The cost per equivalent unit for Elbow, Inc withe the use of weighted inventory methods $6.58 (Option a).
To calculate the cost per Equivalent Unit using the Weighted Average Method, follow these steps:
1. Determine the total manufacturing costs: Add Direct Materials, Direct Labor, and Factory Overhead costs.
Total Manufacturing Costs = Direct Materials + Direct Labor + Factory Overhead
Total Manufacturing Costs = $4,500,500 + $6,813,550 + $1,911,750
Total Manufacturing Costs = $13,225,800
2. Calculate the cost per Equivalent Unit: Divide the Total Manufacturing Costs by the total Equivalent Units for the period.
Cost per Equivalent Unit = Total Manufacturing Costs / Total Equivalent Units
Cost per Equivalent Unit = $13,225,800 / 2,010,000
Cost per Equivalent Unit = $6.58
So, the cost per Equivalent Unit is $6.58 (Option a).
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51. The first step in training evaluation is:
A. establishment of criteria.
B. pre-testing.
C. follow-up studies.
D. employee selection.
E. determination of content.
The first step in training evaluation is A. establishment of criteria. This involves defining the objectives and goals of the training program, as well as the expected outcomes and measures of success.
This provides a clear framework for evaluating the effectiveness of the training and determining whether it has met the desired outcomes. Once the criteria are established, pre-testing, follow-up studies, employee selection, and determination of content can all be used to further assess the training program and make any necessary adjustments.
The first step in training evaluation is A. establishment of criteria. This involves defining the objectives and desired outcomes of the training program, which will later be used as a basis for measuring the program's effectiveness.
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Hello pls help
3.08 free trade and barriers
Economic class
To get this visual item, you can choose a cartoon that shows a fat cook who says that to make nice food, you have to break some tins. The topic of this cartoon is that economic success requires breaking some barriers.
This cartoon and protectionismThis cartoon is against the idea of protectionism because it advocates measures that would break the barriers of nations to attain success.
You might add that you agree on this topic about free trade because no nation can exist successfully by itself. To attain success, they need to liaise with other nations through trade.
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In a nonpreemptive priority system, customers are served in the order in which they arrive in the queue. TRUE/FALSE
True.In a nonpreemptive priority system, the customers are served based on the order in which they arrive in the queue.
This means that if a customer is already being served, a new customer who arrives with higher priority will have to wait until the current customer is served. The nonpreemptive priority system is commonly used in various service industries such as healthcare, banking, and telecommunications.The nonpreemptive priority system is also known as a first-come-first-served (FCFS) system.
In this system, the first customer to arrive in the queue is the first one to be served. This ensures that the customers are served in the order in which they arrive, which is often seen as fair and equitable.
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the international accounting standards committee (iasc) was formed in 1973. in 2001 the iasc was replaced by the international accounting standards board (iasb). required: what was the purpose of the iasb? how does the iasc attempt to achieve these objectives?
The by enhancing transparency and comparability in financial reporting and facilitating global capital markets.
What will be the purpose of the iasb?The purpose of the International Accounting Standards Board (IASB) is to develop and promote the use of a single set of high-quality, globally accepted accounting standards. These standards are known as International Financial Reporting Standards (IFRS) and are designed to ensure consistency and comparability in financial reporting across international borders.
The IASB attempts to achieve these objectives by developing and publishing IFRS, which are principles-based standards that provide guidance on how to account for various financial transactions and events. The IASB works to ensure that IFRS are understandable, relevant, reliable, and comparable, and that they reflect the economic substance of transactions and events rather than simply their legal form.
In addition, the IASB seeks to promote the adoption and implementation of IFRS by national standard-setting bodies around the world. This is done through a variety of activities, including outreach to stakeholders, technical assistance to countries seeking to adopt IFRS, and collaboration with other international organizations.
Overall, the IASB's goal is to create a single set of high-quality accounting standards that can be used by companies operating in multiple countries.
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Kashi's testing of the Crunchy Wheat promotion is an example of
a) the collection of secondary data.
b) information feedback.
c) an exploratory study.
d) a descriptive study.
e) defining and locating problems.
Kashi's testing of the Crunchy Wheat promotion is an example of a descriptive study. Descriptive studies are used to describe characteristics of a population or phenomenon being studied. In this case, Kashi is studying the effectiveness of the Crunchy Wheat promotion on their target market. By collecting data on sales, customer feedback, and other metrics, Kashi is able to describe how well the promotion is working and make informed decisions about whether to continue or modify it.
While Kashi may also be collecting secondary data (data that has already been collected by someone else), and using information feedback (analyzing data to inform decisions), these activities are not the primary focus of their study. Additionally, an exploratory study is typically used when the researcher has little knowledge of the phenomenon being studied, while Kashi likely has some knowledge about their target market and the effectiveness of different types of promotions. Finally, while defining and locating problems is an important step in the research process, Kashi's study is focused on describing the effectiveness of a specific promotion rather than identifying broader problems or trends.
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when planning a product, what are some of the tasks of the operations manager? (select all that apply.)
a. Ensures the shipping of finished products to customers b. Prepares new advertising materials c. Negotiates contract with vendors and coordinates flow of materials d. Audits transactions to ensure accuracy of financial statements.
When planning a product, some of the tasks of the operations manager include ensuring the shipping of finished products to customers and negotiating contracts with vendors and coordinating the flow of materials.The correct option are (a) and (c).
a. Ensuring the shipping of finished products to customers: The operations manager is responsible for coordinating and overseeing the transportation and delivery of finished goods to customers. This includes organizing shipping schedules, tracking shipments, and maintaining communication with customers regarding delivery status.
c. Negotiating contracts with vendors and coordinating the flow of materials: The operations manager works closely with vendors to negotiate contracts, manage the procurement of raw materials, and ensure the timely and efficient flow of materials through the production process. This involves coordinating with suppliers, establishing quality standards, and monitoring inventory levels.
While these tasks are crucial for operations managers, other tasks such as preparing new advertising materials (b) and auditing transactions to ensure accuracy of financial statements (d) are typically not their primary responsibilities. These tasks would be more likely to fall under the purview of marketing and finance departments, respectively.
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Which costs are relevant for equipment replacement decisions?
A. Unit-level costs
B. Batch-level costs
C. Product-level costs
D. All of these.
When it comes to equipment replacement decisions, all of the mentioned costs can be relevant.
Unit-level costs include the expenses related to the maintenance and repair of the equipment on a per-unit basis. Batch-level costs are those expenses that are incurred for a particular batch of products, such as set-up costs. Product-level costs are the costs incurred for producing a particular product.
When evaluating the replacement of equipment, it is important to consider all costs associated with the equipment, including direct costs such as purchase price, installation, and training, as well as indirect costs such as lost production time and employee downtime. By evaluating all relevant costs, a company can determine if the equipment replacement will lead to increased efficiency and cost savings over time.
In summary, all costs related to the equipment in question should be evaluated to determine if the replacement is a viable option. This includes unit-level costs, batch-level costs, and product-level costs. By considering all costs, a company can make an informed decision that leads to increased profitability and improved production efficiency.
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please discuss the advantages and disadvantages of the direct and indirect methods for reporting the operating section of the statement of cash flows.
The direct method for reporting the operating section of the statement of cash flows involves listing out all the cash inflows and outflows from operating activities separately. This means that every individual cash transaction is reported, giving a clear picture of how cash is being generated and used in day-to-day operations. Some advantages of the direct method include:
- Clarity: The direct method provides a clear and detailed breakdown of cash inflows and outflows, making it easier for investors and analysts to understand how the company is generating and using cash.
- Transparency: By providing a detailed breakdown of cash transactions, the direct method can help increase transparency and accountability, which can improve investor confidence.
- Accuracy: The direct method provides a more accurate picture of cash flows than the indirect method, which relies on adjustments to net income.
However, there are also some disadvantages to using the direct method: - Time-consuming: The direct method can be more time-consuming and resource-intensive to prepare, as it requires tracking and reporting every individual cash transaction. - Costly: If a company doesn't already have a robust accounting system in place to track cash transactions, implementing the direct method could be costly and time-consuming. - Limited comparability: Because not all companies use the direct method, it can be difficult to compare cash flow statements across different companies or industries.
The indirect method, on the other hand, starts with net income and makes adjustments to arrive at the cash flows from operating activities. Some advantages of the indirect method include: - Simplicity: The indirect method is simpler and easier to prepare than the direct method, as it doesn't require tracking and reporting every individual cash transaction. - Cost-effective: Because the indirect method relies on adjustments to net income, it can be less resource-intensive and costly to prepare than the direct method. - Comparability: Because many companies use the indirect method, it's easier to compare cash flow statements across different companies or industries.
However, there are also some disadvantages to using the indirect method: - Less clarity: The indirect method doesn't provide as clear a picture of cash flows as the direct method, as it involves making adjustments to net income rather than reporting individual cash transactions. - Less transparency: Because the indirect method doesn't provide a detailed breakdown of cash transactions, it can be less transparent and accountable than the direct method. - Potential for errors: Because the indirect method relies on adjustments to net income, there is potential for errors or omissions in the calculation of cash flows from operating activities.
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which of the following is the most liquid asset?multiple choiceA) prepaid expenses B) inventory C) cash equivalents D)accounts receivable
Out of the given options, cash equivalents are considered to be the most liquid asset. So, the correct option is C) cash equivalents.
Cash equivalents refer to short-term investments that can be easily converted into cash without any significant loss in value. Examples of cash equivalents include money market funds, treasury bills, commercial paper, and certificates of deposit (CDs).
These investments have high liquidity and low risk, which make them easily accessible to be used for day-to-day expenses, emergencies or short-term investments.
On the other hand, prepaid expenses, inventory, and accounts receivable are also assets but are not as liquid as cash equivalents. Prepaid expenses and inventory require a sale or consumption before they can be converted into cash, and accounts receivable involve waiting for payment from customers.
Therefore, in terms of liquidity, cash equivalents are the most convenient asset to hold as they can be quickly and easily converted into cash.
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Prepare the year end adjusting journal entries for the following transactions in the GENERAL JOURNAL. Narratives are required.a. Depreciation on equipment at cost of RM450,000 and accumulated depreciation of RM25,000 is charged at 10% per annum with reducing balance method.b. Office furniture at cost of RM200,000 is expected to be used for 10 years with salvage value of RM3,000.c. As at 31 December, commission income received in advance is amounting to RM2,500.d. Travelling expense accrued for RM300.e. The owner of the business withdrew RM1,400 cash from the office.
Depreciation expenses recognize the reduction in the value of assets over time, while the adjustment for unearned income and accrued expenses ensures that the income and expenses are recorded in the correct period.
The year-end adjusting journal entries for the following transactions are as follows:
a. Depreciation on equipment:
Depreciation Expense 37,250
Accumulated Depreciation 37,250
(Note: Calculation - [RM450,000 - RM25,000] x 10% = RM37,250)
b. Office furniture:
Depreciation Expense 19,700
Accumulated Depreciation 19,700
(Note: Calculation - [RM200,000 - RM3,000] / 10 years = RM19,700)
c. Commission income received in advance:
Unearned Commission Income 2,500
Commission Income 2,500
d. Travelling expense accrued:
Travelling Expense 300
Accrued Travelling Expense 300
e. Owner's withdrawal:
Owner's Withdrawal 1,400
Cash 1,400
These adjusting journal entries are necessary to ensure that the financial statements accurately reflect the company's financial position and performance at the end of the accounting period. The owner's withdrawal is recorded to update the owner's equity account, which represents the owner's investment in the business.
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Rose Company sells equipment to Foster Company. The manufacturer's suggested retail price of the equipment is $14,475, the marked price is $13,995, and Foster purchases the equipment for $13,650. The seller also paid $240 in shipping charges on behalf of the buyer and included it on the invoice. Using the historical-cost principle, at which amount will Foster report the equipment on its balance sheet: O $14,235 O $14,475 O $13,995 O $13,890 Save for Later Submit Answer
Foster Company will report the equipment on its balance sheet at $13,890.
Foster Company purchased equipment from Rose Company:Foster Company purchased equipment from Rose Company with the following information:
- Manufacturer's suggested retail price: $14,475
- Marked price: $13,995
- Purchase price: $13,650
- Shipping charges paid by the seller (included on the invoice): $240
Using the historical-cost principle, Foster Company will report the equipment on its balance sheet by including both the purchase price and the shipping charges. To calculate the total cost, add the purchase price and the shipping charges:
$13,650 (purchase price) + $240 (shipping charges) = $13,890
Therefore, Foster Company will report the equipment on its balance sheet at $13,890.
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Garbera Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 2,800 tires at a variable cost of $78 per tire and total fixed costs of $56,500. The budgeted selling price was $112 per tire. Actual results in August 2017 were 2,500 tires manufactured and sold at a selling price of $113 per tire. The actual total variable costs were $212,500, and the actual total fixed costs were $52,500. Read the requirements. Requirement 1. Prepare a performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Results Units sold - Х Requirements Revenues Variable costs Contribution margin 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1. Fixed costs Operating income
A performance report compares actual results to budgeted results, which helps managers to identify areas where the company is performing well or needs improvement.
In this case, Garbera Enterprises budgeted to manufacture and sell 2,800 tires, but the actual sales were 2,500 tires. The performance report should include a flexible budget, which adjusts the budgeted amounts based on the actual level of activity, and a static budget, which does not adjust for changes in activity.
The flexible budget shows the budgeted amounts for actual level of activity, which is 2,500 tires. The static budget shows the budgeted amounts based on the original level of activity, which is 2,800 tires. The actual results are then compared to both the flexible and static budgets to identify variances.
In this case, the actual sales price per tire was higher than budgeted, resulting in a favorable revenue variance. However, the actual variable cost per tire was also higher than budgeted, resulting in an unfavorable variable cost variance. The actual fixed costs were lower than budgeted, resulting in a favorable fixed cost variance. Overall, the operating income was higher than budgeted, which is a favorable variance.
Managers should investigate the variances to identify the reasons for the differences between actual and budgeted results. For example, they could analyze the reasons for the higher variable cost per tire and see if there are opportunities to reduce costs. They could also evaluate the sales performance and determine if the higher sales price was due to increased demand or effective pricing strategies. This information can then be used to make adjustments to future budgets and improve performance.
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Sunland Company sells its product for $10800 per unit. Variable costs per unit are manufacturing, $5000; and selling and administrative, $120. Fixed costs are: $33600 manufacturing overhead, and $43600 selling and administrative. There was no beginning inventory at 1/1/20. Production was 24 units per year in 2020-2022. Sales were 24 units in 2020,20 units in 2021, and 28 units in 2022 Income under variable costing for 2022 is O $81840. O $69360 O $74360 $76240.
The income under variable costing for 2022 is $81,840.
To calculate the income under variable costing for Sunland Company in 2022, we need to follow these steps:
1. Calculate the total variable costs per unit: Manufacturing variable cost ($5,000) + Selling and Administrative variable cost ($120) = $5,120 per unit
2. Calculate the total fixed costs: Manufacturing fixed costs ($33,600) + Selling and Administrative fixed costs ($43,600) = $77,200
3. Calculate the total sales in 2022: 28 units sold * $10,800 per unit = $302,400
4. Calculate the total variable costs in 2022: 28 units * $5,120 per unit = $143,360
5. Calculate the contribution margin in 2022: Total sales ($302,400) - Total variable costs ($143,360) = $159,040
6. Calculate the income under variable costing for 2022: Contribution margin ($159,040) - Total fixed costs ($77,200) = $81,840
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In a large open economy like the United States, an increased government budget deficit which reduces national saving should also
A) reduce investment and increase the current account balance B) reduce investment and reduce the current account balance. C) have no effect on investment, but reduce the current account balance. D) have no effect on either investment or the current account balance.
The correct answer is B) reduce investment and reduce the current account balance. In a large open economy like the United States, an increased government budget deficit reduces national saving because the government is borrowing more, which leads to less saving for individuals and firms.
As a result, there is less money available for investment, which decreases investment. Additionally, the reduced national saving leads to a reduction in the current account balance, which is the difference between a country's exports and imports.
This happens because with less saving, there is less money available for investment in domestic production, which reduces domestic output and raises imports. Therefore, option B is the correct answer.
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When two or more people legally agree to become co-owners of a business, the organization is called a(n)
When two or more people legally agree to become co-owners of a business, the organization is called a partnership.
A partnership is a type of business entity in which two or more people own and manage the business together. In a partnership, each partner contributes money, property, labor, or skills to the business, and they share in the profits and losses of the business. There are different types of partnerships, including general partnerships, limited partnerships, and limited liability partnerships, each with different levels of liability protection and management responsibilities. Partnerships are often formed by professionals such as lawyers, accountants, and doctors, as well as small business owners who want to share the costs and risks of starting and running a business.
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Assume that the current market price of Zigi, Inc. stock is $54.59. If Zigi, Inc. just paid a dividend of $4.57 per share (i.e., D0 = 4.57), and if investors expect that the companyâs dividends will grow at an annual rate of 2.47% forever, then Zigi, Inc.âs required rate of return is ____%. (Record your answer rounded to 1 decimal place; for example, record 18.29654% as 18.3)
The formula to calculate the required rate of return (or cost of equity) is:
Ke = (D1 / P0) + g
Where:
- Ke = required rate of return (or cost of equity)
- D1 = next year's expected dividend per share
- P0 = current market price per share
- g = expected annual growth rate of dividends (in perpetuity)
Using the information given in the question:
- D0 = 4.57 (current dividend per share)
- g = 2.47%
- P0 = $54.59
To calculate D1, we need to apply the growth rate to D0:
D1 = D0 * (1 + g)
D1 = 4.57 * (1 + 0.0247)
D1 = 4.6901
Now we can plug in the values to the formula:
Ke = (4.6901 / 54.59) + 0.0247
Ke = 0.0859 (or 8.6%, rounded to 1 decimal place)
Therefore, Zigi, Inc.'s required rate of return is 8.6%.
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Eazy Co, financial data 2018 2019 2020 Accounts Payable $171.000 $191,000 $241,000
Beginning Inventory 101,000 121.000
Ending Inventory 111,000 121,000 101,000
Cost of Goods Sold 675,000 795.000 1,015,000 Using the above financial data for Eazy Co calculate the accounts payable turnover rate and average payment period for 2018, 2019 & 2020. For 2018, use year end balances instead of average balances. (Round accounts payable turnover ratio to 2 decimal places, 0.8.15.25 and average payment period to 1 decimal place, c.8. 15.2. Use 365 days for calculations.)
The average payment periods for 2018, 2019, and 2020 are 92.86 days, 82.28 days, and 85.94 days respectively.
To calculate the accounts payable turnover rate, we use the formula: Cost of Goods Sold / Average Accounts Payable. For the average payment period, we use the formula: (Accounts Payable / Cost of Goods Sold) x 365 days.
2018:
Accounts Payable Turnover Rate = 675,000 / 171,000 = 3.95
Average Payment Period = (171,000 / 675,000) x 365 = 92.86 days
2019:
Accounts Payable Turnover Rate = 795,000 / ((171,000 + 191,000) / 2) = 4.48
Average Payment Period = ((171,000 + 191,000) / 2) / 795,000 x 365 = 82.28 days
2020:
Accounts Payable Turnover Rate = 1,015,000 / ((191,000 + 241,000) / 2) = 5.24
Average Payment Period = ((191,000 + 241,000) / 2) / 1,015,000 x 365 = 85.94 days
Therefore, the accounts payable turnover rates for 2018, 2019, and 2020 are 3.95, 4.48, and 5.24 respectively.
The average payment periods for 2018, 2019, and 2020 are 92.86 days, 82.28 days, and 85.94 days respectively.
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the following information is available for completed job no. 402: direct materials, $120,000; direct labor, $180,000; manufacturing overhead applied, $90,000; units produced, 5,000 units; units sold, 4,000 units. the cost of the finished goods on hand from this job is question 10 options: 1) $60,000. 2) $390,000. 3) $78,000. 4) $312,000.
So the answer is option 3) $78,000.
To determine the cost of finished goods on hand from job no. 402, we need to calculate the total cost of the job first.
Total cost of the job = Direct materials + Direct labor + Manufacturing overhead applied
Total cost of the job = $120,000 + $180,000 + $90,000
Total cost of the job = $390,000
Since 4,000 units were sold, we need to determine the cost of goods sold (COGS) for those units:
COGS = Total cost of the job / Units produced x Units sold
COGS = $390,000 / 5,000 x 4,000
COGS = $312,000
Therefore, the cost of the finished goods on hand from job no. 402 is:
Cost of finished goods on hand = Total cost of the job - COGS
Cost of finished goods on hand = $390,000 - $312,000
Cost of finished goods on hand = $78,000
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imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a kanban/lean production approach. what would be your expectations of the difference between the total cost (i.e., inventory holding costs setup/ordering costs) of each?
The should be noted that the exact difference in total costs may vary depending on the specific circumstances of the manufacturing operation.
Why will be would be your expectations of the difference between the total cost?The use of kanban/lean production approach is expected to result in lower total costs compared to regular lot-sizing approach. This is because kanban/lean production approach aims to minimize inventory levels and reduce waste in the production process, resulting in lower inventory holding costs and setup/ordering costs.
With regular lot-sizing, a large quantity of materials are ordered and produced in each lot, resulting in higher inventory holding costs due to the need for additional storage space and inventory management. In addition, setup and ordering costs are also higher due to the need to order larger quantities and the longer time required to set up the machinery and equipment.
On the other hand, kanban/lean production approach focuses on producing smaller quantities of materials in a just-in-time manner, which minimizes the amount of inventory held at any given time. This reduces the need for additional storage space and inventory management, resulting in lower inventory holding costs. In addition, setup and ordering costs are also reduced as smaller quantities are ordered and less time is required for setup.
Overall, the use of kanban/lean production approach is expected to result in lower total costs compared to regular lot-sizing approach due to the reduced inventory holding costs and setup/ordering costs.
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In class, we saw that commercial banks are particularly important intermediaries in the financial system. Provide some reasons for the importance of commercial banks. (12.5 points) ii) Provide arguments in favor and against central bank independence. If you had to vote in favor or against the independence of the Fed, what would you vote for and why?
Commercial banks play a crucial role in the financial system as they serve as intermediaries between borrowers and lenders. There are a number of debates in favor of central bank independence which include insulation from political influence, credibility, and long-term perspective while debates against the same include points like lack of accountability, economic inequality, and capture by special interests.
Commercial banks are important because -
1. Mobilization of savings: Commercial banks are responsible for mobilizing savings from individuals and businesses and channeling them towards productive investments. This helps in the efficient allocation of resources in the economy.
2. Credit creation: Commercial banks can create credit by extending loans and advances to borrowers. This facilitates economic growth and development by providing businesses and individuals with the necessary funds to carry out their activities.
3. Payment system: Commercial banks provide a means for individuals and businesses to make payments and transfer funds to one another. This helps in facilitating transactions in the economy.
4. Financial stability: Commercial banks help in maintaining financial stability by managing risks and ensuring the safety of depositors' funds.
Moving on to central bank independence, there are arguments both in favor and against it.
Arguments in favor of central bank independence include -
1. Insulation from political influence: Central bank independence helps in insulating monetary policy decisions from political influence, which can be detrimental to the economy.
2. Credibility: An independent central bank is likely to be more credible in its actions and decisions, which can help in anchoring inflation expectations and maintaining price stability.
3. Long-term perspective: An independent central bank can take a long-term perspective in its decision-making, which can help in promoting sustainable economic growth.
Arguments against central bank independence include -
1. Lack of accountability: An independent central bank may lack accountability to the public and elected officials, which can undermine democratic principles.
2. Economic inequality: Central bank policies may exacerbate economic inequality, and an independent central bank may not be held accountable for its role in this.
3. Capture by special interests: An independent central bank may be susceptible to capture by special interests, which can lead to policies that benefit a few at the expense of the many.
If I had to vote in favor or against the independence of the Fed, I would vote in favor of independence. This is because an independent central bank can make decisions based on economic considerations rather than political pressures, which can lead to better outcomes for the economy in the long run. Additionally, the Fed has a strong track record of maintaining price stability and promoting economic growth, which further strengthens the case for independence.
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the roi formula typically uses blank . multiple choice question. average operating and non-operating assets for the year average operating assets for the year end of year operating and non-operating assets end of year operating assets
The ROI formula typically uses average operating assets for the year. The correct option is B
This is calculated by adding the beginning and ending operating asset balances and dividing by two. ROI, or return on investment, is a performance metric used to evaluate the efficiency of an investment or to compare the profitability of different investments.
It measures the amount of return earned on an investment relative to its cost. The ROI formula is calculated by dividing the net income of an investment by the total investment cost, and multiplying by 100 to express it as a percentage.
By using average operating assets for the year in the denominator, ROI takes into account the change in investment over the course of the year, rather than just a single point in time. This allows for a more accurate measurement of the efficiency of the investment.
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the ROI formula typically uses _____ blank . multiple choice question.
a. average operating and non-operating assets for the year
b. average operating assets for the year
c. end of year operating and non-operating assets
d. end of year operating assets
A year ago, Neil purchased 100 shares of MySpace stock for $25 per share. Yesterday, he placed a limit order to sell his stock at a price of $30 per share before the market opened. The stock's price o pened at $29 and slowly increased to $32 in the middle of the day, before declining to $28 by the end of the day. The stock did not pay any dividends over the period in which Neil held it. Round dollar values to the nearest cent and percentages to 1 decimal in percentage form. Do not enter dollar signs or the % symbol. If Neil held is in a 40% marginal tax bracket and held these investments outside of a registered account, what are the tax consequences of the sale? Answer: 1 Check Incorrect Marks for this submission: 0.00/3.00. This submission attracted a penalty of 0.30. Recompute Neil's holding period return on an after-tax basis. Answer: Check How much total capital gain or (loss) did Neil earn on his shares if Neil had placed a limit order of $33. Answer: Check
There would be no sale, and Neil would not have earned any total capital gain or (loss) on his shares.
1. Tax consequences of the sale:
Neil purchased 100 shares at $25 per share, which means he invested $2,500 initially. He placed a limit order to sell at $30 per share, but the stock did not reach that price. Therefore, there was no sale, and no tax consequences for Neil.
2. Recompute Neil's holding period return on an after-tax basis:
Since there was no sale, there is no holding period return or tax implications to compute in this scenario.
3. Total capital gain or (loss) if Neil had placed a limit order of $33:
If Neil had placed a limit order of $33, the stock still wouldn't have reached that price, as the highest price during the day was $32.
As a result, there would be no sale, and Neil would not have earned any total capital gain or (loss) on his shares.
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12. A firm has operating profit of $120,000 after deducting lease payments of $20,000. Interest expense is $40,000. What is the firm's fixed charge coverage?
A. 6.00x
B. 4.00x
C. 3.50x
D. 2.33x
The correct answer is D. 2.33x.
The fixed charge coverage ratio is used to measure a firm's ability to meet its fixed payment obligations, such as lease payments and interest expenses. To calculate the fixed charge coverage ratio, we need to divide the firm's operating profit by its fixed charges.
In this scenario, the firm's operating profit is $120,000 after deducting lease payments of $20,000. The firm's fixed charges are the lease payments of $20,000 and interest expense of $40,000, which add up to $60,000.
Therefore, the fixed charge coverage ratio is calculated as follows:
[tex]Fixed charge coverage ratio = Operating profit / Fixed charges[/tex]
= $120,000 / $60,000
= 2.00x
However, we need to keep in mind that the question is asking for the fixed charge coverage ratio, not the fixed charge ratio. To get the fixed charge coverage ratio, we need to add back the lease payments to the operating profit:
[tex]Fixed charge coverage ratio = (Operating profit + Lease payments) / Fixed charges[/tex]
= ($120,000 + $20,000) / $60,000
= 2.33x
Therefore, the correct answer is D. 2.33x.
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2. The key initial element in developing pro forma statements is:
A. a cash budget.
B. an income statement.
C. a sales forecast.
D. a collections schedule.
The key initial element in developing pro forma statements is C. a sales forecast. A sales forecast is an essential starting point because it estimates the future sales revenue a company expects to generate over a specific period.
This projection forms the basis for budgeting and planning various aspects of the business, such as production levels, inventory management, and financing needs. Once the sales forecast is established, the company can create pro forma income statements, balance sheets, and cash flow statements. These pro forma statements are valuable tools for businesses to assess the potential impact of different strategies or decisions, allowing them to make informed choices for their future growth and development. In summary, a sales forecast is the cornerstone of developing pro forma statements, as it provides the necessary data to create accurate financial projections that can guide a company's decision-making process.
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ummit products, incorporated is interested in producing and selling an improved widget. market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price. the current cost to produce the widget is estimated to be $65. in order to undertake production, summit requires a 25% return on sales.at a price of $80, summit's market research indicates that it can sell 60,000 units per year. assuming summit can reach its new target cost, how will summit's profit at the $80 price compare to what it would have earned in the absence of the competitor's product
Summit's profit at the $80 price, assuming it reaches its new target cost, is higher than the profit it would have earned in the absence of the competitor's product.
To calculate Summit's profit at the $80 price and compare it to the profit without the competitor's product, we need to consider the costs and revenues at both price levels.
Let's break down the calculations step by step:
Revenue at the $90 price:
Revenue per unit = $90Number of units sold = 50,000Total revenue = $90 * 50,000 = $4,500,000Cost at the $90 price:
Cost per unit = $65Number of units sold = 50,000Total cost = $65 * 50,000 = $3,250,000Profit at the $90 price:
Profit = Total revenue - Total cost = $4,500,000 - $3,250,000 = $1,250,000
Revenue at the $80 price:
Revenue per unit = $80Number of units sold = 60,000Total revenue = $80 * 60,000 = $4,800,000Target cost calculation:
Profit margin = 25% = 0.25Target cost = Revenue × (1 - Profit margin) = $4,800,000 × (1 - 0.25) = $3,600,000Cost at the $80 price (assuming the new target cost is reached):
Number of units sold = 60,000
Total cost = Target cost × Number of units sold = $3,600,000 × 60,000 = $216,000,000
Profit at the $80 price:
Profit = Total revenue - Total cost = $4,800,000 - $2,160,000 = $1,440,000
Comparing the two scenarios:
Profit at the $90 price: $1,250,000
Profit at the $80 price (with the new target cost): $1,440,000
Summit's profit at the $80 price, assuming it reaches its new target cost, is higher than the profit it would have earned in the absence of the competitor's product.
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T/F----Studying the Introductory Objectives will allow an Apprentice to better understand the 3-5 main topics of the lesson and what they are expected to gain from it.
True. Studying the Introductory Objectives is crucial for any apprentice who wishes to fully understand the main topics of the lesson and what they are expected to gain from it.
The Introductory Objectives provide a clear outline of the lesson and help the apprentice focus on the key areas that will be covered. By understanding the objectives, the apprentice can better prepare themselves for the lesson, and ensure that they are on track to achieve their learning goals. The objectives also provide a framework for assessing the apprentice's understanding of the lesson, as they can use them as a checklist to ensure they have covered all the key areas.
Therefore, it is important for apprentices to take the time to carefully review and understand the Introductory Objectives before starting any lesson, as this will enable them to get the most out of the material they are studying.
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Assume that you are starting a new company in Bangalore. You are deliberating on budgeting as a part of starting the operations. Which budgeting technique is suitable in this case. Explain the steps involved in the process.
It is crucial to create a capital budget in order to determine whether or not the business is feasible.
Finding the Net Present Value of the Investment is what capital budgeting entails; if it is positive, the project is feasible, and vice versa.
Step 2 :
Find out how much money you need to invest initially to launch your business.
Find out how much money you will make each year in cash flows.
To arrive at the present value of such cash flows, determine the suitable discounting rate and extract the cash flows year by year.
Put in a flow Outflow equals the Present Value of Cash Inflows. - Initial expenditure
If the outcome is favourable, activities can begin; otherwise, a new business strategy must be developed.
Businesses utilise the capital budgeting process to assess possible big projects or investments. Before they are approved or rejected by management, capital budgeting is typically required for initiatives like constructing a new plant or investing a sizable amount of money in a third party business.
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Indirect costs .multiple choice question. O cannot be cost-effectively traced to products and services O should be expensedO immediately on the income statement are not used to produce O products are not product costs
Indirect costs, also known as overhead costs, are expenses that cannot be directly attributed to a specific product or service. These costs are incurred for the general operation of a business and include expenses such as rent, utilities, salaries of support staff, and office supplies.
Unlike direct costs, which can be easily traced to a specific product or service, indirect costs cannot be directly allocated to a specific product or service. Instead, indirect costs are allocated to products or services based on a predetermined allocation rate, such as a percentage of direct labor costs or machine hours. Indirect costs are not expensed immediately on the income statement and are instead allocated to products or services based on a predetermined allocation rate. They are also not used to produce products directly and are therefore not considered product costs.
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Select the statement that correctly explains the relationship between interest rates and present or future value. a. Assuming other variables stay the same, if the interest rate increases, the present value of an investment decreases. b. The interest rate and the present value of an investment are directly related. c. Assuming other variables stay the same, if the interest rate increases, the future value of an investment decreases. d. Assuming other variables stay the same, if the interest rate decreases, the present value of an investment decreases. Which of the following best describes a bond? a. A debt security that gives an investor an ownership share in the entity issuing the bond. b. A debt security that typically pays an investor a fixed rate of return for a specified period of time. c. A type of loan with a fixed rate of return that can be outstanding indefinitely. d. A debt instrument whose rate of return can fluctuate based on market conditions. In calculating the yield of an investment, what is the relationship between APR and APY? a. APR can be higher or lower than the APY of a compounding investment, depending on how high the interest rate is. b. APR is always slightly lower than APY if an investment is earning compounding interest. c. APR is always slightly higher than APY if an investment is earning compounding interest. d. APR and APY are two ways of expressing the same measurement of yield. Hans purchased a 20-year corporate bond in 2015 that promised to pay him 3% interest semi-annually for the life of the loan. The corporation reserved the right to redeem the bond in 2020. Which of those numbers is the bond's maturity? 1.20 2. 3 3. 2015 4. 2020
The statement that correctly explains the relationship between interest rates and future value is : Assuming other variables stay the same, if the interest rate increases, the present value of an investment decreases. option(a).
2. The description that best describes a bond is: b. A debt security that typically pays an investor a fixed rate of return for a specified period of time.
3. In calculating the yield of an investment, the relationship between APR and APY is: b. APR is always slightly lower than APY if an investment is earning compounding interest.
4. For Hans' 20-year corporate bond, the bond's maturity is: 1. 20
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How do I get the "Actual Sales price" and "Actual Prime costs"?? Is it just conditions presented by examiner?
What is the difference between static budget and flexible budget?
To get the "Actual Sales Price" and "Actual Prime Costs," you would typically use the information provided by the examiner, such as sales data, expenses, or other relevant financial information.
The difference between a static budget and a flexible budget is:
1. Static Budget: A static budget is a fixed budget that is prepared at the beginning of the accounting period and does not change throughout the period. It is based on a fixed level of output or production, and any changes in actual output or production are not considered. This type of budget is useful for planning and controlling costs, but may not accurately represent actual financial performance if there are significant changes in output or production.
2. Flexible Budget: A flexible budget, on the other hand, is designed to adjust for changes in output or production levels. It uses variable costs, which change with the level of output, and allows for a more accurate representation of actual financial performance. Flexible budgets are helpful for businesses that experience significant fluctuations in output or production, as they can provide more accurate cost control and financial analysis.
In summary, the actual sales price and actual prime costs depend on the information provided by the examiner. A static budget is a fixed budget based on a specific output level, while a flexible budget adjusts for changes in output or production.
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