a good internal control is to make changes to employee withholding allowances based only on a form properly completed and signed by the employee. true or false
A good internal control is to make changes to employee withholding allowances based only on a form properly completed and signed by the employee: True.
To maintain accurate and secure financial records, it is essential for businesses to have strong internal controls in place. One such control involves managing employee withholding allowances.
By requiring employees to complete and sign a form before making any changes to their withholding allowances, companies can ensure that all updates are made accurately and consistently.
This practice protects both the employer and the employee from errors or miscommunication regarding the employee's withholding allowances.
Additionally, it serves as a record for both parties, providing documentation and transparency in case of any disputes or questions.
Furthermore, a signed form can help prevent fraudulent activities or unauthorized changes by confirming that the employee indeed requested the change.
In summary, implementing an internal control requiring a properly completed and signed form to make changes to employee withholding allowances is a wise practice.
It ensures accuracy, transparency, and security for both the employer and the employee, reducing the risk of errors or misunderstandings.
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Consider the decision to purchase either a 7-year corporate bond or a 7-year municipal bond. The corporate bond is a 14% annual coupon bond with a par value of $1.000. It is currently yielding 12%. The municipal bond has an 9% annual coupon and a par value of $1,000. It is currently yielding 8%. Which of the two bonds would be more beneficial to you? Assume that your marginal tax rate is 30%.
Municipal bonds are typically tax-exempt, the after-tax yield is the same as its pre-tax yield, which is 8%.
To decide which bond is more beneficial, we need to compare their after-tax yields. The corporate bond has a 14% annual coupon and is currently yielding 12%, while the municipal bond has a 9% annual coupon and is currently yielding 8%.
First, let's calculate the after-tax yield for the corporate bond:
After-tax yield = Pre-tax yield * (1 - Marginal Tax Rate)
After-tax yield = 12% * (1 - 0.30)
After-tax yield = 12% * 0.70
After-tax yield = 8.4%
Now, comparing the after-tax yields:
Corporate bond: 8.4%
Municipal bond: 8%
Based on the after-tax yields, the 7-year corporate bond would be more beneficial to you, as it has a higher after-tax yield of 8.4% compared to the 7-year municipal bond's 8% yield. Keep in mind that individual circumstances and risk tolerances may also play a role in the decision-making process.
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abrina has a $12.000 basis in her S&B partnership interest. Sabrina receives a current cash distribution of $10,000 and equipment with a $5,000 basis (FMV $6,000). What is Sabrina's recognized gain or loss? a. $0. b. $3,000. c. $4,000 d. $16.000.
Sabrina's recognized gain or loss from the cash distribution and equipment received will depend on whether the distribution exceeds her basis in the S&B partnership interest. The answer is (a) $0.
The cash distribution of $10,000 will reduce Sabrina's basis in the partnership to $2,000 ($12,000 - $10,000). The equipment received with a basis of $5,000 and a fair market value of $6,000 will increase her basis in the partnership to $8,000 ($2,000 + $6,000).
Since Sabrina's basis in the partnership after the distribution and equipment received is greater than her basis before, she will not recognize any gain or loss on the transaction.
Therefore, the answer is (a) $0.
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Question 6 If a $10,000 investment earns a 7% annual return, what should its value be after 6 O $15,000 O $10,700 0 $10,000 O $15.100 O $15.010
To find the future value of a $10,000 investment with a 7% annual return after 6 years, we can use the formula for compound interest:
Future Value = Principal × (1 + Interest Rate)^Number of Years
In this case, the Principal is $10,000, the Interest Rate is 7% (0.07), and the Number of Years is 6. Plugging these values into the formula, we get:
Future Value = $10,000 × (1 + 0.07)^6
Future Value = $10,000 × (1.07)^6
Future Value ≈ $10,000 × 1.5007
Future Value ≈ $15,007
So, the value of the investment after 6 years should be approximately $15,007. None of the provided options match this value exactly, but the closest one is $15,010.
What is compound interest?
Compound interest is a type of interest that is calculated on both the principal amount and any accumulated interest from previous periods. In other words, it's interest on interest.
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Select the correct answer.
Why would someone choose to invest rather than depend only on savings?
O A. An investment account provides regular income, while money held in a savings account may decrease.
O B.
An investment account has the potential to earn more money than a savings account.
O C.
An investment account has a fixed maturity date, but a savings account doesn't.
OD. There's less risk of losing money held in an investment account than in a savings account.
Answer: The correct answer is B. An investment account has the potential to earn more money than a savings account.
Explanation:
Investing involves putting money into financial instruments such as stocks, bonds, and mutual funds, which have the potential to generate higher returns than the interest earned on savings accounts. While there is generally more risk involved with investing than with saving, the potential for higher returns can make it a more attractive option for those looking to grow their wealth over the long-term.
when parvin exhibits transformational leadership, she can expect her followers to multiple choice 1. put their self-interests ahead of organizational goals. 2. report lower employee job satisfaction. 3. be less committed to organizational change. 4. be more intrinsically motivated.
When Parvin exhibits transformational leadership, she can expect her followers to be more intrinsically motivated . Transformational leadership involves inspiring and motivating followers to achieve their full potential and exceed their own expectations.Correct answer is option 4
In contrast to the other options, transformational leadership does not encourage followers to prioritize self-interest over organizational goals, nor does it result in lower employee job satisfaction. In fact, transformational leaders are known for enhancing job satisfaction through supportive and nurturing relationships with their followers.
Additionally, transformational leadership does not lead to reduced commitment to organizational change. Rather, it encourages followers to embrace change and adapt as necessary to achieve the desired outcomes.
In summary, when Parvin demonstrates transformational leadership, she can anticipate her followers to be more intrinsically motivated, which ultimately leads to higher job satisfaction, greater commitment to organizational change, and alignment of personal and organizational goals. Correct answer is option 4
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[Car Trouble] Jennifer wants to sell her car and Timmy agrees to purchase it. Jennifer and Timmy become involved in an over-the-phone negotiation and settle on a price of $1,000. Jennifer lives three hours from Timmy but agrees to deliver the car to him in his home state and take the bus back, provided Timmy promises to purchase the vehicle. She drives three hours. Upon arrival, Timmy says he will not purchase the vehicle unless Jennifer agrees to go to the dealer, get a second set of $500 SmartKeys, and mail the keys to Timmy within three weeks. Having driven all that way, Jennifer agrees. Timmy gives Jennifer the $1,000, using money he borrowed from Joe and promised to repay. Jennifer accepts the money and leaves. Jennifer never sends Timmy the second set of keys. Timmy later decides the car is worth only $500. He decides not to pay Joe and instead gives the vehicle to Joe, explaining his plan. Joe accepts the car and drives away, secretly planning to sue Timmy for the rest of the money. When Timmy is sued by Joe, he makes a claim against Jennifer and claims she should have to compensate him for losses because they never had a valid contract since the car was not worth the $1,000 Jennifer claimed it was.
If the car is really worth only $500, what is the effect of this lower vehicle value on the contract between Jennifer and Timmy?
There is no effect, because the court does not determine if a good or bad deal was made.
2) Promissory estoppel results in the contract being voided because Timmy's promise was based on inaccurate information.
3) The contract is voided because an illusory promise was made by Jennifer based on the illusion that the car was worth more.
4) The effect of the lower vehicle value will depend upon whether the court determines if Timmy entered into a bad or good deal.
5) The court may award Timmy damages because Jennifer entered into a contract under false pretenses and cost him money.
Option 1 is correct. The lower vehicle value does not have an effect on the contract between Jennifer and Timmy because the court does not determine if a good or bad deal was made.
The agreement and settlement on the price of $1,000 was already made between the parties, and the fact that the car was worth less than that does not change the validity of the contract.
1) There is no effect, because the court does not determine if a good or bad deal was made.
A contract is a legally binding agreement between two or more parties that defines the terms and conditions of a transaction or relationship. Contracts can be written or oral, although written contracts are generally preferred because they provide a clear record of the agreement and its terms.
Contracts can cover a wide range of transactions and relationships, including business agreements, employment contracts, rental agreements, and sales agreements. A contract typically includes the following elements:
Offer: A proposal or offer made by one party to another.
Acceptance: An agreement by the other party to the terms of the offer.
Consideration: Something of value that is exchanged between the parties, such as money, goods, or services.
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which one of the following items is not considered a part of the cost of a truck purchased for business use?
The cost of a truck purchased for business use includes several expenses such as the purchase price, sales tax, registration fees, and insurance costs.
However, one item that is not considered a part of the cost of the truck is the operating expenses incurred while using the truck for business purposes, such as fuel, maintenance, and repairs.
These expenses are considered separate from the initial cost of the truck and are typically recorded as ongoing expenses on the company's income statement.
It's important for businesses to carefully track all expenses associated with the truck to accurately calculate the total cost of ownership and determine the overall profitability of using the vehicle for business purposes.
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At the beginning of the current period, Whispering Winds Corp. had balances in Accounts Receivable of $ 260,000 and in Allowance for Doubtful Accounts of S 11,700. During the period, it had net credit sales of $ 1.040,000 and collections of $ 991.900. It wrote off as uncollectible accounts receivable of $ 9.490. Uncollectible accounts are estimated to total $ 32.500 at the end of the period. (Omit recording cost of goods sold.) (a-c) Enter the beginning balances for Accounts Receivable and Allowance for Doubtful Accounts in a tabular summary. Use the summary to record transactions (a), (b), and (c) below. (a) Record sales and collections during the period (b) Record the write off of uncollectible accounts during the period. (c) Record bad debt expense for the period.
Beginning Balances:
Accounts Receivable: $260,000
Allowance for Doubtful Accounts: $11,700
(a) Sales and collections during the period:
Net credit sales: $1,040,000
Collections: $991,900
To record sales:
Accounts Receivable $1,040,000
Sales $1,040,000
To record collections:
Cash $991,900
Accounts Receivable $991,900
(b) Write off of uncollectible accounts during the period:
Uncollectible accounts written off: $9,490
To record write off:
Allowance for Doubtful Accounts $9,490
Accounts Receivable $9,490
(c) Bad debt expense for the period:
Estimated uncollectible accounts at end of period: $32,500
To record bad debt expenses:
Bad Debt Expense $20,310 ($32,500 - $11,190)
Allowance for Doubtful Accounts $20,310 ($32,500 - $11,190)
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According to BrandAsset® Valuator model, esteem and knowledge, the two pillars of brand equity together create brand ________, a "report card" on past performance and a current indicator of current value.
A) stature
B) parity
C) strength
D) personality
E) architecture
option A) stature. According to the BrandAsset® Valuator model, esteem and knowledge are the two pillars of brand equity that together create brand stature, which is like a "report card" on past performance and a current indicator of current value.
Brand stature is a measure of a brand's perceived quality and popularity relative to its competitors. It reflects the degree to which consumers hold a brand in high regard and is a key component of overall brand equity. In essence, a brand with high stature is more likely to be preferred by consumers over its competitors, resulting in increased sales and profitability. Therefore, building and maintaining brand stature is critical for long-term success in today's highly competitive market.
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QUESTION ONE a) State any two (2) differences between Accounting Rate of Return and Profitability Index as Models used in Investment Appraisal (2 marks) b) State any three (3) reasons to justify the large amount of resources expended by businesses to ensure they get their Capital Budgeting decisions right (3 marks)
Two differences between the ARR and PI as models used in Investment Appraisal are Calculation Method and Decision Criteria. Three reasons to justify the large number of resources expended by businesses to ensure they get their Capital Budgeting decisions right are Long-term impact, Irreversible decisions, and Opportunity cost.
a) Two differences between the Accounting Rate of Return (ARR) and Profitability Index (PI) as models used in Investment Appraisal are:
1. Calculation Method: ARR calculates the average annual accounting profit divided by the initial investment, while PI calculates the present value of future cash flows divided by the initial investment. ARR focuses on accounting profit, whereas PI is based on cash flows.
2. Decision Criteria: ARR uses a predetermined target rate to evaluate projects, accepting projects with a higher ARR than the target. On the other hand, PI uses a value of one as a decision criterion; projects with a PI greater than one are accepted, while those with a PI less than one are rejected.
b) Three reasons to justify the large number of resources expended by businesses to ensure they get their Capital Budgeting decisions right are:
1. Long-term impact: Capital budgeting decisions often involve large investments and have long-lasting effects on a company's financial performance. Making the right decision can lead to increased profitability and growth, while a poor decision can result in financial losses and hinder growth.
2. Irreversible decisions: Many capital budgeting decisions are difficult or impossible to reverse once implemented. This means that if a business makes a poor decision, it may be stuck with the consequences for a long period of time.
3. Opportunity cost: There are often multiple investment opportunities available to a business, each with its own potential return and risk. By carefully evaluating these options and making informed decisions, a business can maximize its returns and minimize its risks, ensuring the most efficient use of its resources.
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ntermountain healthcare? 2. in what ways could it enhance or detract from the organization's strategic objectives? 3. how are physician incentives at intermountain unique? why did they take a different approach to physician performance as compared to other employees? 4. how might this system also improve the performance appraisal process?
By aligning physician incentives with patient outcomes and quality measures, Intermountain can improve care coordination and promote a team-based approach to healthcare delivery.
What is Intermountain Healthcare's unique approach to physician incentives and how does it align with the organization's strategic objectives?Intermountain Healthcare is a non-profit health organization based in Utah. It has been recognized for its high-quality care, innovation, and efficiency in the healthcare industry. Intermountain's strategic objectives include improving patient outcomes, lowering costs, and enhancing patient experience. The organization's emphasis on data analytics, innovation, and continuous improvement supports its strategic objectives.
Intermountain's unique approach to physician incentives includes a focus on patient outcomes, quality measures, and team-based care. Physicians are rewarded for achieving positive patient outcomes and improving the health of their patient population, rather than solely on productivity. The organization's physician compensation model also includes a component that rewards physicians for participating in system-wide initiatives to improve quality, safety, and patient experience.
This approach to physician incentives reflects Intermountain's commitment to its strategic objectives and its emphasis on patient-centered care. By aligning physician incentives with patient outcomes and quality measures, Intermountain can improve care coordination and promote a team-based approach to healthcare delivery. Additionally, this approach can improve the performance appraisal process by providing a more comprehensive and objective evaluation of physician performance that considers the quality and outcomes of care.
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system be adapted to evaluate the performance of non-physician staff members, and what are some potential benefits and drawbacks to the approach.
How does the performance non-physician staff members?Intermountain Healthcare is a non-profit healthcare system based in Utah, United States. It operates 25 hospitals, 225 clinics, and a medical group with over 2,500 physicians and advanced practice clinicians.
In what ways does Intermountain Healthcare differentiate itself from other healthcare systems in terms of its strategic objectives?
There are several ways in which Intermountain Healthcare could enhance or detract from its strategic objectives.
One potential way to enhance its objectives is to continue to focus on delivering high-quality, patient-centered care while also leveraging technology and innovation.
However, this approach could also be expensive and may require significant investment.
What are some potential drawbacks to this approach, and how might Intermountain Healthcare address them?
Intermountain Healthcare has a unique approach to physician incentives that is based on a model of shared accountability. How does this approach differ from other healthcare systems, and what are some potential benefits and drawbacks to this model?
The system used by Intermountain Healthcare to incentivize physicians could also improve the performance appraisal process for other employees.
How might this system be adapted to evaluate the performance of non-physician staff members, and what are some potential benefits and drawbacks to this staff members?
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Jodi hosts her own morning radio show. She works in the ______ pathway of the Arts, AV Technology, and Communication cluster.
Question 4 options:
AV Technology and Film
Printing Technology
Journalism and Broadcasting
Performing Arts
Answer:
Journalism and Broadcasting
Explanation:
I think thats the right answer but I'm sorry if its wrong
such as Immigration, automation, and globalization, to plan Dante is monitoring developments in for how they will affect his company. Multiple Choice adaptive change outside forces inside forces innovative change
As the business world becomes more complex, companies must stay vigilant and adaptable to changes that affect their operations.
Changes such as immigration, automation, and globalization can have significant impacts on a company's ability to function and compete. Therefore, it is essential to monitor these developments and plan for how they will affect the company.
Adaptive change is a type of change in which an organization seeks to maintain its status quo in the face of outside forces.
In other words, the company adapts to the changes in the environment while maintaining its existing systems, structures, and practices. This type of change is often incremental and aimed at maintaining stability and continuity.
In contrast, innovative change involves creating new systems, processes, products, or services. It is a type of change that transforms the organization's fundamental way of doing things.
Innovative change is usually driven by inside forces, such as new technology or changing customer demands, and can lead to significant improvements in the company's competitiveness and profitability.
To plan for how these changes will affect the company, Dante should consider both types of change.
He should assess the potential impact of adaptive change on the company's existing systems and processes, and determine whether changes are needed to maintain the company's competitiveness.
He should also be prepared to identify opportunities for innovative change that can help the company take advantage of new technologies or changing market trends.
By staying vigilant and adaptable to changes in the environment, Dante can help his company thrive in a constantly evolving business landscape.
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If Silvia receives a pay cut and the income effect outweighs the price effect on her labor supply decision, she will:
Multiple Choice
work more hours.
work the same hours no matter what.
work less hours.
quit and not work at all
If Silvia receives a pay cut and the income effect outweighs the price effect on her labor supply decision, she will work less hours
If Silvia's pay declines and this influences her employment decision more than the rise in labour expenses, she will:
Work the same amount of hours as before, more hours than before, the same amount of hours as before, or none at all.
If Silvia's compensation decreases, she will therefore work fewer hours than she did previously, and this fall in her willingness to work will outweigh any other variables that would motivate her to work harder.
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The_____ cost of incorporating can be expensive because of the need for accountants and lawyers to get started.
The initial cost of incorporating a business can be expensive due to the necessity of hiring professional services, such as accountants and lawyers, to ensure a smooth start. While incorporating may seem similar to purchasing expensive jewelry in terms of financial investment, the two are distinct in their purposes and potential benefits.
Incorporating involves creating a separate legal entity for your business, which can provide numerous advantages, including limited liability protection, increased credibility, and potential tax benefits. However, the process of incorporating requires careful planning and attention to detail, which often necessitates the involvement of experienced professionals.
Accountants play a crucial role in the incorporation process by helping business owners navigate complex financial matters and ensure compliance with tax regulations. They assist in setting up appropriate accounting systems, preparing financial statements, and providing ongoing financial advice as the business grows.
Similarly, lawyers are essential in drafting the required legal documents, such as articles of incorporation and bylaws, as well as advising on relevant laws and regulations that may impact the business. They also help in choosing the most suitable legal structure, protecting intellectual property, and mitigating potential legal risks.
Although the initial cost of incorporating may seem daunting, it is essential to consider the long-term benefits that can result from this investment. By enlisting the help of accountants and lawyers during the incorporation process, business owners can establish a strong foundation that supports growth and minimizes potential risks. In this sense, incorporating is a strategic decision rather than an extravagant expense, like buying expensive jewelry.
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Assume that your partner and you are in the consumer lending business. A customer, talking with your partner, is discussing the possibility of obtaining a $10,000 loan for three months. The potential borrower seems distressed and says he needs the loan by tomorrow or several of his relatively new appliances will be repossessed by the manufacturers. You overhear your partner saying that in order to process the loan within one day there will be a $1,000 processing fee so that $11,000 in principal will have to be repaid in order to have $10,000 to spend now. Furthermore, because the money is needed now and is for only three months the interest charge will be 6 percent per month. What would you do? And why?
In this scenario, as a responsible professional in the consumer lending business, I would take a step back and carefully evaluate the situation. They fully understand the terms of the loan, including the $1,000 processing fee and the 6% monthly interest rate.
Firstly, I would discuss with my partner the necessity of such a high processing fee and explore alternative options for expediting the loan without imposing undue financial burden on the customer. We must consider whether it is ethically appropriate to charge this fee, given the customer's distressed state and potential consequences of their appliances being repossessed.
Additionally, I would ensure that the customer is aware of the cumulative interest charges over the three-month period, which could result in a total repayment of $11,000 + (3 * 0.06 * $11,000) = $13,860. Transparency is crucial to maintain trust and foster a positive relationship with our customers.
Finally, I would also explore alternative lending solutions or financial assistance programs that may better suit the customer's needs and circumstances. Our primary goal should be to provide the best possible financial support to our customers while maintaining ethical and responsible lending practices.
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On December 1, 2021, your company borrowed $42,000, a portion of which is to be repaid each year on November 30. Specifically, your company will make the following principal payments: 2022, $5,600; 2023, $8,400; 2024, $11,200; and 2025, $16,800. Show how this loan will be reported in the December 31, 2022 and 2021 balance sheets, assuming principal payments will be made when required. Balance Sheet (Partial) As of December 31 2022 2021Total Liabilities S 0 $ 0
The loan of $42,000 borrowed on December 1, 2021, with principal payments of $5,600 due in 2022, $8,400 due in 2023, $11,200 due in 2024, and $16,800 due in 2025, will be reported as a liability on the December 31, 2021, balance sheet.
How will the loan of $42,000 borrowed by the company on December 1, 2021?When the company borrowed $42,000 on December 1, 2021, the loan will be reported as a liability on the balance sheet for that year, which is December 31, 2021. The entire amount of the loan will be reported as a liability since none of the principal payments were made before the end of the year.
In subsequent years, as principal payments are made when required, the loan balance will decrease, and the amount of liability will be adjusted accordingly. In 2022, when the company makes a $5,600 principal payment, the liability will be reduced by that amount. As a result, the December 31, 2022, balance sheet will report a lower liability amount than the previous year.
By 2025, when the final principal payment of $16,800 is made, the loan will be fully repaid, and there will be no remaining liability. The loan will be reported as a liability on the balance sheet only until the final payment is made.
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_____ is appropriate for an organization when it is infeasible to inspect every part manufactured by a company.
Statistical process control (SPC) is appropriate for an organization when it is infeasible to inspect every part manufactured by a company.
SPC is a quality control method that uses statistical techniques to monitor and control a process. It involves collecting data on the output of a process and using statistical tools to analyze the data and identify any patterns or trends that may indicate a problem with the process.
By monitoring the process in real-time, SPC allows organizations to detect and correct issues before they lead to defects or other quality problems.
In situations where it is not feasible to inspect every part manufactured by a company, SPC can be an effective tool for ensuring product quality. Instead of relying on random inspections, which may not catch all defects, SPC provides ongoing monitoring of the production process and helps identify potential issues early on.
This can save time and money by reducing the need for rework or scrap, while also improving customer satisfaction by delivering high-quality products.
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The market price is $1,100 for a 12-year bond ($1,000 par value) that pays 8 percent annual interest, but makes interest payments on a semiannual basis (4 percent semiannually). What is the bond's yield to maturity?
By solving for the interest rate (I/Y) per period, we can find the semiannual yield and then multiply it by 2 to get the annual yield to maturity. The YTM for this bond is approximately 7.23%.
To calculate the bond's yield to maturity (YTM), you need to consider its market price, par value, interest payments, and maturity period. In this case, the bond has a market price of $1,100, a par value of $1,000, a semiannual interest rate of 4% (8% annually), and a maturity period of 12 years.
The bond's YTM can be calculated using a financial calculator or a spreadsheet program with the inputs: present value (PV) = -$1,100, future value (FV) = $1,000, number of periods (N) = 24 (since there are two payments per year for 12 years), and the payment (PMT) = $40 (4% of $1,000).
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Suppose a monopolistically competitive firm in the short run is selling 100 units of output at $10 each. At that level of output, MR = MC and marginal cost is rising. Also, ATC = $15, AVC = $12 and AFC = $3. This firm should A. continue to produce 100 units of output since MR = MC. B. increase output to the point where price equals marginal cost. C. decrease output to the point where marginal cost equals average total cost. D. shut down and produce 0 units of output. Please explain why.
The correct answer is A. continue to produce 100 units of output since MR = MC.
The reason for this is that in the short run, a monopolistically competitive firm should produce at the output level where marginal revenue (MR) equals marginal cost (MC). This is because this point represents the profit-maximizing level of output. In this scenario, the firm is already producing at this level (MR = MC), so it should continue producing 100 units of output.
While the firm is currently making a loss (since ATC > price), it is still covering its average variable costs (AVC), which means it is able to cover its variable expenses and contribute to fixed costs. If the firm were to shut down (option D), it would still have to pay its fixed costs (AFC) without generating any revenue, which would result in a greater loss. Therefore, continuing to produce 100 units is the best decision for the firm in the short run.
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P15-9-Accounts receivable changes with bad debt- A firm is evaluating an accounts change that would increase the bad debts from 2% to 4% of sales. Sales are currently 50,000 units, the selling price is $20 per unit, and the variable cost per unit is $15. As a result of the proposed change, sales are forecasted to increase to 60,000 units
a) What are bad debts in dollars currently and under the proposed change?
b) Calculate the cost of managerial bad debt to the firm.
c) Ignoring the additional profit contributions from increased sales, if the proposed change saves $3,500 and causes no change in average investment in accounts receivable, would you recommend it? Explain.
d) Considering all changes in costs and benefits, would you recommend the proposed change? Explain.
c) Compare and discuss your answers in part c and d.
It is important to consider all relevant costs and benefits when making business decisions, as demonstrated in the analysis of the proposed change in bad debt policy.
a) The current bad debts in dollars can be calculated as 2% of $1,000,000 ($20 selling price per unit x 50,000 units) which equals $20,000.
Under the proposed change, bad debts would increase to 4% of $1,200,000 ($20 selling price per unit x 60,000 units), which equals $48,000.
b) The cost of managerial bad debt can be calculated as the difference between the current bad debts and the proposed bad debts. Therefore, the cost of managerial bad debt would be $48,000 - $20,000 = $28,000.
c) If the proposed change saves $3,500 and causes no change in the average investment in accounts receivable, it would be recommended. This is because the savings from the reduction in bad debts ($28,000) are greater than the cost savings from the proposed change ($3,500).
d) Considering all changes in costs and benefits, it is not recommended to implement the proposed change. While the reduction in bad debts would save the firm $28,000, the increased sales revenue would also increase the average investment in accounts receivable. This increase in investment in accounts receivable would result in an additional opportunity cost to the firm. The calculation of this opportunity cost is:
Opportunity cost = (Average investment in accounts receivable) x (Cost of capital)
The average investment in accounts receivable can be calculated as follows:
Accounts receivable = (Accounts receivable turnover) x (Sales/365)
The current accounts receivable turnover can be calculated as $1,000,000 (Sales)/$50,000 (Accounts receivable) = 20 times. Therefore, the average investment in accounts receivable is $50,000/2 = $25,000.
The proposed increase in sales would result in an increase in accounts receivable, which can be calculated as follows:
New accounts receivable = ($1,200,000 x (Accounts receivable turnover))/365 = $24,657.53
The average investment in accounts receivable under the proposed change is therefore ($50,000 + $24,657.53)/2 = $37,328.77
Assuming a cost of capital of 10%, the opportunity cost of the increased investment in accounts receivable would be $3,732.88. Therefore, the total cost of the proposed change would be the cost of managerial bad debt ($28,000) plus the opportunity cost of the increased investment in accounts receivable ($3,732.88), minus the savings from the proposed change ($3,500), which equals $28,232.88. This cost is greater than the savings from the reduction in bad debts and therefore, it is not recommended to implement the proposed change.
c) In part c, the recommendation was to implement the proposed change as the savings from the reduction in bad debts ($28,000) were greater than the cost savings from the proposed change ($3,500). However, in part d, when considering all changes in costs and benefits, it was not recommended to implement the proposed change as the increased sales revenue would also increase the average investment in accounts receivable and result in an additional opportunity cost to the firm. This highlights the importance of considering all relevant costs and benefits when making business decisions.
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in the long run, if the price is $7 per basket of apples, vendors will ____ the industry until ______ .
In the long run, if the price is $7 per basket of apples, vendors will likely leave the industry until supply and demand reach a new equilibrium.
This could happen in several ways, such as vendors reducing the number of apple trees they have, switching to growing a different crop, or leaving agriculture altogether.
Additionally, consumers may choose to purchase fewer apples at the higher price point, which could further decrease demand and push some vendors out of the industry.
Ultimately, the market will adjust to find a new balance between supply and demand, which may involve fewer vendors and higher prices for consumers.
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Kleenex Boutique is a brand ___________ of tissues made by the Kimberly-Clark Corporation.
a) mark
b) identification
c) name
d) guarantee
e) type
The correct answer is c) name. Kleenex Boutique is a brand name of tissues made by the Kimberly-Clark Corporation.
A brand name is a unique identifier or label that is used to distinguish a company's products or services from those of its competitors.
A brand name can be a word, phrase, symbol, or design that is used to convey the company's identity and the qualities and characteristics of its products or services.
Brand names are an important part of a company's marketing strategy, as they help to create brand awareness and recognition among consumers.
In the case of Kleenex Boutique, "Kleenex" is the brand name, while "Boutique" is a descriptive term that is used to convey the product's specific features or characteristics, such as its design or packaging.
The brand name "Kleenex" has become synonymous with facial tissues in many parts of the world, and is widely recognized and trusted by consumers.
In addition to serving as a unique identifier, a brand name can also serve as a mark of quality, reliability, or innovation, depending on the company's positioning and reputation in the market.
Companies often invest significant resources in developing and promoting their brand names, as they are a key driver of customer loyalty and brand equity.
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Which one is false? A company uses a standard cost system with Machine Hours (MHs) as the activity base for fixed manufacturing overhead (FMOH). The following information relates to production for last year, Actual FMOH Denominator hours FMOH was underapplied by Standard MHs allowed per unit Actual units produced $8,660 1,079 hours $180 4 hours 265 units Q. What was the budget variance for FMOH? ANS. $ Click to select Favorable Unfavorable if variable manufacturing overhead is underapplied, it always has a unfavorable spending variance. The spending variance of direct labor can always be decomposed into rate variance and efficiency variance. When both budget variance and volume variance are favorable, fixed manufacturing overhead is overapplied. The sum of price variance and quantity variance for raw materials is always same as spending variance. The total fixed costs of flexible budget and master budget are always the same.
The false statement is "When both budget variance and volume variance are favorable, fixed manufacturing overhead is overapplied."
This statement is not always true, as it depends on the amount of fixed overhead costs budgeted for production and the actual level of production achieved.
If the budgeted fixed overhead costs were too high and the actual production level was lower than expected, then both budget and volume variances could be favorable, but the fixed overhead costs would still be underapplied.
Therefore, it is important to analyze the specific circumstances of the company's production and budgeting processes to determine if fixed overhead costs were overapplied or underapplied.
The other statements mentioned are true, such as variable overhead underapplication resulting in an unfavorable spending variance and direct labor variance being composed of rate and efficiency variances. The sum of price and quantity variances for raw materials is also equal to the spending variance.
However, it is important to note that these statements may also have exceptions depending on the specific circumstances of the company's operations.
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technical constraints have been carefully considered when developing a project network. which of the following is true at this point?
If technical constraints have been carefully considered when developing a project network, it means that the network has been designed to take into account the technological limitations and requirements that may affect the project's implementation.
Some possible implications of this are:
1. Feasibility: The project network is more likely to be feasible since technical constraints have been considered. It is less likely that the project plan includes tasks that cannot be accomplished due to technological limitations.
2. Realistic scheduling: The project schedule is more likely to be realistic since it takes into account the time required for technical tasks and the limitations of the available technology.
3. Reduced risks: The risk of encountering unexpected technical difficulties during the project is lower because the technical constraints have been considered and addressed beforehand.
Therefore, if technical constraints have been carefully considered when developing a project network, it is likely that the project plan is more feasible, realistic, and has lower risks.
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The following standards for variable overhead have been established for a company that makes only one product:
Standard hours per unit of output 4.4 hours
Standard variable overhead rate $16.00 per hour
The following data pertain to operations for the last month:
Actual hours 8,100 hours
Actual total variable overhead cost $124,990
Actual output 1,820 units
a. What is the variable overhead rate variance for the month?
b. What is the variable overhead efficiency variance for the month?
a. The variable overhead rate variance for the month is -$3,138. b. The variable overhead efficiency variance for the month is $1,472 (unfavorable).
a. To calculate the variable overhead rate variance for the month, follow these steps:
1. Compute the standard variable overhead cost: Standard hours per unit of output (4.4 hours) x Standard variable overhead rate ($16.00 per hour) = $70.40 per unit
2. Compute the total standard variable overhead cost: Actual output (1,820 units) x Standard cost per unit ($70.40 per unit) = $128,128
3. Compute the variable overhead rate variance: Actual total variable overhead cost ($124,990) - Total standard variable overhead cost ($128,128) = -$3,138
The variable overhead rate variance for the month is -$3,138 (favorable).
b. To calculate the variable overhead efficiency variance for the month, follow these steps:
1. Compute the standard hours for actual output: Actual output (1,820 units) x Standard hours per unit (4.4 hours) = 8,008 hours
2. Compute the variable overhead efficiency variance: (Actual hours (8,100 hours) - Standard hours for actual output (8,008 hours)) x Standard variable overhead rate ($16.00 per hour) = 92 hours x $16.00 = $1,472
The variable overhead efficiency variance for the month is $1,472 (unfavorable).
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The sole income receipt for 2021 of an inter vivos trust is $50,000 in non-eligible dividends received from a CCPC. The only beneficiary of the trust is the adult son of the settlor whose sole income for the year is dividends received from the trust. The son is actively engaged in the CCPC on a regular and continuous basis. He has no personal tax credits other than the basic personal tax credit and any credits related to his trust income. Required: Calculate the 2021 net and taxable income and federal income tax payable for both the trust and the beneficiary assuming: A. The beneficiary was paid $28,000 of the dividend income. B. The beneficiary was paid all of the dividend income.
If the beneficiary was paid $28,000, the trust's net income for 2021 would be $22,000, with a tax payable of $3,300, while the beneficiary's net income would be $28,000 with a tax payable of $1,450.
A) If the beneficiary was paid $28,000 of the dividend income, then the remaining $22,000 would be retained in the trust. The trust's net income for 2021 would be $22,000, which would also be its taxable income, as inter vivos trusts are not entitled to the basic personal tax credit. The trust's federal income tax payable for 2021 would be $3,300 (calculated as 15% of the taxable income of $22,000).
The beneficiary's net income for 2021 would be $28,000, which would also be his taxable income. He would be entitled to the basic personal tax credit of $13,808, as well as the dividend tax credit for non-eligible dividends, which would reduce his federal income tax payable to $1,450 (calculated as 15.02% of his taxable income of $28,000, minus the dividend tax credit of $8,062).
B) If the beneficiary was paid all of the dividend income, his net income for 2021 would be $50,000, which would also be his taxable income. He would be entitled to the basic personal tax credit of $13,808, as well as the dividend tax credit for non-eligible dividends, which would reduce his federal income tax payable to $5,556 (calculated as 20.5% of his taxable income of $50,000, minus the dividend tax credit of $10,940).
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A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was oppraised at $61500, the land at $45.400, and the parking lot at $18.300 Land should be recorded in the accounting records with an allocated cost of: Multiple Choice 536,320 50 $42.320 345,400 $100.000 NET
The allocated cost of the land in the accounting records should be recorded as $36,250.
A company purchased property for $100,000, which included a building, a parking lot, and land.
To determine the allocated cost of the land in the accounting records, you need to follow these steps:
Step 1. Calculate the total appraised value of the property components:
$61,500 (building) + $45,400 (land) + $18,300 (parking lot)
= $125,200
Step 2. Calculate the allocation percentage for the land:
$45,400 (land) / $125,200 (total appraised value)
= 0.3625 or 36.25%
Step 3. Calculate the allocated cost for the land:
$100,000 (purchase price) x 0.3625 (allocation percentage)
= $36,250
Therefore, the allocated cost of the land in the accounting records should be recorded as (a) $36,250.
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. Firms usually have two or more projects, and this collection of projects is referred to as _____.
a. a portfolio
b. initiation
c. a program
d. a stochastic model
Firms usually have two or more projects, and this collection of projects is referred to as a portfolio.
A project portfolio refers to a collection of projects that an organization is working on or planning to work on. These projects are typically related to each other in some way, such as through shared resources, objectives, or strategic goals.
By managing projects as a portfolio, organizations can better align their project work with their overall strategy, prioritize projects based on their potential impact, and allocate resources more effectively. A project portfolio management approach can help organizations optimize their project portfolios and ensure that they are investing their resources in the most valuable projects.
Initiation is a stage in the project management process that involves defining the project and its objectives. A program refers to a group of related projects managed together to achieve a common goal. A stochastic model is a mathematical model that uses random variables to estimate outcomes.
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