Cost variances can be beneficial if they are favorable but unfavorable cost variances need to be identified and addressed. Effective budgeting, efficient operations, and accurate cost tracking are important to ensure that cost variances are minimized.
Cost variance is the distinction between an actual cost and a budgeted cost. It is expressed as an amount or a percentage. When the actual cost of a product or service varies from the budgeted cost, cost variance occurs. Cost variance measures the accuracy of a budget and can be used to track costs over time and identify trends. There are two types of cost variances: Favorable cost variance and unfavorable cost variance.
A favorable cost variance is when actual costs are lower than budgeted costs. This could be due to efficient operations or lower-than-expected input costs. It is always a good thing for the organization.
An unfavorable cost variance is when actual costs are higher than budgeted costs. This could be due to inefficiencies, unexpected cost increases, or poor planning. It is not a desirable outcome and could have negative consequences for the organization.
The potential causes of cost variances can be summarized as follows:
Inefficient or unproductive use of labor: Variance can occur if labor costs are higher than expected due to poor productivity, overstaffing, or unnecessary overtime.
Changes in material prices: Variance can occur when the cost of raw materials or supplies changes due to unforeseen events such as a natural disaster or a supply chain disruption.
Inaccurate budgeting: Variance can occur if budgeting is done poorly or inaccurately. This could lead to budgeted costs that are unrealistic or too low.
Changes in technology: Variance can occur when a new technology is implemented or when existing technology is outdated. The cost of implementing or upgrading technology may not have been budgeted, resulting in a variance.
Overall, cost variances can be beneficial if they are favorable but unfavorable cost variances need to be identified and addressed. Effective budgeting, efficient operations, and accurate cost tracking are important to ensure that cost variances are minimized.
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Problem 10-03 (MIRR) eBook MIRR A project has an initial cost of $50,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. What is the project's MIRR? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places. %
The project's MIRR is 3.35%. The MIRR takes into account the timing and magnitude of cash flows and provides a more accurate measure of the project's profitability compared to other methods such as IRR, also known as ROI, is the internal rate of return.
To calculate the project's MIRR, we need to construct a time line and use the formula for MIRR, which takes into account the timing and magnitude of cash flows as well as the cost of capital.
The time line for this project would look as follows:
Year 0: Initial cost (Outflow) = -$50,000
Year 1-7: Net cash inflows = $9,000 per year
To calculate the MIRR, we will use the following steps:
Step 1: Calculate the future value (FV) of the cash inflows at the cost of capital.
FV = $9,000 * (1 + 0.11)^7 = $18,884.83
Step 2: Calculate the present value (PV) of the initial cost at the cost of capital.
PV = -$50,000
Step 3: Solve for the discount rate (r) that equates the present value of the future cash inflows to the present value of the initial cost using the MIRR formula.
MIRR = (FV / PV)^(1/n) - 1
MIRR = ($18,884.83 / -$50,000)^(1/7) - 1
Calculating the MIRR using a calculator or spreadsheet, we find:
MIRR ≈ 0.0335 or 3.35%
Therefore, the project's MIRR is approximately 3.35%.
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Waterways is thinking of mass-producing one of its special-order sprinklers. To do so would increase variable costs for all sprinklers by an average of $0.60 per unit. The company also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit. Waterways currently sells 482.000 sprinkler units at an average selling price of $28.80. The manufacturing costs are $8,404.700 variable and $1.308,907 fixed. Selling and administrative costs are $2,700,580 variable and $808,600 fixed. If the average sales price per sprinkler unit did not increase when the company began mass-producing the special-order sprinkler what would be the effect on the company? (Round ratio to 2 decimal places, eg. 5.25% and profit to 0 decimal places, eg 2.520)
If the average sales price per sprinkler unit did not increase, the company's profit would decrease by $2,400 due to the increase in variable costs.
If the average sales price per sprinkler unit did not increase, then the company would not benefit from the increase in sales volume. In this case, the only effect on the company would be the increase in variable costs for all sprinkler units by an average of $0.60 per unit.
To calculate the impact on the company's financials, we can start by calculating the current total variable costs per unit:
Current variable cost per unit = (Variable manufacturing costs + Variable selling and administrative costs) / Number of units sold
Current variable cost per unit = ($8,404,700 + $2,700,580) / 482,000
Current variable cost per unit = $22.67
With the proposed increase in variable costs of $0.60 per unit, the new variable cost per unit would be:
New variable cost per unit = Current variable cost per unit + Proposed increase in variable costs per unit
New variable cost per unit = $22.67 + $0.60
New variable cost per unit = $23.27
If the average sales price per unit remains at $28.80, the company's contribution margin per unit would be:
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = $28.80 - $23.27
Contribution margin per unit = $5.53
The contribution margin ratio can be calculated as follows:
Contribution margin ratio = Contribution margin per unit / Selling price per unit
Contribution margin ratio = $5.53 / $28.80
Contribution margin ratio = 19.18%
Using the current sales volume of 482,000 units, the company's total contribution margin would be:
Current contribution margin = Contribution margin per unit x Number of units sold
Current contribution margin = $5.53 x 482,000
Current contribution margin = $2,664,460
With the proposed increase in variable costs, the company's total contribution margin would be:
New contribution margin = Contribution margin per unit x Number of units sold
New contribution margin = ($28.80 - $23.27) x 482,000
New contribution margin = $2,662,060
The difference between the current and new contribution margin is:
Contribution margin impact = New contribution margin - Current contribution margin
Contribution margin impact = $2,662,060 - $2,664,460
Contribution margin impact = -$2,400
This means that if the average sales price per sprinkler unit did not increase, the company's profit would decrease by $2,400 due to the increase in variable costs.
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Say a person is willing to substitute 3 units of good 1 for 5 units of good 2 when they are consuming 30 units of good 1 and 50 units of good 2. The market basket they're consuming, with this much good 1 and good 2 in it, costs their entire income. Say when they next go to market, they find that the price of good 1 is $10 and the price of good 2 is $8. All other prices are the same. Would they change how much of the two goods they consume? yes, they would want to consume more good 1 and less good 2 yes, they would want to consume more good 2 and less good 1 O no we can't say from the information given what does "ceteris paribus" mean? all other relevant variables held constant all other relevant variables changing at the same rate in the same direction all other relevant variables changing at the same rate in the opposite direction none of these answers economists argue that having governments provide communities with public goods -- is necessary, because of the free rider problem is necessary in order to have a fair society is necessary if we want the economy to be on its production possibilities frontier is unnecessary because if people are willing to pay for a public good, then privately owned, profit oriented firms will go into the business of providing communities with public goods to everyone's benefit If I get an inoculation against a disease that I can give to someone else through casual contact (just being near them), then me getting that inoculation creates what economists call ------ a negative externality. a positive externality it creates both a positive and externality because it does something good for you and for other people suppose a consumer is consuming some good 1 initially. suppose their income increases, ceteris paribus. then they will want to consume more good 1 than they were consuming. true false we can't say what their reaction would be the particulates (dust) and gases emitted by a steel mill are a positive externality O a negative externality both a positive and negative externality because it does something harmful to those living nearby but something good for the owners of the mill
In this scenario, the person would want to consume more of good 1 and less of good 2 due to the change in prices. "Ceteris paribus" means holding all other relevant variables constant. Economists argue that having governments provide public goods is necessary due to the free rider problem. If an individual gets an inoculation that can be transmitted to others through casual contact, it creates a positive externality. If a consumer's income increases, ceteris paribus, they would want to consume more of good 1. The particulates and gases emitted by a steel mill are a negative externality.
Based on the given information, when the price of good 1 decreases and the price of good 2 remains the same, the person would prefer to consume more of good 1 and less of good 2. This is because the person is willing to substitute 3 units of good 1 for 5 units of good 2, indicating a preference for good 1.
"Ceteris paribus" means holding all other relevant variables constant, allowing economists to isolate the effect of a specific change. It helps in analyzing the relationship between variables without the interference of other factors.
Governments providing public goods is seen as necessary due to the free rider problem, which occurs when individuals can benefit from public goods without contributing to their provision. Private firms may not have incentives to provide public goods without government intervention.
When an individual gets an inoculation against a disease that can be transmitted through casual contact, it creates a positive externality because it not only benefits the individual but also reduces the risk of transmission to others.
With an increase in income, ceteris paribus, a consumer may choose to consume more of good 1, as their purchasing power has increased.
The particulates and gases emitted by a steel mill are considered a negative externality because they have harmful effects on the environment and the health of individuals living nearby.
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Building on the examples Geo Maher offers in his chapter on self-defense and abolition, what kinds of bottom-up organizations and practices might provide communities in the United States some measure of "self-defense?" What concrete threats could community self-defense address? How might they be related, if at all, to the problems of "neoliberal rationality" as outlined by Wendy Brown?
Geo Maher's chapter on self-defense and abolition presents examples of bottom-up organizations and practices that can contribute to community self-defense in the United States.
The initiatives in the organizationsThese initiatives aim to address concrete threats and challenges faced by marginalized communities, particularly in the context of neoliberal rationality as discussed by Wendy Brown.
One form of community self-defense is the establishment of grassroots organizations focused on community safety and empowerment. These organizations, often driven by local residents, work to address issues such as violence, crime, and police misconduct through community-based strategies.
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Based on the given information below of FDNACCT Co., how much is the cost of goods available for sale? Sales P85,000 = Merchandise Inventory, 1/1 = P20,000 Merchandise Inventory, 12/31 = P26,000 Purchases P55,000 Purchase Discounts = P1,000 Purchase Returns & Allowances = P2,000 Freight in P3,000 Selling Expenses = P4,500 Administrative Expenses = P3,800
The cost of goods available for sale is P75,500. Sales = P85,000
Merchandise Inventory, 1/1 = P20,000
Merchandise Inventory, 12/31 = P26,000
Purchases = P55,000
Purchase Discounts = P1,000
Purchase Returns & Allowances = P2,000
Freight in = P3,000
Purchase returns and allowances and purchase discounts are contra-expense accounts that lower purchases in the income statement. The cost of goods sold is equal to the cost of goods available for sale minus the ending inventory. To determine the cost of goods available for sale, all purchases (net of returns, allowances, and discounts) and freight-in (if any) are added to the cost of goods available for sale, which is calculated as follows:
Merchandise Inventory, 1/1 + Purchases + Freight-in - Purchase returns and allowances - Purchase discounts
= Cost of Goods Available for Sale
P20,000 + P55,000 + P3,000 - P2,000 - P1,000
= P75,000
The cost of goods available for sale is P75,500.
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Text description for Figure 3.3. Oncology sales of Top-10 Players for Concentration Calculation (Individual) assignment Oncology sales of top-10 players (2024 Projected)
Celgene and Bristol-Myers Squibb: $27.07 Billion (Bristol-Myers Squibb expects to close its purchase of Celgene later this year.)
Roche: $24.52 Billion
Merck & Co.: $17.20 Billion
Pfizer: $15.60 Billion
Astra Zeneca: $14.86 Billion
Johnson & Johnson: $11.80 Billion
Novartis: $10.78 Billion
AbbVie: $10.04 Billion
Astellas Pharma: $6.52 Billion
Source: Evaluate Pharma
This is an individual assignment. Figure 3.3 contains data on pharmaceutical sales in the United States for cancer drugs (i.e., oncology). Your task is to calculate the CR4, CR8, and HHI for this market.
1) You will do this by first figuring out the market share of each firm's oncology sales. Take the number on the right side of the chart for the firm's revenues in billions. You have to calculate the market share of each firm by dividing its individual revenue by the total industry revenue.
2) To get the total industry revenue, add together all of the firms' revenues.
3) Finally, calculate your metrics (CR4, CR8, and HHI)
Figure 3.3 provides data on the projected oncology sales of the top 10 players in the pharmaceutical industry. The task is to calculate the Concentration Ratio (CR4 and CR8) and the Herfindahl-Hirschman Index (HHI) for this market. To do this, we need to determine the market share of each firm's oncology sales by dividing their individual revenue by the total industry revenue. Then, the CR4 and CR8 can be calculated by summing the market shares of the top four and top eight firms, respectively. The HHI is calculated by squaring the market shares of all firms and summing them up.
To calculate the CR4, CR8, and HHI for the oncology market, we first determine the market share of each firm by dividing their individual revenue by the total industry revenue. For example, to calculate the market share for Celgene and Bristol-Myers Squibb, we divide their revenue ($27.07 billion) by the total industry revenue (the sum of all firms' revenues). Next, we calculate the CR4 and CR8 by summing the market shares of the top four and top eight firms, respectively. For the CR4, we add the market shares of Celgene and Bristol-Myers Squibb, Roche, Merck & Co., and Pfizer. For the CR8, we include the market shares of the top eight firms mentioned in the figure.Finally, we calculate the HHI by squaring the market shares of all firms and summing them up. This index provides a measure of market concentration, where higher values indicate greater concentration and potentially less competition.By calculating these metrics, we can assess the level of concentration in the oncology market and gain insights into the market dynamics based on the market shares of the top firms.Learn more about HHI:
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The Money Pit Mortgage Company is interested in monitoring the performance of the mortgage process. Fifteen samples of five completed mortgage transactions each were taken during a period when the process was believed to be in control. The times to complete the transactions were measured. The means and ranges of the mortgage process transaction times, measured in days, are asfollows:
Sample 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Mean 16 12 6 15 10 11 13 14 11 12 13 7 9 7 10 Range 8 13 6 10 11 16 14 17 12 12 13 8 11 13 15 Subsequently, samples of size 5 were taken from the process every week for the next 10 weeks. The times were measured and the following results obtained: Sample 16 17 18 19 20 21 22 23 24 25 Mean 8 12 7 13 15 18 11 20 18 16 Range 10 13 8 6 14 17 13 12 10 8 a. Construct the control charts for the mean and the range, using the original 15 samples. Set up the R-chart by specifying the center line and three-sigma control limits below.
R-chart UCL Subscript Upper R =
Upper R overbar =
LCL Subscript Upper R =
Mean chart: The center line for the mean chart is the average of the 15 sample means, which is 11.6 days. The upper control limit (UCL) for the mean chart is 13.8 days, and the lower control limit (LCL) for the mean chart is 9.4 days.
mean chart for Money Pit Mortgage CompanyOpens in a new window
Chegg
mean chart for Money Pit Mortgage Company
Range chart: The center line for the range chart is the average of the 15 sample ranges, which is 10.8 days. The upper control limit (UCL) for the range chart is 16.2 days, and the lower control limit (LCL) for the range chart is 5.4 days.
range chart for Money Pit Mortgage CompanyOpens in a new window
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range chart for Money Pit Mortgage Company
The R-chart UCL is calculated as follows:
Code snippet
UCL_R = D4 * R_bar
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where D4 is a constant that depends on the sample size, and R_bar is the average of the sample ranges. In this case, D4 is 2.282 for a sample size of 5, and R_bar is 10.8 days. Therefore, the UCL_R is 2.282 * 10.8 = 24.4 days.
The Upper R overbar is calculated as follows:
Code snippet
Upper R overbar = R_bar + 3 * (UCL_R - R_bar)
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In this case, R_bar is 10.8 days, and UCL_R - R_bar is 13.6 days. Therefore, Upper R overbar is 10.8 + 3 * 13.6 = 41.8 days.
The LCL_R is calculated as follows:
Code snippet
LCL_R = R_bar - 3 * (UCL_R - R_bar)
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In this case, R_bar is 10.8 days, and UCL_R - R_bar is 13.6 days. Therefore, LCL_R is 10.8 - 3 * 13.6 = -24.4 days.
Since the sample means and ranges from the subsequent 10 weeks are all within the control limits, we can conclude that the process is still in control. However, the sample mean for week 21 is slightly outside the upper control limit for the mean chart. This suggests that there may be a problem with the process, and further investigation is warranted.
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Underapplied and Overapplied Overhead [LO3-4] Osborn Manulacturing uses a predetermined overhead rate of $19.50 per direct laborthour. This predetermined rate was based on a cost formula that estimates $259,350 of total manufactuting overhead for an estimated activity level of 13,300 direct iabor hours. The company actually incurred $253.000 of manufocturing overhead and 12.800 drect loborhours during the period Required: 1. Determine the amount of underapplied or overapplied manufacturing overnend for the period. 2. Assume that the company's underopplied or overapplied overhead is closed to Cost of Goods Sold. Would the joumsi entry to dispose of the underapplled or overapplied overhead increase or decrease the company's gross margin? By how much?
This entry decreases the cost of goods sold by $3,400, which in turn increases the gross margin by the same amount. resulting in an increase in gross margin and potentially higher profitability for the company.
1. The amount of underapplied or overapplied manufacturing overhead for the period can be calculated by comparing the actual manufacturing overhead incurred with the applied overhead based on the predetermined rate.
Actual manufacturing overhead incurred: $253,000
Applied overhead based on predetermined rate: $19.50 per direct labor hour x 12,800 direct labor hours = $249,600
Underapplied/Overapplied overhead = Actual manufacturing overhead incurred - Applied overhead
= $253,000 - $249,600
= $3,400 (Overapplied)
2. If the underapplied or overapplied overhead is closed to Cost of Goods Sold, the journal entry would decrease the company's gross margin. Since the overapplied amount represents an excess of applied overhead over the actual overhead incurred, it implies that the company has allocated more overhead to its products than it actually spent. By closing this amount to Cost of Goods Sold, it reduces the reported cost of goods sold and increases the gross margin.
The journal entry to dispose of the overapplied overhead would be as follows:
DR Cost of Goods Sold: $3,400
CR Manufacturing Overhead: $3,400
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Please answer the questions in full detail and label them each
1.
One question regarding motivation that has generated markedly different responses over the years is the following: Do the keys to unlocking motivation in individuals lie within the personal characteristics of the individual or within the behavior exhbited by the individual? Peter Drucker, as noted in your current readings, believed in the latter. So did John B. Watson and Edward L. Thorndike. You will learn somewhat later in the course that Abraham Maslow, Clayton Alderfer, and Thomas McClelland (among others) believed in the former. Based upon your personal observations thus far in your life (and not on the research findings you will read about later in our course), explain which of these sets of researchers you most agree with. Be specific and comprehensive in your response.
2.
Motivation can be defined as "the process by which goal‐directed activities are initiated and sustained." A similar definition of motivation is that it's "the process that initiates, guides, and maintains goal-oriented behaviors." Or, even more simply stated, it's "what causes you to act." Assuming that each of these statements offers a fairly valid description of motivation (and each does), then why is it that the work of Sigmund Freud is often linked to the concept of motivation? Why is it that the work of William James is often linked to the concept of motivation? And why is that the works of Frederick Taylor and Frank and Lillian Gilbreth are often linked to the concept of motivation? Be specific and comprehensive in your response.
Answers of the questions in full detail are as follows:
1. The two sets of researchers that were described in this question have different opinions about what constitutes as motivation. Some, such as Drucker, Watson, and Thorndike, believe that motivation lies in the behavior exhibited by individuals. On the other hand, researchers like Maslow, Alderfer, and McClelland believe that motivation is rooted in the personal characteristics of the individual. Based on personal observations, one can lean towards either of the two schools of thought. For me, I think that motivation is based on personal characteristics and experiences. I believe that a person's environment, upbringing, and experiences can shape their values, beliefs, and goals, which in turn influence their behavior and drive.
For example, a person who grew up in a family that values education might be motivated to study and pursue academic goals. Meanwhile, a person who experienced poverty and hardship might be motivated to work hard and achieve financial stability. In general, I believe that external factors can shape behavior, but they are only effective if the individual internalizes them and makes them part of their own identity.
2. Sigmund Freud's work is often linked to the concept of motivation because of his theories on the unconscious mind. He believed that human behavior is driven by unconscious desires and conflicts that are rooted in early childhood experiences. In other words, people are motivated to satisfy unconscious needs and desires, even if they are not aware of them.
For example, Freud's theory of the id suggests that people are motivated by instinctual drives such as sex and aggression, which are unconscious and irrational. On the other hand, William James's work is linked to the concept of motivation because of his theories on emotion and willpower. He believed that motivation is rooted in the emotional and physiological responses to stimuli, such as hunger or fear. James also believed that people have the ability to control their own actions and goals through willpower, which is the conscious effort to overcome obstacles and achieve desired outcomes. Meanwhile, the works of Frederick Taylor and Frank and Lillian Gilbreth are linked to the concept of motivation because of their focus on improving work efficiency and productivity. They believed that motivation is linked to external rewards and punishments, such as pay or recognition. Their theories emphasized the importance of designing work processes and environments that are optimized for efficiency and that provide clear incentives for workers to perform well.
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Eskay Traders limited has a annual turnover of Rs.126 crores which is spread evenly throughout the year during each of the 50 working weeks of the year. The pattern of cash receipts during each day of the 5 working days (Monday to Friday) for each week is as follows The receipts on Mondays and Fridays is twice the receipts on the other three days of the week. The cost of banking is estimated to be Rs.10000 per day. The company operates on bank OD of which the current rate of interest is 16% p.a. The interest charge is applied on a simple daily basis. Presently the company deposits its daily receipts in the bank on the same day. Suggest any other alternative which can reduce the total cost of banking to the company. (5 Marks)
To reduce the total cost of banking for Eskay Traders Limited, one alternative could be to implement a cash management strategy that optimizes the timing of cash deposits to minimize the interest charges and transaction costs.
One possible approach is as follows:
Cash Pooling: Instead of depositing the daily receipts in the bank on the same day, the company can establish a cash pooling system. Under this system, the daily cash receipts from Monday to Thursday can be retained within the company's own accounts until Friday.
End-of-Week Deposits: At the end of each week on Friday, the company can make a single deposit that includes the total receipts for the entire week. This approach allows for a higher amount to be deposited, which can potentially earn more interest and reduce the number of transactions.
Cash Flow Forecasting: Implementing accurate cash flow forecasting techniques can help the company determine the optimal timing and amount of cash to be deposited. By analyzing historical data and considering any upcoming expenses or payments, the company can make informed decisions on when to deposit cash to minimize interest charges and optimize cash utilization.
By adopting these strategies, Eskay Traders Limited can potentially reduce the number of daily deposits, thereby minimizing the transaction costs associated with daily banking. Additionally, by retaining the cash within the company until the end of the week, the company can maximize interest earnings and minimize interest charges on the bank overdraft facility.
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Blossom, Inc. prepared the following master budget items for July:
Production and sales 36,000 units
Variable manufacturing costs: Direct materials $ 36,000 Direct labor $ 72,000 Variable manufacturing overhead $ 54,000 Fixed manufacturing costs $ 100,000 Total manufacturing costs $ 262,000 During July, Blossom actually sold 42,000 units. Prepare a flexible budget for Blossom based on actual sales. (Do not round your intermediate calculations.)
Production and Sales UNITS Variable manufacturing costs Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing costs Total manufacturing costs
Variable manufacturing overhead cost for Blossom, Inc is $4.50
Flexible Budget is a budget that adjusts the budget based on changes in actual sales volume, which is used to provide a range of budget estimates based on different volume assumptions. In this case, the actual sales of Blossom is 42,000 units, which is more than the estimated sales of 36,000 units.
The steps below shows how to prepare a flexible budget for Blossom based on actual sales:Step 1: Calculate the Flexible Budget Variable Manufacturing Cost per Unit
We need to calculate the variable manufacturing cost per unit before we proceed. This can be calculated using the formula below:
Variable manufacturing cost per unit = Total variable manufacturing cost / Total production
Output:
Variable manufacturing cost per unit
= ($36,000 + $72,000 + $54,000) / 36,000
= $4.50 per unit
Step 2: Calculate the Flexible Budget
Variable manufacturing costs are adjusted for the actual sales volume in the flexible budget. Below is the calculation
42,000 $189,000 $151,200 $302,400 $226,800 $100,000 $979,400
Blossom Inc. flexible budget based on actual sales
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Following are financial data for Syke and Under Shield. $ millions Net income Net sales Total assets Current Year $ 3,298 28,648 19, 274 Syke 1 Year prior $3,202 30, 244 21,615 Under Shield Current Year Required 1 Required 2 Required 3 $584 11,414 9,134 1 Year prior $ 982 17, 296 13,125 1. Compute return on total assets for the current year for (a) Syke and (b) Under Shield. 2. Compute both profit margin and total asset turnover for the current year for (a) Syke and (b) Under Shield. 3. Which company more efficiently used its assets in the current year? Complete this question by entering your answers in the tabs below. Compute return on total assets for the current year for (a) Syke and (b) Under Shield. (Do not round intermediate Joulations Round your final answers to 1 decimal place.)
Return on total assets (ROTA) is a financial metric used to evaluate a company's profitability relative to its asset base. It measures the percentage of net income earned per dollar invested in assets. A higher ROTA indicates that the company is generating more profits from its asset base, which is desirable for investors.
In the current year, Syke has a ROTA of 17.1%, while Under Shield has a ROTA of 6.4%. This suggests that Syke is generating higher profits per dollar invested in assets than Under Shield.
However, it is important to note that ROTA can be influenced by various factors such as the industry, business model, and capital structure of the company, and should therefore be interpreted with caution.
To gain a better understanding of the profitability and efficiency of Syke and Under Shield, we need to look at other key financial metrics such as profit margin and total asset turnover.
Profit margin measures the percentage of sales revenue that translates into net income. Total asset turnover, on the other hand, measures how efficiently a company is using its assets to generate sales revenue. A combination of these two metrics gives us insight into a company's overall profitability and efficiency.
Based on the financial data provided, Syke has a profit margin of 11.5% and a total asset turnover of 1.49, while Under Shield has a profit margin of 5.4% and a total asset turnover of 1.89. This suggests that while Syke has a higher profit margin, Under Shield is using its assets more efficiently to generate sales revenue.
In conclusion, although Syke has a higher ROTA and profit margin, Under Shield is using its assets more efficiently to generate sales revenue. It is important to consider multiple financial metrics when evaluating the performance of a company and making investment decisi
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Narrative for the Document Flow Chart
St. Francis Olive Co. purchases Olive Oil from four vendors in Italy to be resold in their stores throughout the world. The following narrative describes the business processes St. Francis Olive Oil Co. uses for the acquisition of inventory items.
St. Francis has a purchasing department centrally located at company headquarters in Assisi, Italy. The acquisition/payment process begins when an Inventory manager determines a need for inventory at his/her location. The manager enters the requested items directly into the ERP system to generate a purchase requisition form.
The narrative describes the document flow chart for St. Francis Olive Co.'s acquisition of inventory items. The process begins when the Inventory manager identifies the need for inventory at their location.
They then enter the requested items directly into the ERP system, which generates a purchase requisition form. The purchase requisition form is then sent to the purchasing department at the company headquarters in Assisi, Italy. The purchasing department reviews the form and proceeds with the acquisition process. They select one of the four vendors in Italy from whom to purchase the olive oil. Once the vendor is selected, a purchase order is created and sent to the vendor. The purchase order specifies the quantity, price, and delivery terms. The vendor then prepares the shipment of olive oil and sends it to St. Francis Olive Co. Upon receiving the shipment, the receiving department inspects the goods for quality and quantity. If everything meets the requirements, they update the ERP system with the received inventory. Finally, the vendor sends an invoice to St. Francis Olive Co. The accounts payable department reviews the invoice, matches it with the purchase order and receiving report, and processes the payment to the vendor. In summary, the document flow chart for St. Francis Olive Co.'s acquisition of inventory includes the steps of generating a purchase requisition, creating a purchase order, receiving and inspecting the goods, and processing the payment to the vendor.
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98 began delivery operations from the new Staging Facility using many rental vans. Every time a shipment had to go out to a customer they had to pay for a separate van to deliver it. Every time a retailer had a case of empties to pick up they to pay for a separate van to pick it up. The SCM 309 class told them this was crazy, they were taking way too much time and wasting way too much money by not figuring out how to manage transportation more productively. They brought up the notion of "consolidating shipments" onto less transportation assets. Lance mentioned that he could buy a couple of old vans from one of his old buddies from Morrisville who ran the local Chevy dealership.
Using the shipping data below that shows both outbound shipments of cans as well as inbound movements of empty cans, identify ONE example of each of the consolidation opportunities in questions 7-9. In each case, also identify the order(s) in which you would make each delivery or pick up.
7. Multi-drop off of finished goods
8. Multi-pick up of empty cans
9. Outbound finished goods + inbound empty can shipment consolidation
NOTE 1: the van can hold up to 80 cases in one load
NOTE 2: make sure that you route the van so that you can unload in the correct order - if you route incorrectly you will have to offload a whole lot of cases to get to the order you need, so you will have to load according to the order of stops on the route. And you don't want the van to drive back and forth around the county, so make sure you route in a way that takes a nice roundtrip through the market area.
Consolidating shipments through efficient route optimization can help save time and money for Wilkinson, Inc. By planning multi-drop offs of finished goods, multi-pick ups of empty cans, and consolidating outbound and inbound shipments, the company can maximize the van's capacity and minimize travel time
7. Multi-drop off of finished goods: To consolidate the multi-drop off of finished goods, the shipments should be planned in a way that allows for efficient route optimization. One example of consolidation could be delivering shipments to customers who are located in close proximity to each other in a single trip.
For instance, if there are three customers located in the same neighborhood, the van can make a single trip to drop off shipments at all three locations in the order of their proximity, optimizing the route and minimizing travel time.
8. Multi-pick-up of empty cans: For the multi-pick-up of empty cans, the van can be routed to collect the empty cans from retailers in a consolidated manner. This can be done by identifying retailers who have cases of empty cans ready for pickup in the same vicinity. The van can then make a single trip to pick up the empty cans from these retailers, optimizing the route based on their proximity.
9. Outbound finished goods + inbound empty can shipment consolidation: To consolidate outbound finished goods and inbound empty can shipments, the van can be planned to make a roundtrip through the market area.
For example, the van can start by picking up empty cans from retailers and then proceed to deliver the finished goods to customers. By strategically planning the route, the van can optimize the trip to unload the empty cans first and then load the finished goods to be delivered in the correct order, ensuring efficiency and minimizing travel time.
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Public accounting firms are sometimes engaged to report on specified accounts, elements and other items of financial statements.
a. Discuss types of reports that may be provided for a nonpublic company for specified accounts, elements, and items of financial statements. Discuss why a nonpublic company would want such reports, or their uses.
b. Why should reports on the application of agreed-upon procedures to information be restricted to specified users? Do you agree with this rule?
c. Find an example of such a report on the internet, summarize it for your colleagues, and attach the link to the report.
a) The following are the kinds of reports that non-public firms might receive on specific accounts, elements, and items of financial statements: Agreed-Upon Procedures Report: The purpose of an agreed-upon procedures report is to inform readers of the findings of specific procedures performed on financial and non-financial information.
a) The following are the kinds of reports that non-public firms might receive on specific accounts, elements, and items of financial statements:Agreed-Upon Procedures Report: The purpose of an agreed-upon procedures report is to inform readers of the findings of specific procedures performed on financial and non-financial information. The report's content is entirely dependent on the procedures performed and the agreement between the user and the accountant (or accountants). This form of report is often used when a company requires more than the services of an accountant or auditor. In such a case, they may hire a public accounting firm to conduct specific procedures on specific areas of their financial statements. Once the procedures have been completed, the firm will compile an agreed-upon procedures report detailing their findings, which will be included in the company's financial statements. Compilation Reports: Compilation reports provide no opinion or assurance on the accuracy of the financial statements. Instead, they simply provide the financial statements in a format that meets the standards required by GAAP. Review Reports: A review report provides limited assurance that the financial statements are free of material misstatements. It is less detailed than an audit report, but it does provide a degree of assurance that is greater than that provided by a compilation report. Non-public companies may want such reports to meet lenders' requirements or to show shareholders and investors that their financial statements have been reviewed by an independent accounting firm. These reports are also useful for organizations that do not have the in-house capacity to perform an audit of their financial statements.b) The application of agreed-upon procedures to information report should be restricted to specified users because the procedures are created by the client and the accountant. The client and accountant determine the extent of the work to be performed and the type of report to be generated. The report's audience is determined by the nature of the procedures performed and the agreement between the client and the accountant. In contrast, an audit is a report issued by the auditor, who is a third party, providing an opinion on whether the financial statements are free of material misstatement. So, in a sense, the report's audience is limited by the nature of the work being done. As a result, the report's findings may not be relevant or valuable to all users, and restricting the report's distribution to specified users can help protect the client's confidentiality.c) There are several examples of agreed-upon procedures reports available on the internet. The report's purpose is to describe the results of the agreed-upon procedures undertaken by the accountant. In this case, the accountant's client requested that a specific set of procedures be performed on its financial statements. The findings of the procedures are compiled in a report, which is then provided to the client. These reports are restricted in their distribution to protect the confidentiality of the client's financial information.
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ANALYTICS Group Assignment Conversion Funnel Exercise Examine the following hypothetical conversion funnel for the Marriott Hotels website. The Rates & Availability page is the page that comes up after someone does a search for hotel rooms in a particular location and timeframe. Rates & Availability 2,347,892 Review Itinerary 367,495 Guest Info 103,471 Confirmation 72,498 Revenue: $23,464,220 Room Nights: 143,285 Perform the Following Calculations: 1. Calculate the conversion rate. (The conversion rate is usually calculated as the percentage of sessions that result in a conversion. Here, we will calculate the percentage of hotel searches that result in a conversion ) 2. Calculate the three step-to-step micro-conversions. (For example, what percentage of people advance from the Rates & Availability page to the Review Itinerary page?) 3. Calculate the average number of nights per booking 4. Calculate the average revenue per booking 5. Calculate the average revenue per night 6. If you could increase traffic by 10%, how much would revenue increase (assuming the new traffic was of the same character as the current traffic: same conversion rate, same average nights per booking, etc.)? How many more confirmations would result? 7. If you could increase the percentage of those who reviewed the itinerary from 15.65% to 20%, how would the conversion rate be affected? 8. You believe that if you offered a 10% discount on all bookings, the conversion rate would increase to 3.5% Would this increase or decrease revenue? Extra credit: Would this be a profitable action if the gross margin on bookings (before the 10% discount) is 50%? 9. Which of the three steps in the conversion funnel do you believe should be improved? Think carefully about the hotel booking process and where Marriott Hotels seems to be performing poorly. Even though the first step has the lowest rate, this might just be the nature of hotel searches (meaning lots of people do searches out of curiosity or advanced planning without any intention of booking) 10. Come up with a promotion for Marriott Hotels Perform a hypothetical analysis of the effect of this promotion. That is, spoofy how this promotion would affect this month's traffic inte find the enerifi stone and FOM
1. Conversion rate is 0.31%
2. Three step-to-step micro-conversions is
- Rates & Availability to Review Itinerary is 15.65%
- Review Itinerary to Guest Info is 28.23%
- Guest Info to Confirmation is 70.15%
3. Average number of nights per booking is 2.00
4. Average revenue per booking is $324.00
5. Average revenue per night is $162.00
6. Increase in traffic by 10% is
- Revenue increase is 0.31%
- Additional confirmations is 224
7. Increase in percentage of those who reviewed the itinerary from 15.65% to 20% is
- Conversion rate increase is 0.02%
- Additional confirmations is 5,400
8. Offer a 10% discount on all bookings is
- Increase in conversion rate is 3.5%
- Revenue increase is $821,247
- Net profit increase is $586,625
9. Step in the conversion funnel that should be improved is Guest Info to Confirmation
10. Promotion for Marriott Hotels is Book a stay of 3 nights or more and receive 20% off your total stay.
How is this so?Sure, here are the calculations for the Marriott Hotels conversion funnel -
1. Conversion rate - The conversion rate is calculated as the percentage of hotel searches that result in a confirmation. In this case, the conversion rate is 72,498 / 2,347,892 = 0.31%.
2. Three step-to-step micro-conversions -
* Rates & Availability to Review Itinerary - 367,495 / 2,347,892 = 15.65%
* Review Itinerary to Guest Info - 103,471 / 367,495 = 28.23%
* Guest Info to Confirmation - 72,498 / 103,471 = 70.15%
3. Average number of nights per booking - 143,285 / 72,498 = 2.00
4. Average revenue per booking - $23,464,220 / 72,498 = $324.00
5. Average revenue per night - $324.00 / 2.00 = $162.00
6.
If you could increase traffic by 10%, revenue would increase by 0.31% * 10% = 0.31%. This would result in an additional 72,498 * 0.31% = 224 additional confirmations.
7. If you could increase the percentage of those who reviewed the itinerary from 15.65% to 20%, how would the conversion rate be affected?
If you could increase the percentage of those who reviewed the itinerary from 15.65% to 20%, the conversion rate would increase from 0.31% to 0.33%. This would result in an additional 2347892 * 0.02% = 5,400 additional confirmations.
8. You believe that if you offered a 10% discount on all bookings, the conversion rate would increase to 3.5%. Would this increase or decrease revenue? Extra credit - Would this be a profitable action if the gross margin on bookings (before the 10% discount) is 50%?
If you offered a 10% discount on all bookings, the conversion rate would increase to 3.5%. This would result in an increase in revenue of 3.5% * $23,464,220 = $821,247. However, the gross margin on bookings would also decrease by 10%, so the net profit would increase by $821,247 - $23464220 * 0.10 = $586,625.
This would be a profitable action if the gross margin on bookings (before the 10% discount) is 50%. This is because the net profit would increase by $586,625, which is more than the cost of the discount, which is $2,346,422 * 0.10 = $234,642.
9.
I believe that the third step in the conversion funnel, Guest Info to Confirmation, should be improved. This is because the conversion rate for this step is the lowest, at 70.15%. This means that there is a lot of room for improvement in this area.
There are a number of things that Marriott Hotels could do to improve the conversion rate for this step. For example, they could make the booking process easier and more streamlined. They could also offer more incentives to book, such as free breakfast or upgrades.
10. Come up with a promotion for Marriott Hotels.
Here is a promotion that Marriott Hotels could offer -
Book a stay of 3 nights or more and receive 20% off your total stay.
This promotion would target people who are planning a longer stay. It would also be a good way to encourage people to book directly with Marriott Hotels, rather than through a third-party website.
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Transcribed image text: 18- According to the international entry options while implementing a horizontal growth strategy, which one of the alternatives below is more costly and risky than the others? a) Franchising b) Acquisition () Green-field development d) Joint venture
According to the international entry options while implementing a horizontal growth strategy, greenfield development is more costly and risky than the others.
. Franchising is a relatively low-cost option that allows a company to expand its reach without having to invest heavily in new facilities or personnel. However, franchising can be risky if the franchisor does not have a strong brand or if the franchisees are not properly trained.
. Acquisition is a more costly option, but it can be a quick way to enter a new market. However, acquisitions can be risky if the target company is not well-managed or if the acquisition is not properly integrated.
. Joint venture is a partnership between two or more companies that allows each company to share the risks and rewards of entering a new market. Joint ventures can be a good option for companies that do not have the resources to enter a new market on their own.
. Greenfield development is the most costly and risky option, but it can be the most rewarding. Greenfield development involves building a new company from scratch in a new market. This requires a significant investment of time, money, and resources. However, greenfield development can be a good option for companies that want to have complete control over their operations in a new market.
Despite the risks and challenges, greenfield development can be a successful way for companies to enter new markets. However, it is important to carefully consider the risks and rewards before making a decision.
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According to the article, "Leading by Leveraging Culture," Identify and explain the three tools necessary to manage organizational culture. Apply each one to Southwest Airlines Take note that this question has three parts. (1) Identify (2) Explain (3) Apply
According to the article "Leading by Leveraging Culture," there are three tools necessary to manage organizational culture. These tools are (1) Leadership, (2) Symbols and Artifacts, and (3) Rituals and Routines.
1) Leadership: Leadership plays a crucial role in shaping and managing organizational culture. Leaders at Southwest Airlines, for example, are known for their hands-on approach and emphasis on teamwork. They promote a culture of transparency, open communication, and employee empowerment. By leading by example, leaders at Southwest Airlines inspire employees to embrace the company's values and work together towards common goals.
2) Symbols and Artifacts: Symbols and artifacts are tangible manifestations of an organization's culture. At Southwest Airlines, the iconic symbol is the Heart logo, which represents their commitment to providing excellent customer service. Other symbols include the colorful planes, which reflect their fun and energetic brand image. These symbols and artifacts reinforce the company's values and create a sense of identity among employees and customers alike.
3) Rituals and Routines: Rituals and routines are repetitive actions that reinforce and preserve organizational culture. At Southwest Airlines, one notable routine is the "Employee Rally." This is a regular gathering where employees celebrate achievements, share information, and reinforce the company's values. This ritual helps build a strong sense of community and unity among employees, fostering a positive and engaged work culture.
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Your friend, Mark, owns the dog sitting company, Mark’s Dogs, out of his home, watching dogs a maximum of 5 dogs at a time at his home, with the dog owners dropping the dogs at his home. Terms of service require payment in cash or check when the owner retrieves the dog.
Mark’s business has grown, and Mark will be moving into an empty storefront which is large enough for him to watch 20 dogs at a time. Regarding this expansion, he will be moving from a cash only business to an accrual-based business.
1. Briefly explain to Mark the dual entry system of accounting.
2. Inform Mark as to the new accounts which are created when a business moves from a cash-only to an accrual business.
3. Would the nature of Mark’s business require any period end adjustments?If so, which ones?
4. If Mark accepts credit cards, will this be recorded as cash?
The dual entry system is a bookkeeping method that allows for the creation of an accounting system. New accounts like accounts receivable, unearned revenue, and accrued expenses are created.
1. Briefly explain to Mark the dual entry system of accounting. The dual entry system of accounting is a bookkeeping method that allows for the creation of an accounting system. This system involves recording all financial transactions of a business in two accounts; a debit and a credit account. For instance, if a company makes a sale on credit, there will be a debit entry in accounts receivable and a credit entry in sales. This system guarantees that the total debits equal the total credits in all financial transactions.
2. Inform Mark as to the new accounts which are created when a business moves from a cash-only to an accrual business. When a business moves from cash-only to accrual accounting, new accounts such as accounts receivable, unearned revenue, and accrued expenses are created. Accounts receivable reflects sales made on credit, unearned revenue represents revenue collected in advance of the delivery of goods or services, and accrued expenses represent expenses that have not yet been paid for but have been incurred.
3. Yes, Mark’s business would require period-end adjustments, including accruals, deferrals, and estimates. Accruals are adjustments made to the financial statements to reflect the income and expenses that the business has incurred but not yet recorded. Deferrals involve recording revenues and expenses in the future, while estimates are used to recognize revenue and expenses before the actual amount is known.
4. No, credit cards are not recorded as cash; they are recorded as accounts receivable. Accounts receivable is an asset that reflects revenue made on credit, such as a sale made with a credit card.
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Question 1: Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACCforuse in capital budgeting? (6 points) A) Long-term debt (B) Accounts payable C) Retained earnings (D) Common stock E) Preferred stock Question 2: LaPange.Inc. estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a WACC of 8%, and its above-average risk projects have a WACC of 12%, which of the following projects (A, B, and C) should the company accept? (6 points丬 (A) Project B, which is of below-average risk and has a return of 8.5% [b] Project C, which is of above-average risk and has a return of 11% C) Project A, which is of average risk and has a return of 9% (D) None of the projects should be accepted E) All of the projects should be accepted
Question 1: Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting?
Answer: (B) Accounts payable
Accounts payable refers to the short-term liabilities of a company and is not considered a long-term capital component when calculating the WACC. The capital components typically include long-term debt, retained earnings, common stock, and preferred stock.
Accounts payable is not considered a capital component when calculating the WACC.
Question 2: LaPange Inc. estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a WACC of 8%, and its above-average risk projects have a WACC of 12%. Which of the following projects should the company accept?
Answer: (C) Project A, which is of average risk and has a return of 9%
The company should accept projects that have a return higher than their respective WACC. Since Project A is of average risk and has a return of 9%, which is higher than the WACC of 10%, it should be accepted.
LaPange Inc. should accept Project A, which has an average risk and a return higher than the company's WACC.
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The company’s single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 5,000 units on December 31, 2017, is more than management’s desired level, which is 20% of the next month’s expected sales (in units). Expected sales are: January, 7,000 units; February, 9,000 units; March, 11,000 units; and April, 10,000 units.
Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60% is collected in the first month after the month of sale and 40% in the second month after the month of sale. For the December 31, 2017, accounts receivable balance, $125,000 is collected in January and the remaining $400,000 is collected in February.
Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2017, accounts payable balance, $80,000 is paid in January and the remaining $280,000 is paid in February.
Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $60,000 per year.
General and administrative salaries are $144,000 per year. Maintenance expense equals $2,000 per month and is paid in cash.
Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $36,000; February, $96,000; and March, $28,800. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month’s depreciation is taken for the month in which equipment is purchased.
The company plans to buy land at the end of March at a cost of $150,000, which will be paid with cash on the last day of the month.
The company has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $25,000 at the end of each month.
The income tax rate for the company is 40%. Income taxes on the first quarter’s income will not be paid until April 15.
REQUIRED:
6. Monthly cash budgets.
7. Budgeted income statement for the entire first quarter (not for each month).
8. Budgeted balance sheet as of March 31, 2018.
Here are the condensed versions of the requested budgets:
The Monthly Cash BudgetsJanuary: Cash receipts from sales $375,000; cash payments for merchandise purchases $280,000, sales commissions $187,500, sales salaries $5,000, general and administrative salaries $12,000, maintenance expense $2,000, equipment purchases $36,000, interest expense $4,800; ending cash balance $25,000.
February: Cash receipts from sales $405,000; cash payments for merchandise purchases $360,000, sales commissions $243,000, sales salaries $5,000, general and administrative salaries $12,000, maintenance expense $2,000, equipment purchases $96,000, interest expense $9,600; ending cash balance $50,000.
March: Cash receipts from sales $455,000; cash payments for merchandise purchases $420,000, sales commissions $272,500, sales salaries $5,000, general and administrative salaries $12,000, maintenance expense $2,000, equipment purchases $28,800, interest expense $14,400, land purchase $150,000; ending cash balance $5,000.
Budgeted Income Statement(In thousands of dollars)
Sales 1,235
Cost of goods sold 810
Gross profit 425
Operating expenses:
* Sales commissions 243
* Sales salaries 15
* General and administrative salaries 144
* Maintenance expense 6
* Depreciation expense 144
* Interest expense 28
Total operating expenses 450
Net income 75
The Budgeted Balance Sheet(In thousands of dollars)
Assets
* Cash 5
* Accounts receivable 275
* Inventory 200
* Equipment 360
* Land 150
Total assets 790
Liabilities and Equity
* Accounts payable 160
* Accrued expenses 10
* Notes payable 300
* Common stock 200
* Retained earnings 220
Total liabilities and equity 790
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Explain in detail the current needs for organizational change management and effective communication.
Describe the four-frame approach and its benefits.
Organizational Change Management (OCM) is a structured approach to ensuring that changes are successfully implemented to achieve the goals of an organization.
OCM can lead to anxiety, confusion, and resistance from employees. It is crucial for the management team to communicate the reasons for the change, its impact, and how it will be implemented in a clear and concise manner to ensure that the change is accepted.Effective communication enhances employee participation, understanding, and adoption of the change. OCM helps in ensuring that the change is accepted and adopted by employees to achieve organizational goals. Therefore, there is a need for organizational change management to ensure that changes are effectively adopted and implemented.
The four-frame approach is a method of examining an organization from different perspectives to understand how it works. The approach focuses on four frames: the structural frame, the human resource frame, the political frame, and the symbolic frame.The structural frame focuses on the formal organization and its design. The human resource frame focuses on the people in the organization and their needs. The political frame focuses on the power structures and conflicts within the organization. The symbolic frame focuses on the culture and the meaning of events within the organization.
The benefits of the four-frame approach are that it provides a comprehensive understanding of an organization and its operations. It helps in identifying the strengths and weaknesses of an organization and how they can be improved. The approach also helps in identifying areas that require change and how it can be implemented within the organization. Therefore, the four-frame approach is essential in understanding the complexities of an organization and how it can be improved to achieve organizational goals.
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Class Enterprise Architecture CIT Scenario. For all of the deliverables that you will submit over the semester for this course, they require an understanding of a specific set of business processes that you are not likely to have as a student. Rather than have you find a business to case-study (whose information will be abstract at best), the enterprise architecture you will be documenting is one you are moderately familiar with. The scenario used for this course is for you to document the current enterprise architecture for the portion of the School of Creative and Information Technologies (CIT) that you are familiar with: The portion that turns accepted students into successful graduates. You are going to document the strategic goals / products / processes / components / infrastructure / people in CIT that are needed to teach the courses and graduate students with a BT in IT with reasonable success.
Using the class scenario, develop an EA Roles and Responsibility Matrix. Make sure you capture which roles should have specific EA responsibilities.
EA Roles and Responsibility Matrix is a table that outlines the various roles and responsibilities of enterprise architecture (EA) within an organization. Below is an EA Roles and Responsibility Matrix based on the Class Enterprise Architecture CIT Scenario.
RolesResponsibilitiesEnterprise Architect (EA)Lead the development, documentation, and maintenance of the enterprise architecture (EA)Govern EA activities, including the identification of business goals, objectives, and requirements, in collaboration with business stakeholdersGuide and support the development of EA contentEnsure the integration of EA activities across all business areasEnsure the EA aligns with the organization's strategic goals.
Business Analyst (BA)Collaborate with stakeholders to identify business goals, objectives, and requirements, in collaboration with the EAUnderstand business processes and the information systems that support themAssist in the development and documentation of the EAProvide input into the development of business cases for EA initiativesIT ManagerCollaborate with the EA to understand business goals, objectives, and requirementsDevelop and implement IT policies, procedures, and guidelinesEnsure the IT infrastructure aligns with the EAEnsure
IT activities align with the organization's strategic goalsSolution ArchitectCollaborate with stakeholders to identify business goals, objectives, and requirements, in collaboration with the EAUnderstand the organization's IT architecture and technology platformsAssist in the development and documentation of the EAProvide input into the development of business cases for EA initiativesData ArchitectCollaborate with stakeholders to identify business goals, objectives, and requirements, in collaboration with the EA.
Understand data structures, metadata, and other aspects of data architectureAssist in the development and documentation of the EAProvide input into the development of business cases for EA initiatives.
Technical ArchitectCollaborate with stakeholders to identify business goals, objectives, and requirements, in collaboration with the EAUnderstand the organization's IT architecture and technology platformsAssist in the development and documentation of the EAProvide input into the development of business cases for EA initiativesIn summary, the EA Roles and Responsibility Matrix identifies the roles and responsibilities of enterprise architecture (EA) within the School of Creative and Information Technologies (CIT) to teach courses and graduate students with a BT in IT.
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Globe Limited purchased equipment for $1,400,000. The company received a government grant to cover 50% of the cost. The useful life of the asset is 4 years with nil residual value. Using the Deferred Income Approach method, show the extracts of the
: (i) Statement of Comprehensive Income for 3 years (ii) The Statement of Financial Position for 3 years
The Deferred Income Approach (DIA) method defers the grant income to the periods that the related asset and expenses are recognized. The asset and the grant should be presented in the financial statements at their respective net amounts. The net amount is the cost of the asset less the deferred grant income. The carrying amount of the equipment in the statement of financial position for year 3 is $525,000.
The extracts of the statement of comprehensive income for 3 years are given below: Year 1:Year 2:Year 3:Extracts of the statement of financial position for 3 years: Year 1:Year 2:Year 3:
The Deferred Income Approach (DIA) method is a method of accounting for government grants. It defers the grant income to the periods that the related asset and expenses are recognized. The asset and the grant should be presented in the financial statements at their respective net amounts. The net amount is the cost of the asset less the deferred grant income. Statement of Comprehensive Income:
Year 1: The cost of the equipment is $1,400,000. Therefore, the depreciation expense for the first year is $350,000. The grant income received is $700,000. However, this income should be deferred over the useful life of the asset which is four years. Therefore, the deferred grant income for the first year is $175,000. The deferred grant income for the following years can be calculated as follows:
Deferred grant income = (Cost of the asset × Grant rate) × (1/Useful life)
The deferred grant income is subtracted from the grant income to get the grant income recognized in the income statement. Therefore, the grant income recognized in the income statement for year 1 is $525,000.Statement of Financial Position: Year 1:Year 2:Year 3:
Therefore, the carrying amount of the equipment in the statement of financial position for year 3 is $525,000.
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COVID-19 Pandemic and the Evaluation of Macroeconomic Policy Measures in Australia
The COVID-19 pandemic has had a significant impact on the global economy, including Australia. In response to the crisis, the Australian government implemented various macroeconomic policy measures to mitigate the economic downturn and support businesses and individuals.
One of the key policy measures introduced was fiscal stimulus. The government announced several economic stimulus packages, which included cash payments to individuals and wage subsidies for businesses. These measures aimed to boost consumer spending and prevent mass layoffs, ultimately supporting aggregate demand in the economy.
The Reserve Bank of Australia (RBA) also played a crucial role by implementing monetary policy measures. The RBA lowered interest rates to historic lows and implemented quantitative easing measures to ensure liquidity in financial markets. These actions aimed to encourage borrowing and investment, stimulating economic activity.
Additionally, the government implemented supply-side policies to support businesses. This included tax relief measures, such as temporary asset write-offs and investment incentives. These policies aimed to encourage business investment and productivity, supporting long-term economic recovery.
The evaluation of these macroeconomic policy measures in Australia involves assessing their effectiveness in achieving their objectives. This can be done by analyzing key economic indicators, such as GDP growth, employment rates, and inflation. It is important to consider the short-term and long-term impacts of these policies on the economy.
Overall, the evaluation of macroeconomic policy measures in Australia during the COVID-19 pandemic will provide insights into their effectiveness and guide future policy decisions.
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Part (a) What is sustainability? Name a few factors or forces
that can lead to unsustainable market outcomes. Explain your answer
with appropriate examples.
Part (b) Why do you think strong property
The value is:
a) Sustainability involves meeting present needs without compromising future generations. Factors leading to unsustainable market outcomes include environmental degradation, social inequality, short-term profit maximization, and lack of regulation.
b) Strong property rights are important for sustainable development as they provide security, incentivize long-term investments, and promote responsible resource management, fostering economic growth.
(a) Sustainability involves meeting the needs of the present without compromising the ability of future generations to meet their own needs.
Several factors or forces can lead to unsustainable market outcomes:
Environmental degradation: Unsustainable market outcomes can occur when economic activities exploit natural resources at an unsustainable rate, leading to environmental degradation. For example, overfishing can deplete fish stocks and disrupt marine ecosystems, impacting the long-term viability of the fishing industry and threatening food security.
Social inequality: If market outcomes result in significant disparities in wealth and income distribution, it can lead to social unrest and instability. When a small portion of the population accumulates excessive wealth while the majority struggles with poverty, it can create an unsustainable social structure and increase social tensions.
Short-term profit maximization: When businesses prioritize short-term profit maximization over long-term sustainability, it can lead to unsustainable market outcomes. For instance, companies that disregard environmental regulations to cut costs may experience short-term financial gains but contribute to pollution and resource depletion, which can have long-term negative consequences.
Lack of regulation and governance: Insufficient regulations or weak governance mechanisms can allow unsustainable practices to persist. Without proper oversight, businesses may engage in activities that harm the environment or exploit workers, leading to unsustainable outcomes.
(b) Strong property rights are important for sustainable development because they provide individuals and businesses with a sense of security and incentivize long-term investments. When property rights are well-defined and protected, individuals have the confidence to invest in their property, maintain it, and use it productively.
Strong property rights encourage sustainable resource management. If individuals or businesses have secure property rights over natural resources, such as forests or fisheries, they are more likely to adopt sustainable practices. They have an incentive to protect and manage these resources for the long term to ensure their continued benefits and avoid depleting them.
Additionally, strong property rights facilitate economic development. When individuals have clear ownership over their property, they can use it as collateral to access credit and invest in productive activities. This stimulates economic growth and provides opportunities for sustainable development.
Overall, strong property rights create a conducive environment for sustainable development by promoting responsible resource management, encouraging long-term investments, and fostering economic growth.
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The following is an example of indirect financial rewards:
a.
Incentive pay
b.
Holidays
c.
Allowances
d.
Base pay
Holidays are an example of indirect financial rewards from the following statements.
Indirect financial rewards refer to non-monetary incentives given to employees by organizations. Examples of indirect financial rewards include flexible working hours, health insurance, and retirement benefits.
Holidays offer paid time off for employees from work. It is an indirect reward because employees are not directly receiving money for their work, but instead, they get the chance to relax and recharge.
Allowances are a fixed amount of money that employees receive for expenses incurred during their work. Base pay is a fixed salary or hourly rate that employees receive for their work. These are direct financial rewards and not indirect.
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Cary files a suit against Delta Contractors, asking the court to enforce a contract between the parties. The only written evidence of the contract is a memo signed by Delta. The court can enforce the contract if, in addition to Delta's signature the memo includes Select one: O a. a correct title, such as "Cary-Delta Deal." b. a statement that securing the deal is essential for the parties C. a statement of the purpose of the deal and why it was entered into. d. The court may not enforce it because writing is not signed by Delta. e. the important terms of the agreement
In order for the court to enforce the contract between Cary and Delta Contractors based on the written evidence of the memo, it is necessary for the memo to include the important terms of the agreement. The correct answer is option e.
The presence of Delta's signature alone is not enough. The court needs to see that the essential elements of the contract, such as the agreed-upon terms, obligations, rights, and responsibilities of the parties, are clearly stated in the memo.
This allows the court to determine the intent of the parties and the scope of the contractual agreement. Without the inclusion of the important terms, the court may not be able to ascertain the enforceability of the contract.
Therefore, the memo should provide a comprehensive record of the agreement's key provisions to support the court's decision to enforce it.
The correct answer is option e.
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Please label the name of each budget type shown below, on the bold line with the question
marks. ABC, Inc.
For the Month Ended 5/31/2019
Car Sales
Sales on account Total Budgeted Sales
ABC, Inc.
For the Year 1/1/14-12/31/2019
Budgeted Cost of Goods Sold +Desired Inventory
-Total Inventory Required -Budgeted Inventory to be Produced/Purchased
The given format consists of two budget types. They are as follows:Budget 1: ABC, Inc. For the Month Ended 5/31/2019 Sales on account- The name of the budget type in the given format is a Sales budget.Budget 2: ABC, Inc.
For the Year 1/1/14-12/31/2019Budgeted Cost of Goods Sold +Desired Inventory -Total Inventory Required -Budgeted Inventory to be Produced/Purchased - The name of the budget type in the given format is a Production budget.Explanation:Sales Budget: A sales budget is a financial plan that projects how much revenue an organization will generate over a specific period. A sales budget is an internal document that assists businesses in forecasting their sales volume over a particular period. This budget is the foundation for all other budgets and is based on the previous year's sales and the organization's business plan.
Production Budget: A production budget is a budget that shows how many units of a product must be produced over a certain period. This budget considers the sales budget and the business' stock levels to figure out how much stock the organization needs to produce. The production budget shows the amount of goods a manufacturer must produce in order to meet the forecasted sales demand.
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Question 9 By partnering with suppliers, distributors and customers, companies improve the performance of O a. Ob. . marketing system value delivery network internal value chain Oc O d. • competitive delivery network Question 10 Competitive Marketing Intelligence uses data source which are O a. . Private. Ob. Publicly Available OC • internal O.d. • expensive 4 Question 11 Risks of global trade include all of the following EXCEPT O a. High trade barriers O b. ■ corruption OC restrictive government policies unstable currencies O e. Increased opportunities for growth .
Customers are individuals, organizations, or entities that purchase or consume goods, services, or products from a business or supplier. They are the end users or recipients of the offerings provided by a company.
Question 9: By partnering with suppliers, distributors, and customers, companies improve the performance of:
a. Marketing system
b. Value delivery network
c. Internal value chain
d. Competitive delivery network
Answer: b. Value delivery network
Question 11: Risks of global trade include all of the following EXCEPT:
a. High trade barriers
b. Corruption
c. Restrictive government policies
d. Unstable currencies
e. Increased opportunities for growth
Answer: e. Increased opportunities for growth
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