Answer:
b) Expense B has decreased.
Explanation:
a) Expense A has remained unchanged.
b) Expense B has decreased.
c) Expense A has decreased.
d) Expense B has increased.
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
Hourly wage costs and payments for production inputs are variable costs
Variable costs are costs that vary with production
If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.
Let assume fixed cost is 100 pounds when output is 10 units
Fixed cost per unit = fixed cost / output
100 / 10 = 10
Fixed cost per output when output increases to 20 units is
100 / 20 = 5
fixed cost per unit falls as output increases
Imagine in a particular country several major financial institutions fail within a relatively short timeframe, and the country's leader announces a massive federal government bailout is needed to avoid an economic collapse. During this period, uncertainty on the part of business leaders and consumers would be reasonably expected to increase for a while. What impact could this increase in uncertainty have on interest rates as described in the instructor's presentation
Answer:
If decrease in demand for loanable funds was less than decrease in supply then interest rate will increase.
Explanation:
In the case when there is an increase in the uncertainity so the impact should be that it reduced the demand for the loanable fund and that should be less than the reduction in the supply due to this there should be the rise in the rate of the interest. Also we cant estimated the rate of interest whether it is increased or not but as per the theory of supply and demand if supply decreased more than the demand so the rate of interest should increased
recurring sale and purchase is the Hallmark of the business justify the answer
Answer:
Recurring or Repeated transaction of purchase and sale means business due to following reasons :-
》Incentivize your customers with points.
》Grow your customer base through referral programs.
》Improve customer retention with VIP programs.
》Create exclusive discounts for loyal customers.
》Use email retargeting to win customers back.
》Boost repeat purchases through personalized campaigns.
The idea of rational expectations suggests that :_________
a) It is unrealistic for Congress to balance the federal budget during a recession.
b) Discretionary policies and fine-tuning can move the economy to full employment.
c) Economic policies are ineffective if the policies are anticipated.
Answer:C
Explanation:The theory believes that because people make decisions based on the available information at hand combined with their past experiences, most of the time their decisions will be correct.
1. How much is currently owed on this credit card?
a. $200
b. $245
c. $1,000
Answer:
What is the word problem??? (B)
Is it:
How much is currently owed on this credit card?
$200
$245
$1,000
Look at the Transactions section. Why is the refund marked with a positive sign?
You owe that amount on your credit card statement
You are receiving that money back onto your credit card statement
You paid that amount off last month
Before sending in your payment to the credit card company, you go to a bicycle store. How much can you spend before going over the credit limit on your card?
$0, you are already over your credit limit
$245
$755
Which of the following statements is FALSE?
If you pay the MINIMUM PAYMENT of $40.00, the bank will waive the interest charged on the balance you still owe.
If you are late in making your credit card payment, you may have to pay a $35 fee.
If you want to avoid any interest or fees, you should pay off your full statement balance by the due date.
Explanation:
MC Qu. 123 The ending inventory of finished... The ending inventory of finished goods has a total cost of $9,800 and consists of 700 units. If the overhead applied to these goods is $3,726, and the overhead rate is 81% of direct labor, how much direct materials cost was incurred in producing these units
Answer:
$5,200
Explanation:
Given the above information,
Direct labor = $3,726 / 0.81 = $4,600
But,
Total cost = Direct material + Direct labor + Overhead
Fixing the values, we'll have
$9,800 = Direct materials + $4,600 + $3,726
Direct materials = $9,800 - $4,600
Direct materials = $5,200
Therefore $5,200 raw materials cost was incurred in producing these units.
manufacturing costs for August when production was 1,000 units appear below: Direct material $12 per unit Direct labor $7,500 Variable overhead 6,000 Factory depreciation 9,000 Factory supervisory salaries 7,800 Other fixed factory costs 2,500 Compute the flexible budget manufacturing cost amount for a month when 900 units are produced.
Answer:
Total manufacturing Cost $42,250
Explanation:
The computation of the flexible budget manufacturing cost amount for a month when 900 units are produced is given below:
No. of units Produced 900 units
Direct material at $12 per unit $10,800
Direct labor (($7,500 ÷1,000) × 900) $6,750
Variable Overhead ($6,000 ÷ 1000) × 900 $5,400
Factory depreciation $9,000
Factory Supervisory salary $7,800
other fixed factory cost $2,500
Total manufacturing Cost $42,250
Walt Bach Company has accumulated the following budget data for the year 2019.
Sales: 40,000 units, unit selling price $55.
Cost of one unit of finished goods: Direct materials 2 pounds at $5 per pound, direct labor 1.5 hours at $16 per hour, and manufacturing overhead $6 per direct labor hour.
Inventories (raw materials only): Beginning, 10,000 pounds; ending, 15,000 pounds.
Selling and administrative expenses: $200,000.
Income taxes: 30% of income before income taxes.
Instructions
(a) Prepare a schedule showing the computation of cost of goods sold for 2013.
(b) Prepare a budgeted income statement for 2013.
Answer:
Walt Bach Company
a) Schedule of Cost of Goods Sold
Direct materials = $400,000 (2*$5*40,000)
Direct labor = 960,000 (1.5*$16*40,000)
Manufacturing overhead = 360,000 ($6*60,000)
Total cost of goods sold = $1,720,000
b) Budgeted Income Statement for 2013
Sales Revenue $2,200,000
Cost of goods sold (1,720,000)
Gross profit $480,000
Selling and admin. exp. 200,000
Income before tax $280,000
Income tax (30%) (84,000)
Net income $196,000
Explanation:
a) Budget Data and Calculations:
Sales: 40,000 units, unit selling price $55, Revenue = $2,200,000
Cost of one unit of finished goods:
Direct materials 2 pounds at $5 per pound = $400,000 (2*$5*40,000)
Direct labor 1.5 hours at $16 per hour = $960,000 (1.5*$16*40,000)
Manufacturing overhead $6 per direct labor hour = $360,000 ($6*60,000)
Inventories (raw materials only):
Beginning, 10,000 pounds;
Ending, 15,000 pounds.
Selling and administrative expenses: $200,000.
Income taxes: 30% of income before income taxes.
Fund financial statements have separate columns for each activity. Which activities are reported in this manner
Answer: See explanation
Explanation:
Fund financial statements are the statements whereby the information about major funds are presented individually. The funds will then be reported based on the basis of accounting that is required for that particular fund type.
For the governmental funds, it should be noted that there'll be a separate column for
(a) the General Fund
(b) any other fund which qualifies as major
(c) all the remaining funds that are accumulated as a whole.
Examples of mangers organizing
Answer:
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EUR Spot Price $1.3579 $1.3527 $1.3588 $1.3580 July EUR Futures Contract Price $1.3750 $1.3782 $1.3827 $1.3713 The profit / loss posted to your account at the close of 3/02 is:.
Answer:
$2,850
Explanation:
The EUR spot price is $1.3579 whereas July futures contract have price of $1.3750. The contract size is EUR 125,000. The profit/ loss reported will be $2,850 based on the July futures contract price. On 3/03 the broker will get a margin call from the exchange.
Comet Company accumulated the following account information for the year: Beginning raw materials inventory$5,200 Indirect materials cost 1,200 Indirect labor cost 4,200 Maintenance of factory equipment 2,000 Direct labor cost 6,200 Using the above information, total factory overhead costs would be:
Answer:
$7,400
Explanation:
Given the above information, the total factory overhead cost would be computed as;
Total factory overhead costs = Indirect materials + Indirect labor + Maintenance of factory equipment
= $1,200 + $4,200 + $2,000
= $7,400
Hence, the total factory overhead costs is $7,400
On September 1, Home Store sells a mower (that costs $120) for $420 cash with a one-year warranty that covers parts. Warranty expense is estimated at 6% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $29 in materials taken from the Repair Parts Inventory.
Required:
Prepare the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs.
Answer: See explanation
Explanation:
The entry is prepared below:
Sep-01
Dr Cash $420
Cr Sales revenue $420
(To record the mower sales)
Sep-01
Dr Cost of goods sold $120
Cr Finished goods inventory $120
(To record the cost of mower sales)
Sep-01
Dr Warranty expense (6% x $420) = $25.20
Cr Warranty liability $25.20
(To record the estimated warranty expense)
Jan-24
Dr Warranty liability $29
Cr Repair parts inventory $29
(To record the cost of warranty repairs)
Quail Company's suppliers offer terms of 2/10, net 35. Using a 360-day year, what is the approximate cost of foregoing the discounts
Answer:
0.29
Explanation:
The computation of the approximate cost of foregoing the discounts is shown below:
Here we assume the balance to be $100
Now 2/10, net 35 means that if the person paid the amount within 10 days so he or she is eligible for the payment
So,
= $100 × (100 - 0.02)
= $98
The $98 should be paid in 10 days
or $100 for 35 days
So overall the $2 for borrowing and $98 for 25 days i.e. (35 - 10)
Now the annual percentage is
= $2 ÷ $98 × 360 days ÷ 25 days
= 0.29
Classified stock differentiates various classes of common stock, and using it is one way companies can meet special needs such as when owners of a start-up firm need additional equity capital but don't want to relinquish voting control.A. TrueB. False
Answer: True
Explanation:
Classified stocks are referred to as the stocks of a publicly-traded company which possess different classes of stocks. Classified shares typically has some special privileges, like the dividend rights and the enhanced voting rights.
The use of classified stock allows the founders of a company to have control over the company despite not having to own the majority of the common stock. Therefore, the correct option is True.
The decision to increase wages had a high probability of effect on Walmart’s success, illustrated by Multiple Choice pilot tests confirming that turnover would decrease. lawsuits that had been dropped. support from labor and worker rights groups. increased morale among all employees. flexible schedules, more training, and more HR personnel.
Answer: pilot tests confirming that turnover would decrease.
Explanation:
Companies that have a lower turnover of employees are generally more successful than companies that don't because these companies spend less on job training for new staff, have a staff that is more motivated and the presence of regular staff that bond with customers will inspire those customers to buy more.
Walmart engaged in pilot tests to confirm this theory and increased wages in several test locations. These locations became more successful after the wage increase and so Walmart decided to apply it across the board.
North Corp. EBIT is $200. It has a debt-equity ratio of 25% and a WACC of 16%. Debt interest is 12%. Without taxes, what is the value of the firm?
Answer:
Value of the firm = 25000
Explanation:
Use the below formula to find the value of firm.
Degree of Financial Leverage = EBIT / ( EBIT - Interest)
Degree of Financial Leverage = 0.25
0.25={200/ {200-Interests}
Interests amount = - 600
Interest amount = debt × Cost of Debts
Debt amount = Interest amount / Cost of Debt
Debt amount = - 600 / 0.12.
Debt amount = -5000
Now find the debt equity ratio:
Debt-equity ratio = debt / equity
Given Debt amount = 5000
0.25= 5000 / Equity
Equity =5 000 /0.25
The value of Equity = 20,000
Now, the value of the firm = Equity amount + Debt amount
The value of the firm = 20000 + 5000
The value of the firm = 25000
Mystery, Inc. is contemplating selling bonds. The issue is to be composed of 800 bonds, each with a face amount of $750. How much is Mystery, Inc. able to borrow (in total) if each bond is sold at 95% of par
Answer:
$570,000
Explanation:
Calculation to determine How much is Mystery, Inc. able to borrow (in total) if each bond is sold at 95% of par
Using this formula
Total Amount borrowed=Bonds*Face value*95% of par
Let plug in the formula
Total Amount borrowed=800*$750*0.95
Total Amount borrowed=$570,000
Therefore the amount the Mystery, Inc. will be able to borrow (in total) if each bond is sold at 95% of par is $570,000
M Corporation produces and sells Product D. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product D over the next four months are:
June July August September
Budgeted sales in units 40,000 60,000 50,000 80,000
Budgeted production for August would be:__________.
A. 77,000 units
B. 80,000 units
C. 57,500 units
D. 107,000 units
Answer:
Production= 57,500 units
Explanation:
Giving the following information:
To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month.
To calculate the production for July, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 60,000 + (0.25*50,000) - (0.25*60,000)
Production= 57,500 units
g For a monopolist, marginal revenue is less than price because Group of answer choices the monopolist must lower price on all units sold and not just on the last unit sold. the demand curve is inelastic. the monopolist must lower price on the last unit sold in order to sell it. marginal revenue is always less than price, just as in the model of perfect competition.
Answer:
the monopolist must lower price on all units sold and not just on the last unit sold.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.
Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
Marginal revenue can be defined as the additional amount of money that is gained or generated by a business firm from the sales of an additional unit of a product or service. Graphically, a change in the value of the total revenue curve at a given point gives the marginal revenue.
A price refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. The price of goods and services are primarily being set by the seller or service provider.
For a monopolist, the marginal revenue (MR) of a product or service is less than price because the monopolist must lower price on all of the units sold rather than lowering price on the last unit sold only.
Hence, the lower price applies to all units sold by a monopolist.
Fischer Company uses 12,000 units of a part in its production process. The costs to make a part are: direct material, $15; direct labor, $27; variable overhead, $15; and applied fixed overhead, $32. Heath has received a quote of $60 from a potential supplier for this part. If Fischer buys the part, 75 percent of the applied fixed overhead would continue. Fischer Company would be better off by Select one: a. $60,000 to buy the part b. $216,000 to manufacture the part c. $30,000 to manufacture the part d. $348,000 to buy the part
Answer:
Difference= $60,000 in favor of buying
Explanation:
Giving the following information:
Number of units= 12,000
Make in-house:
Direct material, $15
direct labor, $27
variable overhead, $15
applied fixed overhead, $32
Buy:
Buying price= $60
If Fischer buys the part, 75 percent of the applied fixed overhead would continue.
First, we will calculate the avoidable fixed overhead per unit:
Avoidable fixed overhead= 32*0.25= $8
Now, the total differential cost of making in-house:
Total cost of production= 12,000*(15 + 27 + 15 + 8)
Total cost of production= 12,000*65
Total cost of production= $780,000
Total cost of buying= 60*12,000= $720,000
Difference= $60,000 in favor of buying
The ________ phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.
Answer:
The analysis and refinement phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.
Answer: analysis and refinement
discuss any 2 factors that you would consider when choosing the ideal type of investment
Answer:
The two factors that impact the choice of an ideal investment are returns on investment and investment period.
Time makes the difference between a successful investment and a bad investment choice. It is the time duration of an investment that dictates the expected returns on the investment.
Explanation:
The return on investment (ROI) is linked to the risks and volatility of the investment type. The investment period or term also affects the returns, risks, and volatility. Short-term investments are known for reduced returns, risks, and volatility. Other factors that impact the investment type that a decision-maker chooses, apart from these factors linked to risks and volatility, are liquidity, inflation, and tax implications.
During the busiest season of the year, your customer support center receives a higher call volume than planned. However, you can't hire more staff. how would you address the extra volume?
A tell your team to take their calls more quickly
B split shifts with the management team to take on some of the extra volume
C mandate that everyone on the team works overtime
Fallow Corporation has two separate profit centers. The following information is available for the most recent year: West Division East Division Sales (net) $390,000 $540,000 Salary expense 45,000 59,000 Cost of goods sold 137,000 251,000 The West Division occupies 9,750 square feet in the plant. The East Division occupies 5,850 square feet. Rent, which was $ 78,000 for the year, is an indirect expense and is allocated based on square footage. Compute operating income for the West Division.
Answer: $159250
Explanation:
The operating income for the West Division will be calculated thus:
Sales = $390000
Less: Cost of goods sold = $137000
Less: Salary = $45000
Less: Rent = $48750
Operating Income = $159250
Rent was calculated as:
= $78000 × 9750/(9750 + 5850)
= $78000 × 9750/15600
= $48750
SWOT analysis provides managers with an uncritical view of the organization's internal and external environments and helps them evaluate the firm's fulfillment of its basic objectives.
a. True
b. False
Blum Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100. Pounds Sales price per lb. at split-off Disposal cost per lb. at split-off Further processing per pound Final sales price per pound A 800 $6.50 $3.00 $2.00 $7.50 B 1,100 8.25 4.20 3.00 10.00 C 1,500 8.00 4.00 3.50 10.50 If the products are processed further, Blum Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00. Refer to Blum Company. Using a physical measurement method, what amount of joint processing cost is allocated to Product A (round to the nearest dollar)
Answer:
$416
Explanation:
Calculation to determine the amount of joint processing cost that is allocated to Product A
First step is to determine the split-off Total
Yards Sales price
at split-off Total
A 800 *$6.50= $5,200
B 1,100* $8.25= $9,075
C 1,500*$8.00=$12,000
Total $26,275
Now let determine the amount of joint processing cost that is allocated to Product A
Product A joint processing cost=($5,200/$26,275) * $2,100
Product A joint processing cost=$416
Therefore Using a physical measurement method, what amount of joint processing cost is allocated to Product A is $416
Your design team wants some help with the design of a locally responsive product intended for the host. They wish to own all of the intellectual property rights, and minimize costs. You should:___________a) Greenfield - Open a design studio in the host location.b) Acquire a local design firm in the host.c) Merge with a design firm in the host.d) Enter into a JV with a firm in the host.e) Enter into a sponsored development agreement with an alliance partner in the host.f) None of the choices listed here.g) All of the Greenfield, Acquire, Merge, and JV choices will work fine.
Answer:
b) Acquire a local design firm in the host.
Explanation:
The limitations with related to the greenfield, sponsored, mergers and JVs is that they dont give any assurance of 100% control and the ownership should be considered for the intellectual property
Now if one could select for the acquistion purpose that means they have the overall control and the ownership
So the above should be the answer
In the year 2003 the Acme Company had twice as many employees as managers. During the next 5 years, they hired twelve employees and fired two managers. Which of the following equations is correct for the number of managers?
A. NM2008 + 2 = 2 (NE2008 - 12).B. NM2008 - 2 = 2 (NE2008 + 12).C. 2 (NM2008 + 2) = NE2008 - 12.
D. 2 (NM2008 - 2) = NE2008 + 12.E. I can't eliminate any choices.
Answer:
B. NM2008 - 2 = 2 (NE2008 + 12)
Explanation:
Acme company has twice as many employees as managers so the number of employees would be multiplied by 2 to find the actual number of employees. The company will hire 12 new employees and will fire 2 managers in next 5 years. The correct equation will show the number of employees plus 12 new employees and managers minus 2 managers who are fired.
The per-unit standards for direct labor are 1.5 direct labor hours at $15 per hour. If in producing 3600 units, the actual direct labor cost was $74400 for 4800 direct labor hours worked, the total direct labor variance is $3600 unfavorable. $6600 unfavorable. $1800 unfavorable. $6600 favorable.
Answer:
See below
Explanation:
Given the above information, the total direct labor variance is computed as;
Total direct labor variance = Standard cost - Actual cost
Standard cost = 3,600 units × 1.5 × $15 = $81,000
Actual cost = $74,400
Total direct labor variance = $81,000 - $74,400
Total direct labor variance = $6,600 Favourable
Olinick Corporation is considering a project that would require an investment of $343,000 and would last for 8 years. The incremental cash inflows of the project per year at $107,000. The scrap value of the project's assets at the end of the project would be $23,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:___.a) 2.8 years.
b) 4.6 years.
c) 3.5 years.
d) 2.7 years.
Answer:
the payback period of the project is 3.20 years
Explanation:
The computation of the payback period of the project is shown below:
= Investment ÷ incremental cash inflows
= $343,000 ÷ $107,000
= 3.20 years
hence, the payback period of the project is 3.20 years
This is the answer but the same is not provided in the given options
Hence, the same should be considered