Answer:
B
Explanation:
Rule of 70
70/2.33=30.04
Income will be $8,000
Exercise 4-7 (Algo) Effects of sales transactions on income statement LO P2
Use the above informations, analyze each transaction by indicating its effects on the income statement-specifically, identify the
accounts and amounts (including + or -) for each transaction.
The Effects of Sales Transactions on the Income Statement are as follows:
Revenue Side:
May 5 Sales Revenue $21,000
May 7 Sales Returns -$1,750
May 8 Sales Allowance -$300
Net Sales Revenue = $18,950
Costs:
May 5 Cost of goods sold $15,000
May 7 Inventory -$1,250
Cost of goods sold = $13,750
Operating Income:
Net Sales Revenue $18,950
Cost of goods sold -13,750
Gross profit $5,200
May 15 Cash Discounts -$379
Operating profit $4,821
Data Analysis:
May 3 Inventory $20,000 Cash $20,000
May 5 Accounts Receivable (Macy Co.) $21,000) Sales Revenue $21,000 credit terms 2/10, n/60.
Cost of goods sold $15,000 Inventory $15,000
May 7 Sales Returns $1,750 Accounts Receivable (Macy Co.) $1,750
Inventory $1,250 Cost of goods sold $1,250
May 8 Sales Allowance $300 Accounts Receivable (Macy Co.) $300
May 15 Cash $18,571 Cash Discounts $379 Accounts Receivable (Macy Co.) $18,950
Thus, the transactions' effects will produce an operating income of $4,821 for the period.
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Carmen SanDiego, a U.S. citizen, is employed by General Motors Corporation, a U.S. corporation. On April 1, 2020, GM relocated
Carmen to its Brazilian operations for the remainder of 2020. Carmen was paid a salary of $131,000 and was employed on a 5-day-
week basis. As part of her compensation package for moving to Brazil, Carmen also received a housing allowance of $27,750.
Carmen's salary was earned ratably over the 12-month period. During 2020 Carmen worked 260 days, 195 of which were in Brazil and
65 of which were in Michigan.
How much of Carmen's total compensation is treated as foreign source income for 2020? (Do not round intermediate calculations.)
Total foreign source compensation
The amount of Carmen's total compensation treated as foreign source income for 2020 is $118,687.50
How much of Carmen's total compensation is treated as foreign source of incomeTo determine how much of Carmen's total compensation is treated as foreign source income for 2020, we need to calculate the portion of her salary and housing allowance that was earned while she was working in Brazil.
First, we need to calculate the portion of her salary that was earned in Brazil:
Salary earned in Brazil = (195/260) x $131,000 = $97,875
Next, we need to calculate the portion of her housing allowance that was earned in Brazil:
Housing allowance earned in Brazil = (195/260) x $27,750 = $20,812.50
Therefore, the total foreign source compensation for Carmen in 2020 is:
Total foreign source compensation = Salary earned in Brazil + Housing allowance earned in Brazil
= $97,875 + $20,812.50
= $118,687.50
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What are four things a menu writer should consider when making banquet menus?
Factors a menu creator should take into account while creating banquet menus:
Recognize Your Guest's ProfileBe Aware of Your Guest's PreferencesOffer menu optionsBe prepared for special needsThink about regional or ethnic menusMake a menu selection based on the event's schedule.How does the banquet menu look?A menu for a banquet is a list of the foods and drinks that will be served. It includes information on each item's preparation method and the ingredients used, just like a standard restaurant menu. However, this kind of menu is more thorough because it also depicts the sequence in which the items will be delivered to guests.
What is the role of a menu designer?It's important to consider what kinds of dishes and beverages your business will serve while creating the menu. Not only that, though. Choosing a menu's layout and presentation for customers is part of the design process.
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Peter wishes to create a retirement fund from which he can draw when he retires and the same amount at each anniversary of his retirement for years. He plans to retire years from now. What investment need he make today if he can get a return of per year, compounded annually
Answer:
$65,742.60
Explanation:
Note: The full question is "Peter wishes to create a retirement fund from which he can draw $20,000 when he retires and the same amount at each anniversary of his retirement for 10 years. He plans to retire 20 years from now. What investment need he make today if he can get a return of 5% per year, com- pounded annually?"
At first, we need to find the PV of withdrawals and there are 11 withdrawals starting 20 years from now.
PV = PMT/r * 1 - 1/(1+r)^n. This formula gives the PV one period before the first withdrawal. That is 19 years from now because the first withdrawal is 20 years from now.
PMT = 20,000, n = 11,
r = 0.05
PV19 = 20,000/0.05 * [1 - 1/(1+0.05)^11]
PV19 = 400,000 * 0.4153207109
PV19 = 166,128.28436
Now, we need to discount this back to toda
PV0 = PV19/(1 + r)^n; n = 19, r = 0.05
PV0 = 166,128.28436/(1 + 0.05)^1
PV0 = $65,742.6033421702
PV0 = $65,742.60
So, Peter needs to make $65,742.60 today.
In 2021, Short Construction began construction work under a four-year contract. The contract price is $2,000,000. Short recognizes revenue over time according to percentage of completion method. The balance sheet shows the following accounts at the end of 2021: A/R of $40,000, Construction in Progress of $200,000, Less: Billings on Construction Contract of $170,000. The income statement shows Income on the contract of $30,000 at the end of 2021. What was the total estimated cost of the project at the end 2021?
Answer:
The appropriated answer will be "$1,700,000".
Explanation:
Revenue understood by completion percentage = Design balance throughout progress = $200,000
The percentage completion throughout the whole year will be:
⇒ \(\frac{200,000}{2,000,000 }\)
⇒ \(10 \ percent\)
The cost incurred throughout the whole year will be:
⇒ \(Revenue \ recognized - Income \ on \ the \ contract\)
⇒ \(200,000 - 30,000\)
⇒ \(170,000\) ($)
Now,
The total estimated cost of the project at the end the year 2021 will be:
⇒ \(\frac{170,000}{10 \ percent}\)
⇒ \(1,700,000\) ($)
QUESTION 39
Which of the following is true regarding an exclusive agency listing?
The broker has the exclusive right to sell the property for a specified period of
O The broker operating under this listing is entitled to a commission only if he or
The seller has the right to sell the property himself or herself without being ob
O The seller must pay the broker his or her commission irrespective of who foun
Regarding an exclusive agency listing, the correct statement is:
Only if the broker who operates under this listing finds a buyer for the property is entitled to a commission.
Who are Brokers?Brokers are professionals who connect buyers and sellers of a variety of assets, including stocks, bonds, real estate, and commodities. By bringing together buyers and sellers and assisting them in negotiating deals that are advantageous to both parties, their function is to facilitate transactions.
Brokers are licensed professionals who help clients buy, sell, or rent homes in the real estate industry. They may work for a real estate agency or independently and typically receive a commission based on the transaction's value. Market research, property advertising, showing properties to potential buyers, and contract negotiation are all responsibilities of brokers. They are also in charge of making sure that the transaction goes according to all of the legal and regulatory requirements.
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What is the degree of alignment between what Netflix is currently
doing (actions) and their mission, vision, values, structure, and culture.
Doloris is a college sophomore. She is currently living in a dorm and signed a contract to pay the dorm fees for the full academic year (9 months). The contract states the if she moves out she can sell the remaining contract to another student. The cost of the dorm is $5000 for the year.
After two (2) months of living in the dorm Doloris found an apartment with her friends and really wants to move off-campus. Doloris put an ad in the Alligator and had two offers for her dorm contract buy out.
1) Pay Doloris $350 per month for the 7 remaining months.
2) Move in the second semester and pay half of the original dorm fee ($2,500).
Doloris's new apartment will cost $450 in rent. The cost for food in the dorm is $500 per month and about she estimates it is $400 in food and utility monthly expenses if she moves into the apartment.
Assume semesters are 4.5 months long.
Required:
1. What is the cost for Doloris to move into the apartment now?
2. What is the cost for Doloris to move at the end of the semester?
3. What is the cost for Doloris to stay in the dorm for the rest of the school year?
4. Which is the most economical option for Doloris?
As per the question dolorous is a college sophomore she is living in a dorm and has signed a contract to pay the fees for the full education year that is 9 months.
The contract states that cost of the dorm is about $5000 for the year. After 2 months she found an apartment with her friends and put an ad in alligator. The cost of food is $500, has a semester for 4.5 months.Learn more about the college sophomore.
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You are auditing the financial statements of Makibra Ltd, a manufacturing company in Tamale. You noticed during your reviews that the accounts receivable for the year 2022 were 196% of the previous years balance of GH₵1,590,400.00. Upon further investigations, you discovered that a major customer of the Makibra Ltd who owes 60% of the 2022 accounts receivables filed for bankruptcy on 28 November 2022. The financial statements have not been adjusted for this potential loss. Required: (i) Discuss the potential impact of the bankruptcy of the financial statements Makibra Ltd for the year ended 31 December 2021 (ii) Outline the audit procedures you would perform to gather sufficient appropriate audit evidence regarding the collectability of the accounts receivable and assess the need for adjustments in the financial statements, if any.
(i) The bankruptcy of Makibra Ltd’s primary customer, who owes 60% of the accounts receivable, will have a substantial impact on the financial statements of Makibra Ltd because the accounts receivable balance will be irrecoverable.
(ii) Audit procedures to perform are Performing analytical procedures, Obtaining direct confirmation, Inquiring about subsequent events, and Performing tests of collectability.
(i) The potential impact of the bankruptcy on the financial statements of Makibra Ltd for the year ended 31 December 2021:
In financial accounting, accounts receivable is an asset account used to record the money owed to an entity for products or services delivered but not yet paid for. The bankruptcy of Makibra Ltd’s primary customer, who owes 60% of the accounts receivable, will have a substantial impact on the financial statements of Makibra Ltd because the accounts receivable balance will be irrecoverable. Makibra Ltd’s financial statements for the year ended 31 December 2021 will therefore overstate its financial position, which will result in material misstatements. The financial statements should therefore be adjusted to account for the loss of the irrecoverable receivable.
(ii) Audit procedures to perform:
In order to determine the need for adjustments in the financial statements of Makibra Ltd, audit procedures to gather sufficient appropriate audit evidence regarding the collectability of the accounts receivable should be performed.
Here are some audit procedures to consider:
Perform analytical procedures: Analytical procedures should be conducted on the accounts receivable for the year 2022 and its percentage relationship with the prior year. The auditor should inquire as to why accounts receivable have grown so much and why the relationship to the prior year has changed so dramatically. This inquiry can provide more information about the general ledger accounts and can be a source of evidence.
Obtain direct confirmation: The auditor should confirm the receivable with the debtor by obtaining direct confirmation from the debtor, asking for confirmation of the amount owed at the end of the year. Confirmation should also request a statement of account to be sent directly to the auditor.
Inquire about subsequent events: As part of the auditor's inquiry, the auditor should ask management if they have information about subsequent events or transactions that may affect the recoverability of the receivable. Management should be able to provide evidence about the potential irrecoverability of the receivable.
Perform tests of collectability: The auditor should perform tests of collectability on the accounts receivable, such as reviewing payment history, the creditworthiness of the debtor, and collections on similar accounts receivable. Based on the results of these tests, the auditor should be able to assess whether an adjustment for the potential loss is necessary.
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Volatile price changes, technological changes, and government intervention are what type of risks?
Volatile price changes, technological changes, and government intervention are external risks that can impact a company's operations and performance.
What are Volatile price changesVolatile price changes refer to fluctuations in input or product prices, which can affect profitability and cost structure. Technological changes can introduce advancements or disrupt an industry, requiring companies to adapt to avoid becoming obsolete.
Government intervention, through regulatory changes or policies, can create uncertainties and challenges for companies, affecting operations, costs, and market access.
To mitigate these risks, companies should implement risk management strategies such as diversification, contingency planning, staying informed about market trends, investing in R&D, and engaging with government stakeholders.
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Which of the following best describes what happens if one more unit of labor is used? Choose 1 answer:
A) MPL increases
B) MPL equals total product of labor (TPL)
C) APL is maximized
D) APL increases.
E) MPL is minimized
MPL increases, best describes what happens if one more unit of labor is used. Thus, option (a) is correct.
The change in output brought on by adding a new unit of labour is known as the marginal product of labour (MPL).
MPL stands for the extra output that can be produced with an additional unit of labour. If MPL rises, it indicates that the extra output produced by the additional unit of labour is larger than the output produced by the original unit of labour.
Therefore, option (a) is correct.
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2. What are the ways of forecasting cost of sales?
a. cost of materials
b. cost of labor
c. cost of overhead
d. all of the choices
Answer:
d. all of the choices
Explanation:
Cost of Goods sold = Cost of material purchased + Conversion cost
And
Conversion cost hereby includes Direct labor cost and other production overheads directly attributable to the Goods sold.
So, The correct option is - d. all of the choices
QUESTION 4: PROGRESS REPORT On the 20th of April 2023, The campus manager, Mr Manoto, requested the secretary in the SRC office, to compile a report on the progress of the revival day planning. In your report tasks that are completed are invitations for special guests and booking of live performers; the task committee is still busy with finalizing the design of the banners and T-shirt and sports bottle printing. Due to overspending on budget, you still have not booked catering and security for the day. Your report must be in memo format.
A sample memo based on the given question prompt is given below:
The MemoMemorandum
To: Mr. Manoto, Campus Manager
From: SRC Office Secretary
Date: April 20th, 2023
Subject: Progress update for Revival Day planning
Esteemed Mr. Manoto,
Please find below a status report detailing advancements made in the preparations of the upcoming Revival Day ceremony. We have accomplished issuing invitations to prominent guests and securing prominent musical acts. Our committees are putting the finishing touches to banner design, T-shirt outfits, as well as customizing sport water bottles.
Conversely, budgetary concerns impede us from booking security or catering caterers essential for event operations. However, we are investigating ways to cut expenses while still delivering quality service. We will be prompt with updates about progress made through these alternative strategies.
Thank you for your kind ownership in this venture; rest assured that our team is steadfastly dedicated to ensuring an excellent Revival Day rally session.
Yours faithfully,
[Your name]
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Which of the following statements is not true of person-organization fit? Multiple Choice those who experience a higher fit have higher levels of job satisfaction employees who fit well have more trust in their managers the company can expect a committed worker when there is good person-organization fit a good fit means less stress about day-to-day tasks those with a good fit experience higher task performance than those without a good fit
The statement " those having a good fit experience have the higher task performance as compared to those who don't have a good fit" is correct.
The following information regarding the person-organization fit is:
It is a theory where the organization and the employee should be compatible with each other. In this, both parties should have the same attributes.Due to the above reasons, the person-organization fit does not relate to the employee task performance.
Therefore all other options are not considered as all other options are relevant for the person-organization fit.
Thus, we can conclude that the statement " those having a good fit experience have the higher task performance as compared to those who don't have a good fit" is correct.
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The money supply represents the amount of money the Federal Reserve Bank makes available for people to buy goods a
True or false
Answer:
True
Explanation:
The federal reserve ensures that the bank has enough money by the end of the night in case anyone needs money so that the market crash problem in the 1920s won’t happen again
A U.S.-based company, Global Products Inc., has wholly owned subsidiaries across the world. Global Products Inc. sells products linked to major holidays in each country.
The president and board members of Global Products Inc. believe that the managers of their wholly owned country-level subsidiaries are best motivated and rewarded with both annual salaries and annual bonuses. The bonuses are calculated as a predetermined percentage of pretax annual income.
Señora Larza, the president of Global Products of Mexico, has worked hard this year to make her Mexican subsidiary profitable. She is looking forward to receiving her annual bonus, which is calculated as a predetermined percentage (15 percent) of this year's pretax annual income earned by Global Products of Mexico. A condensed income statement for Global Products of Mexico for the most recent year is as follows (amounts in thousands of pesos).
Sales MXN 25,000
Expenses 23,000
Pretax Income MXN 2,000
The U.S. headquarters financial group translates each of its wholly owned subsidiary's results into U.S. dollars for evaluation. After translating the Mexican pesos income statement into U.S. dollars, the condensed income statement for Global Products of Mexico is as follows (amounts in thousands of dollars).
Sales US $7,000
Expenses 8,100
Pretax Income US $(1,100)
Required:
A1. Calculate the bonus amount based on (1) the Mexican peso-based Pretax Income and (2) the U.S. dollar-based Pretax Income.
A2. Translate the peso-based bonus to U.S. dollars using a current exchange rate.
B. Calculate the average exchange rate used to translate the Mexican pesos income statement into the U.S. dollar statement for the categories: (1) Sales and (2) Expenses.
A1. Bonus on mexican peso-based Pretax Income
Bonus U.S. dollar-based Pretax Income
A2. U.S. dollars
B. Average exchange rate for sales pesos
Average exchange rate for expenses pesos
Answer:
Global Products Inc.
Global Products of Mexico
Señora Larza
A1. Bonus on mexican peso-based Pretax Income
= MXN 2,000 x 15% = MXN 300
Bonus U.S. dollar-based Pretax Income
= -$1,100 x 15% = -$165, there is no U.S. dollar-based bonus
A2. U.S. dollars
Current Exchange rate = US$1 = MXN 20.0369 (July 18, 2020)
MXN 2,000 = MXN 2,000/MXN 20.0369 = $98.19
B. Average exchange rate for sales pesos
Sales MXN 25,000 = US $7,000,
The exchange rate = US $1 = MXN 3.5714 (MXN 25,000/ US $7,000)
Average exchange rate for expenses pesos
Expenses MXN 23,000 = US $ 8,100
The exchange rate = US $1 = MXN 2.8395 (MXN 23,000/US $ 8,100)
Explanation:
Señora Larza, the president of Global Products of Mexico seems to have a bonus in Mexican peso, but when the bonus pre-tax income is translated into US dollars, the bonus turns negative just like the pre-tax income was negative. This implies that since the U.S. headquarters translates each subsidiary's results into U.S. dollars for evaluation, Señora Larza did not qualify for bonus payment for the current year.
The disparity is caused by the different exchange rates for translating the sales revenue and the expenses. Exchange rates are the rates at which currencies exchange their values for international account settlements.
Being held accountable and obligated to fulfill a commitment is ___.
Assets
Liability
Partnership
Logistics
Being held accountable and obligated to fulfill a commitment is Liability. Thus, option B is correct.
What is the liability?
A liability is defined as the future sacrifices of economic advantages that an entity is obligated to make to other entities as a result of previous transactions or other past occurrences.
In accounting, liability refers to any type of financial obligation that a company must pay to another person or company at the conclusion of an accounting period.
Financial advantages such as money, products, or services are used to satisfy liabilities. It is a company's future obligation to pay money to other persons or businesses.
Therefore, option B is correct, that being held accountable and required to fulfill a contract is Liability.
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In any industry, ethical behavior is the responsibility of ______.
Answer:
In any industry, ethical behavior is the responsibility of each employee
Answer:
each employee
Hope this helps
Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold must be reported in the consolidated income statement for 20X8?
a. $2,765,000
b. $1,620,000
c. $1,422,000
d. $2,963,000
Answer: c. $1,422,000
Explanation:
The Cost of Goods that goes into the Consolidated income statement would be the goods that were sold to unaffiliated companies. The original cost of production would apply:
= Quantity sold to unaffiliated companies in 20X8 * Cost for Pepper
= 18,000 * 79
= $1,422,000
SBA a business from any of the THREE sectors and conduct a research using newspaper clips, business articles, any business magazines, News 24 and a other business websites to answer the following Research (Part A) for your Select a business business questions. (Collect FIVE resources) must be NB After choosing the sector you able to motivate your answer then provide picture/ newspaper article of the business -You must identify challenges experienced by the business and classify those challenges according to the three Business Environments and state the extent of control.
Selecting a business from one of the three sectors, conducting research using newspaper clips, business articles, any business magazines, News 24, and other business websites to answer research (Part A) questions. This article will discuss the challenges faced by the business and classify them based on the three business environments. The business selected for this research is Sasol, which belongs to the primary sector. Sasol is an integrated energy and chemicals firm with operations in over 30 countries and more than 30,000 employees. It mines coal and convert it into synthetic fuels and chemical feedstock. Sasol operates in a challenging environment, and it faces many challenges. However, in this research, we will discuss the most important challenges faced by Sasol. The following are the difficulties Sasol faces: Environmental challenges: Sasol is a large company, and it emits greenhouse gases, which affect the environment. Furthermore, environmental regulations have become more stringent, which is a significant challenge for the company. Sasol must adhere to environmental regulations, which will impact its operations. Sasol must also protect its reputation, which is critical to its success. Sasol should be proactive in responding to environmental challenges by investing in renewable energy and ensuring that it adheres to environmental regulations. Economic challenges: Sasol faces economic challenges, including fluctuating oil prices, currency volatility, and rising operating costs. These issues are beyond the company's control, and they can have a significant impact on Sasol's financial performance. Sasol must adapt to economic changes by diversifying its revenue streams and improving its operational efficiency. Social challenges: Sasol faces social challenges such as workforce diversity, employee engagement, and community relations. Sasol must address these challenges by fostering a diverse and inclusive culture, promoting employee engagement, and engaging with the community. Sasol must also ensure that its business practices align with the expectations of its stakeholders, including customers, employees, and investors. In conclusion, Sasol faces many challenges, which can be classified into three categories: environmental, economic, and social. Sasol has limited control over some of these challenges, but it must be proactive in responding to them to ensure its long-term success.
A business that you can select for this analysis is the importation of cars into a country. Some challenges that may affect the importation of cars include import duties and trade agreements between nations.
What are business challenges?Business challenges refer to those problems that are encountered by entrepreneurs who want to go into any area of trade. For those into the importation of cars and other such items, excessive import duties might be limiting to them.
They may also experieice trade agreements sbetween nations and rising forex that amy not be favorable for trade.
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Economic profit
a. is a theoretical measure of a firm’s performance and has little value in real world decision
making.
b. can be calculated by subtracting implicit costs of using owner-supplied resources from
the firm’s total revenue.
c. is negative when total costs exceed total revenues.
d. is generally larger than accounting profit.
Economic profit is negative when total costs exceed total revenues of a firm or company.
Option C is correct.
What does economic benefit mean?Economic profit or loss is the difference between the income from selling output and the cost and opportunity cost of all inputs used. Opportunity cost and explicit cost are subtracted from earned income when calculating economic benefit.
Why is economic profit important?Economic profit is very important as it helps in evaluating a company's profitability and financial performance. Indicates whether a particular company is able to cover its costs and generate revenue for its stakeholders. Therefore, brands only succeed if they bring prosperity to their stakeholders.
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The Rational Rule for Buyers O compares the benefit of buying an additional unit of the item to the cost of that item. O compares the total benefit of all units to the total price of all units purchased. O only applies to buyers who are buying necessities as opposed to luxury items. O compares the cost of production of an item to the price of the item.
The correct option is A. The Rational Rule for Buyers compares the benefit of buying an additional unit of the item to the cost of that item.
Rational rules argue that at least a few significant additives of our ethical structures are indeed ecologically rational: they are proper at assisting us to reap not unusual goals. Nichols argues that the account might be prolonged to seize moral motivation as a unique case of a much extra-preferred phenomenon of normative motivation.
Rational conduct is the cornerstone of rational preference theory, a principle of economics that assumes that individuals always make choices that offer them the very best amount of personal software. those decisions provide human beings with the greatest advantage or pleasure given the alternatives to be had. The monetary rationality precept is primarily based on the concept that humans behave in rational methods and keep in mind alternatives and choices inside logical structures of ideas, in preference to concerning emotional, moral, or psychological elements.
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Complete Question:
The Rational Rule for Buyers
A). compares the benefit of buying an additional unit of the item to the cost of that item.
B). compares the total benefit of all units to the total price of all units purchased.
C). only applies to buyers who are buying necessities as opposed to luxury items.
D). compares the cost of production of an item to the price of the item.
Topic; Monopoly vs Oligopoly.
Argue against the motion that Monopoly is a better marketing structure than Oligopoly.
A monopoly is a market structure characterized by a single firm controlling the entire market. While this structure may appear beneficial to the firm, it has several negative effects on the market and society as a whole. One major drawback is that monopolies lack competition, which leads to stagnation and a lack of innovation. Without a competing firm, there is no need to improve the quality of the product, customer service, or even pricing. This complacency can lead to a decline in sales and profitability.
Furthermore, monopolies can create inefficiencies in the market, leading to a reduction in consumer welfare. In a monopoly, the firm has the ability to charge higher prices than it would in a more competitive market. As a result, there is a transfer of wealth from consumers to the monopolist, leading to a decrease in consumer welfare and overall economic efficiency.
In contrast, an oligopoly is a market structure where a few firms compete with each other. This structure provides several benefits to the market, including innovation, better pricing, and higher quality. With firms competing against each other, there is an incentive to improve the quality of the product, customer service, and pricing, which benefits consumers. Additionally, this competition encourages firms to innovate, resulting in new products and technologies being developed.
In conclusion, while monopolies may offer some benefits to the firm, they are not a desirable marketing structure due to the lack of competition, inefficiencies, and reduction in consumer welfare. In contrast, an oligopoly provides benefits to consumers and encourages innovation, making it a superior marketing structure.
The change in technology and the globalization have brought new pattern of organizing
today's companies, and thus, the managers need to consider these new concepts in
organization's design process. With this statement, discuss the emerging issues in
organization design and architecture.
Following are the emerging issues in organization design and architecture:Technology and Globalization, Customer Relations,Technical Knowledge, Flexibility, Employee's Well-being.
Following are the emerging issues in organization design and architecture:
Technology and Globalization: The modern era's rapid technology and globalization have forced the organizations to adopt a new pattern of organizing. Managers are focusing more on technology and globalization and they are ensuring that the company can cope with the emerging challenges.Customer Relations: Customers are the major driving force in every business. To maintain the customer base, the managers need to focus on customer relations as the organization's design process should be centered around their needs. This will help the managers in creating a company that provides excellent customer service to its customers.Technical Knowledge: The success of an organization depends on the technical knowledge of its managers. Managers need to have knowledge about new and emerging technologies so that they can use them to enhance the organization's capabilities. In addition, managers need to know how to apply this technical knowledge to improve the organization's structure and operations.Flexibility: Flexibility is a crucial component in the organization's design process. The managers need to design the organization that is flexible enough to adapt to new changes and technologies. This will help the managers in keeping up with the rapidly changing business environment.Employee's Well-being: The well-being of employees is also a significant issue in the organization's design process. The managers need to design the organization in a way that the employees can work efficiently, and their personal needs are also met. This will help in improving the employee's productivity and motivation level and ensure their loyalty to the organization.For more such questions on Globalization
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LEONE COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Finished goods inventory, beginning Cost of goods manufactured Goods available for sale Less: Finished goods inventory, ending Cost of goods sold Gross profit General and administrative expenses Selling expenses Net income $ 84,000 84,000 92.000 $ 3,251,000 $ (8,000) 3,259,000 127.000 603,000 2,529,000
How do you find the cost of goods manufactured?
The cost of goods manufactured (COGM) is the cost of all the products that a company has manufactured during a period.
How to calculateIt is calculated by adding the beginning finished goods inventory to the total manufacturing costs, and then subtracting the ending finished goods inventory.
In the income statement you provided, the cost of goods manufactured is calculated as follows:
COGM = $92,000 + $3,251,000 - $127,000 = $3,224,000
Therefore, the cost of goods manufactured for Leone Company is $3,224,000.
Here is the formula for calculating COGM:
COGM = Beginning finished goods inventory + Total manufacturing costs - Ending finished goods inventory
The total manufacturing costs include direct materials, direct labor, and manufacturing overhead.
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In a communist economy all economic activities are controlled by?
Answer:
benefits of quality management
STEP 5 Use practical examples from BRICK 'n TILE to differentiate between short and long-run costs. (10) TOTAL: [50]
BRICK 'n TILE, a hypothetical company, can differentiate between short-run and long-run costs by considering examples such as immediate production costs (short-run) and investment in new production facilities (long-run).
Short-run costs refer to expenses that a company incurs in the immediate period, where some factors of production are fixed and cannot be easily adjusted. In the case of BRICK 'n TILE, short-run costs could include the costs of raw materials, labor, utilities, and maintenance for their existing production facilities. These costs are essential for the day-to-day operations and can be directly linked to the current level of production.
On the other hand, long-run costs encompass expenses that can be adjusted in the long term to adapt to changes in production levels and scale. For BRICK 'n TILE, an example of a long-run cost would be the investment in new production facilities or equipment. If the company decides to expand its operations or increase its capacity, they may need to construct a new manufacturing plant or purchase advanced machinery. These costs are incurred over an extended period and are associated with strategic decisions that affect the company's production capabilities in the long run.
Differentiating between short-run and long-run costs is crucial for effective financial planning and decision-making. Short-run costs help determine the immediate profitability of the company's operations, while long-run costs factor in the potential growth and expansion strategies. Understanding the distinction between these cost categories allows BRICK 'n TILE to make informed decisions regarding short-term production levels and long-term investment in infrastructure and technology.
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A plant asset cost ₤320,000 and is estimated to have a ₤40,000 residual value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be？
Depreciation is the process of allocating the price of a plant asset to expense in the accounting periods benefiting from its use.
How is the whole depreciation of a plant asset calculated?Determine the value of the asset. Subtract the estimated salvage price of the asset from the cost of the asset to get the whole depreciable amount. Determine the beneficial lifestyles of the asset. Divide the sum of step (2) by using the wide variety arrived at in step (3) to get the annual depreciation amount.
Depreciation is the technique of allocating to expense the cost of a plant asset over its beneficial (service) existence in a rational and systematic manner. Such cost allocation is designed to desirable in shape prices with revenues.
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https://brainly.com/question/28108679#SPJ1What is the Importance of Public Personnel Management?
Public personnel management is crucial for the effective functioning of public sector organizations. It encompasses the policies, practices, and processes involved in managing the human resources of government agencies at various levels.
The importance of public personnel management can be understood from several perspectives:
1. Efficient Service Delivery: Public personnel management ensures that government agencies have competent and motivated employees who can efficiently deliver public services. By recruiting, selecting, and retaining the right people for the job, personnel management contributes to enhancing the quality and responsiveness of public services.
2. Merit-Based System: Public personnel management promotes a merit-based system where individuals are hired and promoted based on their qualifications, skills, and performance rather than favoritism or nepotism. This helps to build a professional and competent workforce and fosters public trust and confidence in government institutions.
3. Employee Development: Personnel management plays a crucial role in providing training and development opportunities to public sector employees. Continuous learning and skill enhancement programs enable employees to adapt to changing work requirements, improve their performance, and contribute effectively to organizational goals.
4. Fairness and Equity: Effective personnel management ensures fairness and equity in the treatment of employees. It establishes transparent and standardized processes for recruitment, performance evaluation, promotion, and disciplinary actions, reducing the likelihood of discrimination and promoting a culture of fairness and equality.
5. Workforce Planning: Public personnel management involves strategic workforce planning to anticipate and address future human resource needs. By identifying skills gaps, succession planning, and implementing effective recruitment and retention strategies, it ensures that the organization has the right people with the right skills in the right positions.
6. Employee Engagement and Morale: Public personnel management practices, such as performance recognition, rewards, and employee involvement, contribute to higher levels of employee engagement and morale. Engaged employees are more likely to be motivated, committed, and productive, leading to improved organizational performance.
In conclusion, public personnel management is essential for efficient and effective public service delivery, promoting a merit-based system, developing employees, ensuring fairness and equity, strategic workforce planning, and enhancing employee engagement. By focusing on the management of human resources, public sector organizations can achieve their objectives and serve the needs of the public more effectively.
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A company had issued 10,000 bonds which had a par value of $50 and currently sold at $60. The company is expected to pay 10% interest for the next 5 years. In addition to this the preferred stock of the company is issued at $150 which a promised dividend of 8 per share. The common stock holders will receive $2 per share and this will grow T 8% for the first 3 years, 6% for the other 3 years and it will grow at 5% for indefinite period. Assume the tax rate is 35%. The capital structure of the company is composed of 600,000 common stock, 200,000 preferred stock and 100,000 is debt.
A) Find the cost of capital for each sources A) Find the weighted average cost of capital
To calculate the cost of capital for each source, we'll consider the cost of debt, cost of preferred stock, and cost of common stock.
1. Cost of Debt:
The cost of debt is the interest rate the company pays on its debt. In this case, the company has issued bonds with a par value of $50, currently selling at $60, and a coupon rate of 10% for 5 years.
Cost of Debt = (Interest Expense / (Bonds Market Value - Bond Discount)) * (1 - Tax Rate)
Interest Expense = Bonds Market Value * Coupon Rate
Bonds Market Value = Number of Bonds * Bond Selling Price
Number of Bonds = 10,000
Bond Selling Price = $60
Coupon Rate = 10%
Tax Rate = 35%
Interest Expense = $60 * 10,000 * 10% = $60,000
Bonds Market Value = 10,000 * $60 = $600,000
Bond Discount = Par Value - Bond Selling Price = $50 - $60 = -$10 (Negative value because the bond is selling at a premium)
Cost of Debt = ($60,000 / ($600,000 - (-$10))) * (1 - 0.35) = $6,000 / $600,010 * 0.65 = 0.064997 (approximately 6.50%)
2. Cost of Preferred Stock:
The cost of preferred stock is the dividend rate the company pays on its preferred stock. In this case, the preferred stock is issued at $150 with a promised dividend of $8 per share.
Cost of Preferred Stock = Dividend / Preferred Stock Price
Dividend = $8
Preferred Stock Price = $150
Cost of Preferred Stock = $8 / $150 = 0.053333 (approximately 5.33%)
3. Cost of Common Stock:
The cost of common stock is calculated using the dividend growth model. The dividend is expected to grow at different rates for different periods.
First 3 years: Dividend Growth Rate = 8%
Next 3 years: Dividend Growth Rate = 6%
Indefinite period: Dividend Growth Rate = 5%
Cost of Common Stock = Dividend / Current Stock Price + Growth Rate
Dividend = $2
Current Stock Price = Market Price
Growth Rate = Dividend Growth Rate
Cost of Common Stock = $2 / Market Price + Growth Rate
Weighted Average Cost of Capital (WACC):
The weighted average cost of capital is the weighted average of the costs of each source of capital, considering their respective proportions in the capital structure.
WACC = (Weight of Debt * Cost of Debt) + (Weight of Preferred Stock * Cost of Preferred Stock) + (Weight of Common Stock * Cost of Common Stock)
Weight of Debt = Debt / Total Capital
Weight of Preferred Stock = Preferred Stock / Total Capital
Weight of Common Stock = Common Stock / Total Capital
Debt = $100,000
Preferred Stock = $200,000
Common Stock = $600,000
Total Capital = Debt + Preferred Stock + Common Stock = $100,000 + $200,000 + $600,000 = $900,000
Weight of Debt = $100,000 / $900,000 = 0.111111 (approximately 11.11%)
Weight of Preferred Stock = $200,000 / $900,000 = 0.222222 (approximately 22.22%)
Weight of Common Stock = $600,000 / $900,000 = 0.666667 (approximately 66.67%)
WACC = (0.111111 * 6.50%) + (0.222222 * 5.
The cost of capital for each source can be calculated by determining the cost of debt, cost of preferred stock, and cost of common equity. The cost of debt is 8.33%, the cost of preferred stock is 5.33%, and the cost of common equity is 14.77%.
To find the cost of capital for each source, we will calculate the cost of debt, cost of preferred stock, and cost of common equity.
The cost of debt can be calculated using the formula: Cost of Debt = (Annual Interest Payment / Bond Price) x 100%. In this case, the bond price is $60 and the annual interest payment is 10% of the bond's par value of $50, so the cost of debt is (0.10 * $50 / $60) x 100% = 8.33%.
The cost of preferred stock can be calculated using the formula: Cost of Preferred Stock = Dividend / Stock Price. In this case, the dividend is $8 per share and the stock price is $150, so the cost of preferred stock is $8 / $150 = 5.33%.
The cost of common equity can be calculated using the Dividend Discount Model (DDM) formula: Cost of Common Equity = Dividend / Current Stock Price + Growth Rate. The growth rate for the first 3 years is 8%, for the following 3 years is 6%, and for an indefinite period is 5%. The dividend for common stock is $2 per share. The current stock price can be calculated using the market value of the common stock ($2 * 600,000 = $1,200,000) divided by the number of shares (600,000), which equals $2 per share. The cost of common equity is $2 / $2 + 0.08 + 0.06 + 0.05 = 14.77%.
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