one of the most significant driving forces behind the demand for project management is the ever increasing lengthening of the product life cycle. false.
The term "Project Management Office" (PMO) refers to the department within a company or other organisation that is in charge of upholding the organization's standards for project management. The project management office is the primary repository for all project-related paperwork. The PMO is where all instructions and data are kept.An increase in need for product customization is a driving force behind the increasing demand for project management.Project management is one of the fastest growing professions in the recent times. One of the major reasons for its exploded demand are rapid technological advancement and wide-expanding global market. Experts are assuming that project managers can meet the industry demands in the desired manner.
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question mode multiple choice question what is the current value of a future amount based on a certain interest rate and a certain time period? notice that the future value is already known. you want to find the current value of that amount.
The current value of a future amount based on a certain interest rate and a certain time period is the future value is already known.
The interest rate is the proportion of the loan which is charged as the interest to the borrower refers to expressed as an annual percentage of the loan outstanding. It is the reduced interest rates encourage people to spend the money on the home improvement.
The current value of a future amount based on a certain interest rate and a certain time period the future value is already known is the value of a future amount at the present time which is found by applying compound interest over a specified period of time.
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central bank money refers to part 2 a. currency held by people plus reserves held by banks. b. the money that the central bank has issued. c. the liabilities of the central bank. d. all of the above. e. a and c only. part 3 central bank money differs from money in general in that excludes
The correct answer is b). money that the government's central bank has printed. In contrast to common money, central bank money does not include checkable deposits.
Paper money is the most significant component of a nation's financial system.. Traveler's checks (issued by non-banks), demand deposits, and other checkable deposits (OCDs), such as NOW accounts at depository institutions and credit union share draught accounts, are also included in the M1 category.
Money that is extremely liquid, such as cash, checkable (demand) deposits, and traveler's checks, is included in the M1 money supply. The M1 money supply adds savings and time deposits, certificates of deposits, and money market funds make up the less liquid M2 money supply.
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explain four ways in which marketing for a rental car company differs from marketing for an automobile dealership.
Renting and buying cars are different businesses. Buying a car emphasizes the product, whereas renting a car emphasizes the service.
Retailers sell goods and services. Both products and services meet customer wants, yet they differ. Retailers sell products and services like optical centers and restaurants.
The best four digital automobile marketing tactics to spread the word about your dealership and boost sales:
Video Marketing: Automotive video content reigns. Before picturing oneself in a new car, many car shoppers need to see and feel it.
Online Review Management: Auto marketers should monitor dealership review sites. If your consumers are happy, serious auto buyers will choose your dealership on these platforms. Online reviews are equally potent as peer recommendations, but they can reach thousands of people.
Creating a user-friendly web experience: Your website should also consider SEO. Keywords in the site and blog text will help you rank better for relevant queries and provide vehicle shoppers with solutions. Your target audience may want "highest gas mileage" or "top luxury autos."
SMS Marketing: Catering to this customer behavior can put you ahead of your competitors, as roughly 80% of Americans own smartphones and most online traffic comes from mobile devices. All text message marketing efforts have an 82% open rate since smartphone consumers spend hours on their phones. SMS marketing lets you reach potential clients on a platform where they actively seek messages.
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highjinks, incorporated, has provided the following budgeted data: what is the company's margin of safety as a percentage of sales? multiple choice
18,334 units will need to be sold by the company. Any expense with a changeable amount is a variable expense. Among the varied costs are those for food, transportation, and entertainment.
What do variable costs entail?Rent, mortgage payments, and auto payments are examples of fixed expenses that typically cost the same each month. In contrast, variable expenses are those that vary from month to month (dining out, medical expenses, groceries, or anything you buy from a store).
We start by calculating the desired operating income.
Sales times 5% of operating income.
(20,000 * 100) * 5% = $100,000
Using the equation below, we will now calculate the amount backwards:
Operating Income = Sales - Variable Expense - Fixed Expense.
sold units divided by 100 minus 70 equals 100,000 plus 450,000.
Units sold multiplied by (100 - 70) to get 550,000.
550,000 sold units / 30 is 18,333.3333
18,334 units will need to be sold by the company.
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Full Question = Highjinks, Inc., has provided the following budgeted data:
Sales 20,000 units
Selling price $100 per unit
Variable expense $70 per unit
Fixed expense $450,000
How many units would the company have to sell in order to have a net operating income equal to 5% of total sales dollars?
the trade of things of value between buyer and seller so that each is better off after the trade is referred to as
The trade of things of value between buyer and seller so that each is better off after the trade is referred to as distribution exchange.
The trade is the business term which is defined as the buying and selling of the products or services. The trade is also known as in simple term as the business of selling products to the consumers, the consumers will be retailer, broker, and customers.
The distribution exchange is the term which is defined as the distribution of the high quantity stocks or products into the market or smaller group of sellers which sell orders for the security purposes and reduce its price.
The distribution exchange is also performed for the buyer products or services instead of money by selling own products to the retailer.
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a monopolistically competitive industry has many firms that sell differentiated products. group of answer choices true false
Answer:
True.
A monopolistically competitive industry is characterized by many firms that sell differentiated products. This means that each firm produces a slightly different product, which allows them to differentiate themselves from their competitors. This differentiation can be based on things like branding, packaging, or the specific features of the product. As a result, consumers have a variety of choices, but each firm still has some degree of market power. In this market structure, firms have the freedom to set their own prices, but they are also affected by the prices set by their rivals.
If the number of consumers in the market for good a increases, what will happen to the equilibrium price and quantity of good a?
The supply will decrease. The increase in supply will, if all else stays the same, lead to a drop there in equilibrium price and a rise in the quantity needed. As the supply shrinks, so will the equilibrium price.
What occurs if a good is produced by both producers at the market equilibrium?Since the balance amount won't be known, the typical price will rise. If both consumers and businesses expect prices to rise soon, the equilibrium price will rise.
In the event that a product's manufacturing cost increases, what happens to the equilibrium quantity and price?As a result, the equilibrium quantity and price of the product market decrease. As a result, when input prices decrease, the entire short - run aggregate moves towards the right, lowering the equilibrium price and increasing the equilibrium quantity.
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the triple bottom line is economic prosperity, environmental stewardship, and social responsibility. modern companies need to focus on which aspect of the triple bottom line?
Corporate social responsibility is emphasized by the triple bottom line. It prods businesses to take into account both the fixation with profits and social and environmental repercussions.
TBL advises putting equal emphasis on the three Ps: profit, planet, and people. TBL was created by John Elkington as an accounting framework in 1994. Elkington was both a novelist and an entrepreneur. In terms of social, environmental, and economic elements of company, TBL seeks to combine sustainable accounting. All companies want to appear green in the face of mounting societal pressure. But not everyone is willing to forgo financial gain.
The triple bottom line (TBL) approach advocates incorporating economic, environmental, and social goals into financial ones.
TBL also highlights the need of profitability because businesses must pay their employees, operational creditors, and lenders.
Businesses must ensure that the area is clean and that their operations don't negatively impact the environment. TBL highlights the contentious topic of toxic waste disposal. Sustainable trash disposal is significantly more expensive.
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to help you understand and interpret conjoint analysis results, interactive illustration 2 links to an external site.presents the output of a conjoint analysis study. the report provides the customer utility of 15 different aspects, from brands to engine size, to price levels. using these utility scores, calculate the total customer utility of the provided bundle. by making a utility-positive change, such as adding a sunroof, the utility of the entire bundle increases. how much can you increase the price of the car to bring the customer utility back down to the original bundle that did not include the sunroof? g
The customer utility of the bundle can be increased by up to the amount necessary to bring the customer utility back down to the original bundle without the sunroof.
What is the difference in customer utility between the bundle with the sunroof and the bundle without the sunroof?The difference in customer utility between the bundle with the sunroof and the bundle without the sunroof can be determined by comparing the utility scores of each feature included in the bundle. For example, in the provided bundle, without a sunroof, the customer utility of the brand, engine size, and price level are 6, 4, and 3, respectively. With the sunroof included, the customer utility of the same features are 7, 4, and 3, respectively. Therefore, the difference in customer utility between the bundle with the sunroof and the bundle without the sunroof is 1 (7 - 6). This difference in customer utility can be applied to each feature in the bundle, and the total customer utility of the bundle with the sunroof can be calculated. In this example, with the sunroof included, the total customer utility of the bundle is 14, whereas the total customer utility of the bundle without the sunroof is 13. Therefore, the difference in customer utility between the bundle with the sunroof and the bundle without the sunroof is 1.To learn more about customer utility refer to:
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what two factors influence an economic school of thought____
1.Historical context: Different economic schools of thought have emerged in response to different economic conditions and events throughout history.
What is economic ?Economic is the study of how people choose to use resources to produce goods and services, and how these goods and services are distributed among different people. It is a social science that studies the production, distribution, and consumption of goods and services. Economic analysis can help us understand how markets work, why prices change, and how economies grow or decline. It also helps us understand how individuals make decisions about their finances, such as saving or investing. Economic analysis can help governments make better decisions about taxation, spending, and other policies that affect economic growth.
2.Ideology: Different economic schools of thought are based on different philosophical and political beliefs about the role of government, markets, and individuals in the economy.
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organization costs for a corporation usually include all of the following except
A: office rent
B: legal costs
C: application fee
D: postage
The organization costs for a corporation usually include all of the following except postage. Thus the correct option is D.
What is a corporation?A corporation is a business organization where financial investments are made by stockholders in return for a portion of the organization's profits or ownership to seek power and authority.
The cost of business which is incurred while establishing teh business in a physical structure is called organization costs. It includes costs incurred in legal matters, filing application fees as well as rent for office premises.
Therefore, option D is appropriate.
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all of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc, is called ?
Personal finance is the term used to describe all financial choices and actions made by a person or family, including budgeting, spending, and saving.
What's the most accurate way to define financial literacy?The capacity to apply information and skills to manage monetary capacity successfully for a life of financial well-being is known as financial literacy. This concept emphasizes the value of ability and discusses knowledge, skills, and changes in one's outlook on life.
Who or what is an entity that exchanges products for services?Individuals or organizations that utilize or consume goods and services are referred to as consumers. Customers are the buyers who make purchases of goods and services in the economy. Customers can be individuals or groups.
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A reduction on the list price granted to merchandising businesses.
answer choices
Purchases discount
Cash discount
Trade discount
Debit discount
A price reduction granted to merchandising businesses is Trade Discount. Net price equals list price minus trade discount. As a result, trade discounts are not recorded in the books.
What is Trade a Discount ?In layman's terms, a trade discount is a discount provided by the seller to the buyer at the time of purchase of goods. It is given as a reduction in the quantity sold list or retail price. This discount is typically offered by sellers in order to attract more customers and receive bulk orders, thereby increasing sales. As a result, no record is to be kept in the books of both the buyer and seller.
It is a product discount allowed as a reduction in the retail price. It is the amount by which a manufacturer or wholesaler lowers the price of a product when selling it to a retailer, reseller.
The trade discount is usually proportional to the quantity of the product purchased. It is a reduction in the product's published price.
A high-volume wholesaler, for example, may be entitled to a greater discount than a medium or low-volume wholesaler.
A retail customer is usually not eligible for a discount and must pay the full published price.
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highest grossing christmas movie adjusted for inflation
The Santa Clause is at the top of the list with a gross of $470.1 million and the highest average at $156.6 million. highest-grossing Christmas film, inflation-adjusted
By inflation, what do you mean?The pace of price growth over a specific time period is referred to as inflation. Inflation is frequently measured broadly, such as the general rise in prices or perhaps the rise in the cost or living in a nation.
How can we lower inflation?Raising interest rates is one of the primary strategies employed by the Fed to control inflation. A prime illustration of monetary policy is this. By raising taxes or reducing spending, the government can implement fiscal policies to lower inflation.
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Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor hours to be 50,000. During February, Morrow has 4,200 direct labor hours and 8,000 machine hours. What is the predetermined overhead rate?1. $12. 40 per direct labor hour2. $3. 44 per machine hour3. $147. 62 per direct labor hour4. $77. 50 per machine hour
$15.50 per hour of direct work The price of an item is determined using standard costing. In this method, a product's actual direct expenses are added to a typical overhead rate.
Describe a typical costing system.?By assigning costs to commodities by the materials, labour, and overhead required in their production, normal costing is a method of cost allocation. Using three separate cost criteria, it is a method for determining the price of a product that is being produced.
What is the case with regular costing?In a typical costing method, the only costs that are utilised to calculate unit cost are the true cost of inventory items, direct material, and overhead. Unit costs are calculated using a typical costing system that includes anticipated raw costs, estimated direct labour, and real overhead.
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why do the current us depreciation methods vastly simplify the accounting that is required in real company situations?
The current US depreciation methods are designed to simplify the accounting required in real-world company situations but may not accurately reflect the actual depreciation of an asset in a real-world company situation.
The current US depreciation methods such as the Modified Accelerated Cost Recovery System (MACRS) and the straight-line method, are designed to simplify the accounting that is required in real-world company situations by assuming that assets lose value at a consistent rate over time and this rate can be estimated using predetermined schedules.
This simplification allows companies to easily estimate the depreciation expense they will incur each year, which can be used to calculate net income and other financial metrics.
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Please select Yes/NO and explain briefly:
1. Is it sustainable to think that Emiratis, which make up only about 15 percent of the people in Dubai, can be leading the city as they have been for so long?
2. Integrating 160 different nationalities into one corporation, such as The Emirates Group, has challenges and opportunities. What challenges do you see? What opportunities come from this diverse workforce?
3. Compared with 10 years ago, expatriate employees stay twice as long in Dubai, about five years, before they return to their home country or another foreign location. Do you think more expatriates will stay longer in Dubai as the city continues to develop into a world-class location?
People prefer to be in a good governance, so if Dubai keeps growing into a world-class metropolis, expatriates may even consider relocating there permanently.
How long do foreigners reside in Dubai?
In its most recent analysis, the specialized recruiter Robert Half found that, as a result of new regulations and activities aimed at assisting foreigners, the average length of stay for expats has climbed from three years to roughly eight to ten years.
Dubai has a large expat population; why?
With more than 200,000 new arrivals each year, Dubai draws expats from all over the world. While some may find the expense of lodging to be prohibitive, the abundance of appealing housing options, excellent wages, and cheap taxes encourage many people to relocate to Dubai and experience the expat way of life.
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how are intangible assets with an indefinite life treated? group of answer choices they are depreciated. they are amortized. they are depleted. they are tested yearly for impairment.
They are tested yearly fort impairment. Intangible assets with an indefinite life are not amortized and are not reported on the balance sheet. Instead, they are tested for impairment annually to determine if they should be written down.
How are unspecified intangible assets handled?
Intangible assets with an indefinite life are treated differently than intangible assets with a definite life. Intangible assets with an indefinite life are not amortized, but instead are tested for impairment.
Impairment tests are performed on a periodic basis to determine whether the carrying value of the intangible asset is recoverable. If the carrying value is not recoverable, it is then written down to its fair value. Intangible assets with an indefinite life are also subject to annual impairment tests, and if the asset is not recoverable, the loss is recorded against current earnings.
Intangible assets with an indefinite life are also subject to periodic reviews for impairment, and any impairment losses are recognized as expenses. The carrying value of the intangible asset is adjusted to its fair value if impairment is identified. Impairment charges are recorded as expenses in the period in which the impairment is identified.
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jasper company has variable costs per unit of $24, fixed costs of $315,000, and a break-even point of 45,000 units. what will be the new break-even point in units if variable costs decrease by $5 per unit and fixed costs increase by $270,000?
The new break-even point will be 48,570 units.
What is the break-even point?The break-even point is the point at which total revenue and total cost are equal, means that there is no loss or gain for our business. In other words, we have reached the level of production at which the costs of production equal to the revenues for a product.
A company's break-even point can be calculated by this following formula:
Fixed Costs / (Price - Variable Costs) = Break-even Point in Units.
Pricing a product, the costs acquired in a business, and sales volume are interconnected.
In this case, first, we need to determine the contribution margin.
Contribution margin per unit:
= Fixed costs / Break-even point in units before changes
= $315,000 / 45,000
= $7 per unit
So, the break-even point in units after changes will be:
= ($315,000 + $270,000) / ($7 per unit + $5 per unit)
= $585,000 / $12
= 48,570 units
Hence, the new break-even point is 48,570 units.
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on december 1, year 1, clark co. entered into a 5-year operating lease for office space at a monthly rental of $60,000. on the same date, clark paid the lessor the following amounts: first month's rent $ 60,000 last month's rent 60,000 security deposit (refundable at lease expiration) 80,000 installation of new walls and offices 360,000 what should be clark's year 1 total lease-related expense for the office space?
Clark's year 1 total lease-related expense for the office space is $66,000. Therefore option B is correct.
What is operating lease?An operating lease is a legal arrangement that authorizes the use of property without taking possession. These leases let companies use the asset without having to pay the hefty costs incurred by purchasing it.
The company leasing the asset is referred to as the lessee, and the company lending it out under a lease is referred to as the lessor. The tenancy agreement and associated documentation specify the obligations of each party, but roughly speaking, the lessee is liable for keeping the asset to keep it in operating mode, minus any expected deterioration or damage.
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ms. penser resides in the city of lanock, tennessee. she owns 100% of the stock of psw incorporated, which is incorporated under tennessee law and conducts business in six different local jurisdictions in tennessee. 1. how many taxpayers are identified in the above statement of facts? numerical answer only please, no decimals.
She is the sole shareholder of PSW Inc., a Tennessee-based company with locations in six distinct municipal governments.
What is a stakeholder, and give an example?
Any number of people who are interested in or impacted by the project may be considered stakeholders. An owner or shareholder, for example, could be considered a stakeholder. Stakeholders include, among others, customers, suppliers, bondholders, vendors, and employees. Shareholders are a type of stakeholder. Stakeholders are any people or organisations that are impacted by a project, initiative, policy, or organisation, whether positively or negatively. They could be internal (employees employed by your business) or external (people outside of your organisation).
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a team that achieves high levels of task performance, membership satisfaction and future viability is called a(n)
An effective team is one that excels at task performance, the member satisfaction, and long-term survivability.
Every great organization is built on strong teams. Businesses that lack cohesive teams frequently suffer, whereas organizations with strong teams are more productive and efficient, help to improve quality, and promote project completion. The development of a team where each member provides their unique abilities and skills that contribute to the success of the group is necessary for a business to operate at its best.
Allowing open and honest communication between team members is one of the most crucial team-building techniques you can do.
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the registration of a broker-dealer may be revoked for all of the following reasons except the firm: a effects short sales in non-exempt securities b does not maintain required records c does not file financial reports with the administrator d does not file advertising with the administrator
The correct answer is b) does not maintain required records. Except for the company failing to keep required records, any of the following may result in the cancellation of a broker-registration dealer's.
Companies that engage in stock loan activity could record a "short" position in their books and records, indicating that a stock loan of a security has been made to a client or another broker-dealer.
The Securities and Exchange Commission regulates stock exchanges, brokers and dealers in securities, investment advisers, and mutual funds in an effort to encourage ethical business practises, the public disclosure of crucial market information, and the avoidance of fraud. According to the recordkeeping rules, businesses must keep communications pertaining to their "business as such," which includes trade blotters, asset and liability ledgers, income and expense ledgers, capital account ledgers, customer account ledgers, securities records, order tickets, and trade confirmations.
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given the following demand, please generate forecasts by arithmetic mean, last period value, ma (3), ma (5), es (0.1), es (0.4), and es (0.9). please calculate mad for each forecasting method. which forecasting method performs the best, the worst?
Two straight forward techniques for predicting demand are the two-quarter moving average and the three-quarter moving average.
While the three-quarter moving average uses the average of the current and three previous quarters, the two-quarter moving average uses the average of the current and two prior quarters. A more complex technique for anticipating demand is exponential smoothing. It considers prior demand as well as a smoothing constant that is specified by the user.
We must compute the mean absolute deviation (MAD) for each forecasting technique in order to provide a response to the query. A measurement of accuracy known as MAD considers the absolute discrepancies between the values predicted and observed. The forecast is more accurate the lower the MAD.
We can suggest a forecasting approach for Alvin Ortega after computing the MAD. According to our calculations, the most accurate approach is exponential smoothing with a smoothing constant of 0.9 since it has the lowest MAD. Therefore, we advise Ortega to predict demand using exponential smoothing with a smoothing constant of 0.9.
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a property sold for $200,000. there was a $20,000 down payment and the rest was in the form of a 30-year mortgage at 6% interest. the seller paid 3 points at the closing. how much was that?
A home that sold for $200,000 had a $20,000 down payment and a mortgage with a 6% interest rate. The seller awarded the purchaser three points at
What does the word "mortgage" actually mean?
If you have a mortgage, the lender has the right to legally seize your home if you are unable to repay the debt plus interest. A mortgage loan can be used to finance the acquisition of real estate or to borrow money against the value of your current house. There are seven things you should look for in a mortgage. For instance, your mortgage payment shouldn't be more than $1,250 if your monthly take-home earnings is $5,000. For mortgages, fixed-rate and conventional loans are offered. a.
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gdp per capita tells us the average income of a country. why is this not an adequate measure of a country's well-being?
Costs for products and services are not taken into account in the GDP per capita. The GDP per capita does not account for income distribution.
GDP is simply a general estimate of a society's standard of life because it does not immediately take into account leisure, environmental quality, levels of health and education, extracurricular activities, changes in economic disparity, improvements in diversity, or technological advancements.
Gross domestic product (GDP) is a comprehensive financial indicator of a country's overall economic activity (GDP). It acts as a gauge of the consistency of all delivered final goods and services throughout time, usually on a regular basis.
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"Blast it!" said David Wilson, president of Teledex Company. "We’ve just lost the bid on the Koopers job by $3,000. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid. "
Teledex Company manufactures products to customers’ specifications and operates a job order costing system. Manufacturing overhead cost is applied to jobs on the basis of direct labor cost. The following estimates were made at the beginning of the year:Complex tavble cannot copy
Based on direct staff costs, Pearson Architectural Design allocates studio overhead to Work in Process using a job-order costing system.
What justification exists for applying manufacturing overhead expenses to work in progress?
Based on c. actual hours spent, manufacturing overhead expenses are applied to work in progress. To allocate overhead costs, manufacturing businesses employ their planned overhead rates and the actual number of the overhead driver unit (usually direct labor or machine hours).
How can you tell if manufacturing overhead is being applied correctly or not?
Manufacturing overhead is underapplied and the resulting cost of goods sold is overstated if there is a debit balance. This is the adjusting entry: If the cost of manufacturing has a credit balance, the cost is overused, overstating the quantity of expense of things sold as a result.
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when companies report earnings that are only a few cents below their previous estimates, why do their stock prices go down by so much?
Investors are unsure of whether the company's failure to fulfill expectations was due to coincidence or bad luck or if it was an indication that management was covering up more serious issues.
'What is Stock Price?'
The price at which a share of stock is currently trading on the market is referred to as the stock price.
When shares of a publicly traded firm are issued, their value is assigned a price that, ideally, represents the worth of the company itself. A stock's price will fluctuate in response to a variety of circumstances, such as shifts in the overall economy, shifts in specific industries, political developments, armed conflict, and environmental changes.
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a musical instrument manufacturer is considered the best in the industry in terms of human resource management and its excellent supply chain that assures the company will deliver products on time. which macro strategy does this company demonstrate to achieve a sustainable competitive advantage?
Operational excellence is the plan for Niro music to gain a competitive advantage.
Early in the 1970s, Dr. Joseph M. Juran introduced the concept of operational excellence while educating Japanese industry leaders on how to improve quality. It was defined in the United States in the 1980s in reaction to "the crisis" experienced by large, established firms, whose market share was decreasing as a result of high-quality items imported from Japan.
An excellent workplace culture can be fostered using certain strategies and ideas that are part of the operational excellence style of thinking. Each employee must be able to recognise, provide for, and improve the flow of value to a client for there to be operational excellence.
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a company enters into a 5-year operating lease agreement effective january 1, year 1. the rent due on the last day of each year is $10,000. as an inducement to enter into the lease, the company received half off the first year's rent. the following information pertains to the company on january 1, year 1: incremental borrowing rate 6% present value of $1 for 1 period at 6% 0.943 present value of ordinary annuity for 5 periods at 6% 4.212 what amount will the company record as the right-of-use asset?
$37,405 mount will the company record as the right-of-use asset.
What is meant by company?
A group of people can organise a legal organisation called a corporation to conduct and manage a commercial or industrial venture. Depending on the corporate legislation of its jurisdiction, a corporation may be set up in a variety of ways for tax and financial liability reasons.A company is a legitimate organisation created by a group of people to govern and operate a business operation.Depending on the corporate legislation that governs its administration, a corporation may be organised in many ways for tax and financial liability reasons.Each of the three frequently used company structures a sole proprietorship, a partnership, and a corporation has its own advantages and drawbacks.To learn more about company refer to
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The company will record a right-of-use asset of $45,000. This is calculated by taking the present value of the ordinary annuity (4.212) and multiplying it by the rent due each year (10,000).
What is right-of-use asset? Right-of-use (ROU) assets are non-current assets that represent a lessee's right to use an underlying asset for a specified period of time. ROU assets are most commonly associated with lease agreements, such as operating leases. Under the new accounting standard, ASC 842, companies are required to recognize ROU assets and corresponding lease liabilities on their balance sheets, rather than simply reporting the lease payments as an expense. In essence, these assets are a proxy for the leased asset, representing the lessee's right to use the asset and the associated cash flows over the lease term.Unlike other assets, ROU assets are not tangible, and are instead recorded on the balance sheet as an intangible asset. Since the asset is intangible, it has no physical presence, and therefore has no service life or salvage value. ROU assets have a value based on the present value of the future lease payments and any related incentives, such as rental discounts or tenant improvement allowances.To learn more about right-of-use asset refer to:
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