The item should be reordered when the inventory level reaches 775 kg.we need to consider the acceptable stock out risk during the lead time. In this case, the acceptable stock out risk is 6 percent.
1. Refer to the z-values table to find the z-value corresponding to a 6 percent stockout risk. The z-value for a 6 percent stockout risk is approximately 1.55.
2. Calculate the safety stock using the formula: Safety Stock = z * Standard Deviation of Demand during Lead Time.
Safety Stock = 1.55 * 68 kg = 105.4 kg.
Rounding the final answer to the nearest whole number, the appropriate amount of safety stock is 105 kg.
b. To determine the reorder point (ROP), we need to consider the expected demand during the lead time.
1. ROP = Expected Demand during Lead Time + Safety Stock.
ROP = 670 kg + 105 kg = 775 kg.
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Which securities have the highest liquidity?
a. Zero coupon bonds
b. Mutual funds
c. Stocks
d. T-Bills
e. All of the above
f. None of the above
If you are making an investment and your portfolio contains 75% of stocks, 15% of mutual funds and 10% of bonds, you are considered as
a. Ultra-high portfolio
b. Average portfolio investor
C. Risk averse investor
d. A risk taker
e. None of the above
f. All of the above
The securities with the highest liquidity are stocks and T-Bills. Therefore, the correct answer to the first question is option (c) Stocks. Regarding the second question, the investor with a portfolio consisting of 75% stocks, 15% mutual funds, and 10% bonds can be considered an average portfolio investor.
In terms of liquidity, stocks and T-Bills are generally considered to have the highest levels. Stocks represent ownership in a company and are actively traded on stock exchanges, making them highly liquid. T-Bills, or Treasury Bills, are short-term debt securities issued by governments and are considered highly liquid because they have a maturity of less than one year.
On the other hand, zero coupon bonds typically have lower liquidity compared to stocks and T-Bills. These bonds do not pay periodic interest payments but are instead sold at a discount and redeemed at face value upon maturity. Mutual funds, while offering the advantage of diversification, may have varying levels of liquidity depending on the specific fund and its underlying investments.
Therefore, the correct answer to the first question is option (c) Stocks, as they are generally more liquid than the other securities listed.
Regarding the second question, an investor with a portfolio allocation of 75% stocks, 15% mutual funds, and 10% bonds can be considered an average portfolio investor. This allocation suggests a moderate level of risk, as stocks typically carry higher risk compared to bonds, while mutual funds provide some diversification. The specific risk profile of an investor can vary based on their individual circumstances, goals, and risk tolerance. Hence, option (b) Average portfolio investor is the most appropriate description for the given portfolio allocation.
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Let's look at the market for laptops. Suppose the inverse demand and inverse supply curve for laptops were given by the following two equations respectively: PD = 7,000 - 20Q Ps = 200 +5Q a) (4 marks) Determine the free market equilibrium price for laptops in this market, and the amount of laptops that are sold. Calculate the consumer surplus and producer surplus. b) (8 marks) Suppose the government imposed a tax of T = $200 on the price of a new laptop to offset the environmental impact they create. Calculate the new equilibrium in this market. This includes finding • The new equilibrium quantity sold. . The price paid by consumers. • The price received by firms. • The consumer surplus. The producer surplus. The amount of tax collected by the government. • The deadweight loss. c) (3 marks) Suppose the government promised to rebate all the tax collected to consumers who purchased a laptop. Would this make the consumers in favour of the tax? Would this represent a Pareto efficient outcome?
a) Producer Surplus = $204,480
b) Deadweight Loss = $1,400
c) It would partially offset the burden of the tax for consumers. This may make consumers more in favor of the tax as they would receive the tax amount back as a rebate
It does not represent a Pareto efficient outcome.
a) To find the free market equilibrium price and quantity, we equate the inverse demand and inverse supply equations:
PD = Ps
7,000 - 20Q = 200 + 5Q
25Q = 6,800
Q = 272
Substituting Q back into either equation, we can find the equilibrium price:
PD = 7,000 - 20Q
PD = 7,000 - 20(272)
PD = 7,000 - 5,440
PD = 1,560
The free market equilibrium price for laptops is $1,560, and the quantity sold is 272.
To calculate consumer surplus, we need to find the area under the demand curve up to the equilibrium quantity. The formula for consumer surplus is:
Consumer Surplus = 0.5 * (PD - Ps) * Q
Consumer Surplus = 0.5 * (1,560 - 200) * 272
Consumer Surplus = $204,480
To calculate producer surplus, we need to find the area above the supply curve up to the equilibrium quantity. The formula for producer surplus is:
Producer Surplus = 0.5 * (Ps - Pmin) * Q
Pmin is the minimum price at which suppliers are willing to produce, which is $200 in this case.
Producer Surplus = 0.5 * (1,560 - 200) * 272
Producer Surplus = $204,480
b) With a tax of T = $200 imposed on the price of a new laptop, the new equilibrium quantity sold and prices will change. The new inverse supply equation becomes:
Ps = 200 + 5Q - T
Ps = 200 + 5Q - 200
Ps = 5Q
Setting the new inverse supply equation equal to the inverse demand equation:
PD = Ps
7,000 - 20Q = 5Q
25Q = 7,000
Q = 280
Substituting Q back into the inverse demand equation, we can find the new equilibrium price:
PD = 7,000 - 20Q
PD = 7,000 - 20(280)
PD = 7,000 - 5,600
PD = 1,400
The new equilibrium quantity sold is 280, the price paid by consumers is $1,400, and the price received by firms is $200 + 5Q = $200 + 5(280) = $1,600.
To calculate the new consumer surplus, we integrate the area under the demand curve up to the new equilibrium quantity:
Consumer Surplus = 0.5 * (PD - Ps) * Q
Consumer Surplus = 0.5 * (1,400 - 200) * 280
Consumer Surplus = $168,000
To calculate the new producer surplus, we integrate the area above the supply curve up to the new equilibrium quantity:
Producer Surplus = 0.5 * (Ps - Pmin) * Q
Producer Surplus = 0.5 * (1,600 - 200) * 280
Producer Surplus = $224,000
The amount of tax collected by the government can be calculated by multiplying the tax rate by the new equilibrium quantity:
Tax Collected = T * Q
Tax Collected = $200 * 280
Tax Collected = $56,000
To calculate the deadweight loss, we need to compare the new equilibrium quantity with the original equilibrium quantity:
Deadweight Loss = 0.5 * (PD - Ps) * (Q_initial - Q_new)
Deadweight Loss = 0.5 * (1,560 - 5Q) * (272 - 280)
Deadweight Loss = $1,400
c) If the government promised to rebate all the tax collected to consumers who purchased a laptop, it would partially offset the burden of the tax for consumers. This may make consumers more in favor of the tax as they would receive the tax amount back as a rebate.
However, this would not represent a Pareto efficient outcome. A Pareto efficient outcome occurs when it is impossible to make one individual better off without making another individual worse off. In this case, the tax imposition reduces consumer surplus and creates deadweight loss. Although the rebate mitigates some of the burden, the overall welfare of consumers is still reduced due to the tax. Therefore, it does not represent a Pareto efficient outcome.
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Trial Balance Shortcut Buddy Dupree is the accounting manager for On-Time Geeks, a tech support company for individuals and small businesses. As part of his job, Buddy is responsible for preparing the company's trial balance. His supervisor placed a "hard deadline" of Friday at 5 PM for the completion of the trial balance. Unfortunately, Buddy was unable to get the trial balance to balance by the due date. The credit side of the trial balance exceeded the debit side by $3,000. To make the deadline, Buddy decided to add a $3,000 debit to the vehicles account balance. He selected the vehicles account because it will not be significantly affected by the additional $3,000. 1. 2. 3. Is Buddy behaving ethically? Why? Who is affected by Buddy's decision? How should Buddy have handled this situation?
Buddy's decision to arbitrarily add a debit to balance the trial balance is unethical and misrepresents the company's financial position, affecting stakeholders and undermining credibility. He should have followed proper accounting procedures, identified and corrected the error, or sought assistance instead of compromising integrity.
Buddy's decision to arbitrarily add a $3,000 debit to the vehicles account in order to balance the trial balance is unethical. It violates the principle of integrity in accounting, which requires presenting accurate and reliable financial information.
Buddy's unethical behavior affects various parties. Firstly, it misrepresents the company's financial position, which can mislead stakeholders, such as investors, creditors, and management, who rely on accurate financial information to make decisions. Secondly, it undermines the credibility and trustworthiness of the company's financial statements, potentially damaging its reputation. Lastly, it may have legal and regulatory implications if discovered by auditors or authorities.
In this situation, Buddy should have followed proper accounting procedures and principles to resolve the trial balance discrepancy. He should have identified and corrected the error causing the imbalance, such as checking for omitted or incorrectly recorded transactions, reconciling accounts, or seeking assistance from colleagues or superiors. If he couldn't meet the deadline, it would have been more appropriate to communicate the issue and seek an extension rather than compromising the integrity of the financial information.
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Before an interview, try to find out from your career contacts what is considered appropriate attire for the company and position for which you are going to be interviewed.
True
False
The statement "Before an interview, try to find out from your career contacts what is considered appropriate attire for the company and position for which you are going to be interviewed" is true.
It is advisable to gather information about the dress code and expected attire for a job interview by reaching out to career contacts or conducting research.
Before attending a job interview, it is essential to present yourself in a professional manner, including appropriate attire. Different companies and industries may have specific dress codes or expectations for interviews. By contacting career contacts who have knowledge of the company or position, you can gain insights into the preferred attire. They can provide valuable information about whether the company leans towards a formal business attire, business casual, or has any specific guidelines.
Researching the company's culture and browsing their website or social media platforms may also offer clues about their preferred dress code. Adapting your attire to align with the company's expectations demonstrates your professionalism and commitment to fit into their organizational culture.
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Please draw a diagram and not write a statement.
Draw a proper diagram, showing how an increase in money supply affects the aggregate demand curve or the aggregate supply curve and, thereby, the real GDP and the price level.
An increase in money supply stimulates aggregate demand, leading to higher real GDP and potentially an increase in the price level. The exact impact on the economy will depend on various other factors, including the state of the AS curve and other macroeconomic conditions.
When there is an increase in money supply, it affects the aggregate demand curve and, consequently, the real GDP and the price level. An increase in money supply leads to lower interest rates, which stimulates borrowing and spending by both consumers and businesses. This increase in spending results in a shift of the aggregate demand (AD) curve to the right.
The shift in the AD curve causes both real GDP and the price level to rise. Real GDP increases because the higher demand for goods and services leads to increased production and output. The price level increases because the increased demand puts upward pressure on prices.
On the other hand, the aggregate supply (AS) curve may also be influenced by factors such as changes in production costs, technology, and resource availability. If the increase in money supply is accompanied by favorable conditions that promote increased production and supply of goods and services, the AS curve may shift to the right, further boosting real GDP and potentially mitigating the impact on the price level.
Overall, an increase in money supply stimulates aggregate demand, leading to higher real GDP and potentially an increase in the price level. The exact impact on the economy will depend on various other factors, including the state of the AS curve and other macroeconomic conditions.
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Find the proceeds of the following promissory note. A five-year
$3600.00note bearing interest at 5% compounded monthly, issued
October 1, 2003, discounted on September 1, 2006, to yield 9.4�
A five-year $3600.00 note bearing interest at 5% compounded monthly: The proceeds of the promissory note are $2,729.64.
To find the proceeds of the promissory note, we need to calculate the present value of the note discounted at the given rate. The note has a face value of $3600.00 and bears an interest rate of 5% compounded monthly. It was issued on October 1, 2003, and discounted on September 1, 2006, to yield 9.4% compounded quarterly.
First, we need to determine the number of compounding periods. From October 1, 2003, to September 1, 2006, there are 35 months, and since the interest is compounded monthly, there are 35 compounding periods.
Next, we calculate the discount factor using the formula for present value of a compounded interest:
Discount factor = (1 + r/n)^(-nt)
where r is the interest rate, n is the number of compounding periods per year, and t is the number of years.
Plugging in the values, we get:
Discount factor = (1 + 0.094/4)^(-4*3/12) = 0.7545
Finally, we multiply the discount factor by the face value of the note to find the proceeds:
Proceeds = $3600.00 * 0.7545 = $2,729.64
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Find the proceeds of the following promissory note. A five-year $3600.00note bearing interest at 5% compounded monthly, issued October 1, 2003, discounted on September 1, 2006, to yield 9.4% compounded quarterly.
1.
Which type of company would most likely use a process costing system?
a. Printer
b. Chemical producer
c. Custom furniture maker
d. Ship builder
2.
In a process costing system, transferred-in costs…
a. Are computed for all production but not reported in the cost of process costing report
b. Usually do not include any indirect costs
c. Are the costs of the completed units
d. Are the costs recorded in preceding departments
:
1. b. Chemical producer
A chemical producer would most likely use a process costing system. Process costing is commonly used in industries where production involves continuous and repetitive processes, such as chemical manufacturing. It allows for the accumulation and allocation of costs to multiple units of production that go through a series of similar processes.
2. c. Are the costs of the completed units
In a process costing system, transferred-in costs refer to the costs of materials or partially completed units that are transferred from one department to another within the production process. These costs are considered part of the completed units and are included in the cost of the finished products.
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1. b. Chemical producer
A chemical producer would most likely use a process costing system. Process costing is commonly used in industries where production involves continuous and repetitive processes, such as chemical manufacturing. It allows for the accumulation and allocation of costs to multiple units of production that go through a series of similar processes.
2. c. Are the costs of the completed units
In a process costing system, transferred-in costs refer to the costs of materials or partially completed units that are transferred from one department to another within the production process. These costs are considered part of the completed units and are included in the cost of the finished products.
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During August 2024, Lima Company recorded the following: Requirements • Sales of $133,300 ($122,000 on account; $11,300 for cash). Ignore Cost of 1. Journalize Lima's transactions during August 2024, assuming Lima uses the direct write-off method. Goods Sold. • Collections on account, $106,400. 2. Journalize Lima's transactions during August 2024, assuming Lima uses the allowance method. • Write-offs of uncollectible receivables, $990. • Recovery of receivable previously written off, $800. Requirement 1. Journalize Lima's transactions during August 2024, assuming Lima uses the direct write-off method. Sales of $133,300 ($122,000 on account, $11,300 for cash). Ignore Cost of Goods Sold. (Record debits first, then credits. Select the explanation on the last line of the journal entratable. Prepare a single compound journal entry.) Accounts and Explanation Debit Credit Date Aug
To journalize Lima Company's transactions during August 2024 using the direct write-off method, the following entries should be recorded:
Date: August 2024
1. Sales on Account:
Accounts Receivable - $122,000
Sales - $122,000
2. Sales for Cash:
Cash - $11,300
Sales - $11,300
3. Collections on Account:
Cash - $106,400
Accounts Receivable - $106,400
4. Write-off of Uncollectible Receivables:
Uncollectible Accounts Expense - $990
Accounts Receivable - $990
5. Recovery of Receivable Previously Written Off:
Accounts Receivable - $800
Uncollectible Accounts Expense - $800
The compound journal entry can be presented as follows:
Date Accounts Debit Credit
Aug Accounts Receivable $122,000
Sales $122,000
Aug Cash $11,300
Sales $11,300
Aug Cash $106,400
Accounts Receivable $106,400
Aug Uncollectible Accounts Expense $990
Accounts Receivable $990
Aug Accounts Receivable $800
Uncollectible Accounts Expense $800
Note: The entry for cost of goods sold is not provided, so it is assumed to be excluded from these transactions.
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True/False Inspection of the final product guarantees quality. True/False There is some variability in a process.
True/False: Inspection of the final product guarantees quality. False.
Inspection of the final product alone does not guarantee quality. While inspection can identify defects or deviations from the desired standards, it does not address the root causes of those issues or prevent them from occurring in the first place. Quality is best achieved through a holistic approach that includes process control, continuous improvement, and prevention of defects. Inspecting the final product is just one part of the quality assurance process, but it does not ensure quality by itself.
True/False: There is some variability in a process. True.
Variability is inherent in most processes. It refers to the natural variation or fluctuations that occur in inputs, processes, or outputs. Variability can arise from numerous factors such as equipment variations, environmental conditions, human factors, and inherent process characteristics. Understanding and managing variability is essential for process control and quality management. Techniques like statistical process control (SPC) can help monitor and reduce variability, leading to more consistent and predictable outcomes. Recognizing and addressing variability is crucial for improving process performance and achieving desired quality standards.
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Write a business short memo :
You are working as production manager in your company and your CEO has asked to write a short memo report for the reasons of the high cost of production. He also wants recommendations for cost savings in your production department. Your department always works with a high inventory level of both raw material and finished goods. Wastages and errors are abnormally high in your department. Theft and spoilage are also matters of concern.
The high cost of production is primarily due to high inventory levels, wastages and errors, theft, and spoilage.
The high cost of production in our department can be attributed to several factors. Firstly, our department maintains high inventory levels of both raw materials and finished goods, which incurs additional storage costs and ties up capital. Secondly, wastages and errors are abnormally high, leading to increased material and labor costs. Thirdly, concerns regarding theft and spoilage further contribute to the overall cost burden.
To address these issues and achieve cost savings, I recommend the following measures:
Inventory Management: Conduct a thorough analysis of our inventory to identify slow-moving or obsolete items. Liquidate these items to free up storage space and reduce holding costs. Implement a just-in-time (JIT) inventory management system to optimize procurement and production processes.
Quality Control: Enhance our quality control measures to minimize wastages and errors. Implement rigorous inspections and quality assurance procedures throughout the production process to identify and rectify issues early on.
Training and Education: Provide comprehensive training to our staff regarding best practices, quality standards, and efficient production techniques. This will help reduce errors, improve productivity, and minimize wastages.
Security Measures: Strengthen security measures to mitigate theft and spoilage risks. Implement access controls, surveillance systems, and regular audits to monitor and prevent unauthorized activities.
By implementing these recommendations, we can streamline our production processes, reduce costs associated with inventory management, minimize wastages and errors, and enhance security measures. These efforts will contribute to significant cost savings and improve the overall efficiency and profitability of our department.
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THIS IS ONE QUESTION
1. A) Angie and Susan agree to work together to raise funds for a local nonprofit children's hospital. Even without a written agreement, they have formed a partnership.
True
False
B) Wilson, who runs a dairy farm, owes the Circle C Ranch $50,000. Wilson agrees to pay Circle C a percentage of his profits each month until the debt is paid. Because of this agreement, Circle C is ____________.
Wilson's creditor only
Wilson's partner until the debt is paid
neither Wilson's creditor nor his partner
Wilson's creditor and partner
A) True. Angie and Susan have agreed to work together for a common purpose, which meets the definition of a partnership even if there is no written agreement.
B) Wilson's creditor only. The agreement between Wilson and Circle C Ranch does not create a partnership. Circle C Ranch is simply a creditor who will receive a percentage of Wilson's profits until the debt is paid off.
In a partnership, two or more people agree to carry on a business for profit. In this case, Angie and Susan are working together to raise funds for a local nonprofit children's hospital. Even though there is no written agreement, they have formed a partnership because they have a common goal of raising funds for the hospital. As partners, they would share the profits or losses of the fundraising venture.
On the other hand, Wilson owes $50,000 to the Circle C Ranch, and he agrees to pay a percentage of his profits every month until the debt is paid off. This agreement creates a creditor-debtor relationship, not a partnership. The Circle C Ranch is Wilson's creditor and has the right to collect payments from him until the debt is fully satisfied. However, this agreement does not make Circle C Ranch Wilson's partner. They do not share profits or losses in the dairy farm business, but rather, they have a fixed repayment schedule until the outstanding debt is paid off.
In summary, the agreement between Angie and Susan forms a partnership, while the agreement between Wilson and Circle C Ranch establishes a creditor-debtor relationship where Circle C Ranch is Wilson's creditor only and not his partner.
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A company sells ribbon winders. The company’s yearly demand
equation is given by: P = 300 -.02Q. The manufacturing of the
ribbon winder costs P30 per unit and the fixed cost per year is
P9000.
Det
The company's yearly demand equation for ribbon winders is given by P = 300 - 0.02Q. The manufacturing cost per unit is P30, and the fixed cost per year is P9000.
The demand equation P = 300 - 0.02Q represents the relationship between the price (P) of ribbon winders and the quantity demanded (Q) by customers. The equation suggests that as the price increases, the quantity demanded decreases. Conversely, as the price decreases, the quantity demanded increases.
The manufacturing cost per unit is P30. This cost includes the expenses incurred in producing each ribbon winder, such as materials, labor, and other associated costs. It is a variable cost that depends on the quantity produced.
Additionally, the company incurs a fixed cost of P9000 per year. Fixed costs are expenses that remain constant regardless of the quantity produced. They include expenses like rent, insurance, salaries of permanent staff, and other overhead costs.
By understanding the demand equation and the manufacturing and fixed costs, the company can determine the optimal price and quantity to maximize its profit. The company needs to find the equilibrium point where the quantity demanded matches the quantity supplied and set the price accordingly. This information will help the company make informed decisions regarding production levels, pricing strategies, and overall profitability.
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2. Four Step Process with Rework and Scrap - from module 5 slides Consider the following four step assembly operation with quality problems. All resources are staffed with one operator.
The first resource has a processing time of 4 minutes per unit
The second resource has a processing time of 3 minutes per unit. This process suffers from a high yield loss and 50% of all products have to be scrapped after this step.
The third resource also suffers from quality problems. However, instead of scrapping the product, the third resource reworks it. The processing time at the third resource is 5 minutes per unit. In the 30% of the products in which the product needs to be reworked, this extends to a total (initial processing time plus rework) processing time of 10 minutes per unit. Rework always leads to a non-defective unit.
No quality problems exist at the first and final resource. The processing time is 2 minutes per unit.
a. For every unit of demand, how many units have to flow through the third step in the process? b. Where in the process is the bottleneck? c. What is the process capacity?
a. To determine how many units have to flow through the third step in the process for every unit of demand, we need to consider the yield and rework rates.
First, let's assume the demand is represented by "D" units.
At the second resource, 50% of all products have to be scrapped. Therefore, only 50% of the units from the first resource will pass through to the third resource. This means that 0.5 * D units will flow through to the third step.
At the third resource, 30% of the products need to be reworked, which means 30% of the 0.5 * D units will require rework. Therefore, the number of units that have to flow through the third step is 0.3 * 0.5 * D = 0.15 * D units.
b. To identify the bottleneck in the process, we need to compare the processing times at each resource.
The first resource has a processing time of 4 minutes per unit.
The second resource has a processing time of 3 minutes per unit.
The third resource has a processing time of 5 minutes per unit for regular processing and 10 minutes per unit for rework.
Comparing the processing times, we can see that the third resource has the longest processing time. Therefore, the bottleneck in the process is at the third resource.
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You own a put option on Ford Stock with a strike price of $10. The option will expire in exactly six months time.
a. If the stock is trading at $8 in 6 months, what will be the payoff of the put?
b. If the stock is trading at $23 in 6 months, what will be the payoff of the put?
c. Draw a payoff diagram showing the value of the put at expiration as a function of the stock price at expiration.
a. The payoff for the put option will be $200.
b. The payoff for the put option will be -$1,300.
Here, we have
You own a put option on Ford Stock with a strike price of $10. The option will expire in exactly six months' time.
A. Payoff for put option When the stock price is $8, the payoff for a put option will be:
(Strike price - Stock price) x 100
= (10-8) x 100 = $200
B. Payoff for put option When the stock price is $23, the payoff for a put option will be:
(Strike price - Stock price) x 100
= (10-23) x 100
= $-1300
C. Payoff diagrams following is the payoff diagram showing the value of the put option as a function of the stock price at expiration:
It is clearly observed that the payoff for a put option increases as the stock price decreases and approaches the strike price of the option.
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The cost of direct labor used in production is recorded as a A. credit to Work-in - Process Inventory account. B. credit to wages payable. C. credit to wages expense. D. credit to Manufacturing Overhead account
The cost of direct labor used in production is recorded as a C. credit to wages expense.
Direct labor cost is a major factor in the production of a product. It is a component of prime cost (along with the expense of raw materials) and is computed as the cost of wages paid to workers in order to manufacture goods. In production, direct labor costs are directly linked to the amount of time workers spend on a product.
The cost of direct labor used in production is recorded as a credit to the wages expense account. When a company utilizes direct labor, it compensates its employees.
As a result, the wage expense account is increased.
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16. Surfside Ltd is marketing a 'surfing bundle' in which, for $1100, it provides customers with a surfboard (which retails separately for $850), a wetsuit (which retails separately for $250) and five lessons (which retail separately for $200). You are required to determine: (a) Whether separate performance obligations exist, and to explain why you made this judgement. (b) How much of the transaction price to allocate to each performance obligation. LO 15.7, 15.8.. Good or service Stand-alone price $850 Surfboard Wetsuit Lessons $250 $200 $1,300 $1,100 At sale (being, first day of the financial year 1 July 2021): 1 July 2021 Cash/Accounts Receivable Dr Liability - surfboard Cr Liability - wetsuit Cr Liability - lessons Cr Assume surfboard and wetsuit is delivered the next day: 2 July 2021 Liability - surfboard Dr Liability-wetsuit Dr Revenue - surfboard Cr Revenue - wetsuit Cr Discount allocation Allocated amount 850/1300 x $200 = $131 $719 250/1300 x $200 = $38 $212 200/1300 x $200 = $31 $169 $200 1 100 719 212 719 212 169 719 212 The undelivered element (i.e. the lessons) will be recognised when those services are delivered. Because the lessons are available to the counterparty continuously over the period of the agreement the revenue should be recognised in accordance with AASB 15/IFRS 15 on a straight-line basis. At the end of the first year (i.e., 30 June 2022) Surfside Ltd has provide three lessons: 30 June 2022 Liability - lessons Dr 101 Revenue lessons Cr 101
a) Yes, separate performance obligations exist in this scenario .
b) For the transaction price of $1,100, the allocation would be as follows:
Surfboard: $715 ($1,100 x 65%)
Wetsuit: $209 ($1,100 x 19%)
Lessons: $176 ($1,100 x 15%)
(a) Whether separate performance obligations exist, and to explain why you made this judgement:
Yes, separate performance obligations exist in this scenario. A performance obligation is a promise to transfer a distinct good or service to the customer. In the case of Surfside Ltd's surfing bundle, the company is providing three distinct items: a surfboard, a wetsuit, and lessons. Each of these items has its own standalone price, indicating that they can be purchased separately. Therefore, they qualify as separate performance obligations.
(b) How much of the transaction price to allocate to each performance obligation:
To allocate the transaction price to each performance obligation, we need to determine their relative standalone prices. The standalone price of the surfboard is $850, the wetsuit is $250, and the lessons are $200. The total standalone price for all the items is $1,300.
Using the standalone prices, we can calculate the allocation as follows:
The surfboard represents 65% ($850 / $1,300) of the total standalone price.
The wetsuit represents 19% ($250 / $1,300) of the total standalone price.
The lessons represent 15% ($200 / $1,300) of the total standalone price.
Therefore, for the transaction price of $1,100, the allocation would be as follows:
Surfboard: $715 ($1,100 x 65%)
Wetsuit: $209 ($1,100 x 19%)
Lessons: $176 ($1,100 x 15%)
It's important to note that the revenue for the undelivered element, which is the remaining lessons, should be recognized when those services are delivered, in accordance with AASB 15/IFRS 15, on a straight-line basis.
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In early 2015, Ford Motor (F) had a book value of equity of $24.3 billion, 4.1 billion shares outstanding, and a market price of $15.78 per share. Ford also had cash of $21.6 billion, and total debt of $118.3 billion. Three years later, in early 2018, Ford had a book value of equity of $34.7 billion, 10.7 billion shares outstanding with a market price of $10.53 per share, cash of $26.1 billion, and total debt of $154.4 billion. Over this period, what was the change in Ford's
a. market capitalization?
b. market-to-book ratio?
c. enterprise value?
a. Over the 3-year period, what was the change in Ford's market capitalization?
The change in Ford's market capitalization was $ billion. (Round to two decimal places.)
b. Over the 3-year period, what was the change in Ford's market-to-book ratio?
The change in Ford's market-to-book ratio was (Round to two decimal places.)
c. Over the 3-year period, what was the change in Ford's enterprise value?
The change in Ford's enterprise value was $ billion. (Round to two decimal places.)
a. The change in market capitalization over the 3-year period is $48.273 billion. b. The change in the market-to-book ratio over the 3-year period is 0.60. c. The change in enterprise value over the 3-year period is $79.873 billion.
a. To calculate the change in Ford's market capitalization, we need to find the market value of equity at the beginning and end of the period. In early 2015, Ford had 4.1 billion shares outstanding, and the market price was $15.78 per share.
Therefore, the market capitalization in 2015 was 4.1 billion shares * $15.78 per share = $64.698 billion. In early 2018, Ford had 10.7 billion shares outstanding, and the market price was $10.53 per share. Thus, the market capitalization in 2018 was 10.7 billion shares * $10.53 per share = $112.971 billion.
The change in market capitalization over the 3-year period is $112.971 billion - $64.698 billion = $48.273 billion.
b. The market-to-book ratio is calculated by dividing the market capitalization by the book value of equity. In early 2015, the market-to-book ratio was $64.698 billion / $24.3 billion = 2.66.
In early 2018, the market-to-book ratio was $112.971 billion / $34.7 billion = 3.26. Therefore, the change in the market-to-book ratio over the 3-year period is 3.26 - 2.66 = 0.60.
c. Enterprise value is calculated as the market value of equity plus total debt minus cash. In early 2015, the enterprise value was $64.698 billion + $118.3 billion - $21.6 billion = $161.398 billion. In early 2018, the enterprise value was $112.971 billion + $154.4 billion - $26.1 billion = $241.271 billion.
The change in enterprise value over the 3-year period is $241.271 billion - $161.398 billion = $79.873 billion.
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The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,753 debit balance, but its July bank statement shows a $27,665 cash balance. b. Check Number 3031 for $1,330, Check Number 3065 for $441, and Check Number 3069 for $2,098 are outstanding checks as of July 31. c. Check Number 3056 for July rent expense was correctly written and drawn for $1,260 but was erroneously entered in the accounting records as $1,250. d. The July bank statement shows the bank collected $6,500cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f. The July statement shows a $10 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. g. Branch's July 31 daily cash receipts of $7,632 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement. 2. Prepare the journal entries necessary to make the company's book balance of cash equal to the reconciled cash balance as of July 31. (If no entry is required for a iransaction/event, select "No journal entry required" in the first account field.)
To reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31, the following journal entries need to be made:
1. To adjust for outstanding checks:
Debit: Outstanding Checks ($1,330 + $441 + $2,098)
Credit: Cash
2. To correct the error in recording July rent expense:
Debit: Rent Expense ($1,260 - $1,250)
Credit: Cash
3. To record the bank's collection of cash on a note:
Debit: Cash
Credit: Notes Receivable
4. To record the NSF check from customer Evan Shaw:
Debit: Accounts Receivable (Evan Shaw)
Credit: Cash
5. To record the bank service charge:
Debit: Bank Service Charges
Credit: Cash
6. To adjust for the unrecorded cash receipts:
Debit: Cash
Credit: Miscellaneous Income (or the appropriate revenue account)
By making these journal entries, the company's book balance of cash will be adjusted to match the reconciled cash balance as of July 31, taking into account outstanding checks, errors, collections, NSF checks, bank service charges, and unrecorded cash receipts.
It's important to reconcile the book balance of cash with the bank statement cash balance regularly to ensure accurate financial records and detect any discrepancies or errors in a timely manner.
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What impacts do various financing options have on different population segments that are reliant upon the health care delivery system?
The impacts can vary based on factors such as income level, age, health status, and access to healthcare services. Understanding these impacts is crucial for designing effective healthcare financing policies that address the needs of diverse population segments.
The impacts of different financing options in the healthcare delivery system can be significant for various population segments. Low-income individuals or those with limited financial resources may face barriers to accessing healthcare if financing options are not designed to accommodate their economic circumstances. For example, high out-of-pocket costs or lack of insurance coverage can prevent individuals from seeking timely medical care or receiving necessary treatments, leading to poorer health outcomes.
Age also plays a role in the impact of financing options. Elderly populations, who often require more frequent healthcare services, may be more affected by financing options that have limitations on coverage or reimbursement rates. Medicare, a government program in the United States that provides health insurance for individuals aged 65 and older, is an example of a financing option specifically designed for this population segment. However, changes to Medicare policies, such as increased cost-sharing or reduced benefits, can have direct implications for elderly individuals' access to care.
Health status is another important factor to consider. Individuals with chronic conditions or disabilities may require ongoing and specialized care, which can be costly. Financing options that offer comprehensive coverage, lower co-pays, and adequate provider networks are critical for ensuring that these populations can afford and access the care they need. On the other hand, individuals with relatively good health may prefer financing options that prioritize preventive services and wellness programs, as these can help maintain their well-being and potentially reduce future healthcare costs.
Access to healthcare services also influences the impact of financing options. Rural populations, for instance, may face unique challenges in accessing care due to limited healthcare facilities and providers. Financing options that support telehealth services or incentivize healthcare providers to practice in rural areas can help address these access disparities. Additionally, populations with language or cultural barriers may require financing options that include language interpretation services or culturally competent care to ensure equitable access to healthcare.
In conclusion, the impacts of various financing options on different population segments reliant upon the healthcare delivery system are diverse. Factors such as income level, age, health status, and access to healthcare services all play a role in determining the effects of financing options. Policymakers and healthcare administrators need to consider these factors when designing and implementing healthcare financing policies to ensure equitable access to quality care for all population segments.
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At which stage of the product life cycle does the firm have
frequent product and process design changes?
Group of answer choices
introduction
growth
maturity
decline
The stage of the product life cycle in which the firm has frequent product and process design changes is the Introduction stage.
What is product life cycle?Product life cycle (PLC) is the cycle through which every product goes through, which starts with its introduction, goes through the growth phase, matures, and then declines. The product life cycle is often presented as a bell curve, which means that it moves upwards, levels out, and then declines.
The stages of the product life cycle are discussed below: Introduction Stage: It is the stage where the product is introduced in the market. Sales during this stage are usually low, and the product is not very profitable. Growth Stage: During the growth stage, the product gains acceptance, sales increase, and competitors start entering the market.
Maturity Stage: During the maturity stage, sales growth slows down, and the market reaches saturation. The product is stable during this stage, and the focus is on process innovation and improving efficiency. Decline Stage: During the decline stage, sales start falling, and profits are negatively affected.
The product may be phased out or re-launched with a new life cycle.
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According to the Resource-Based View of the Firm (RBV) model, effective management of a company’s operations results in the creation of unique resources and capabilities.
True
False
True. According to the Resource-Based View (RBV) of the Firm, effective management of a company's operations leads to the creation of unique resources and capabilities that can provide a competitive advantage.
The RBV perspective emphasizes that a firm's competitive advantage is derived from its distinct set of resources and capabilities that are valuable, rare, inimitable, and non-substitutable (VRIN criteria).
Under this view, resources refer to tangible and intangible assets that a firm possesses, including physical assets, human capital, organizational culture, brand reputation, and technological expertise. Capabilities, on the other hand, are the firm's ability to deploy and utilize its resources effectively to achieve desired outcomes.
Effective management of operations involves efficiently utilizing resources, developing and leveraging capabilities, and aligning them with the firm's strategic goals. By doing so, a company can build unique resources and capabilities that are difficult for competitors to replicate, thereby creating a sustainable competitive advantage in the market.
In summary, the RBV model supports the notion that effective management of a company's operations leads to the creation of unique resources and capabilities, which contribute to its competitive advantage.
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AYAYAI Ltd. had earnings per share of $5 as of December 31,2022 , but paid no dividends. Earnings were expected to grow at 14.2 percent per year for the following five years. AYAYAI Ltd. will start paying dividends for the first time on December 31, 2027, distributing 50 percent of its earnings to shareholders. Earnings growth will be 6 percent per year for the next six years (that is, from January 1, 2028, through to December 31, 2033). Starting on December 31, 2033, AYAYAI Ltd. will begin to pay out 80 percent of its earnings in dividends and earnings growth will stabilize at 2 percent per year in perpetuity.The required rate of return on AYAYAI stock is 10 percent. What should be the current share price of AYAYAI? (Round intermediate calculations to 6 decimal places, e.g. 15.612125 and the final answer to 2 decimal places, e.g. 15.61.) Current share price of AYAYAI $ Attempts: 0 of 3 used Using multiple attempts will impact your score. 25% score reduction after attempt 1
The current share price of AYAYAI Ltd. should be $69.77.
To calculate the current share price, we need to determine the present value of the future dividends and the perpetuity. We first calculate the present value of dividends from 2027 to 2033 using the dividend discount model, considering the growth rates and the required rate of return. Then, we calculate the present value of the perpetuity beyond 2033, assuming a stable growth rate of 2%. Finally, we sum up the present values to get the current share price of $69.77. This represents the value that investors are willing to pay today for the expected future dividends and growth of AYAYAI Ltd.
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Change Management Plan
Provide three scenarios of potential change requests for your project.
Project: 20,000 for opening Food/Dessert Truck – Selling and promoting various cultural desserts during Summer/Spring.
Scenario 1: Introducing vegan and gluten-free dessert options to cater to a wider customer base, requiring recipe modifications and ingredient sourcing.
Scenario 2: Expanding the food truck's operational hours to include late-night service, necessitating staffing adjustments and potential collaboration with local events or venues.
Scenario 3: Adding a mobile app for customers to place orders and receive notifications, involving app development, integration with existing systems, and marketing efforts to promote its usage.
Scenario 1: Expansion of Menu Options
A potential change request for the food/dessert truck project could be to expand the menu options to include a wider variety of cultural desserts. This could be driven by customer feedback or market research indicating a demand for more diverse dessert choices.
The change management plan would involve conducting a feasibility analysis to determine the impact of the menu expansion on costs, resources, and operational processes. This would include assessing the availability of ingredients, potential equipment requirements, and the need for additional staff or training.
The plan would also involve updating marketing and promotional materials to reflect the expanded menu and communicate the new offerings to customers.
Scenario 2: Introduction of Online Ordering
Another change request could be to implement an online ordering system for the food/dessert truck. This would allow customers to place their orders in advance, enhancing convenience and potentially increasing sales.
The change management plan would involve researching and selecting a suitable online ordering platform, integrating it with the existing operations, and training staff on how to use the system.
It would also require updating the truck's website or creating a new online platform to facilitate the ordering process and ensure a seamless customer experience.
Scenario 3: Collaborations with Local Events
A change request could involve establishing partnerships and collaborations with local events or festivals to increase the truck's visibility and customer reach. This could involve participating in food fairs, cultural festivals, or community events.
The change management plan would include identifying suitable events, negotiating partnerships or booth rentals, and coordinating logistics such as transportation, set-up, and staffing. It would also involve marketing and promotional efforts to maximize exposure and attract customers during these events.
Overall, the change management plan for the food/dessert truck project would involve assessing the impact of each change request on various aspects such as operations, costs, resources, and marketing. It would include stakeholder engagement, feasibility analysis, and effective communication to ensure the successful implementation of the requested changes.
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Entries for equity investments: 20%-50\% ownership On lanuary 4,20Y4, Ferguson Cempany purchased 84,000 shares of 5 iva Compary's common stock cirectiy from one of the founders for a petce of $39 per share. Sitva has 300,000 shares cutstanding, including the Daniels shares, On Jaly 2, 20y4, 5 iva paid $244,000 in total dividends to ess shareholders, On December 31,20 r 4 , Silva reported a net incoene of $771,000 for the year. a. Journalize the Ferguson Campany entries for the transactions imvolviag its investment in 5 vo Company during 20 in. If an amount bax does not require an entry, leave it biank. b. Determine the Decenber 31,20×4, barance of thvestment in 5 fra Company Stock:
a. Journal entries for Ferguson Company:
January 4, 20Y4:
Investment in Siva Company Stock 3,276,000 (84,000 shares x $39)
Cash 3,276,000
July 2, 20Y4:
Cash 244,000
Dividend Income 244,000
December 31, 20Y4:
Investment in Siva Company Stock 299,000 [(84,000 shares / 300,000 shares) x $771,000]
Equity in Earnings of Siva Company 299,000
b. The December 31, 20×4, balance of the investment in Siva Company stock is $2,733,000. (The initial investment of $3,276,000 minus the dividend income of $244,000 and plus the equity in earnings of $299,000.)
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The journal entry is:
a. Journal entries:
January 4, 20Y4: Investment in Silva Company Stock (84,000 shares x $39) - $3,276,000
July 2, 20Y4: Dividend Receivable - $168,000
December 31, 20Y4: Investment in Silva Company Stock (84,000 shares x 20% ownership) - $160,800
b. Balance of Investment in Silva Company Stock on December 31, 20Y4: $3,032,000.
a. Journal entries for Ferguson Company's transactions involving its investment in Silva Company during 20Y4:
January 4, 20Y4:
Investment in Silva Company Stock (84,000 shares x $39) 3,276,000
Cash 3,276,000
(To record the purchase of 84,000 shares of Silva Company's common stock)
July 2, 20Y4:
Dividend Receivable 168,000
Investment in Silva Company Stock 168,000
(To record the receipt of dividends from Silva Company)
December 31, 20Y4:
Investment in Silva Company Stock (84,000 shares x 20% ownership) 160,800
Equity in Earnings of Silva Company 160,800
(To record Ferguson Company's share of Silva Company's net income)
b. The balance of Investment in Silva Company Stock on December 31, 20Y4, would be the initial investment cost minus any dividends received:
Initial investment cost: 84,000 shares x $39 = $3,276,000
Dividends received: $244,000
Balance of Investment in Silva Company Stock: $3,276,000 - $244,000 = $3,032,000
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ABC Mfg. is evaluating the desirability of implementing process improvements and is seeking your help in determining whether it should proceed with the proposed improvements. One area of focus is how the improvements will affect processing time (manufacturing cycle time efficiency). Estimated activities and associated times for these activities under both the current process and after process improvements are as follows: Current After Process Process Activity Process Improvements Wait time 4 hours 1 hour 40 minutes 5 minutes Inspection Movinq 80 minutes 20 minutes Processing (manufacturing) 75 minutes 2 hours Required: 1. Determine the manufacturing (production) lead time (in minutes) for each of the two decision alternatives 2. Determine the manufacturing cycle efficiency (MCE) for each decision alternative. Complete this question by entering your answers in the tabs below. Required 2 Required 1 Determine the manufacturing (production) lead time (in minutes) for each of the two decision alternatives. Manufacturing (Production) Lead Time Current process minutes After process improvements minutes Required 1 Required 2 Cmprctc s soDyGteng rnswers mraG cDS DGOW. Required 1 Required 2 Determine the manufacturing cycle efficiency (MCE) for each decision alternative. (Round your answers to 2 decimal places (e.g., 0.3143 0.31).) Manufacturing Cycle Efficiency (МCЕ) Current process After process improvements Required 1 Required 2
1. Manufacturing Lead Time:
- Current process: 395 minutes
- After process improvements: 240 minutes
2. Manufacturing Cycle Efficiency (MCE):
- Current process: 18.99%
- After process improvements: 50%
To determine the manufacturing (production) lead time and manufacturing cycle efficiency (MCE) for each decision alternative, we'll use the given information on activities and associated times.
1. Manufacturing (Production) Lead Time:
The manufacturing lead time is the total time it takes to complete the manufacturing process, including all activities involved. We'll calculate it separately for the current process and after process improvements.
Current process:
Manufacturing lead time = Wait time + Inspection time + Processing time
Manufacturing lead time = 4 hours + 80 minutes + 75 minutes
Manufacturing lead time = 240 minutes + 80 minutes + 75 minutes
Manufacturing lead time = 395 minutes
After process improvements:
Manufacturing lead time = Wait time + Inspection time + Processing time
Manufacturing lead time = 1 hour 40 minutes + 20 minutes + 2 hours
Manufacturing lead time = (60 minutes + 40 minutes) + 20 minutes + (120 minutes)
Manufacturing lead time = 100 minutes + 20 minutes + 120 minutes
Manufacturing lead time = 240 minutes
2. Manufacturing Cycle Efficiency (MCE):
The MCE is calculated by dividing the value-added processing time by the total manufacturing lead time.
Current process:
Value-added processing time = Processing time
MCE = (Processing time / Manufacturing lead time) * 100
MCE = (75 minutes / 395 minutes) * 100
MCE ≈ 18.99% (rounded to 2 decimal places)
After process improvements:
Value-added processing time = Processing time
MCE = (Processing time / Manufacturing lead time) * 100
MCE = (2 hours / 240 minutes) * 100
MCE ≈ 50% (rounded to 2 decimal places)
Summary of results:
1. Manufacturing (Production) Lead Time:
Current process: 395 minutesAfter process improvements: 240 minutes2. Manufacturing Cycle Efficiency (MCE):
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Entity A issued $5,000,000 of 6%, 10-year bonds on January 1, 2020, for $4,328,974 to yield an effective annual rate of 8%. Interest is payable annually on January 1. The effective-interest method of amortization is to be used. You can round to the nearest dollar. A. Prove that the amount received for the bonds is correct. You can use the present value tables in Appendix G of the text.
The amount received for the bonds is correct because the present value of the future cash flows, discounted at the effective annual rate of 8%, equals $4,328,974.
To prove the correctness of the amount received for the bonds, we need to calculate the present value of the future cash flows using the effective-interest method of amortization.
The bond has a face value of $5,000,000, a stated interest rate of 6%, and a term of 10 years. The effective annual rate is 8%. We need to determine the present value of the bond at the time of issuance, which is January 1, 2020.
Using the present value tables, we can find the present value factor for a 10-year bond with an 8% effective annual rate. The present value factor is 0.67795.
Now, we can calculate the amount received for the bonds:
Amount received = Face value × Present value factor
Amount received = $5,000,000 × 0.67795
Amount received = $3,389,750
However, the problem states that the amount received is $4,328,974. Since this value does not match the calculated amount, there might be an error in the provided information or calculations. It is recommended to review the given data and calculations to ensure accuracy.
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Question 11 Which of the following will most likely lead to a shift in the long run aggregate supply curve (LAS) and result in long-term economic growth? 4 A decrease in the interest rate. An increase in consumer spending. A technological breakthrough. A decrease in the price level. Question 12 What is the natural rate of unemployment? The unemployment rate experienced at the depth of a depression. The unemployment caused by frictional unemployment. The unemployment caused by structural and frictional unemployment. The amount of cyclical unemployment in an economy. Question 13 (2 points) Whi Question 13 Which of the following are included in the consumer price index? Imports Capital goods Government spending loyment in an economy. Exports G Question 14 What is the real rate of interest if the nominal rate of interest is 10% and the rate of inflation is 4%? O 6% 40% O 2.5% 14% Jay Question 15 Which one of the following statements is incorrect about the costs of inflation? OIt affects the distribution of income. It reduces export income. It creates uncertainty and reduces investments It reduces import expenditure. stion 16 ( Question 16 How can an inflationary gap be closed? ep Singh: Attempt 1 By an increase in taxes. By an increase in aggregate supply. By an increase in government spending. estion 1 By an increase in the price level. &dnb=0&fromQB=0 Question 17 ( All answer below except one is true about the balanced budget fiscal policy. Identify the incorrect one. It is pro-cyclical price level. It increases unemployment and inflation severity It helps achieve a balanced budget It results in a crowding-out effect stion 18 (3 4 2)
A technological breakthrough is the most likely to lead to a shift in the long run aggregate supply curve (LAS) and result in long-term economic growth.
Long-run aggregate supply curve (LAS) refers to the relationship between the economy's price level and real gross domestic product (GDP) in the long run, assuming that nominal wages, output, and other input prices adjust to changes in the price level. The curve reflects the maximum potential output at each price level. When the economy improves and grows in the long run, it shifts to the right.
A technological breakthrough will increase the production efficiency of firms and, as a result, shift the LAS curve to the right, leading to long-term economic growth. The unemployment caused by structural and frictional unemployment is referred to as the natural rate of unemployment. The natural rate of unemployment is the unemployment caused by structural and frictional unemployment.
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20. If operating income is $60,000, average operating assets are $240,000, and the minimum required rate of return is 20%, what is the residual income? A. $48,000 B. 25% C. 40% D. $12,000
The residual income is $12,000.Answer: D. $12,000
Operating income = $60,000Average operating assets = $240,000Minimum required rate of return = 20%Residual income = ?Residual income is the difference between the actual operating income earned by the asset and the minimum amount of income that is required by the firm on those assets.According to the residual income model, residual income is calculated by subtracting the minimum acceptable return from the actual return earned by the division or investment.
Hence the formula to calculate the residual income is given by:Residual income = Operating income - (Minimum required rate of return x Average operating assets)Now, substituting the given values in the formula,Residual income = $60,000 - (20% x $240,000)Residual income = $60,000 - $48,000Residual income = $12,000Hence, the residual income is $12,000.Answer: D. $12,000
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How to negotiate a better salary steps: Pleasant persistence, find out about their position, ask about the culture Introduction, understand the challenges, ask what does it take to be successful Introduction, define success for your position, ask about your future in 5-10 years Pleasant persistence, define success for your position, ask what does it take to be successful Question 3 0.5 pts Positive leverage is Provide or withhold things that your counterpart wants Make his counterpart suffer Uncover the unknowns Use the other party's standards to advance your position 0.5 pts
Positive leverage in salary negotiation refers to using strategies and tactics that benefit both parties involved in the negotiation. It involves finding mutually beneficial solutions that meet the interests and needs of both the employee and the employer.
Some examples of positive leverage in salary negotiation include:
Providing or withholding things that your counterpart wants: This can involve highlighting your unique skills, experience, or qualifications that make you valuable to the company. By showcasing your value, you create leverage to negotiate a better salary.
Uncovering the unknowns: By asking thoughtful questions and seeking information about the company's needs, goals, and challenges, you can uncover areas where you can contribute and add value. This positions you as a valuable asset and strengthens your negotiation position.
Using the other party's standards to advance your position: If the company has publicly stated or benchmarked salary ranges for similar positions, you can use this information to support your request for a higher salary.
By aligning your request with industry standards or the company's own guidelines, you increase your chances of a successful negotiation.
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Question 6
What deposit today would you have to make at your bank at a rate of 8% if you wanted to witthdrawal $100 each year for 5 years
Question 7
Assume that you are planning on retirement in 30 years. If you deposit $5,500 at the end of each year into an RRSP that will earn an average of 7.5% per year, how much will you have after 30 years?
Question 8
a. You are looking at buying a house and have a maximum budget of $1315 per month. The house you really like is $300,000 and current interest rates are 5% over 25 Years. Can you afford this house?
b. How much of a down payment would you have to put dow to be able to afford this house?
Question 9
You are looking to save $30,000, you currenlty have $5000 in the bank and plan on saving an additional $300 per month until you have the $30,000. You are going to get a interest rate of 5%. How long will it take you to save $30,000?
Question 6:What deposit today would you have to make at your bank at a rate of 8% if you wanted to withdraw $100 each year for 5 years?
Solution: The interest rate is 8%.We can use the annuity formula to calculate this where r is the interest rate, n is the number of years, C is the payment, and P is the principal.In this case, C = $100, n = 5, and r = 0.08.What we need to find is the principal. Using the formula,P = C × ((1 - (1+r)^-n) ÷ r)P = $100 × ((1 - (1+0.08)^-5) ÷ 0.08)P = $369.64Therefore, the deposit needed today would be $369.64.
Question 7:Assume that you are planning on retirement in 30 years. If you deposit $5,500 at the end of each year into an RRSP that will earn an average of 7.5% per year, how much will you have after 30 years?
Solution:The amount you deposit is $5,500.The interest rate is 7.5%. The number of years is 30. We can use the annuity formula to calculate this where r is the interest rate, n is the number of years, C is the payment, and P is the principal.In this case, C = $5,500, n = 30, and r = 0.075.What we need to find is the future value of the annuity. Using the formula,FV = C × (((1 + r)^n - 1) ÷ r) × (1 + r)FV = $5,500 × (((1 + 0.075)^30 - 1) ÷ 0.075) × (1 + 0.075)FV = $5,500 × 160.761FV = $884,186.39Therefore, the future value of the annuity will be $884,186.39
.Question 8: a) You are looking at buying a house and have a maximum budget of $1315 per month. The house you like is $300,000 and current interest rates are 5% over 25 Years. Can you afford this house?
Solution: If you pay the monthly payments for 25 years, the value of the house will be equal to the present value of all future payments. The value of the house is $300,000.The number of years is 25. The interest rate is 5%. The maximum budget per month is $1315.We can use the present value of the annuity formula to calculate this where r is the interest rate, n is the number of years, C is the payment, and P is the principal.In this case, C = $1,315, n = 25, and r = 0.05.What we need to find is the present value of the annuity. Using the formula,PV = C × ((1 - (1+r)^-n) ÷ r)PV = $1,315 × ((1 - (1+0.05)^-25) ÷ 0.05)PV = $300,394.91Therefore, the maximum value that can be afforded is $300,394.91. This is less than the house value of $300,000. Hence the house cannot be afforded.
b). How much of a down payment would you have to put down to be able to afford this house?
The value of the house is $300,000. As the maximum affordable value is $300,394.91, the down payment required would be:$300,000 - $300,394.91 = -$394.91.Therefore, no down payment is required.
Question 9:You are looking to save $30,000. You currently have $5000 in the bank and plan on saving an additional $300 per month until you have the $30,000. You are going to get an interest rate of 5%. How long will it take you to save $30,000?
Solution: The future value is $30,000.The present value is $5,000.The payment is $300.The interest rate is 5%. We can use the time value of money formula to calculate this where r is the interest rate, n is the number of years, C is the payment, and P is the principal.In this case, P = $5,000, C = $300, and r = 0.05.What we need to find is the number of years. Using the formula, FV = P × (1 + r)n + C × ((1 + r)n - 1) ÷ r30000 = 5000 × (1 + 0.05)n + 300 × ((1 + 0.05)n - 1) ÷ 0.0530000 = 5000 × (1.05)n + 300 × ((1.05)n - 1) ÷ 0.05Let's substitute different values of n to get an idea of the time required. Using a spreadsheet, we can calculate the future value for different values of n. After trying different values of n, we get: FV (n = 8) = $30,679.71FV (n = 9) = $31,236.52As the future value is just above $30,000 at n = 8, and just below $30,000 at n = 9, we can say that it will take between 8 and 9 years to save $30,000.
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