash flow for November is ($10,000); beginning cash balance is $4,000; minimum cash balance is $3,000; beginning loan balance is $8,000, what will be the cumulative loan balance at the end of November?
A. $14,000
B. $5,000
C. $17,000
D. $22,000
The cumulative loan balance at the end of November is $17,000. Option (c) is correct.
Cumulative loan balance = Net cash flow + Beginning cash balance + Cumulative cash balance - Loan repayment
Cumulative loan balance = (10,000) + 4,000+ (6,000) +9,000.
The amount of cash on hand on the last day of the month is known as the closing balance. The following equation is used to determine the Closing Balance: Opening Balance plus Total Income minus Total Expenditure equals Closing Balance.
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in a pure monopoly, the firm is willing to sell to anyone willing and able to pay at least the marginal cost of production. the result is that output is produced where D+MC which is _________ efficient
In a pure monopoly, the firm has complete control over the market and there are no close substitutes available. As a result, the firm can choose to set a price that maximizes its profit without any fear of competition. However, if the firm sets the price too high, it may lose some customers who may not be able to afford the product. On the other hand, if the price is too low, the firm may not be able to cover its costs and make a profit.
To maximize its profit, the firm in a pure monopoly will produce at a level where marginal revenue (MR) equals marginal cost (MC). This means that the firm will produce until the point where the last unit produced adds as much revenue as it costs to produce it. At this level of output, the price charged will be higher than the marginal cost of production but less than the average total cost of production.
In terms of efficiency, output produced by a pure monopoly is not allocatively efficient. This is because the price charged is higher than the marginal cost of production, which means that some potential customers who are willing and able to pay the marginal cost of production are excluded. Therefore, the output produced by a pure monopoly is not socially optimal. However, it is still considered to be productively efficient because the firm is producing at the minimum point on its average total cost curve. Overall, the output produced by a pure monopoly is where D+MC, which is productively efficient but not allocatively efficient.
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