T/F: A silent reaction to a business proposal would seen negative to American, French and German executives, but not Arabic executives.
Answers
A silent reaction to a business proposal would be seen as negative to American, French, and German executives, but not to Arabic executives.
In American, French, and German business cultures, silence during a meeting or presentation may be interpreted as disinterest or disapproval. Executives from these cultures typically expect immediate feedback and open communication when discussing a proposal.
A silent reaction might be seen as a sign that the proposal was not well-received or that there are concerns or objections that have not been addressed.
On the other hand, in Arabic business culture, silence can be perceived differently. Silence may signify that the listener is carefully considering the proposal and needs time to reflect on the information presented. It may also indicate that the person is showing respect to the speaker by not interrupting or challenging the proposal right away.
In this context, a silent reaction does not necessarily mean that the proposal was poorly received or that there are concerns that need to be addressed.
In summary, while a silent reaction to a business proposal may be seen as negative in American, French, and German business cultures, it may not carry the same negative connotation in Arabic business culture.
Instead, it could signify careful consideration and respect for the speaker, highlighting the importance of understanding cultural differences in business communication.
To know more about silent refer home
https://brainly.com/question/30462029#
#SPJ11
Related Questions
__________ visually shows that the total revenue curve and the total cost curve intersect at a point of zero profit.
A) break-even chart
B) Gantt chart
C) sales response function
D) cross tabulation
E) demand curve
Answers
Answer:
C it would be hope this helped
"Between 2014 and 2019, the world's economy total real product
grew at an annual average rate of nearly ________ percent per
year.
A. 3.5.
B. 3.9.
C. 2.9.
D. 2.5"
Answers
Between 2014 and 2019, the world's economy experienced an annual average growth rate of approximately 2.9 percent per year.
To calculate the average annual growth rate, we need to consider the compound annual growth rate (CAGR) over the given period. CAGR is calculated by taking the nth root of the ending value divided by the starting value, where n is the number of years, and subtracting 1 from the result. In this case, we have a five-year period from 2014 to 2019.
Using the formula, the CAGR would be:
CAGR = (Ending Value / Starting Value)^(1/n) - 1
Since we are given the annual average growth rate, we can find the ending value by multiplying the starting value by (1 + average growth rate). Let's assume the starting value is 100.
Ending Value = Starting Value * (1 + Average Growth Rate)
Average Growth Rate = (Ending Value / Starting Value)^(1/n) - 1
Average Growth Rate = (100 * (1 + Average Growth Rate))^(1/5) - 1
By solving this equation using a trial and error method or a numerical solver, we find that the average growth rate is approximately 0.029, which is equivalent to 2.9 percent per year. Therefore, option C, 2.9 percent, is the correct answer.
Learn more about the trial and error method here:
https://brainly.com/question/4123314
#SPJ11
Indicate the effect on this period 's FCFF and FCFE of a change in each of the items listed here. Assume a $ 100 increase in each case and a 40 percent tax rate. A. Net income. B. Cash operating expenses. C. Depreciation. D. Interest expense. E. EBIT. F. Accounts receivable. G. Accounts payable. H. Property , plant , and equipment. I. Notes payable. J. Cash dividends paid. K. Proceeds from issuing new common shares
Answers
Changes in net income, cash operating expenses, interest expense, EBIT, cash dividends paid, and proceeds from issuing new common shares directly impact both FCFF and FCFE.
A. Net income: An increase in net income would directly impact the FCFF (Free Cash Flow to the Firm) and FCFE (Free Cash Flow to Equity). Net income is a component of both FCFF and FCFE calculations. With a $100 increase in net income, both FCFF and FCFE would increase by $100 before considering taxes.
B. Cash operating expenses: Cash operating expenses affect net income. An increase in cash operating expenses would decrease net income. Assuming a $100 increase in cash operating expenses, net income would decrease by $100. Consequently, both FCFF and FCFE would decrease by $100 before considering taxes.
C. Depreciation: Depreciation is a non-cash expense that reduces net income but does not affect cash flow. Therefore, a change in depreciation does not directly impact FCFF or FCFE.
D. Interest expense: Interest expense is tax-deductible, so a change in interest expense affects net income and subsequently impacts FCFF and FCFE. Assuming a $100 increase in interest expense, net income would decrease by $100 (before taxes). Considering a 40% tax rate, the decrease in net income would be $60, leading to a decrease of $60 in both FCFF and FCFE.
E. EBIT (Earnings Before Interest and Taxes): EBIT is a pre-tax measure of profitability. An increase in EBIT would directly increase both FCFF and FCFE by the same amount, assuming a $100 increase in EBIT.
F. Accounts receivable: An increase in accounts receivable implies that cash collection from customers is delayed. It does not directly impact net income. Therefore, a change in accounts receivable does not directly affect FCFF or FCFE.
G. Accounts payable: An increase in accounts payable means the company is delaying payment to suppliers. This leads to an increase in cash available and does not impact net income directly. Thus, a change in accounts payable does not directly affect FCFF or FCFE.
H. Property, plant, and equipment: A change in property, plant, and equipment does not directly impact net income. However, it affects capital expenditures (CAPEX) and depreciation in future periods, which indirectly affect FCFF and FCFE over time.
I. Notes payable: Changes in notes payable do not directly impact net income. However, they affect interest expense, which is tax-deductible and indirectly affects net income, FCFF, and FCFE.
J. Cash dividends paid: Cash dividends reduce net income and, subsequently, both FCFF and FCFE. Assuming a $100 increase in cash dividends paid, net income would decrease by $100 (before taxes). Considering a 40% tax rate, the decrease in net income would be $60, leading to a decrease of $60 in both FCFF and FCFE.
K. Proceeds from issuing new common shares: Proceeds from issuing new common shares do not impact net income directly. However, they increase the cash available to the firm and, subsequently, both FCFF and FCFE. Assuming a $100 increase in proceeds from issuing new common shares, both FCFF and FCFE would increase by $100.
To learn more about net income
https://brainly.com/question/32359048
#SPJ4
Total Revenue ($) Price (Marginal Profitability to the Box Mill) ($) Quantity (Units of Paper equivalent to One Box) $30 1 $30 $24.00 $27 2 $54 $18.00 $24 3 $72 $12.00 $21 4 $84 $6.00 $18 5 $90 $0.00 $15 6 $90 -$6.00 $12 7 $84 -$12.00 $9 8 $72 -$18.00 $6 9 $54 -$24.00 $3 10 $30 If the paper mill sets the price of paper to sell to the box mill, it will set a price of will be $ for the paper mill. Companywide profits will be $ marginal profitability of each unit of paper, or box, to the box mill.) Suppose the paper mill is forced to transfer paper to the box mill at marginal cost ($9.50). In this case, the box mill will demand Marginal revenue ($) Total Cost ($) $9.50 $20.50 $9.50 $19.00 $35.00 $9.50 $28.50 $43.50 $9.50 $38.00 $46.00 $9.50 $47.50 $42.50 $9.50 $57.00 $33.00 $9.50 $66.50 $17.50 $9.50 $76.00 -$4.00 $9.50 $85.50 -$31.50 $9.50 $95.00 -$65.00 units of paper to the box mill. Profits (Hint: Recall that the prices in the table represent the ▼and sell Marginal Cost ($) units of paper. This leads to companywide profits of $ Profit ($) ^^^^^^^A
Answers
Based on the given data and assumptions, setting the price at $18 will maximize companywide profits for the paper mill.
if the paper mill sets the price of paper to sell to the box mill, it will set a price of $18. companywide profits will be $90 (marginal profitability of each unit of paper, or box, to the box mill).
however, if the paper mill is forced to transfer paper to the box mill at marginal cost ($9.50), the box mill will demand 6 units of paper. profits will be $33.00.
the given table provides information on the relationship between price, quantity, and total revenue for the paper mill. based on the data, we can observe that at a price of $18, the paper mill can achieve maximum total revenue of $90. this implies that setting the price at $18 will yield the highest profits for the company.
now, let's consider the scenario where the paper mill is compelled to transfer paper to the box mill at the marginal cost of $9.50 per unit. by examining the second set of data, we can determine that at a price of $9.50, the box mill will demand 6 units of paper. the total cost for the paper mill to produce and transfer 6 units of paper to the box mill is $57.00, resulting in profits of $33.00.
it's important to note that in the second scenario, the box mill's demand for paper is influenced by the lower transfer price, leading to an increase in the quantity of paper demanded. this affects the total cost and, subsequently, the overall profits for the company. however, if the paper mill is forced to transfer paper at the marginal cost of $9.50, the box mill will demand 6 units of paper, resulting in profits of $33.00.
Learn more about revenue here:
https://brainly.com/question/14952769
#SPJ11
Which action can help you to keep stress away?
Answers
Answer:
Exercise is a way to keep stress away :))))
Answer:
A punching bag, writing down on paper, talking with someone, play, do a fun activity, get a stress reliever toy.
To avoid the embarrassment of getting into financial difficulty, there is a simple rule that will help most people.
It is this:
Answers
Answer:
If you’re worried about money, you’re not alone. Many of us, from all over the world and from all walks of life, are having to deal with financial stress and uncertainty at this difficult time. Whether your problems stem from a loss of work, escalating debt, unexpected expenses, or a combination of factors, financial worry is one of the most common stressors in modern life. Even before the global coronavirus pandemic and resulting economic fallout, an American Psychological Association (APA) study found that 72% of Americans feel stressed about money at least some of the time. The recent economic difficulties mean that even more of us are now facing financial struggles and hardship.
Explanation: hope this little article helps you
Which of the following scenanos present the most nsk for a workers compensation retaliation claim? (Assume all injuries result in the employers filing workers' comp claims) A. Employee is disciplined for not woaring cut resistive gloves after being injured. All employeas are consistently disciplined for not wearing gloves oven when no iniury has occurred B. Employee is disciplined for not using lockout-tagout after experiencing a minor injury while servicing a machine Other employees have been disciplined for not followng lockout-tagout, however a couple of supervisors in the company frequently fail to follow lockout-tagout. The injured worker is not aware of the supervisor failures. c. Employee is disciplined for operating a forklit in an unsafe manner after he turns it over in the warehouse, Other workers have been disciplined for unsafe actions when there was no injurylincident too. However, the safely department's investigation reveals no specric manner in which the employee was operating the forkift in an unsafe manner. D. Employee is disciplined for not weanng her safety glasses atter sustaining an eyo injury. If is well known that other workers do not wear their salety glasses and are never disciplined for their non-compliance with company policy.
Answers
The scenario that presents the most risk for a workers' compensation retaliation claim is option D. In this scenario, an employee is disciplined for not wearing safety glasses after sustaining an eye injury. It is well known that other workers do not wear their safety glasses and are never disciplined for their non-compliance with company policy.
This scenario poses a higher risk for a retaliation claim because it shows a clear discrepancy in how the company enforces its safety policies. By disciplining only the injured employee for not wearing safety glasses while ignoring the non-compliance of other workers, the company is treating the injured employee differently and potentially retaliating against them for filing a workers' compensation claim. To further illustrate, let's consider the following points:
1. The injured employee sustained an eye injury, which indicates that there was a workplace accident or hazard.
2. The company's policy requires the use of safety glasses, but other workers are not disciplined for not following this policy.
3. This selective enforcement of the safety policy creates a situation where the injured employee feels targeted and retaliated against for seeking workers' compensation benefits.
It is important to note that retaliation claims in workers' compensation cases can be complex, and each scenario should be evaluated on a case-by-case basis. However, in this particular scenario, the unequal treatment and lack of consistency in enforcing safety policies make it the most susceptible to a workers' compensation retaliation claim.
To know more about retaliation claim, refer to
https://brainly.com/question/28351925
#SPJ11
Which of the following gas satisfaction measures wWhich of the following gas satisfaction measures would Be this for a company to use if they want to estimate how many customers might recommend them to their friends?
CES
CSAT
PSC
NPS
Answers
Answer:
Simple Random Sample
Explanation:
Name three jobs in insurance.
What do administrative support careers do? Name three tasks.
Answers
Answer:
Insurance Investigators. Insurance fraud is a huge problem.
Insurance Claim Adjusters. Adjusters assess the damage involved in an insurance claim, and extend an offer to the policyholder to cover their losses.
Actuaries.
Underwriters.
Loss Control Agents.
Insurance Agent or Broker.
Explanation:
jobs
A manufacturing company discovered that there is stuck with Richard, and for the past three months had been dropping. How might this affect purchasing
Answers
If a manufacturing company discovers that its sales are dropping, this could have a direct effect on its purchasing.
In order to save money, the business might need to buy fewer raw materials and other things. In addition to a drop in production, this can also result in worker layoffs or reduced hours.
To continue to be profitable, the business may have to change its emphasis from cutting costs to boosting sales, creating new goods, or discovering new markets.
In order to generate fresh goods or services that will assist increase sales, the corporation may also need to make investments in research and development.
The Correct question is -
A manufacturing company discovered that there is stuck with Richard, and for the past three months had been dropping. How might Richard's decreased performance over the past three months affect purchasing at the manufacturing company?
To know more about manufacturing,
https://brainly.com/question/13440987
#SPJ4
Question 5
A company that sells ownership shares to many investors is a
Answers
Answer:
Corporation.
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.
Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity.
Corporations can be sold to investors through stocks or shares, as a public entity. Thus, a company that engages in the sales of ownership shares to many investors is referred to as a corporation.
Additionally, a corporation that its stock is being traded in a public market is required to report earnings per share on their income statement.
According to Jeffrey Harper, why is market research important?
A Without research data to base decisions on, marketers are just guessing
B By researching, people know marketers care about them
C Data generated by research can be sold to make extra money
D Research is fun, easy and cheap so even if nothing is learned, the experience is good
Answers
Answer: The correct answer is A i.e. Without research data to base decisions on , marketers are just guessing .
Explanation: Market research involves gathering data to learn more about target demographics and consumers so a business can market itself more effectively and, ultimately, succeed in the market.
Harper is an assistant professor of practice in the area of marketing & supply chain. According to him research plays a very important role , without doing proper or required research marketers are just assuming which might prove to be very dangerous in future .
cash equivalents group of answer choices are illegal in some states will be converted to cash within 2 years will be converted to cash within 3 months will be converted to cash within 4 months
Answers
Among the given answer choices, the correct statement regarding cash equivalents is "will be converted to cash within 3 months."
Cash equivalents refer to highly liquid and low-risk assets that are readily convertible to cash within a short period, typically within three months from the date of acquisition. These assets are considered to have a similar risk profile to cash and are often included in the cash and cash equivalents line item on the balance sheet.
It's important to note that the legality of cash equivalents is not determined by the time frame for conversion to cash. Cash equivalents are legal financial instruments and are commonly used by businesses and individuals for short-term investment purposes. The specific regulations and laws surrounding financial instruments may vary between states or jurisdictions, but the concept of cash equivalents itself is not illegal.
Learn more about financial instruments visit:
brainly.com/question/30627652
#SPJ11
the main advantage of point-of-sale devices is that they offer to buyers and sellers
A.more flexibility and convenience
B.reward programs
C.improved safety and security
D.enhanced fraud protection
Answers
Prompt for response: look up the status of the Journalist Protection Act and let me know what is happening with it.
Answers
The Journalist Protection Act is currently in the process of being considered by the U.S. Congress. The bill was first introduced in the House of Representatives in 2019 and has since been referred to the Subcommittee on Crime, Terrorism, and Homeland Security.
The Journalist Protection Act is aimed at providing federal protection for journalists against threats, assault, and harassment while on the job. It was introduced in response to the increasing number of attacks on journalists and media outlets in recent years.
The bill would make it a federal crime to intentionally cause or attempt to cause bodily harm to a journalist, or to intimidate or interfere with a journalist while they are reporting the news. It would also allow journalists to seek civil remedies in court for such attacks and would provide for additional penalties for those who commit such acts in the course of carrying out other crimes.
The Journalist Protection Act has received support from various media organizations and press freedom groups. However, it has not yet been voted on by the full House of Representatives or the Senate. It remains to be seen whether the bill will gain enough support to become law.
Learn more about Journalist Protection Act:
brainly.com/question/30248050
#SPJ11
Bill thought he had received the best deal on his riding mower. Shortly after the purchase, Bill started to notice certain disadvantages of his new riding mower as he learned more about other riding mowers available in the same price range. Bill is in which of the following stages of the buyer decision process?
a. purchase decision
b. need recognition
c. postpurchase behavior
d. information search
e. alternate evaluation
Answers
Because the amount paid is linked to certain predefined behaviors or outcomes, ______ is specifically designed to energize, direct, or maintain employees' behavior.
Answers
Answer:
Umomgey
Explanation:
Based on the amound paid by the FKSA, you will be able to govern an employees relations and beahviors.
Incentive pay is specifically designed to energize, direct, or maintain employees' behavior.
What is Incentive pay ?Performance-based compensation known as incentive pay pays an employee for achieving predetermined goals or objectives. This payment may be made in the form of cash, stocks, extra paid time off, gifts, etc.
Instead of paying for the amount of hours worked, incentive pay is a monetary reward for achievement. The theory is that the possibility of cash reward will encourage the employee to meet specific performance goals or financial targets.
The basic goal of incentives is to tightly link employee rewards to their accomplishments. By offering greater remuneration for superior performance, this tie is achieved. Individuals will typically work harder because their performance depends on producing more and getting more rewards.
To learn more about Incentive pay
https://brainly.com/question/29358340
#SPJ5
Question 1 of 20
Which of the following reasons for writing a formal business document would
lead
you to write a proposal?
A. To tell your manager a project is on budget and on schedule
B. To describe what tasks you completed during the week
C. To summarize what happened during a meeting
D. To convince your manager to use a new meeting organization tool
Answers
Answer:
D. To convince your manager to use a new meeting organization tool
Explanation:
In business, a proposal mostly needed for new projects that haven't been done by the company before. Usually, this will be made before a team about to approach a new markets, using new technologies to replace the old ones, or giving ideas for new programs that can improve company's profit.
A good proposal should consist of proper explanation about the project, what problems the project will address, resources that are needed to do the project, time lines, and the potential budget that might incurred from the project.
What are the other options to insurance
Answers
Medical Cost Sharing Programs. ...
Health Savings Accounts. ...
Medical Services Discount Cards. ...
High-Deductible Policies.
Jon works for a manufacturing company. On the balance sheet for the end of the year, raw materials amounted to $45,600, finished goods were $8,960, and the cash equivalents were equal to $10,500. What is the total amount that will be reported for inventories?
Answers
Jon works for a manufacturing company. On the balance sheet for the end of the year, raw materials amounted to $45,600, finished goods were $8,960, and the cash equivalents were equal to $10,500. The total amount that will be reported for inventories is $54,560
On the balance sheet:
Raw materials amounted = $45,600
Finished goods = $8,960
cash equivalents = $10,500
Now,
The total amount of inventory will include only the raw material and the finished goods
The cash is not included in the inventory
Therefore,
The total amount that will be reported in the inventory will be
= Amount of raw material + Amount of finished goods
= $45,600 + $8,960
= $54,560
Therefore the total amount that will be reported for inventories is $54,560.
For such more question on balance sheet:
https://brainly.com/question/1113933
#SPJ11
Because of the actions of the Federal Reserve, the American money supply __________ in the period from 1929 to 1932.
Answers
It can be noted that the actions of the Federal Reserve led to the shrinking of the American money supply.
What is money supply?Money supply simply means the total amount of money that's in circulation at a particular time.
Due to the actions of the Federal Reserve, the American money supply shrank in the period from 1929 to 1932.
Learn more about money on:
https://brainly.com/question/24373500
How would you do this question ??
Answers
Answer:
You would want to divide the $4.00 among the other things you would want to buy. If it goes over the limit then you would want to swap that out with something cheaper. I hope this helps!
Explanation:
a. suppose cigarette smoking causes a $6 per pack external cost on nonsmokers. draw the social benefit curve that accounts for the external cost associated with smoking. instructions: use the tool provided 'mbsocial' and plot only the endpoints such that the first point touches the vertical axis and the second point touches the horizontal axis. b. assuming the externality associated with smoking is not faced by consumers, 10 numeric response 1.edit unavailable. 10 incorrect.million packs of cigarettes are consumed per week. c. the efficient number of cigarette packs is: 14 numeric response 2.edit unavailable. 14 incorrect.million packs.
Answers
a. MB social points = (0, $24) (24, $0), b. Considering that customers do not experience the externality related to smoking, 14 million packs of cigarettes are consumed per week, c. The efficient number of cigarette packs is: 10 million packs.
Inhaling and exhaling smoke is the act of burning plant material. Although a number of plant materials, such as marijuana and hashish, are smoked, the act is most frequently linked to tobacco when it is smoked in a cigarette, cigar, or pipe. In addition to emphysema and chronic bronchitis, smoking also increases the risk of developing cancer, heart disease, stroke, lung conditions, diabetes, and chronic obstructive pulmonary disease (COPD). Smoking also raises the risk of developing tuberculosis, several eye conditions, and immune system issues, such as rheumatoid arthritis. The nicotine addiction rate among habitual smokers is between 80 and 90 percent. After 10 seconds of entering your body, nicotine makes its way to your brain. It results in the release of adrenaline from the brain, which produces a buzz of pleasure and energy.
Learn more about smoking here
https://brainly.com/question/26187004
#SPJ4
The weekly supply and demand for packs of cigarettes in the United States is given in the figure below.
(MCpvt = MCsocial = (0, $8) (30, $24))
(MBpvt points = (0, $30) (30, $0))
a. Suppose cigarette smoking causes a $6 per pack external cost on nonsmokers. Draw the social benefit curve that accounts for the external cost associated with smoking.
b. Assuming the externality associated with smoking is not faced by consumers, ____________ million packs of cigarettes are consumed per week.
c. The efficient number of cigarette packs is: __________ million packs.
If a product costs £80 to manufacture and a 15% mark-up is added, the price at which the product will be sold is:
Answers
Answer:
92£
Explanation:
80 * 1.15 = 92
Jake’s company uses a unique ergonomics and organization system to help employees work more efficiently. The company wants Jake to sign a nondisclosure agreement not to expose the system. The employee may share the trade secret with others outside the company. The employee may be subject to fines if he were to reveal the trade secret. The employee may use the trade secret at another company as long as he does not reveal it to others. The answer is dependent on additional details not provided. No trade secret exists in this scenario.
Answers
If the company wants Jake to sign a nondisclosure agreement not to expose the system. The employee may be subject to fines if he were to reveal the trade secret.
What is nondisclosure agreement?Nondisclosure agreement can be defined as the agreement that a person should not disclose confidential or sensitive information.
in a situation were Jake sign the nondisclosure agreement and still went ahead to disclose the information , the employee will be subject to fines because the employee has break the nondisclosure agreement that is between him and is employer.
Therefore If the company wants Jake to sign a nondisclosure agreement not to expose the system. The employee may be subject to fines if he were to reveal the trade secret.
Learn more about Nondisclosure agreement here:https://brainly.com/question/19451955
#SPJ1
Select the response that corrects the capitalization error in the sentence below. I live in Kentwood, louisiana. a. i b. kentwood c. Louisiana Please select the best answer from the choices provided A B C
Answers
Answer:
a) I
Explanation:
The letter I continues to be capitalized because it is the only single letter pronoun. Because the pronouns I and me have different uses, it's easy to distinguish between the two in terms of capitalization rules.
According to president reagan’s model for supply-side economics, the first step to triggering a cycle of growth was reducing taxes. raising taxes. regulating businesses. creating government programs.
Answers
President Reagan's model for supply side economics emphasised on reducing taxes as the first step for triggering the cycle of Growth.
What is supply-side economics?Supply-side economics is a macroeconomic theory in which focus is given on supply side. In this theory Tax reduction ,decrease in regulation will ultimately improve the economic growth.
Producers will pass on the benifits to employees and on production front the produce will be more with lower prices.
Reducing taxes as per supply side economics will trigger a cycle of growth. Hence Option A is correct.
To know more about Supply side economics click on the link below:
https://brainly.com/question/1054040
Answer:
A
Explanation:
Which of the following would most likely cause a decrease in the quantity supplied?
An increase in competition
An increase in price
A decrease in price
A decrease in competition.
Answers
Which best explains how consumers purchases influence the decisions of
producers?
Producers can judge whether they have an efficient production process based
on what consumers buy.
Producers can determine how best to reduce waste by knowing what consumers
don't buy
Producers can predict the effects of new technologies based on the
technologies used by consumers.
Producers can figure out what consumers are willing to pay based on what they
buy
WU
Answers
Answer:
Producers can figure out what consumers are willing to pay based on what they buy
Complete a departmental expense allocation spreadsheet for Marathon Running Shop. The spreadsheet should assign (1) direct expenses to each of the four departments, (2) the $64,000 of utilities expense to the four departments on the basis of floor space occupied, (3) the advertising department’s expenses to the two operating departments on the basis of the number of ads placed that promoted a department’s products, and (4) the administrative department’s expenses to the two operating departments based on the amount of sales.
Answers
Question Completion:
Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as total sales for the two operating departments for the year 2017
Direct Expenses Square Feet Sales
Department
Advertising $ 18,000 1,120
Administrative 25,000 1,400
Shoes 103,000 7,140 $273,000
Clothing 15,000 4,340 77,000
The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. Utilities expense of $64,000 is an indirect expense to all departments.
Answer:
Marathon Running Shop
Allocation of service departments' costs to the operating departments:
Service Departments Operating Departments Total
Advertising Administrative Shoes Clothing
Departmental $18,000 $25,000 $103,000 $15,000 $161,000
Utilities 5,120 6,400 32,640 19,840 64,000
After Utilities 23,120 31,400 135,640 34,840 $225,000
Advertising -23,120 17,340 5,780 0
Administrative -31,400 24,492 6,908 0
Total allocated costs $177,472 $47,528 $225,000
Explanation:
a) Data and Calculations:
Direct Expenses Square Feet Sales
Department
Advertising $ 18,000 1,120
Administrative 25,000 1,400
Shoes 103,000 7,140 $273,000
Clothing 15,000 4,340 77,000
Total $161,000 14,000 $350,000
Allocation of Utilities Expense of $64,000
Rate
Advertising (1,120/14,000 * $64,000) = $5,120
Administrative (1,400/14,000 * $64,000) = $6,400
Shoes (7,140/14,000 * $64,000) = $32,640
Clothing (4,340/14,000 * $64,000) = $19,840
Advertising $ 18,000 + $5,120 = $23,120
Administrative 25,000 + $6,400 = $31,400
Shoes 103,000 + $32,640 = $135,640
Clothing 15,000 + $19,840 = $34,840
Advertising expenses consumed by:
Shoes 90/120 * $23,120 = $17,340
Clothing 30/120 * $23,120 = $5,780
Administrative expenses consumed by:
Shoes $273,000/$350,000 * $31,400 = $24,492
Clothing $77,000/$350,000 * $31,400 = $6,908