Answer:
C. Crisis
Explanation:
Since in the question it is mentioned that the barcode device for scanning is used for several times for updating the products but every attempt failed due to which the company become weaker and weaker
So this situation represents the crisis that declines the company as all the company resources are depleted and only some remarkable could able to save the company
Hence, the correct option is c.
In its third year, a project is expected to generate earnings before interest, taxes, depreciation, and amortization of $283,104 and its depreciation expense is expected to be $53,228. If the company’s tax rate is 38%, what is the project’s expected operating cash flow?
Answer:
$195,751
Explanation:
Calculation for the project's expected operating cash flow
The first step will be to find the EBIT
using this formula
EBIT =(Earnings before interest, taxes, depreciation, and amortization -Depreciation expense)
Let plug in the formula
EBIT= 283,104 - 53,228
EBIT= 229,876
Second step is to find the NOPAT using this formula
NOPAT = EBIT(1- tax rate)
NOPAT= 229,876(1 - 0.38)
NOPAT= 142,523
Last step is to calculate for Expected Operating Cash flow
Using this formula
Operating cash flow = NOPAT + Depreciation expenses
Let plug in the formula
Operating cash flow = 142,523 + 53,228
Operating cash flow = $195,751
Therefore the project's expected operating cash flow will be $195,751
Which is true? Root cause analysis is an important step in the incident management process. Until the root cause of incidents is identified and eliminated, it is likely that the customer will continue to experience incidents. Typically, root causes are technology related. ITIL best practices state that root cause analysis should be performed for all incidents.
Answer:
1. Root cause analysis is an important step in the incident management process.
2. Until the root cause of incidents is identified and eliminated, it is likely that the customer will continue to experience incidents.
Explanation:
The true and correct statement is that root cause analysis is an important step in the incident management process and until the root cause of incidents is identified and eliminated, it is likely that the customer will continue to experience incidents.
Root cause analysis can be defined as a technical process which is typically used to identify or measure the reason why incidents are occurring and how to device necessary procedures to mitigate and prevent the occurrence of such incidents in the future. Ultimately, if the root cause of an incident isn't identified and properly eliminated, it is very much likely that similar or perhaps the same incident would continue to occur.
Hence, the first solution to solving a problem is identifying and eliminating the root cause.
A bond currently has a price of $1,050. The yield on the bond is 7%. If the yield increases 23 basis points, the price of the bond will go down to $1,037. The duration of this bond is ____ years.
Answer:
The duration of the bond is 5.8 years
Explanation:
Given that :
Current price of a bond $1,050
Yield on the bond = 7% = 0.07
If the yield increases 23 basis points, the price of the bond will go down to $1,037
The objective is to determine the duration of the bond.
In order to determine the duration of the bond; we need to first find the change in percentage of the price. Afterwards, this is find the modified duration which quantify the change in percentage in the market price for every change in the yield to maturity. Then finally to the determination of the duration of the bond.
Mathematically;
Percentage change in price = [tex]\dfrac{new \ price - old \ price }{old \ price}[/tex]
Percentage change in price =[tex]\dfrac{1037 - 1050 }{1050}[/tex]
Percentage change in price =[tex]\dfrac{-13 }{1050}[/tex]
Percentage change in price = −0.01238
Percentage change in price ≅ - 0.0124
Percentage change in price = - 1.24%
Let recall from the knowledge of our basis points which say;
1 basis point = 1/100
Therefore ; given that if he yield increases 23 basis points, then we have:
23 basis point = 23/100 = 0.23
The modified duration = [tex]\dfrac{percentage \ change \ in \ price }{ change}[/tex]
The modified duration = [tex]\dfrac{1.24 }{0.23}[/tex]
The modified duration = 5.3913 years
Finally, The duration of the bond = Modified duration × (1 + Yield to Maturity)
The duration of the bond = 5.3913 × (1 + 0.07)
The duration of the bond = 5.3913 × 1.07
The duration of the bond = 5.768691 years
The duration of the bond ≅ 5.8 years
Garland Company received proceeds of $235000 on 10-year, 6% bonds issued on January 1, 2018. The bonds had a face value of $250000, pay interest annually on January 1, and have a call price of 101. Garland uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2020? $236500 $246700 $250000 $238000
Answer:
$238000
Explanation:
The computation of the carrying value of the bond is shown below:
Given that
Face Value of Bonds = $250,000
Proceeds from issuance of bonds = $235,000
Before that we need to compute the following things
Now
Discount on Bonds Payable = Face Value of Bonds - Proceeds from issuance of bonds
= $250,000 - $235,000
= $15,000
Life of Bonds = 10 years
Now
Discount on Bonds amortized annually = Discount on Bonds Payable ÷ Life of Bonds
= $15,000 ÷ 10
= $1,500
Now
Discount amortized is
= Discount on Bonds amortized annually × expired life
= $1,500 × 2
= $3,000
Finally
Carrying Value of Bonds = Issue Price + Discount amortized
= $235,000 + $3.000
= $238,000
Beth is the assistant store manager at a trendy clothing store. The store hires lots of seasonal employees. Beth has little regard for the skill or ability of those she hires, and she is certain that few would come to work on time each day if it weren't for the fact that the store is known to fire any employee who fails to be on time. As a student of motivational theory, you would describe the management style of Beth as
Answer:
The correct answer will be "Theory X".
Explanation:
Through Theory X, alternatives to administration may range across a hard methodology to another soft one. The hard or challenging framework is focused on intimidation, overt threats, small compared oversight as well as tighter restrictions, which are control or perhaps management system.One such approach to management believes the average employee seems to have little motivation, lacks accountability, and therefore is structured to individual objectives.So you might well characterize Beth's leadership approach as Theory X as being a graduate of motivation factors.
Over time, external monitoring processes should capture information about the external environment in a format that can be referenced across the organization as threats emerge and for historical use.
a. True
b. False
Answer:
True
when monitoring processes are observed when threats emerge the organization will know how to tackle the threats
Wallace Motors measures and evaluates the quality of its cars and services against the market leaders in the automobile industry. Wherever there is a gap, Wallace Motors tries to cover that gap by imitating the best practices of these market leaders. This is known as
Answer:
Benchmarking
Explanation:
Benchmarking is defined as the activity where a company's processes and performance is compared with industry best practices. Qualities measured usually include time, cost, and quality.
In the given scenario Wallace Motors measures and evaluates the quality of its cars and services against the market leaders in the automobile industry. This the use of be marching.
When the companies metrics don't meet up, the company adopts the practices of the benchmark or later in your dreams
Which of the following is true of the strategic trade theory? a. It advocates complete deregulation of international trade. b. It explains patterns of trade based on factor endowments. c. It provides direct policy advice. d. It is the first theory to account for dynamic changes in trade patterns.
Answer: c. It provides direct policy advice
Explanation:
Strategic trade policy is a government policy whereby the excess profit that an oligopolistic international market generates will be shifted towards the firms that are in the home country.
The argument for strategic trade policy is that it help companies to take advantage of the economies of scale and also provides direct policy advice.
Coronado Company sells merchandise on account for $4600 to Wildhorse Company with credit terms of 2/10, n/30. Wildhorse Company returns $1000 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?
Answer:
$3,528
Explanation:
The computation of the amount of the check after considering the discount period is shown below:
= Sale value fo merchandise - returned goods - discount paid
= $4,600 - $1,000 - $3,600 × 2%
= $3,600 - $72
= $3,528
By applying the above formula we can get the amount of the check and the same is to be considered
hence, the amount of the check is $3,528
Several controls are used to safeguard inventory except a.keeping high-priced inventory behind lock and key. b.hiring security guards. c.allowing all employees access to the materials warehouse. d.installing sensors at all exits.
Answer:
Option C, allowing all employees access to the materials warehouse, is the right answer.
Explanation:
Option C is the correct answer because option C recommends allowing access to all the employees. However, allowing access to all employees will reduce security and increase the risk level. While all given options are helpful in safeguarding the inventory except option C. Thus, in this case, it would be difficult to monitor every employee. So Option C is the right answer.
Nancy sold three capital assets that were held for investment. She sold stock in ABC Corporation for a gain of $10,000; stock in XYZ Corporation for a gain of $2,000; and corporate bonds for a loss of $20,000. Assuming all of the investments had a long-term holding period, how will the transactions be treated for tax purposes
Answer:
D) $3,000 deduction against ordinary income with a $5,000 capital loss carried forward to offset income for next year
Explanation:
Note: This question is not complete as it does not include the options. The complete question is therefore presented before answering the questions follows:
Nancy sold three capital assets that were held for investment. She sold stock in ABC Corporation for a gain of $10,000; stock in XYZ Corporation for a gain of $2,000; and corporate bonds for a loss of $20,000. Assuming all of the investments had a long-term holding period, how will the transactions be treated for tax purposes?
A) Gain of $12,000 taxed at 15% and a loss of $20,000 deductible against ordinary income
B) Net loss of $8,000 that is fully deductible against ordinary income in the current year
C) Net loss of $8,000 that results in no deduction in the current year, but can be carried forward to offset capital gains for the next year
D) $3,000 deduction against ordinary income with a $5,000 capital loss carried forward to offset income for next year
The explanation to the answer is therefore presented as follows:
The first step is to compute the net capital gain (loss) is as follows:
Particulars $
Gain from the sale of stock in ABC Corporation 10,000
Gain from the sale of stock in XYZ Corporation 2,000
Loss from the sale of corporate bonds (20,000)
Net capital gain (loss) (8,000)
In the US, individuals are allowed to use up to $3,000 to reduce their taxable income in the first year of the loss, while the remaining capital losses will be carried over to the next years.
From the net capital gain computed above, the correct option is D. That is, the $8,000 loss will be treated for tax purposes as a $3,000 deduction against ordinary income in the current year with the remaining $5,000 capital loss carried forward to offset income for next year.
Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period then the company using:______
a. LIFO will have the highest ending inventory
b. FIFO will have the highest cost of good sold
c. FIFO will have the highest ending inventory
d. LIFO will have the lowest cost of goods sold
Answer:
c. FIFO will have the highest ending inventory
Explanation:
FIFO means first in, first out. it means it is the first purchased inventory that is the first to be sold.
LIFO means last in first out. it means that it is the last purchased inventory that is the first to be sold.
If FIFO inventory method is used, the first purchased inventory is the first to be sold and price increased during the period, the beginning inventory would be lower and the ending inventory would be higher when compared to a company using LIFO
Lisa lives next to a vacant plot that belongs to Carol. Carol has never visited the plot in the last 20 years during which period, Lisa has taken care of it by fencing the plot and mowing the grass. If this continues, Lisa will be able to claim ownership of land based on:
Answer:
Adverse possession.
Explanation:
In this scenario, Lisa lives next to a vacant plot that belongs to Carol. Carol has never visited the plot in the last 20 years during which period, Lisa has taken care of it by fencing the plot and mowing the grass. If this continues, Lisa will be able to claim ownership of land based on adverse possession.
In Real estate law, Adverse possession is a legal principle which allows a non-owner individual to possess a piece of land and gain title with the exclusion of the real owner, after a certain period of time.
However, the non-owner occupant must proof to the court of law meets the following requirements;
1. Continuous.
2. Hostile.
3. Open.
4. Actual.
5. Exclusive.
When an organization with a functional structure diversifies into related product-markets, it generally Multiple Choice maintains its functional structure. develops a divisional structure. develops a matrix structure. develops a worldwide product-division structure.
Answer:
B). Develops a divisional structure.
Explanation:
A functional organizational structure aims to bifurcate the teams or groups on the basis of the functional or specialized area of the employees while a divisional structure organizes the teams in different divisions as per market, product, etc. Therefore, when an organization having a functional structure begins to diversify into product-related markets, it usually develops a 'divisional structure' as it is now focusing on the organization of teams corresponding to the end product or service offered by the organization. Thus, option B is the correct answer.
Research into genetically modified crops has led to significant productivity gains for countries such as the United States that employ these techniques. Countries such as the European Union member nations, however, have imposed controls on the import of these products, citing concern for public health. Given the situation, the European Union's regulation of genetically modified crops is
Answer:
The answer is " If you have legitimate health issues, then it is the part of the share-the-earnings theory".
Explanation:
It also stands for EPS, which is the primary financial measure that demonstrates a firm ’s profitability. Its estimation consists of dividing the gross profit of the business with its number of shares. Its greater the company's profits for each share, the greater its productivity.
It is the management of efficiency, that indicates how often revenue the business generates for its stockholders buy not just because of increases in earnings, and because of the impact of new ordinary shares.
The aging method of estimating uncollectible accounts is based on the assumption that the longer an account receivable remains outstanding, the less likely it is to be collected. This statement is
Answer:
This statement is true.
Explanation:
The aging method of estimating uncollectible accounts is a method that is used to calculate the amount of counts receivable of a company that may not be collected.
Under the aging method, invoices of customers that are yet to be paid are sorted by invoice date into about four columns, and invoices with longer days assumed to be less likely to be collected.
For example, a company may have current invoice not yet due in the first column with 25% not likely to be collected; the invoice amounts that are 1-30 days past due in the second column with 50% not likely to be collected; the invoice amounts that are 31-60 days past due in third column with 75% not likely to be collected; and the invoice amounts that are 61 and above days past due in the fourth column with 100% not likely to be collected.
Based on the explanation above, it is therefore true that the aging method of estimating uncollectible accounts is based on the assumption that the longer an account receivable remains outstanding, the less likely it is to be collected.
At December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley, Inc.: ending inventory $155,377; beginning inventory $119,035; cost of goods sold $349,114; and sales revenue $761,865
Calculate the inventory turnover ratio for Oakley, Inc. (Round answers to 2 decimal places, e.g. 5.12.)
Inventory turnover ratio times
Answer:
143.444 days
Explanation:
For the computation of inventory turnover ratio first we need to find out the average inventory and inventory turnover which is shown below:-
Average inventory
= (Ending inventory + Beginning inventory) ÷ 2
= ($155,377 + $119,035) ÷ 2
= $137,206
Inventory Turnover = Cost of Goods Sold ÷ Average Inventory
= $349,114 ÷ $137,206
= 2.5444 times
Days in Inventory = 365 ÷ Inventory Turnover
= 365 ÷ 2.5444
= 143.444 days
Assume that your firm is an importer of Mexican chairs denominated in pesos. Your competition is mainly U.S. producers of chairs. You wish to assess the relationship between the percentage change in the firm’s stock price (SPt) and the percentage change in the peso's value relative to the dollar (PESOt). SPt is the dependent variable. You apply the regression model to an earlier subperiod and a more recent subperiod. In the recent subperiod, you increased your importing volume. You should expect that the regression coefficient in the PESOt variable would be ____ in the first subperiod and ____ in the second subperiod.
Answer:
negative, negative.
Explanation:
So, let us fill in the gap in the question given above. Bother that the capitalized words are the answers to the missing gaps;
" Assume that your firm is an importer of Mexican chairs denominated in pesos. Your competition is mainly U.S. producers of chairs. You wish to assess the relationship between the percentage change in the firm’s stock price (SPt) and the percentage change in the peso's value relative to the dollar (PESOt). SPt is the dependent variable. You apply the regression model to an earlier subperiod and a more recent subperiod. In the recent subperiod, you increased your importing volume. You should expect that the regression coefficient in the PESOt variable would be NEGATIVE in the first subperiod and NEGATIVE in the second subperiod."
This question is all about the measurement of exposure to exchange rate fluctuations. The measurement of exposure to exchange rate fluctuations is done by firms in order to be able to calculate the risk involves in exchange rate fluctuations.
In the problem given Above, as the importing volume increase, we have a negative regression coefficient in the PESOt variable.
Which of the following decisions is least likely to involve collaboration? Group of answer choices How much of product A should be ordered from vendor B? Should our company acquire company A? What products should we include in the new product line? What type of relationship should the company maintain with company A?
Answer:
How much of product A should be ordered from vendor B?
Explanation:
The decision that is least likely to involve collaboration is "What type of relationship should the company maintain with the other company?"
Collaboration simply means when people engage and discuss in order for the decision-making process.In order to know the product that should be included in the new product line, collaboration is essential because one will need to engage the different departments in the organization such as sales, marketing, etc. Everyone has to give their opinion on the issue.Also, "Should our company acquire another company ?" is a collaborative decision. This isn't a decision that can be decided by one person. Therefore, the correct option is "What type of relationship should the company maintain with the other company ?" as the decision can be taken by a top manager alone.In conclusion, the correct option is D
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https://brainly.com/question/19497984
Under a just-in-time inventory system, a company can reduce the amount of working capital it needs to finance inventory, freeing capital for other uses and/or lowering the total capital requirements of the enterprise.
a) true
b) false
Answer:
True.
Explanation:
Under a just-in-time inventory system, a company can reduce the amount of working capital it needs to finance inventory, freeing capital for other uses and/or lowering the total capital requirements of the enterprise.
In Business management, Just-in-time (JIT) is an inventory management method used by a company wherein goods, products, components, and labor are made available exactly when needed or just few hours before they are needed in the production process.
Basically, It is an inventory management system that companies use to reduce wastage to the barest minimum, thereby, freeing capital for other uses and/or lowering the total capital requirements of the enterprise.
Hence, just-in-time when used judiciously can help a company reduce the amount of working capital it needs to finance inventory management.
An investment-banking firm underwrites a new issue of stocks and bonds by Multiple Choice buying the entire bond or stock issue a company wants to sell at an agreed discount. guaranteeing a minimum price in the market for a stock or bond. selling the entire bond or stock issue for the issuing firm in global markets. putting up collateral for long-term loans, such as bonds.An investment-banking firm underwrites a new issue of stocks and bonds by Multiple Choice buying the entire bond or stock issue a company wants to sell at an agreed discount. guaranteeing a minimum price in the market for a stock or bond. selling the entire bond or stock issue for the issuing firm in global markets. putting up collateral for long-term loans, such as bonds.
Answer:
buying the entire bond or stock issue a company wants to sell at an agreed discount.
Explanation:
An investment-banking firm underwrites a new issue of stocks and bonds by buying the entire bond or stock issue a company wants to sell at an agreed discount.
Underwriting can be defined as the process through which an individual or organization assumes a financial risk at an appropriate and agreed fee.
In order to underwrite a new issue of securities such as bonds or stocks, the investment-banking firm buys the entire securities that the issuer is willing to sell at an agreed discount.
To achieve compliance with a new industry standard, a company develops a five-year plan in which goals are set for each year with incremental organizational changes focusing on one area of the new standard. This is an example of revolutionary change. managed change. structural change. cultural change. evolutionary change.
Answer:
evolutionary change.
Explanation:
To achieve compliance with a new industry standard, a company develops a five-year plan in which goals are set for each year with incremental organizational changes focusing on one area of the new standard. This is an example of evolutionary change.
In Business management, leaders are usually saddled with the responsibility of effecting positive changes or innovative solutions, this can be achieved through the application of an evolutionary change.
Evolutionary change are usually slow and irreversible when employed in an organization. For instance, the introduction of digital platform used for taking attendance of employees in an organization.
Suppose that Prince Puckler's Ice Cream sells 100 cones each day. It sells each cone for $3, its average variable cost is $2.50, marginal cost is $3, and the average total cost is $3.10. From this, one knows the firm:
Answer:
The firm should continue operation
Explanation:
Under the production cost theory, the comparison of price (P) and average variable cost (AVC) is used to decide whether a firm should continue operation or shut down under the following two scenarios:
Scenario 1: If P > AVC, continue operation
Scenario 2: If P < AVC, shut down.
Under scenario 1, it is better for a firm to continue operation since P is greater than AVC. This implies that the firm can fully pay for its variable cost of production and partially pay for a part of the fixed cost but not fully. As result, loss will be minimized by the firm if it continues operation.
Under scenario 2, the better decision for the firm is to shut down operation. The reason is that the firm is unable to even fully pay for its variable cost. In order to minimize cost, the firm is advised to shut down operation.
From the question, the $3 price of Prince Puckler's Ice Cream is greater than its $2.50 average variable cost. This implies that Prince Puckler falls under Scenario 1 above. Therefore, Prince Puckler should continue operation despite that the $3 prie is lower than $3.10 average total cost. This is because the variable cost will be fully covered while a part of the fixed cost will also be covered but not fully. Doing this will minimize total cost for Prince Puckler.
Therefore, one knows from the information in the question that the firm the firm should continue operation.
J&R Renovation, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 20 years to maturity that is quoted at 107 % of face value. The issue makes semi-annual payments and has a coupon rate of 9 % annually.
A. What is the company's pretax cost of debt?
B. If the tax rate is 35 %, what is the aftertax cost of debt?
Answer:
a) 8.36%
b) 5.43%
Explanation:
to find the pretax cost of debt we must find the yield to maturity:
YTM = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]
YTM = {45 + [(1,000 - 1,070) / 40]} / [(1,000 + 1,070) / 2] = 43.25 / 1,035 = 0.04178 x 2 = 0.08357 = 8.36%
after tax cost of debt = 8.36% x (1 - 35%) = 8.36% x 0.65 = 5.43%
Gelb Company currently manufactures 49,000 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit, fixed costs related to making this component are $89,000 per year, and allocated fixed costs are $78,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.50 per unit. Calculate the total incremental cost of making 49,000 units and buying 49,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier
Answer:
If the company buys the component, income will increase by $223,750.
Explanation:
Giving the following information:
Units= 49,000
Variable costs are $6.25 per unit
Fixed costs= $89,000 per year
The company is considering buying this component from a supplier for $3.50 per unit.
We will take into account only the differential costs.
Make:
Total cost= 49,000*6.25 + 89,000= $395,250
Buy:
Total cost= 49,000*3.5= $171,500
From the beginning, we knew that the cost of buying was cheaper than the unitary variable cost of making the part.
If the company buys the component, income will increase by $223,750.
Who is most likely to have claimed that "As the client becomes more self-aware, more self-acceptant, less defensive and more open, she finds at last some of the freedom to grow and change in directions natural to the human organism.?"
Answer:
- Carl Rogers
Explanation:
Carl Rogers, the American psychologist, proposed his humanistic approach often known as the 'client-centered approach' to understand psychology. He put the individuals at the center in the continuously evolving world of experience. He claimed that 'as the client evaluate and actualize their behavior due to interaction with others, they become more self-aware as well as more self-acceptant, and perceive other people as distinct and separate individuals. They also become less protective, and more agape.' This allows them to have the liberty to grow and advance their present value system.
A monopolistically competitive industry is characterized by a. many firms selling products that are similar but not identical. b. many firms selling identical products. c. a few firms selling products that are similar but not identical. d. a few firms selling highly different products.
Answer:
A monopolistically competitive industry is characterized by
a. many firms selling products that are similar but not identical.
Explanation:
A monopolistic competition is a form of imperfect competition with many firms operating in the industry. For such an industry, the goods or services are differentiated, such that one firm's goods or services can easily be associated with the producer. This is mostly achieved through branding and the use of trademarks. Each firm, therefore, competes with many other competitors, but they limit their competition by differentiating their products so that consumers would have preference for one against the other, depending on their perceived value.
Trident Sports Inc. manufactures and distributes athletic wear, sporting equipment, and protective sports gear worldwide. They are departmentalized based on products sold to professional athletes, products sold to people who pursue sports only for leisure, and products sold to sports teams. Which approach to departmentalization does the company follow
Answer: customer
Explanation:
From the question, we are informed that Trident Sports Inc. produces and then distributes athletic wear, sporting equipment, and protective sports gear worldwide and that they are departmentalized based on products sold to professional athletes, products sold to people who pursue sports only for leisure, and products sold to sports teams.
This shows that the approach to departmentalization that the company follow is the customer approach. This can be seen in the way that the company is departmentalized.
Refer to Scenario 15-2. Which of the following statements is most likely to be true? (i) New entrants to the market know they will have a smaller market share than PPCo currently has. (ii) PPCo is most likely experiencing rising marginal cost. (iii) PPCo is a natural monopoly. (iv) PPCo is most likely experiencing declining average total cost.
Answer: (i), (iii) and (iv)
Explanation:
PPCo is able to provide the entire needs of the county and and has been in operations for a few years gaining loyal customers and controlling the market. Any company that will want to come in will have to fight them for market dominance and as such will have a smaller market share than PPCo.
As PPCo is meet the demands of everyone in the county, they are most likely experiencing Economies of Scale. This means that they are making more revenue thereby driving total cost down as the fixed costs remain the same but Revenue climbs. This classifies them as a Natural Monopoly because Natural Monopolies experience Economies of Scale and declining average total costs.
The Beach Shack Company produced 5,500 cakes that require 3 standard pounds per unit at $3. 00 standard price per pound. The company actually used 16,650 pounds in production. Journalize the entry to record the standard direct materials used in production.
Answer:
Explanation:
Standard pounds per cake = 3 pounds
Standard unit price = $3
Standard pounds 5500 cakes = 16,500 pounds
Actual pounds per 5500 cakes = 16,650
Variance = (16,650 - 16,500)=150
Cost of actual materials used = actual materials * standard price
=16,650*3 =49,950
Cost of work in progress = Standard materials * standard price = 16,500*3= 49.500
Direct material quantity variance = Quantity variance * 3
150*3 = 450
Journal entry
Debit work in progress = 49,500
Debit material quantity variance = 450
Credit Material = 49,950