Advocates of variable costing believe that fixed manufacturing costs:
a. are period expenses
d. are not caused by and cannot be meaningfully traced to specific units of production
The correct option are both a and d.
Variable costing is an accounting method that assigns only variable production costs to products. It treats fixed manufacturing costs as period expenses, meaning they are expensed in the period they are incurred, rather than being assigned to individual units of production. This is because fixed costs, such as rent, insurance, and salaries, do not change with the level of production and therefore cannot be meaningfully traced to specific units.
By considering fixed costs as period expenses, variable costing provides a clearer picture of a product's true contribution margin, which is the difference between the product's selling price and its variable production costs. This approach is valuable for managerial decision-making as it helps to evaluate the profitability of individual products and make informed choices about pricing, product mix, and production levels.
On the other hand, traditional absorption costing allocates both variable and fixed manufacturing costs to products, which can result in misleading information for decision-making, as it may not accurately reflect the actual cost behavior.
In summary, variable costing is favored by its advocates because it treats fixed manufacturing costs as period expenses and recognizes that they cannot be meaningfully traced to specific units of production. This approach leads to more accurate product costing and better decision-making in a managerial context.
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In the case opener Michael Jordan argued the agreement was not enforceable based on which of the following?Group of answer choicesa. Illegal subject matterb. Mutual mistakec. Unilateral mistaked. Undue influencee. None of the answers is correct
Michael Jordan argued that the agreement was not enforceable based on the principle of: Unilateral mistake. The correct option is C.
A unilateral mistake occurs when only one party to a contract is mistaken about a material fact relating to the agreement, and the other party is aware or should have been aware of the mistake.
In this situation, the party making the mistake may argue that the contract should not be enforced, as it was based on a misunderstanding of a critical aspect of the agreement. It's important to note that the success of this argument depends on the specific circumstances of the case and the legal principles applied in the relevant jurisdiction.
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Complete question:
In the case opener Michael Jordan argued the agreement was not enforceable based on which of the following?
a. Illegal subject matter
b. Mutual mistake
c. Unilateral mistake
d. Undue influence
e. None of the answers is correct
1. which of the following terms refers to legal protection provided against copying, distributing, performing, or changing both published and unpublished works? (1 point) intangible property tangible property copyright intellectual property 2. what is piracy? (1 point) the use of copyright in federal court copying, downloading, reproducing, or distributing materials without permission exercising your intellectual property rights giving others permission to use your tangible property 3. what is covered by the term intellectual property? (1 point) copyrighted material, plus intangible things like ideas, music, the written word, or pictures anything that is owned and can be touched any item immune from piracy that is also purchased property that is available for public use 4. both tangible and intangible property (1 point) are not covered by intellectual property protections. are both covered by intellectual property protections. are not considered to be property and cannot be owned. can be stolen or pirated without any consequence
Copyright refers to legal protection provided against copying, distributing, performing, or changing both published and unpublished works.
Piracy refers to copying, downloading, reproducing, or distributing materials without permission, which is a violation of copyright and other intellectual property rights. Intellectual property covers copyrighted material, plus intangible things like ideas, music, the written word, or pictures that are the creations of the mind and have commercial value. Both tangible and intangible property are covered by intellectual property protections, as they can both be the subject of creative works and have value that can be protected.
The term that refers to legal protection provided against copying, distributing, performing, or changing both published and unpublished works is copyright. Piracy is the act of copying, downloading, reproducing, or distributing materials without permission. Intellectual property covers copyrighted material, plus intangible things like ideas, music, the written word, or pictures. Both tangible and intangible property are not covered by intellectual property protections.
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The allocation bases to determine charging rates at the beginning of a year on the basis of budgeted usage permits:
The allocation bases used to determine charging rates at the beginning of a year on the basis of budgeted usage permits may vary depending on the specific organization and the resources or services being provided.
Common allocation bases include direct labor hours, machine hours, square footage, or number of units produced.
These allocation bases help to distribute costs fairly and accurately among different departments or products, based on the level of resources consumed.
By using budgeted usage permits, organizations can plan for their expenses and allocate costs accordingly, ensuring that they have sufficient resources to meet their operational needs while also maintaining financial stability.
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Which statement is false?
a. The source and application of funds technique is a variation of the net worth method that shows increases and decreases in a taxpayer's accounts at the end of the year.
b. Often the IRS agent will use the expenditure approach when a taxpayer is spending income lavishly rather than purchasing assets or investments.
c. The expenditure approach is similar to the Cash T, except that the data used is the increases and decreases in the taxpayer's accounts.
d. The source and application of funds method is a variation of the bank deposit method.
e. None of the above
The false statement among the given options is:
d. The source and application of funds method is a variation of the bank deposit method.
Explanation:
a. The source and application of funds technique is indeed a variation of the net worth method that shows the changes in a taxpayer's accounts at the end of the year.
b. It is true that IRS agents often use the expenditure approach when a taxpayer is spending income lavishly instead of purchasing assets or investments.
c. The expenditure approach is similar to the Cash T, with the difference being that the data used consists of increases and decreases in the taxpayer's accounts.
However, statement d is false because the source and application of funds method is not a variation of the bank deposit method.
Instead, it is a variation of the net worth method, as mentioned in statement a.
The bank deposit method is a separate technique used by the IRS to analyze and reconstruct a taxpayer's income by examining bank deposits and comparing them to the reported income.
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Complete this sentence: "Most products come in _________________ _____________ and ______________. "
Most products come in different sizes and colors.
When we say that "most products come in different sizes and colors", we mean that there is usually a range of options available when it comes to the physical characteristics of a product.
Size is an important factor to consider because people have different needs and preferences. For example, clothing and shoes are typically available in different sizes to accommodate people with different body types and foot sizes. Similarly, products like electronics or appliances may come in different sizes to fit different spaces or meet different needs.
Color is also an important factor because it can affect the aesthetic appeal of a product. Different people have different tastes when it comes to color, and some may prefer bright and vibrant colors while others may prefer more muted or neutral tones. Additionally, some products may be available in different colors to help customers differentiate between different models or versions.
Overall, having a range of options when it comes to size and color can help to ensure that a product meets the needs and preferences of a wide variety of customers.
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19. In general, the larger the portion of a firm's sales that are on credit, the:
A. lower will be the firm's need to borrow.
B. higher will be the firm's need to borrow.
C. more rapidly credit sales will be paid off.
D. more the firm can buy raw materials on credit.
In general, the larger the portion of a firm's sales that are on credit, the higher will be the firm's need to borrow.
When a company sells its products or services on credit, it means that customers are allowed to pay for them at a later date, usually within 30 to 90 days. This creates a delay in the company's cash inflows, which can increase the need for short-term borrowing to cover operating expenses in the meantime.
If a company's sales are mostly made on credit, then a significant portion of its revenue is tied up in accounts receivable, which are essentially IOUs from customers. This means that the company may not have enough cash on hand to cover its day-to-day expenses, such as payroll, rent, and inventory purchases. As a result, the company may need to borrow money to cover these expenses until the accounts receivable are paid off.
Overall, while offering credit sales can be a way to increase revenue and attract customers, it can also increase the need for short-term borrowing and impact a company's cash flow.
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In general, the larger the portion of a firm's sales that are on credit, the: B. higher will be the firm's need to borrow.
A firm's sales refer to the revenue generated by the company from the sale of goods or services during a specific period. Sales are a critical aspect of a firm's financial performance and are a key indicator of the company's market position and growth potential. A firm's sales can be influenced by various factors, including market demand, competition, pricing strategies, customer behavior, and economic conditions. Firms often set sales goals and targets to monitor and measure their performance and to guide their business strategies. Sales data can also provide valuable insights into customer preferences and behavior, which can inform product development, marketing, and sales strategies. To increase sales, firms may invest in advertising, promotions, and sales training, and may also focus on expanding their customer base or diversifying their product offerings.
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Lero Company was poots outor Company for $12.000 ofers credit of 3/10, 0730. Falon Company says the voice with the second parton, Lano Company will record de los Can we amount of A 112.000 B. $11.40 C. $12.500 D. 50
The loss amount that Lero Company will record is $11,400 ($12,000 - $600), i.e., Option B. $11,400 is correct. This is calculated by subtracting the discount from the total amount owed and is known as the net amount due.
To calculate the amount that Lero Company will record as the loss, we need to first determine the net amount that will be received after the discount and any potential returns.
The invoice amount is $12,000, and the credit terms are 3/10, net 30. This means that Lero Company offers a 3% discount to customers who pay within 10 days of the invoice date, and the full amount is due within 30 days.
If the customer takes advantage of the discount, they will pay 97% of the invoice amount, which is $11,640. If they do not take advantage of the discount, they will pay the full amount of $12,000.
Now we need to consider the potential returns. If the goods sold are defective or do not meet the customer's expectations, they may be returned. If this happens, Lero Company would issue a credit memo to the customer, reducing the amount due.
Assuming there are no returns, the net amount that Lero Company will receive is $11,640 if the customer takes the discount or $12,000 if they do not.
Since Falon Company has indicated that it will not pay the full amount due, Lero Company must record a loss for the difference between the net amount expected and the amount received. In this case, the loss would be $600 if the customer takes the discount or $0 if they do not.
Therefore, the amount that Lero Company will record as the loss is $11,400 ($12,000 - $600).
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which of the following is not a factor commonly affecting channel choice and supply chain management? a. producer factors. b. customer factors. c. product factors.
All three factors, producer factors, customer factors, and product factors, are commonly affecting channel choice and supply chain management. The answer to the question is none of the above.
Producer factors include production capabilities, marketing strategies, and resources available for distribution.
Customer factors refer to the characteristics of the target market, such as their preferences, behaviors, and buying habits.
Product factors encompass the attributes of the product itself, including its complexity, size, and packaging.
All of these factors can significantly impact the decision-making process involved in choosing the most effective channel and managing the supply chain.
Therefore, it is essential to carefully consider and analyze all three factors to ensure a successful supply chain management process that meets both the producer's and customer's needs.
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A company has $60 billion of sales and $3 billion of net income. It total assets are $ 30 billion. The company's total assets equal total invested capital, and its capital consists of half debt and half common equity. The firm's interest rate is 6%, and its tax rate is 40% 1. What is its profit margin? 2. What is its ROA? 3. What is its ROE? 4. What is its ROIC?
The company has a profit margin of 5%, an ROA of 10%, an ROE of 20%, and an ROIC of 6%. These metrics indicate that the company is generating a decent return on its investments and operations.
1. The company's profit margin can be calculated by dividing its net income by its sales. So, the profit margin would be (3 billion / 60 billion) = 5%.
2. The company's ROA (Return on Assets) can be calculated by dividing its net income by its total assets. So, the ROA would be (3 billion / 30 billion) = 10%.
3. The company's ROE (Return on Equity) can be calculated by dividing its net income by its common equity. Since the company's capital consists of half debt and half common equity, we need to calculate the common equity first. Total capital = Debt + Common Equity.
Therefore, Common Equity = Total Capital / 2 = 30 billion / 2 = 15 billion. So, the ROE would be (3 billion / 15 billion) = 20%.
4. The company's ROIC (Return on Invested Capital) can be calculated by dividing its net operating profit after taxes (NOPAT) by its invested capital. NOPAT can be calculated by subtracting taxes from operating profit, which is (1 - 0.4) * 3 billion = 1.8 billion.
Invested capital can be calculated by adding debt and equity, which is 15 billion (common equity) + 15 billion (debt) = 30 billion. So, the ROIC would be (1.8 billion / 30 billion) = 6%.
In summary, it's important to compare these metrics with the company's peers and industry benchmarks to get a better understanding of its performance.
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the cost of preferred stock, rps, used in the weighted average cost of capital equation is calculated as the preferred dividend, dps, divided by the current price of the preferred stock, pps. -select- tax adjustment is made when calculating rps because preferred dividends -select- tax deductible; so -select- tax savings are associated with preferred stock.
The first part of the statement is correct. The cost of preferred stock (rps) used in the weighted average cost of capital (WACC) equation is calculated as the preferred dividend (dps) divided by the current price of the preferred stock (pps).
However, the second part of the statement is incorrect. A tax adjustment is not made when calculating rps because preferred dividends are not tax-deductible. As a result, there are no tax savings associated with preferred stock.
Unlike interest payments on debt, preferred stock dividends are not tax-deductible for the issuing company.
This means that the cost of preferred stock is not adjusted for taxes in the same way that the cost of debt is adjusted for taxes. Therefore, the calculation for rps does not include any tax adjustments.
In summary, the cost of preferred stock is calculated as the preferred dividend divided by the current price of the preferred stock, and no tax adjustment is made because preferred dividends are not tax-deductible.
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Norma, the majority shareholder in ABC, Inc., received an interest-free loan from the corporation. Which of the following is/are correct? 1. If the loan is classified as an employer-employee loan, the corporation's taxable income may be affected by the imputation of interest.2. If the loan is classified as a corporation-shareholder loan, the corporation's taxable income will increase as a result of the imputation of interest.3. If Norma uses the funds to take a vacation, the imputation of interest will cause a net increase to her taxable income.
1. The IRS may treat this imputed interest as additional income for the corporation, resulting in an increase in taxable income. 2 as interest should have been reported as part of the corporation's earnings. 3, because the IRS treats the imputed interest as additional income for Norma
If the loan is classified as an employer-employee loan, the corporation's taxable income may be affected by the imputation of interest. Imputed interest is the calculated interest that the corporation should have charged Norma for the loan. The IRS may treat this imputed interest as additional income for the corporation, resulting in an increase in taxable income.
If the loan is classified as a corporation-shareholder loan, the corporation's taxable income will also be affected by the imputation of interest. In this case, the imputed interest is considered a constructive dividend paid to Norma, the shareholder. This could increase the corporation's taxable income, as the interest should have been reported as part of the corporation's earnings.
If Norma uses the funds to take a vacation, the imputation of interest will cause a net increase to her taxable income. This is because the IRS treats the imputed interest as additional income for Norma. Regardless of the loan classification, she will need to report the imputed interest as part of her taxable income for the year.
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According to the personal value equation, which of the following would cause the value of an offering to decrease?
a. An increase in benefits received and a decrease in hassle.
b. A decrease in price and an increase in benefits received
c. An increase in price and a decrease in the benefits received
d. A decrease in both price and hassle
e. An increase in hassle and a decrease in benefits received
according to the personal value equation, an increase in price and a decrease in benefits received would cause the value of an offering to decrease. Option (c) is the correct answer.
The personal value equation is a way to measure the value of an offering to a customer. It takes into account the benefits received from the offering, the hassle involved in obtaining and using the offering, and the price paid for the offering. The equation can be expressed as:
Value = Benefits Received - Hassle - Price
An increase in any of the variables on the right-hand side of the equation will decrease the value of the offering, while a decrease in any of the variables will increase the value of the offering. The personal value equation is useful for businesses to understand how customers perceive the value of their offerings and can help businesses adjust their marketing mix to better meet customer needs and preferences.
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Firm A has acquired Firm B in a merger transaction. The pre-merger balance sheet for Firm A has current assets of $1,500, other assets of
$400, net fixed assets of $2,300, current labilities of $1,000, long-term debt of $500 and owners' equity of $,2700. The pre-merger
balance sheet for Firm B shows current assets of $600, other assets of $210, net fixed assets of $1,600, current liabilities of $500, and
equity of $1,910. Assume the merger is treated as à purchase for accounting purposes. The market value of Firm B's fixed assets is
$5,680; the market values for current and other assets are the same as the book values. Assume that Firm A issues $7,000 in new long-
term debt to finance the acquisition. The post-merger balance sheet will reflect goodwill of
The post-merger balance sheet for Firm A will show current assets of $2,100 ([$1,500 + $600]), other assets of $610 ([$400 + $210]).
Net fixed assets of $7,880 ([$2,300 + $5,680]), current liabilities of $1,500 ([$1,000 + $500]), long-term debt of $7,500 ([$500 + $7,000]), and owners' equity of $4,790 ([$2,700 + $1,910 - goodwill]).
To calculate goodwill, we first need to calculate the purchase price, which is the sum of the fair value of Firm B's assets ($2,410) and the amount of new long-term debt issued by Firm A ($7,000), for a total of $9,410. We then subtract the fair value of the identifiable assets acquired ($7,880) to arrive at goodwill of $1,530 ([$9,410 - $7,880]). Therefore, the post-merger balance sheet for Firm A will reflect goodwill of $1,530.
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Here is the vicious deflationary cycle what step connects the upper right blue arrow to the lower left gray arrow?
a. Workers expect prices to increase
b. Workers demand pay increases
c. Prices decline
d. Company revenues decline
The vicious deflationary cycle, the step connects the upper right blue arrow to the lower left gray arrow is "workers demand pay increases". The correct option is B.
The demand pay refers to that demand in which the workers request for their paycheck before the next month pay period.
Workers are expected that the prices to increase and prices decline instead, they may demand higher wages to maintain their standard of living.
The companies forced to lower their prices to remain competitive, which can further exacerbate the deflationary cycle.
Therefore, the correct option is B that is Workers demand pay increases.
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In the context of a vicious deflationary cycle in economics, the step that connects the upper right blue arrow to the lower left gray arrow is 'Company revenues decline', resulting from less consumption and reduced company sales.
Explanation:Based on the question, we are looking at the vicious deflationary cycle. This is a concept in economics that explores how a decrease in prices can lead to a situation where economic activities are slowed down. Considering the options, the step that connects the upper right blue arrow to the lower left gray arrow in a deflationary cycle is 'd. Company revenues decline'.
This happens due to reduced consumption as people wait for prices to drop further. Consequently, companies sell their products or services less and realize reduced revenues.
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uestion 8 (1 point) Saved If fair value is used to account for an equity investment in common shares under IFRS, it is presumed that the investor has insignificant influence on the investee. the earning of a profit by the investee is considered a proper basis for recognition of income by the investor. profit of the investee is not considered earned by the investor until dividends are declared by the investee. the investment account will remain at cost.
If fair value is used to account for an equity investment in common shares under IFRS, it is presumed that the investor has insignificant influence on the investee.
This means that the investor does not have significant control over the investee's operations and decisions. In this case, the earning of a profit by the investee is considered a proper basis for recognition of income by the investor. This means that the investor can recognize its share of the investee's profit as income on its own financial statements.
However, it is important to note that the profit of the investee is not considered earned by the investor until dividends are declared by the investee. This means that the investor cannot recognize its share of the investee's profit as income until the investee distributes dividends to its shareholders. Until then, the investor's investment account will remain at cost, reflecting the initial amount paid for the investment.
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132. Among the basic strategies an organization can use for employee development are managerial, normative, and participative. True False
False. Among the basic strategies an organization can use for employee development are on-the-job training, formal education, job rotation, and coaching/mentoring.
The three basic strategies for employee development are actually:
Formal Education: This strategy involves enrolling employees in courses, programs, or degree courses outside of the organization to gain new knowledge, skills, and abilities. This strategy is mainly applicable to entry-level employees or individuals looking to change career paths within the organization.
Assessment and Feedback: This strategy provides employees with feedback on their current performance and encourages them to improve their existing skills or acquire new ones. The assessment can be in the form of performance appraisals or 360-degree feedback, while the feedback can come from a supervisor or a mentor.
Job Experience: This strategy involves providing employees with challenging assignments, job rotation, job enrichment, and other on-the-job training to develop their skills and abilities. This strategy is an effective way to promote employee development while also fulfilling the organization's immediate staffing needs.
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Sain Advertising Ltd.'s trial balance shows Supplies $2,100 asof Dec 31, 2021. On December 31, there are $1,100 of supplies onhand. Calculate the amount of supplies used during the year?
The amount of supplies used during the year can be calculated by subtracting the supplies on hand as of December 31, 2021, from the supplies listed in the trial balance.
To calculate the number of supplies used during the year, we start with the supplies listed in the trial balance, which is $2,100. This represents the total amount of supplies purchased during the year. We then subtract the supplies on hand as of December 31, 2021, which is $1,100. This represents the value of supplies that were not used during the year and are still on hand at the end of the period.
The difference between the supplies listed in the trial balance and the supplies on hand is the number of supplies that were used during the year. Therefore, the amount of supplies used during the year can be calculated as follows:
Supplies used = Supplies listed in trial balance - Supplies on hand
Supplies used = $2,100 - $1,100
Supplies used = $1,000
Therefore, Sain Advertising Ltd. used $1,000 worth of supplies during the year. This information can be used to help with budgeting and planning for future supply needs.
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The theory of international production proposes that for a fem to invest in facilities overseas, it must have three kinds of advantages ownership specific, location specific, and internalization Fill
The theory of international production suggests that for a firm to invest in facilities overseas, it must have three kinds of advantages: ownership-specific, location-specific, and internalization.
Ownership-specific advantages refer to the unique resources or capabilities a firm possesses, such as proprietary technology, brand reputation, or management expertise, which give it a competitive edge over others in the global market.
Location-specific advantages are the benefits a firm can gain by operating in a particular foreign country or region. These advantages may include lower production costs, access to skilled labor, favorable government policies, or proximity to target markets.
Internalization advantages occur when a firm can better manage and coordinate its international production activities internally, rather than relying on external partners or market arrangements. This can help the firm reduce transaction costs, maintain control over its intellectual property, and ensure quality standards are met.
In summary, the theory of international production posits that a firm should invest in facilities overseas when it has ownership-specific, location-specific, and internalization advantages that outweigh the costs and risks associated with operating abroad.
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__________ controls address personnel security, physical security, and the protection of production inputs and outputs. (True or False)
Security controls address personnel security, physical security, and the protection of production inputs and outputs.
Security controls are an essential aspect of any organization, and they aim to safeguard critical assets from both external and internal threats. Personnel security controls focus on ensuring that only authorized personnel have access to sensitive information and resources. Physical security controls deal with protecting the organization's assets and facilities from unauthorized access or damage. Finally, production input and output protection controls aim to safeguard the organization's critical resources, including raw materials and finished products.
All these controls work together to ensure that an organization's critical assets are safe and secure.
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The following facts relate to Cheese Corp., a one-shareholder S corporation. What is the shareholder's ending stock basis? Beginning stock basis $60,000, Ordinary income 50,000, Fine for late payment of sales tax 3,000, Stock purchases 10,000, Tax-exempt interest income
The shareholder's ending stock basis in Cheese Corp. can be calculated as follows: Beginning stock basis of $60,000 plus ordinary income of $50,000 results in a new basis of $110,000.
1. Begin with the beginning stock basis: $60,000
2. Add ordinary income: $60,000 + $50,000 = $110,000
3. The fine for late payment of sales tax ($3,000) is not deductible, so it does not affect the stock basis.
4. Add the stock purchases: $110,000 + $10,000 = $120,000
5. Tax-exempt interest income does not affect the stock basis either.
The fine for late payment of sales tax and tax-exempt interest income do not affect the stock basis. However, the stock purchases of $10,000 increase the basis to $120,000. Therefore, the shareholder's ending stock basis is $120,000. It's important to note that S corporation shareholders must maintain accurate records of their stock basis as it affects the amount of tax they owe on distributions and sales of stock.
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which of the following is the most liquid asset?multiple choiceA) prepaid expenses B) inventory C) cash equivalents D)accounts receivable
Out of the given options, cash equivalents are considered to be the most liquid asset. So, the correct option is C) cash equivalents.
Cash equivalents refer to short-term investments that can be easily converted into cash without any significant loss in value. Examples of cash equivalents include money market funds, treasury bills, commercial paper, and certificates of deposit (CDs).
These investments have high liquidity and low risk, which make them easily accessible to be used for day-to-day expenses, emergencies or short-term investments.
On the other hand, prepaid expenses, inventory, and accounts receivable are also assets but are not as liquid as cash equivalents. Prepaid expenses and inventory require a sale or consumption before they can be converted into cash, and accounts receivable involve waiting for payment from customers.
Therefore, in terms of liquidity, cash equivalents are the most convenient asset to hold as they can be quickly and easily converted into cash.
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kinston industries has come up with a new mountain bike prototype and is ready to go ahead with pilot production and test marketing. the pilot production and test marketing phase will last for one year and cost $500,000. your management team believes that there is a 50% chance that the test marketing will be successful and that there will be sufficient demand for the new mountain bike. if the test-marketing phase is successful, then kinston industries will invest $3 million in year one to build a plant that will generate expected annual after tax cash flows of $400,000 in perpetuity beginning in year two. if the test marketing is not successful, kinston can still go ahead and build the new plant, but the expected annual after tax cash flows would be only $200,000 in perpetuity beginning in year two. kinston has the option to stop the project at any time and sell the prototype mountain bike to an overseas competitor for $300,000. the appropriate discount rate for the project is 10%. assuming that kinston has the ability to sell the prototype in year one for $300,000, the npv of the kinston industries mountain bike project is closest to: group of answer choices 75,000 60,000 45,000 90,000
When a company using a perpetual inventory system returns goods previously purchased on credit, the correct option is: decreases accounts payable and decreases inventory.
What's perpetual inventory systemIn this scenario, the company has initially recorded the purchase of goods on credit, which increases both inventory and accounts payable. When the goods are returned, the company needs to reverse these transactions.
As a result, the inventory is decreased because the returned goods are no longer part of the company's available stock. Simultaneously, the accounts payable are decreased because the company's obligation to pay for the returned goods is removed.
Thus, the overall effect of returning goods purchased on credit in a perpetual inventory system is a decrease in both inventory and accounts payable.
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joe sells his business to shirley. during the negotiations, joe negligently tells shirley that the business has earned a profit for the last five years. in reality, the business operated at a loss for each of those years. however, shirley did not hear joe's misstatement. shirley cannot rescind the contract because: a. joe's false statement was negligent rather than intentional. b. joe's misstatement was not material. c. shirley did not actually rely on joe
Shirley cannot rescind the contract because she did not actually rely on Joe's misstatement, which means option C is correct.
Even though Joe's false statement was negligent rather than intentional, it would still be considered material because it pertains to the profitability of the business. However, since Shirley did not hear the misstatement, she cannot claim that she relied on it when entering into the contract. Therefore, she cannot rescind the contract based on this false statement.
In contract law, misrepresentation occurs when one party makes a false statement of fact that induces the other party to enter into a contract. The misrepresentation can be intentional or unintentional (negligent).
In this case, Joe made a negligent misrepresentation by stating that the business had earned a profit for the last five years when in reality, it had operated at a loss for each of those years.
For a misrepresentation to be actionable (i.e., allow the innocent party to rescind the contract), the misrepresentation must be material, which means that it must be significant enough to influence the decision of the other party. In this case, it is not clear whether Joe's misstatement was material, but it is not the main reason why Shirley cannot rescind the contract.
The crucial element here is reliance. To rescind a contract based on misrepresentation, the innocent party must have relied on the misrepresentation when entering into the contract.
In this case, the prompt states that Shirley did not actually rely on Joe's misstatement since she did not hear it. Therefore, Shirley cannot rescind the contract based on Joe's misrepresentation, which means option C is correct
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Identify the relevant total quality management (TQM) technique.
Carleton University in Canada reviewed the websites of 24 universities and visited four leading universities to learn how to improve its housing allocation services. Reductions in vacancy rates led to a $400,000 gross revenue increase.
-Benchmarking
-Six Sigma
-Quality Circle
-Continuous Improvement
The relevant TQM technique in this scenario is Benchmarking. Carleton University reviewed the housing allocation services of 24 universities and visited four leading universities to learn how to improve its own services.
This process of comparing and analyzing the practices of other organizations to improve one's own performance is known as benchmarking in TQM. The result of this benchmarking process was a reduction in vacancy rates, which led to a $400,000 gross revenue increase.enchmarking is a Total Quality Management (TQM) technique that involves comparing a company's performance against that of other industry leaders or best practices to identify areas for improvement. It involves studying and analyzing the processes, practices, and strategies of successful organizations, and using the information to improve one's own processes and practices
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Grygiel Company leases a nonspecialized machine with a fair value of $50,000 to Baker Company. The lease has a life of 6 years and requires a $10,000 payment at the end of each year. The lease does not include a transfer of ownership nor a bargain purchase option, and the life of the lease is less than a major part of the expected economic life of the machine. It is probable that Grygiel will collect the lease payments plus any amount necessary to satisfy a residual value guarantee. Round your answers to the nearest dollar.
1. If the interest rate implicit in the lease is 10%, compute the machine’s expected residual value.
The expected residual value of the machine is $11,830.
Using the information given, we can calculate the present value of the lease payments using the formula:
PV of lease payments = lease payments x present value annuity factor
PV of lease payments = $10,000 x 4.355 = $43,550
Next, we can calculate the initial value of the machine by subtracting the PV of lease payments from the fair value of the machine:
Initial value of machine = $50,000 - $43,550 = $6,450
To calculate the expected residual value, we need to find the future value of the initial value of the machine at the end of the lease term (6 years) using the interest rate implicit in the lease (10%). We can use the formula:
FV = PV x (1 + r)^n
where r is the interest rate, and n is the number of periods.
FV = $6,450 x (1 + 0.10)^6 = $11,829.68
Therefore, the expected residual value of the machine is $11,830.
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A metered service ultimately helps to determine which characteristic of a cloud application or service?
A metered service ultimately helps to determine the "cost" characteristic of a cloud application or service.
Metered services in cloud computing track the usage of resources such as storage, processing power, and data transfer, among others. By monitoring and measuring the consumption of these resources, cloud providers can accurately charge their customers based on their actual usage, ensuring a fair and transparent billing system.
This pay-as-you-go model allows customers to optimize their costs and only pay for the resources they consume, making the cost characteristic a primary factor influenced by metered services.
In summary, metered services in cloud computing play a crucial role in determining the cost characteristic of a cloud application or service, providing a transparent and efficient billing system for both the provider and the customer.
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Explain three methods used to allocate common costs betweenjoint products. Your answer should refer to the merits andweaknesses of each method
There are three main methods used to allocate common costs between joint products: the physical measure method, the market value method, and the net realizable value method.
Three methods used to allocate common costs between joint products:
1. Physical measure method: This method allocates common costs based on the relative weight or volume of each product produced. For example, if Product A weighs twice as much as Product B, then it will be allocated twice as much of the common costs. This method is simple and easy to apply, but it may not be accurate if the products have significantly different values or production processes.
2. Market value method: This method allocates common costs based on the relative selling prices of the joint products. For example, if Product A sells for $100 and Product B sells for $50, then the common costs will be allocated in proportion to these prices. This method reflects the economic value of the products, but it can be difficult to determine the market value of each product, especially if they are not sold in a competitive market.
3. Net realizable value method: This method allocates common costs based on the relative net realizable values of the joint products. Net realizable value is the estimated selling price minus the estimated cost of completion and disposal. For example, if Product A has a net realizable value of $80 and Product B has a net realizable value of $40, then the common costs will be allocated in proportion to these values. This method takes into account the costs required to complete and sell the products, but it can be subjective and depend on management's estimates.
Overall, each method has its own strengths and weaknesses. The physical measure method is simple but may not accurately reflect the economic value of the products. The market value method reflects the economic value but can be difficult to determine. The net realizable value method considers the costs of completion and disposal but can be subjective. The choice of method depends on the specific circumstances and the objectives of the cost allocation.
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Suppose you decide to take an economics course instead of taking a course in Japanese history or Russian poetry.Which of the following are benefits of taking the economics course? (Check all that apply.)you can apply economic concepts, such ascost-benefit analysis, to help you make better decisionsyou can use economics analysis to help you better analyze other people's behvaioryou will learn to make better choices in your daily life
Taking an economics course instead of a course in Japanese history or Russian poetry has several benefits. First, you can apply economic concepts, such as cost-benefit analysis, to help you make better decisions.
Cost-benefit analysis is a technique used to compare the costs of an action to the benefits received from it. By learning this skill, you can make informed decisions that maximize your benefits and minimize your costs. For example, you can use cost-benefit analysis to decide whether it is worth taking out a loan to finance a new car or to determine whether buying a house is a good investment.
Second, you can use economic analysis to help you better analyze other people's behavior. Economics is the study of how individuals, organizations, and societies allocate scarce resources to satisfy their unlimited wants and needs. By understanding the motivations behind people's actions, you can predict and influence their behavior. For instance, you can use economic concepts such as incentives, trade-offs, and opportunity cost to better understand why people make certain choices.
Lastly, taking an economics course will help you learn to make better choices in your daily life. Economics provides a framework for analyzing choices and decision-making processes. By learning about supply and demand, market structures, and government policies, you can make more informed decisions about what to buy, where to work, and how to invest. Additionally, economics can help you understand the consequences of your choices and the impact they have on others.
In conclusion, taking an economics course can provide you with numerous benefits, including the ability to apply economic concepts to make better decisions, analyze other people's behavior, and make better choices in your daily life.
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Which of the following leads to strong coordination across functional areas and greater flexibility in responding to changes in the environments?
a. Reengineering
b. Layoffs
c. Downsizing
d. A temporary committee
e. An ad hoc committee
The answer to the question is a. Reengineering. Reengineering is the process of fundamentally redesigning and restructuring business processes in order to improve efficiency, quality, and competitiveness.
By doing so, it leads to strong coordination across functional areas as it involves analyzing and restructuring the entire system rather than just a specific area. This approach also allows for greater flexibility in responding to changes in the environment, as the restructured system is designed to be more agile and adaptable to changing circumstances.
Layoffs and downsizing, on the other hand, can lead to a decrease in coordination across functional areas and a reduction in flexibility. This is because these approaches typically involve a reduction in workforce and resources, which can limit the organization's ability to respond to changes in the environment.
A temporary committee or an ad hoc committee may be useful in addressing a specific issue, but they are not designed to improve overall coordination and flexibility across functional areas.
In conclusion, reengineering is a comprehensive approach that can lead to strong coordination across functional areas and greater flexibility in responding to changes in the environment. It is important for organizations to consider this approach when seeking to improve overall performance and competitiveness.
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Mohammed Garment Industry workers produce T- Shirts. The three basic processes of garment production are cutting, sewing and pressing. According to the Labour department there are 5 sewing operator, 10 cutting operators and 8 pressing operators. the Standard rate per hour for operators is OMR 25, Normal rate per hour is OMR 30, Normal rate per unit is OMR 25, Working hours per day are 8 hours, Standard Output per hour is 120 units. Five workers Khalid, Rashid, Ahmed, Khamis and Nasir were engaged in the Sewing work and receives earnings by using Merrick Differential Piece Rate System. The Output is as follows Khalid 1,120 units, Rashid 600 units, Ahmed 875 units, Khamis 795 units and Nasir 940 units. You are required to calculate the earnings of all the five workers of sewing operators and also identify which of the workers performance is more than 100% among all.
Mohammed Garment Industry workers produce T- Shirts. To get the factory overhead rates for the two overhead costs production departments, we must divide the overhead charges for each department's overhead costs by the corresponding direct labour hours.
Pattern Department Overhead Rate: $7 per direct labour hour (dlh) is equal to $294,000 divided by 42,000 dlh $560,000 divided by 56,000 hours of direct labour results in an overhead cost for the Cut and Sew Department of $10 per direct labour hour (dlh). Pattern Department: $7 per dlh Department of Cut and Sew: $10 per.
Using these rates, we will now determine the factory overhead per unit for each product.
Small G Love: 2.10 dollars ($0.30 dlh x $7 dlh) Pattern Department
Department of Cut and Sew: $4.00 ($0,40 dlh x $10/ dlh). Total: $2.10 + $4.00 = $6.10.
Cut and Sew Department: 5.50 ($0.55 dlh x $10/dlh) Pattern Department: 0.20 dlh times $7 for each dlh equals $1,40.
The total cost of producing one unit is $1.40 plus $5.50, which comes to $6.90.
Cut and Sew: $7.00 (0.70 dlh x $10/dlh).
Department of Pattern: 0.45 dlh $3.15 x $7 = Dlh.
The total production overhead for each item is $1015, or $3.15 plus $7.00. The resulting factory overhead per unit for each product is as follows.
Large Glove: $7.90 Small gloves cost $6.10; large gloves cost $10.15.
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