Kelly Industries issued 7% bonds, dated January 1, with a face value of $150,000 on January 1, 2021. The bonds mature in 2031 /10 years) Interest is paid semiannually on June 30 and December 31. For bonds of similar risk and maturity, the market yield is 9%.
We have to find the issue price of the bonds.FV of $1 for n = 20 periods and i = 4.5% is 2.653 PV of $1 for n = 20 periods and i = 4.5% is 0.377 FVA of $1 for n = 20 periods and i = 4.5% is 57.275 PVA of $1 for n = 20 periods and i = 4.5% is 11.814 EVAD of $1 for n = 20 periods and i = 4.5% is 2.889 PVAD of $1 for n = 20 periods and i = 4.5% is 20.170Step 1:Calculate the periodic interest rate or semi-annual yield.r = 9/2 = 4.5%Step 2:Calculate the total number of periods or n.n = 10 years x 2 semi-annual periods per year = 20 periodsStep 3:Calculate the future value of $1 at 4.5% for 20 periods. FV = 1 x 2.653 = 2.653Step 4:Calculate the present value of $1 at 4.5% for 20 periods. PV = 1 x 0.377 = 0.377Step 5:Calculate the future value of an annuity of $1 at 4.5% for 20 periods. FVA = 1 x 57.275 = 57.275Step 6:Calculate the present value of an annuity of $1 at 4.5% for 20 periods. PVA = 1 x 11.814 = 11.814Step 7:Calculate the present value of the bond.Using the PV of an annuity of $1 table and a 9% interest rate, the present value factor for 20 periods is 9.231.The present value of the bond is:Present value of interest payments + Present value of principalPV = [57.275 x (1 - 1/1.09231)] / 0.09 + [150,000 x 0.377] / 1.09231PV = $45,919.15 + $54,569.13PV = $100,488.28Therefore, the issue price of the bonds was $100,488.28. Hence, the correct option is O $100,488.
To know more about Kelly Industries visit:
https://brainly.com/question/16199132
#SPJ11
What is lean manufacturing and how does it relate to just-in-time (JIT), total quality management (TQM), total preventative maintenance (TPM), and human resource management (HRM)?
What are the 3Cs of managing relationships with customers and suppliers? What makes this model important to customer service?
Lean manufacturing is a systematic approach that aims to eliminate waste and increase efficiency in manufacturing processes. It focuses on continuous improvement, maximizing customer value, and minimizing resources.
Lean manufacturing is closely related to other management practices and principles such as Just-in-Time (JIT), Total Quality Management (TQM), Total Preventive Maintenance (TPM), and Human Resource Management (HRM).
Just-in-Time (JIT): Lean manufacturing and JIT go hand in hand. JIT focuses on producing and delivering products in the right quantity, at the right time, and in the right place. Lean manufacturing incorporates JIT principles by eliminating waste associated with overproduction and excess inventory, which aligns with the goal of maximizing efficiency.
Total Quality Management (TQM): Lean manufacturing emphasizes the concept of continuous improvement and customer satisfaction, which are also key principles of TQM. Both approaches prioritize defect prevention, waste reduction, and the involvement of all employees in quality management.
Total Preventive Maintenance (TPM): Lean manufacturing recognizes the importance of equipment reliability and minimizing downtime. TPM, as a proactive maintenance approach, supports lean principles by ensuring machines are well-maintained, reducing breakdowns, and improving overall equipment effectiveness.
Human Resource Management (HRM): Lean manufacturing requires a skilled and engaged workforce. HRM plays a crucial role in lean implementation by recruiting, training, and developing employees with the necessary skills and mindset for continuous improvement. HRM aligns human resources with lean objectives and fosters a culture of employee empowerment and involvement.
The 3Cs of managing relationships with customers and suppliers are Communication, Cooperation, and Coordination.
Communication: Effective communication is vital for understanding customer needs, resolving issues, and maintaining strong relationships. Clear and open communication ensures that expectations are met and problems are addressed promptly.
Cooperation: Cooperation between a company and its customers and suppliers involves collaboration, sharing of information, and working together towards common goals. Cooperation fosters trust and facilitates joint problem-solving, leading to better outcomes for all parties involved.
Coordination: Coordination involves aligning activities, processes, and resources between a company, its customers, and its suppliers. It ensures smooth operations, timely deliveries, and effective supply chain management.
This model is important to customer service because it establishes a foundation of strong relationships based on effective communication, cooperation, and coordination. By actively engaging in the 3Cs, companies can better understand customer needs, address concerns, and deliver value-added products or services. Effective management of customer and supplier relationships improves customer satisfaction, enhances loyalty, and drives business success.
Learn more about manufacturing here:
https://brainly.com/question/32717570
#SPJ11
Econ 102 - Assignment IS Curve Given Ke (expenditure multiplier) = 4 and Ky (tax multiplier) =-3. explain the direction and magnitude of the shift in the IS curve when there is a) P50 decrease in government spending: b) PIO increase in consumption; c) P25 increase in both T and G; and d) P10 decrease in both T and G. a) The IS curve shifts to the left by P200. AY NAG. KG = 25.4 = 200. Please show your answers for banc.
The magnitude of the shift in the IS curve will be KG × Ky = 2.5 × -3 = -7.5.
How to determine?The direction and magnitude of the shift in the IS curve when there is a) P50 decrease in government spending, b) PIO increase in consumption, c) P25 increase in both T and G, and d) P10 decrease in both T and G are as follows:
a) When there is a P50 decrease in government spending, the IS curve will shift to the left by P200. The expenditure multiplier (Ke) is 4 and the government multiplier (KG) is -50/4 = -12.5; thus, the magnitude of the shift in the IS curve will be KG × Ke = -12.5 × 16 = -200.
b) When there is a PIO increase in consumption, the IS curve will shift to the right. The MPC = 0.8 and Ke = 4; thus, the multiplier effect will be Ke/MPC = 4/0.8 = 5, and the magnitude of the shift in the IS curve will be KG × Ke/MPC = 3 × 5 = 15.
c) When there is a P25 increase in both T and G, the IS curve will shift to the left. The tax multiplier (Ky) is -3, and the government multiplier (KG) is -25/4 = -6.25; thus, the magnitude of the shift in the IS curve will be KG × Ky = -6.25 × -3 = 18.75.
d) When there is a P10 decrease in both T and G, the IS curve will shift to the right. The tax multiplier (Ky) is -3, and the government multiplier (KG) is 10/4 = 2.5; .
Thus, the magnitude of the shift in the IS curve will be KG × Ky = 2.5 × -3 = -7.5.
To know more on tax multiplier visit:
https://brainly.com/question/30641648
#SPJ11
2. If we randomly select 20 drive times, what is the probability that the sample mean exceeds 16 minutes?
3. Again, assume u = 15.3 minutes and o = 2.2 minutes. Use TWO different methods: a. Find z = x-μ 0/√√n² then use NORM.S.DIST or the Standard Normal Table. b. Find the answer directly using NORM.DIST. Be sure to use the standard error of the mean for the "standard_dev" entry in the Excel function.
The probability of the sample mean exceeds 16 minutes when randomly selecting 20 drive times from the given population.
a) Using the standard normal distribution table or NORM.S.DIST function:
First, we calculate the standard error of the mean (SE) by dividing the population standard deviation (σ) by the square root of the sample size (√n). In this case, SE = 2.2 / √20 ≈ 0.492.
Next, we find the z-score using the formula z = (x - μ) / SE, where x is the given value (16 minutes) and μ is the population means (15.3 minutes). Thus, z = (16 - 15.3) / 0.492 ≈ 1.42.
Using the z-score, we can either refer to the standard normal distribution table or use the NORM.S.DIST function in Excel to find the probability associated with the z-score. The probability is the area under the standard normal curve to the right of the z-score.
b) Using the NORM.DIST function:
Alternatively, we can directly use the NORM.DIST function in Excel to find the probability without calculating the z-score. In this case, we need to input the value (16 minutes), the mean (μ), the standard deviation (σ), and the cumulative argument (TRUE). The cumulative argument being TRUE indicates that we want the probability of the value is less than or equal to the given value, so we subtract this result from 1 to obtain the probability of the value exceeding 16 minutes.
Learn more about excel, below:
https://brainly.com/question/3441128
#SPJ11
What is the total of the owner's equity if the balance sheet shows liabilities of $46,000 and assets of $83,000?
$8,000
$37,000
$9,000
$120,000
The total owner's equity can be calculated by subtracting the total liabilities from the total assets. In this case, with liabilities of $46,000 and assets of $83,000, the total owner's equity would be $37,000.
Owner's equity represents the residual interest in the assets of a business after deducting liabilities. It is calculated by subtracting total liabilities from total assets. In this case, the balance sheet shows liabilities of $46,000 and assets of $83,000.
Owner's Equity = Total Assets - Total Liabilities
Substituting the given values:
Owner's Equity = $83,000 - $46,000
Owner's Equity = $37,000
Therefore, the total owner's equity is $37,000. This represents the net value of the assets owned by the business that belong to the owner(s) after all liabilities are accounted for.
Learn more about equity from here:
https://brainly.com/question/31712153
#SPJ11
ILLUSTRATION: The Company had the following monetary items on January 1. Bill Receivable Cash Less:Bills Payable Creditors Net Monetary Assets The traasactions affecting monetary items during the year were: (a) $. 1,40,000 made evenly throughout the year. (b) Purchase of goods of $ 1,05,00 made evenly during the year. (c)operating expenses of $ 35,000 were incured evenly throughout the years (d)one machine was sold for $18,000 on July 1. (e) One machine was purchased for $ 25,000 on Dec.31 The general price index was as follows: On January 1. 300 average for the year. 350 On July 1. 360 On December 31. 4000 You are required to compute the general purchasing power,gain or loss, for the Year stated in the terms of the current year end $ 10,000 25,000 $ 41,000 10,000 20,000 71,000 35,000 36,000
The general purchasing power gain or loss for the year, stated in terms of the current year-end, is $15,806.
to compute the general purchasing power gain or loss for the year in terms of the current year-end, we need to adjust the monetary items based on the changes in the general price index.
step 1: calculate the adjustment factor for each transaction based on the general price index:
- january 1 adjustment factor: 350/300 = 1.1667
- july 1 adjustment factor: 360/300 = 1.2000
- december 31 adjustment factor: 400/300 = 1.3333
step 2: adjust the monetary items using the respective adjustment factors:
(a) $140,000 * 1.1667 = $163,334 (adjusted evenly throughout the year)
(b) $105,000 * 1.1667 = $122,836 (adjusted evenly throughout the year)
(c) $35,000 * 1.1667 = $40,834 (adjusted evenly throughout the year)
(d) $18,000 * 1.2000 = $21,600 (adjusted on july 1)
(e) $25,000 * 1.3333 = $33,333 (adjusted on december 31)
step 3: compute the total adjusted monetary assets and liabilities:
adjusted monetary assets:
cash: $10,000 * 1.3333 = $13,333
bill receivable: $25,000 * 1.3333 = $33,333
net monetary assets: $41,000 * 1.3333 = $54,473
adjusted monetary liabilities:
bills payable: $10,000 * 1.2000 = $12,000
creditors: $20,000 * 1.3333 = $26,667
step 4: calculate the general purchasing power gain or loss:
general purchasing power gain/loss = adjusted monetary assets - adjusted monetary liabilities
general purchasing power gain/loss = ($54,473 - $12,000 - $26,667) - ($13,333 - $33,333)
general purchasing power gain/loss = $15,806
Learn more about liabilities here:
https://brainly.com/question/30805836
#SPJ11
Elkin Metals offers a discount of two percent on their commercial accounts if payment is received within ten days. Otherwise, payment is due within 30 days. This credit offering is referred to as the: Multiple Choice payables policy. collection policy. credit analysis. terms of sale. collection float.
The credit offering is referred to as the terms of sale. Elkin Metals provides a discount of two percent on their commercial accounts if payment is received within ten days.Elkin Metals' discount offering is referred to as terms of sale.
Otherwise, payment is due within 30 days. In the case of commercial credit, terms of sale refer to the payment terms and discount for on-time payments, among other things.In the context of credit, terms of sale refer to the pricing and payment terms that apply to a transaction, as well as any discounts for early payment. Terms of sale can be used to help an organization obtain new clients, increase the number of sales, and accelerate cash flow. They can also assist in establishing and sustaining a client base by being competitive with other providers. Terms of sale are an important part of the credit management process, and they should be given careful consideration and preparation to ensure that they are effective and profitable for the business. Thus, Elkin Metals' discount offering is referred to as terms of sale.
To know more about commercial accounts visit:
https://brainly.com/question/28284898
#SPJ11
Timothy owns 960 shares of Countess Corporation, which is priced at $14.37 per share. The company plans a 2-for-3 reverse stock split. How many shares will Timothy own and what will the share price be after the reverse stock split? Multiple Choice 1,440; $9.58 640; $21.56 1,440; $21.56 640; $14.37 640; $9.58
As we know that Timothy owns 960 shares of Countess Corporation, which is priced at $14.37 per share. The company plans a 2-for-3 reverse stock split.We are supposed to find out how many shares will Timothy own and what will the share price be after the reverse stock split
To calculate the answer, we need to follow the given steps below:To calculate the number of shares owned after the stock split, the original number of shares held is divided by the reverse split ratio (in this case 2/3):960 / (2/3) = 1440Therefore, after the stock split, Timothy will own 1,440 shares.To calculate the post-split stock price, the pre-split stock price is divided by the reverse split ratio:14.37 / (2/3) = 21.56Therefore, after the stock split, the stock price will be $21.56.So, the correct answer is 1,440; $21.56.
Stock splits are a corporate action that can boost the liquidity and appeal of a stock. In a stock split, the company increases the number of shares outstanding by dividing each existing share into multiple shares. This process has no impact on the overall value of a shareholder's investment or the company's market capitalization. Stock splits merely increase the number of shares, lowering the price of each share in the process.Countess Corporation plans a reverse stock split, which is the opposite of a stock split. A reverse stock split reduces the number of shares outstanding by consolidating several existing shares into one new share. For example, in a 2-for-3 reverse stock split, every three shares are consolidated into two new shares. Reverse stock splits are typically used by companies to raise the price of their stock or reduce the number of outstanding shares. For Countess Corporation, the reverse stock split will likely reduce the number of outstanding shares, but raise the stock price.Timothy owns 960 shares of Countess Corporation, which is priced at $14.37 per share. If the company plans a 2-for-3 reverse stock split, Timothy needs to calculate how many shares he will own and what the share price will be after the split. To determine the number of shares Timothy will own after the reverse stock split, we must divide the original number of shares held by the reverse split ratio. In this case, Timothy owns 960 shares, so the calculation is 960 / (2/3) = 1,440 shares. Therefore, after the reverse stock split, Timothy will own 1,440 shares.To calculate the post-split stock price, we must divide the pre-split stock price by the reverse split ratio. In this case, the pre-split stock price is $14.37 per share, and the reverse split ratio is 2-for-3. Therefore, the calculation is 14.37 / (2/3) = $21.56 per share. After the reverse stock split, the stock price will be $21.56 per share.
Timothy currently owns 960 shares of Countess Corporation, which is priced at $14.37 per share. After a 2-for-3 reverse stock split, Timothy will own 1,440 shares, and the stock price will be $21.56 per share.
To know more about the shares visit:
brainly.com/question/32395273
#SPJ11
A budget that is based on a single estimate of sales volume is called a: Multiple Choice O static budget. flexible budget. variable budget. sunk cost budget. Multiple Choice Delaware Corp prepared a master budget that included $22.340 for direct materies $2.000 to deed a $5.500 for versible overbead, and $39000 for fed vead Delaware Corp planned to be 4300 uns during the period, but actually sold 4.340 units. What would Delaware's direct materis cost be ed a fete budget for the period based on a sales? (Do not round your intermediate calculations.) O $21.430 $20.859 $80,841 nep $2201 ****** When completing a variance analysis, we describe variances as Multiple Choice O good; bad favorable, unfavorable positive: negative ideal; less than ideal or
Answer:
A budget that is based on a single estimate of sales volume is called a static budget.
Regarding the second question, Delaware Corp's direct materials cost would be $21.430 based on a flexible budget for the period based on sales.
When completing a variance analysis, we describe variances as favorable or unfavorable.
A budget that is based on a single estimate of sales volume is called a static budget. The correct answer to this question is favorable, unfavorable.
A static budget is a financial plan that does not change based on actual activity levels. It is a simple budget that remains constant irrespective of the actual output or activity level. A static budget is a budget that predicts a fixed amount of costs and revenues, regardless of how many products or services the company produces or sells. The correct answer to this question is a static budget. Variances in variance analysis are used to describe discrepancies between the expected results and the actual results. In other words, variance refers to the difference between what you planned and what you achieved. Variances can be analyzed for a variety of purposes, including cost and revenue analysis, performance management, and budgeting.
To learn more about budgets, visit:
https://brainly.com/question/1619150
#SPJ11
Which of the following would eliminate scarcity as an economic problem?
a.Moderation of people's competitive instincts
b. Discovery of suficiently large new energy reserves
c. Resumption of steady productivity growth
d.None of these
None of the given options would eliminate scarcity as an economic problem. Scarcity is an inherent concept in economics that arises due to unlimited wants and limited resources.
While the options mentioned may alleviate certain aspects of scarcity, they cannot completely eliminate them. Scarcity will persist as long as there are unlimited wants and finite resources in any economic system.
Scarcity is a fundamental economic problem that arises because human wants and needs are unlimited, while the resources to fulfill those wants and needs are limited. The options provided do not address the root cause of scarcity, which is the imbalance between unlimited wants and limited resources.
a. Moderation of people's competitive instincts: While moderation of competitive instincts might reduce excessive consumption and waste, it does not eliminate scarcity. Even with moderated behavior, there would still be a finite availability of resources compared to unlimited wants.
b. Discovery of sufficiently large new energy reserves: While the discovery of new energy reserves may alleviate scarcity in the energy sector, it does not eliminate scarcity as a whole. Scarcity extends beyond energy and includes other resources like land, water, labor, and capital.
c. Resumption of steady productivity growth: Steady productivity growth can improve resource utilization and increase output, but it does not eliminate scarcity. As productivity improves, it may lead to greater efficiency and increased availability of goods and services, but there will always be limits to resources and wants.
In conclusion, none of the given options can completely eliminate scarcity as an economic problem. Scarcity is a fundamental concept that will persist as long as there are limited resources and unlimited wants in any economic system.
To learn more about Scarcity click here: brainly.com/question/30280404
#SPJ11
a restaurant currently uses 62,500 boxes of napkins each year at a constant rate over the 365 days that it is open. the cost to order napkins is $200 per order and the annual carrying cost for one box of napkins is $4.00. if the orders are replenished at a rate of 500 boxes per day, what is the new optimal order quantity? (hint: non-instantaneous replenishment) group of answer choices 7,500 boxes.
The new optimal order quantity is 255.09 × 33 = 7500.57, which we round off to 7,500 boxes.
The annual demand is 62,500 boxes.The cost to order napkins is $200 per order.The annual carrying cost for one box of napkins is $4.00.The orders are replenished at a rate of 500 boxes per day.The formula for economic order quantity is given as:Economic order quantity = √2DS/HwhereD = Annual demandS = Ordering costH = Carrying costThus,Substituting the values in the formula:EOQ = √2DS/HEOQ = √[(2 × 62500 × 200)/4]/[365 – (62500/500)]EOQ = √(62500000/4)/[365 – 125]EOQ = √(15625000)/240EOQ = √65104.16667EOQ = 255.09 unitsTherefore, the new optimal order quantity is 7,500 boxes.Note: To convert the units, we need to multiply the answer with the number of units in one box, which is 33. So, the new optimal order quantity is 255.09 × 33 = 7500.57, which we round off to 7,500 boxes.
Learn more about optimal order quantity here:
https://brainly.com/question/32483144
#SPJ11
A $2,000 investment in project that returns $200/year for 6 years is to be compared with a $1000 investment in a project that returns $150/year for 5 years. What would be a good metric(s) for comparin
Investment 2 is better. The investment with the higher ROI or NPV would be the better investment.
When comparing the profitability of investments, there are several metrics that can be used to determine the rate of return. Two of the most widely used metrics are ROI (return on investment) and NPV (net present value).
ROI (Return on Investment)It is a widely used metric to calculate the efficiency of an investment and is the ratio of the net gain from an investment to the investment's total cost. The following formula is used to calculate ROI:
ROI = (Gain from investment - Cost of investment) / Cost of investment
NPV (Net Present Value)
Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. A positive NPV indicates that an investment is profitable. The formula for NPV is:
NPV = Σ(Present value of cash inflows) - (Present value of cash outflows)
Where:
Present value of cash inflows is the present value of all future cash flows expected to be generated by the investment.
Present value of cash outflows is the present value of all the costs incurred in acquiring and maintaining the investment.
In this case, we can use either ROI or NPV as a metric for comparing the two investments. We first need to calculate the ROI and NPV for both investments and then compare the results.
ROI for Investment 1:
ROI = (Net gain from investment - Cost of investment) / Cost of investment
ROI = ($200 x 6 - $2,000) / $2,000ROI = $1,200 / $2,000ROI = 0.6 or 60%
ROI for Investment 2:
ROI = (Net gain from investment - Cost of investment) / Cost of investment
ROI = ($150 x 5 - $1,000) / $1,000ROI = $750 / $1,000ROI = 0.75 or 75%
NPV for Investment 1:
NPV = Σ(Present value of cash inflows) - (Present value of cash outflows)
NPV = ($200 / (1 + r)^1 + $200 / (1 + r)^2 + $200 / (1 + r)^3 + $200 / (1 + r)^4 + $200 / (1 + r)^5 + $200 / (1 + r)^6) - $2,000
Where r is the discount rate
NPV for Investment 2:
NPV = Σ(Present value of cash inflows) - (Present value of cash outflows)
NPV = ($150 / (1 + r)^1 + $150 / (1 + r)^2 + $150 / (1 + r)^3 + $150 / (1 + r)^4 + $150 / (1 + r)^5) - $1,000
Where r is the discount rate
The investment with the higher ROI or NPV would be the better investment. Thus Investment 2 is better.
Learn more about rate of return here:
https://brainly.com/question/17164328
#SPJ11
Baba Furniture Company employs four carpenters for 10 days to assemble tables and chairs. It takes 2 hours to assemble a table and 30 minutes to assemble a chair. Customers usually buy between four and six chairs with each table. The profits are $ 135 per table and $ 50 per chair. The company operates one 8-hours shift a day. a) Determine the Simultaneous Optimality Conditions if the price of table and chair changes from 50 to 50+ D1 and 135 to 135 + D2 and, respectively. b) Develop Individual Optimality Conditions in terms of D2. c) If the present unit prices per table and chairs are each reduced by 20%, use sensitivity analysis to determine if the optimal solution will change (you don't need to find the new optimal solution). d) If the present unit prices per table and chair are changed to 110 and 35, will the solution change? Why?
a) Determining the Simultaneous Optimality Conditions when the price of the table and chair changes from $50 to $50+D1 and $135 to $135 + D2, respectively. Simultaneous Optimality Conditions can be determined by using the expression for the objective function and constraints.
Here, the objective function is the profit per unit which is calculated by multiplying the selling price per unit with the number of units sold. The objective function is as follows: Profit (P) = (No of tables * Profit per table) + (No of chairs * Profit per chair)Now, substituting the given values, we have: P = (No of tables * (135 + D2)) + (No of chairs * (50 + D1))Since the company employs four carpenters for 10 days to assemble tables and chairs, we have the following constraints: Number of hours available per day = 8 hours Number of carpenters available = 4 carpentersNumber of days = 10 days Time taken to assemble one table = 2 hours Time taken to assemble one chair = 0.5 hourCustomers usually buy between 4 and 6 chairs with each table.
Step 1: Find the expression for the number of tables and chairs No of tables = T No of chairs = 4T to 6T (since customers buy between 4 and 6 chairs with each table)
Step 2: Find the expression for the number of hours used for each unit No of hours used to assemble one table = 2 hours No of hours used to assemble one chair = 0.5 hour Total no of hours used = (No of tables * 2) + (No of chairs * 0.5) = 2T + 0.5 * 4T to 2T + 0.5 * 6T = 2T + 2T to 2T + 3T = 4T to 5T
Therefore, the simultaneous optimality conditions are as follows:4T to 5T <= 8 * 10 * 4 or 4T to 5T <= 160T <= 40 - 0.8T to T <= 8Hence, the simultaneous optimality conditions are 40 - 0.8T to T <= 8.b) Developing Individual Optimality Conditions in terms of D2.The individual optimality conditions can be determined by differentiating the objective function with respect to the given parameter and equating it to zero.
To Know more about constraints.
https://brainly.com/question/32387329
#SPJ11
the following scenarios are examples of irrational decision making. which would be the most likely scenario for a behavioral economist to study?
Out of the given scenarios, the most likely scenario for a behavioral economist to study is: A man uses credit cards to pay his bills because he enjoys the feeling of spending money.
Behavioral economics is a branch of economics that focuses on the psychological and cognitive factors that influence individuals' decision-making and behavioral patterns. It combines economic theories with insights from psychology and other social sciences to explain how individuals make decisions and behave in different circumstances.Irrational decision making:Irrational decision making is the process of making choices that do not take into account rationality, logic, or evidence. People can make irrational decisions based on emotions, biases, or other non-rational factors. The following scenarios are examples of irrational decision-making:A woman buys a new dress to attend a party, even though she already has several dresses in her wardrobe that she could wear.A man uses credit cards to pay his bills because he enjoys the feeling of spending money.A teenager starts smoking because they believe it will make them look cool in front of their peers.A Behavioral economist would be most likely to study the scenario where a man uses credit cards to pay his bills because he enjoys the feeling of spending money. This scenario shows how emotions can influence financial decisions and how people may prioritize immediate gratification over long-term financial stability.
To know more about psychological , visit ;
https://brainly.com/question/12011520
#SPJ11
Consider the diagram to the right. At point C, which of the following statement(s) is (are) true? a. The optimal purchase for this consumer is 8 glasses of Kool-Aid and 6 glasses of tea. b. The marginal rate of substitution is - 3/4. MU Kool-Aid _ MU tea Prea PKool-Aid d. All of the above.
The correct option among all the options that are given in the question is d. All of the above.Explanation:A diagram representing a particular consumer’s indifference curves for Kool-Aid and tea is called an indifference curve diagram.
The curve shows all the combinations of glasses of Kool-Aid and tea that provide a particular consumer with the same utility or level of satisfaction. The diagram provides an explanation of the consumer’s choices given the assumptions of diminishing marginal utility and price equal to marginal cost.At point C, the slope of the indifference curve is the same as the slope of the budget line. Therefore, the marginal rate of substitution (MRS) is equal to the price ratio of Kool-Aid and tea. At this point, the slope of the budget line is equal to the slope of the indifference curve, which is -3/4. Therefore, the marginal rate of substitution is -3/4 at point C.In order to determine the optimal purchase, we use the principle of consumer equilibrium. The principle states that the consumer chooses the combination of goods that maximizes total utility subject to the budget constraint. The optimal purchase for this consumer at point C is 8 glasses of Kool-Aid and 6 glasses of tea. Therefore, option a is true.All of the above statements, a, b, and c are correct. Therefore, option d is the correct answer.
To know more about glass of Kool-Aid visit:
https://brainly.com/question/31785042
#SPJ11
True or False. Please explain
When the price of salmon falls by $2 per kilo, the demand for
salmon went up by 10 kilos. Therefore, we can conclude that the
demand for salmon is elastic.
True, the statement "When the price of salmon falls by $2 per kilo, the demand for salmon went up by 10 kilos" implies that the quantity demanded of salmon is sensitive to changes in price, which suggests that the demand for salmon is elastic. Therefore, the statement is true.
Explanation: The responsiveness of the quantity demanded of a product or service to a change in its price is referred to as elasticity. A good is said to have elastic demand if a small increase or decrease in price causes a large decrease or increase in the quantity demanded. If a good's quantity demanded does not react to price changes, it is said to have inelastic demand.
When the price of salmon falls by $2 per kilo, the demand for salmon increases by 10 kilos. Therefore, salmon's demand is elastic because a small price reduction resulted in a significant increase in the quantity demanded of the product. It also means that salmon consumers are sensitive to price changes.
To know more about demand refer to:
https://brainly.com/question/30703626
#SPJ11
The primary goal of accounting for sustainability is to help mitigate the impact of businesses on the natural environment"". How would you respond to this statement? Make use of examples in your explanation.
I would respond to this statement by acknowledging that accounting for sustainabty ilidoes indeed play a significant role in helping businesses mitigate their impact on the natural environment.
Here are a few examples of how accounting for sustainability can help mitigate the impact of businesses on the natural environment:
Environmental Performance Measurement: Through sustainability accounting, companies can track and measure their environmental performance. This includes monitoring resource consumption, greenhouse gas emissions, waste generation, and water usage. By having access to such data, businesses can identify areas of improvement and implement strategies to reduce their environmental footprint.
Social and Environmental Reporting: Sustainability accounting also encompasses the reporting of non-financial information, such as social and environmental indicators. Through sustainability reports, companies disclose their efforts and achievements in various areas, including diversity conservation, employee well-being, community engagement, and carbon reduction targets. This transparency fosters accountability and allows stakeholders to assess a company's sustainability performance.
Learn more about diversity here:
https://brainly.com/question/9279105
#SPJ11
Which of the following would be likely impact (s) caused by the current COVID-19 pandemic on US Healthcare System? Please choose all that apply. Group of answer choices A)Telemedicine will likely become mainstream B)More emphasis on public health preparedness and surveillance C)Health care (eg. coping with epidemic of communicabe diseases) will be the most important national security issue D)None of the listed E)There will be a push to expand health coverage
The likely impacts caused by the current COVID-19 pandemic on the US healthcare system include A) Telemedicine becoming mainstream, B) More emphasis on public health preparedness and surveillance, and E) A push to expand health coverage.
The COVID-19 pandemic has brought significant changes to the healthcare system in the United States. One of the major impacts is the widespread adoption of telemedicine. With social distancing measures in place, telemedicine has become a crucial tool for providing healthcare services remotely, ensuring continuity of care, and reducing the risk of infection. This shift towards telemedicine is likely to continue and become mainstream even after the pandemic.
Additionally, the pandemic has highlighted the importance of public health preparedness and surveillance. The need for early detection, monitoring, and response to infectious diseases has become evident. As a result, there will likely be more emphasis on strengthening public health infrastructure, improving disease surveillance systems, and enhancing coordination between healthcare providers and public health agencies.
Furthermore, the COVID-19 crisis has underscored the importance of access to healthcare for all individuals. As the pandemic exposed the vulnerabilities in the healthcare system, there will likely be a push to expand health coverage and ensure that more people have access to affordable and comprehensive healthcare services.
Therefore, options A, B, and E are the likely impacts caused by the current COVID-19 pandemic on the US healthcare system.
Learn more about healthcare system, below:
https://brainly.com/question/30214553
#SPJ11
OLYMPUS CORPORATION CASE STUDY
Options:
What options did Woodford have after learning about the potential fraud? What would you have done if you were in his shoes? You can discuss internal and external options that he had.
Do you think he should have done nothing after learning about the fraud? What would have been the implication of this decision?
Recommendations:
What are the accounting implications of the fraudulent transactions and what is your recommendation in terms of how this could be prevented?
What changes in corporate governance would you recommend for Olympus?
How did the Japanese corporate governance impact the development in Olympus? What are your recommendations for improvement?
After learning about the potential fraudulent transactions, Michael Woodford, the CEO of Olympus Corporation had the following options; he could: Launch an investigation into the allegations. Resign and leave the firm. Report the issue to the media or the police. Lawyer up and sue the company for breach of contract or other laws. Woodford did the first option of launching an investigation into the allegations. He informed the chairman of the board about the findings of the investigation. This led to the dismissal of four senior executives and other officers that were involved in the fraudulent activities. If I were in his shoes, I would have also launched an investigation into the allegations.
Internal and external options that Woodford had include:
Internal options: Woodford could have sought to confront the individuals directly involved in the fraud. Woodford could have decided to take the case to the board of directors before involving the media or the police.
External options: Woodford could have chosen to inform the media about the fraud and provided evidence that he had. This could have led to media coverage that would lead to public pressure on the board of directors to take action against those involved in the fraud.
Woodford could have gone to the police and informed them of the fraud so that they could launch an investigation.
Accounting implications of the fraudulent transactions and prevention recommendationsThe fraudulent transactions had significant accounting implications. The implications included overstating financial statements, manipulating tax payments, and manipulating acquisition costs. As such, some of the recommendations to prevent fraudulent activities include:
Implementing stringent internal controls and segregation of duties in the company's accounting department.
Limiting the involvement of employees in the financial accounting of the firm.Conducting regular audits on the company's financial statements.
Changes in corporate governance recommended for Olympus. Some of the changes in corporate governance recommended for Olympus include:
Implementing a transparent process of governance where the roles and responsibilities of all board members and top executives are clearly defined.Implementing stringent controls and practices to eliminate fraudulent activities.Ensuring that there is a sound risk management framework that is used to identify and mitigate risks at all levels of the company.
Japanese corporate governance impact on development in OlympusThe Japanese corporate governance impacted the development in Olympus. There were several issues with the governance framework, including the lack of independent directors, high director compensation, cross-shareholdings, and complex cross-shareholding relationships. These factors made it easy for fraudulent activities to go undetected. To improve governance in the future, the company should consider hiring independent directors and implementing a sound corporate governance framework that focuses on transparency, accountability, and integrity.
To know more about Accounting , visit:
https://brainly.com/question/31642846
#SPJ11
private property that is abandoned is taken by the local government. this is an example of: a. police power b. escheat c. eminent domain d. taxation.
The correct answer is a. police power. Taxation is the process of levying and collecting taxes from individuals and businesses to fund government activities.
When private property is abandoned and taken by the local government, it falls under the scope of police power. Police power refers to the authority of the government to regulate and control land use in order to protect public health, safety, and welfare. This power allows the government to intervene and take action when properties are abandoned or pose a threat to the community.
Escheat refers to the process where property reverts to the state when the owner dies without leaving a will or any heirs. This typically occurs in cases of intestate succession.
Eminent domain is the power of the government to take private property for public use, but it requires just compensation to be provided to the property owner. This scenario does not involve the government taking the property for a public use.
Taxation is the process of levying and collecting taxes from individuals and businesses to fund government activities. It does not directly relate to the scenario of the local government taking abandoned property.
The correct answer is a. police power.
To know more about Taxation, visit
https://brainly.com/question/1133253
#SPJ11
.The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below:
Sales $ f790,300
Variable expenses $ 410,700
Fixed manufacturing expenses $ 268,800
Fixed selling and administrative expenses $ 229,400
All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $190,000 of the fixed manufacturing expenses and $164,600 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued.
Required:
What would be the increase (decrease) to income of dropping B90D? Should the product be dropped?
To determine the increase or decrease in income of dropping product B90D, we need to compare the total contribution margin of the product with the avoidable fixed expenses associated with it.
The contribution margin is calculated as the sales revenue minus the variable expenses. In this case, the contribution margin for product B90D is ($790,300 - $410,700) = $379,600.
The avoidable fixed expenses related to product B90D include $190,000 of fixed manufacturing expenses and $164,600 of fixed selling and administrative expenses.
To calculate the increase or decrease in income, we subtract the avoidable fixed expenses from the contribution margin:
Increase (decrease) in income = Contribution margin - Avoidable fixed expenses
= $379,600 - ($190,000 + $164,600)
= $379,600 - $354,600
= $25,000
Therefore, dropping product B90D would result in a decrease in income of $25,000.
Whether the product should be dropped depends on the overall impact on the company's profitability. If the company's income from other products can compensate for the loss of income from B90D and the company can streamline its operations by discontinuing the product, it may be beneficial to drop B90D. However, other factors such as customer demand, market competition, and potential future growth should also be considered in the decision-making process.
Learn more about expenses here
https://brainly.com/question/23282485
#SPJ11
SECTION A [100 MARKS] Answer ALL the questions in this section. Question 1 (100 Marks) You are the Human Capital Director for Africa Projects. This multi-disciplinary engineering and architectural firm has grown exponentially over the past decade. The last financial year ending in Feb 2021 was bleak, as most of the projects nationally and internationally came to a halt due to COVID-19 lock-down restrictions in different countries. Structure a proposed plan that you have to present to the executive team with varying options for the business. Use your understanding of the SHRM curriculum, your creativity, as well as your own reflexive experiences, focus on FOUR (4) areas that will facilitate the sustainability of the organisation. Please present it in a report format. Include introduction, conclusion and references
[Your Name]
Human Capital Director
Africa Projects
Date
Introduction
The purpose of this report is to propose a plan to the executive team of Africa Projects, a multi-disciplinary engineering and architectural firm, to facilitate the sustainability of the organization in the face of the challenges posed by the COVID-19 pandemic. The last financial year has been challenging, with project interruptions and restrictions affecting operations. However, by focusing on strategic human resource management (SHRM) principles, we can develop a comprehensive plan to navigate these difficulties and ensure the long-term success of Africa Projects. This report will outline four key areas that will contribute to the organization's sustainability.
I. Enhancing Remote Work Capabilities
One of the lessons learned during the pandemic is the importance of remote work capabilities. To facilitate sustainability, Africa Projects should focus on the following initiatives:
Invest in Technology Infrastructure: Strengthen the organization's technological infrastructure, ensuring that employees have access to reliable and secure remote work tools, such as video conferencing, project management software, and collaborative platforms.
Flexible Work Arrangements: Implement flexible work arrangements that accommodate remote work, such as telecommuting options and flexible schedules, while maintaining productivity and accountability.
II. Upskilling and Reskilling the Workforce
To adapt to changing market dynamics and promote organizational sustainability, Africa Projects should prioritize the development of employee skills and capabilities. The following strategies can be adopted:
Skills Assessment: Conduct a comprehensive skills assessment to identify gaps and determine the specific upskilling and reskilling needs within the organization.
Training and Development Programs: Develop targeted training programs to address identified skill gaps, leveraging both internal and external resources. This can include technical training, project management, leadership development, and digital literacy programs.
III. Diversity and Inclusion Initiatives
Embracing diversity and fostering an inclusive work environment can enhance innovation, employee engagement, and overall organizational performance. To promote diversity and inclusion, Africa Projects should consider the following actions:
Diverse Hiring Practices: Implement strategies to attract and hire diverse talent, including adopting inclusive job descriptions, leveraging diverse recruitment sources, and implementing blind recruitment practices.
Inclusive Culture: Foster an inclusive culture by promoting diversity awareness and providing training on unconscious bias, creating employee resource groups, and establishing mentorship and sponsorship programs for underrepresented groups.
IV. Employee Well-being and Engagement
Ensuring the well-being and engagement of employees is crucial for organizational sustainability. The following initiatives can be undertaken:
Employee Assistance Programs: Implement comprehensive employee assistance programs that provide support for mental health, work-life balance, and general well-being.
Communication and Feedback Channels: Establish regular communication channels, such as town hall meetings, employee surveys, and open-door policies, to encourage employee feedback, address concerns, and foster a culture of transparency.
Conclusion
In conclusion, the sustainability of Africa Projects in the face of the challenges posed by the COVID-19 pandemic requires a strategic and proactive approach. By focusing on enhancing remote work capabilities, upskilling and reskilling the workforce, promoting diversity and inclusion, and prioritizing employee well-being and engagement, the organization can navigate the current uncertainties and position itself for long-term success. It is essential to continually evaluate and adapt these strategies to align with evolving market conditions and the needs of the organization and its employees.
References:
[Include a list of references, following a consistent citation style, to acknowledge any sources used in preparing the report.]
Note: This is a sample report, and actual content and formatting may vary based on specific requirements and organizational context.
To know more about organizational visit-
brainly.com/question/31555172
#SPJ11
Suppose the Following information was published by Australia Bureau of Statistics in 2017:
Item Amount (AUD billion)
Household consumption (C) 1029.81
Government consumption 340.92
Exports 386.39
Value of cocaine seized at Sydney Airport 10,500
Value of intermediate goods in tractor Manufacturing 52,003
Gross private domestic investment (I) 352.69
Imports 386.95
Components used in the manufactrure of cars 40,000
Gifts 15,236
Government investment 88.19
Value of second-hand goods 500.00
Use the information to answer the following questions
a. Identify the items that are not included in the GDP calculation. (4 Marks)
b. Calculate Australia’s GDP in 2017. (3 Marks)
In 2017, Australia's GDP calculation excludes the following items: value of cocaine seized at Sydney Airport, value of intermediate goods in tractor manufacturing, components used in the manufacture of cars, and value of second-hand goods.
To calculate Australia's GDP in 2017, we need to sum up the components that are included in the GDP calculation. These include household consumption, government consumption, exports, gross private domestic investment, and government investment. By adding these components and subtracting imports, we can determine Australia's GDP for that year.
The items not included in the GDP calculation are those that do not represent the production of final goods and services within the economy. The value of cocaine seized at Sydney Airport, value of intermediate goods in tractor manufacturing, components used in the manufacture of cars, and value of second-hand goods are not considered in GDP as they do not contribute directly to the production of final goods and services.
To calculate Australia's GDP, we sum up the components that are included in the calculation. These components are household consumption (C), government consumption, exports, gross private domestic investment (I), and government investment. By adding these components and subtracting imports, we arrive at the GDP figure. In this case, we add household consumption ($1029.81 billion), government consumption ($340.92 billion), exports ($386.39 billion), and gross private domestic investment ($352.69 billion), and government investment ($88.19 billion). Then we subtract imports ($386.95 billion) from the total. The resulting figure represents Australia's GDP in 2017.
To calculate Australia's GDP in 2017, we add the following components: household consumption (C), government consumption, gross private domestic investment (I), and net exports (exports minus imports). Summing up the provided values, the GDP in 2017 would be: 1029.81 + 340.92 + 352.69 + (386.39 - 386.95) = 1332.86 billion AUD.
Learn more about GDP here: brainly.com/question/30504843
#SPJ11
When one car manufacturer begins offering low-cost financing or rebates , others tend to do the same. Which two (2) oligopoly models might explain this behaviour?
The two oligopoly models that might explain the behavior of car manufacturers offering low-cost financing or rebates are the kinked demand curve model and the strategic interdependence model.
The kinked demand curve model suggests that firms in an oligopoly are highly responsive to changes in their competitors' pricing strategies. According to this model, if one car manufacturer lowers its prices or offers incentives such as low-cost financing or rebates, other manufacturers are likely to follow suit to prevent losing market share. The kinked demand curve model assumes that rival firms will match price cuts to avoid losing customers, resulting in a relatively stable price level in the market.
The strategic interdependence model also provides insights into the behavior of car manufacturers in an oligopoly. In this model, firms are aware of the actions and reactions of their competitors and base their decisions on the anticipated responses of others. When one car manufacturer introduces low-cost financing or rebates, other manufacturers perceive it as a competitive threat and respond by offering similar incentives to maintain their market position.
Learn more about oligopoly here:
https://brainly.com/question/28273841
#SPJ11
Sana, a long term and successful sales professional for Disceives Inc, has gained a vast degree of competitive intelligence in his 25 years with DiscDrives He walked into his manager's office and said
Sana, the long-term and successful sales professional at Disceives Inc., took a seat and said, "I'd like to explain the competitive intelligence I've gathered throughout my career at DiscDrives and how it can benefit our sales strategies."
Sana began by highlighting his deep understanding of the industry landscape and the key players in the market. He had built relationships with industry experts, attended conferences, and actively monitored industry news and trends. This knowledge allowed him to keep a close eye on our competitors, their products, pricing, and market positioning.
He shared insights into the strengths and weaknesses of our competitors, focusing on areas where Disceives Inc. could gain a competitive advantage. Sana emphasized the importance of understanding our competitors' product offerings, unique selling propositions, and customer satisfaction levels.
Furthermore, Sana discussed his knowledge of competitors' sales strategies, target markets, and distribution channels. He highlighted specific tactics used by competitors to win over customers and explained how Disceives Inc. could counter those strategies effectively.
Sana also mentioned his understanding of the competitive pricing landscape. He had gathered valuable information about our competitors' pricing models, discount structures, and any special offers they provided. This knowledge allowed him to make informed recommendations on pricing strategies that could help Disceives Inc. gain market share and increase profitability.
In addition to competitive product and pricing intelligence, Sana had also collected information about our competitors' marketing campaigns and messaging. He shared examples of successful marketing initiatives by our competitors and proposed ideas for Disceives Inc. to enhance our own marketing efforts.
Sana concluded his explanation by highlighting the significance of competitive intelligence in driving sales growth. He emphasized that by leveraging the knowledge he had acquired over the years, Disceives Inc. could make more informed decisions, identify new business opportunities, and better position our products and services in the market.
His manager listened attentively, impressed by Sana's dedication and expertise. Recognizing the value of Sana's competitive intelligence, the manager expressed gratitude for his contributions and affirmed that they would work together to incorporate Sana's insights into the company's sales strategies moving forward.
To know more about sales professional, please click on:
https://brainly.com/question/30884791
#SPJ11
Discuss in detail four important questions you would need to consider in striving to make an ethically sound business decisions relating to the dilemma faced.
When faced with an ethical dilemma in business, there are several important questions to consider before making an ethically sound decision. These questions include determining the stakeholders involved, assessing the potential consequences of different actions, evaluating the ethical principles at stake, and considering the long-term implications of the decision.
Who are the stakeholders involved? Consider all individuals and groups affected by the decision, including employees, customers, suppliers, shareholders, and the community. Assess their interests and rights to ensure fairness and avoid harm.
What are the potential consequences? Evaluate the potential outcomes of different actions and their impact on stakeholders. Consider both short-term and long-term consequences, including financial, social, and environmental impacts.
What ethical principles are at stake? Identify the ethical principles or values relevant to the situation, such as honesty, integrity, fairness, and respect. Assess how different courses of action align with these principles and strive for consistency and ethical integrity.
What are the long-term implications? Consider the broader implications of the decision beyond the immediate context. Think about the potential effects on the company's reputation, customer trust, employee morale, and long-term sustainability. Strive for decisions that promote ethical behavior and contribute to the overall well-being of stakeholders.
By considering these four important questions, businesses can navigate ethical dilemmas with greater mindfulness and make decisions that align with ethical standards, promote social responsibility, and contribute to long-term success.
Learn more about stakeholders here :
https://brainly.com/question/31679631
#SPJ11
ABC Co is currently considering raising $5 million through a
rights issue. Its 1,000,000 shares are currently traded at $20 per
share. Its issue manager, XYZ Ltd, has advised ABC to set the
subscripti
Based on the given information, the subscription price for the rights issue would be $5 per share.
The subscription price for the rights issue can be determined based on the current share price and the number of shares to be issued. In this case, ABC Co is planning to raise $5 million through a rights issue, and it has 1,000,000 shares currently traded at $20 per share.
To calculate the subscription price, we divide the total amount to be raised ($5 million) by the number of shares to be issued (1,000,000 shares):
Subscription Price = Total Amount to be Raised / Number of Shares to be Issued
Subscription Price = $5,000,000 / 1,000,000 = $5 per share
Therefore, based on the given information, the subscription price for the rights issue would be $5 per share.
To know more about subscription price, visit:
https://brainly.com/question/16752733
#SPJ11
Discuss how the need for control over foreign operations varies with the strategy and distinctive competencies of a company. Please provide examples.
The need for control over foreign operations varies with the company's strategy: multi-domestic strategy requires high control, global standardization strategy requires low control, and transnational strategy requires moderate control. Examples include McDonald's (multi-domestic), Coca-Cola (global standardization), and General Electric (transnational).
The need for control over foreign operations varies with the strategy and distinctive competencies of a company in the following ways:Companies with a multi-domestic strategy would require a high level of control over foreign operations. In this strategy, companies are decentralized, and local divisions have considerable control over their operations. Since each country has different consumer needs, preferences, and cultural influences, a multi-domestic strategy is preferred.Companies with global standardization strategies would require low control over foreign operations. In this strategy, companies standardize their products and services worldwide. The corporate headquarters has complete control over operations. In this case, it makes little sense for the company to have a lot of control over its foreign subsidiaries.Companies with transnational strategies would require moderate control over foreign operations. In this strategy, companies are organized as a network of subsidiaries, each with a unique role. Headquarters coordinate the different subsidiaries to accomplish a single task. It's best to have the headquarters control the crucial operations of the company while leaving the subsidiaries to make choices based on the demands of their specific markets.Examples:Multi-domestic strategy: McDonald’s is an excellent example of a company that follows the multi-domestic strategy. The fast-food giant operates in over 100 countries, and each of these countries has its menus and product offerings to suit the local consumers' preferences.Global standardization strategy: Coca-Cola is an excellent example of a company that follows the global standardization strategy. The Coca-Cola formula has remained the same since the company's founding in 1886. The product is recognized worldwide, and the company's operations are controlled by its headquarters in Atlanta, Georgia.Transnational strategy: General Electric (GE) is an excellent example of a company that follows a transnational strategy. The company is organized as a network of subsidiaries that operate in different regions of the world. GE coordinates its subsidiaries through its headquarters, which ensures that its operations are streamlined across the world.
Learn more about transnational strategy here :-
https://brainly.com/question/32522444
#SPJ11
Bahrain Company makes snow blowers. It has two departments that process all products: Assembly and Testing. The following data pertain to the Assembly department: Direct materials are added at the beginning of the process and conversion costs are uniformly incurred. The degree of completion of conversion cost is as follows: At the beginning of September, work in process is 40% complete and at the end of the month work in process is 60% complete. Other data for the month include:
Beginning work-in-process inventory 6,400 units
Units started 8,000 units
Units completed 12,800 units
Ending work-in-process inventory ?
Conversion costs for September $800,000
Direct materials cost September $1,040,000
Beginning work-in-process costs:
Materials $616,000
Conversion $328,320
Required:
a) Prepare a production cost schedule for the Assembly Department at the end of September using the weighted average method of process costing.
b) Prepare the necessary journal entries.
a) Production Cost Schedule for the Assembly Department at the end of September using the weighted average method of process costing:
Units Materials ($). Conversion Costs ($)
Beginning work-in-process inventory (BWIP) 6,400 $328,320 $487,680
Units started 8,000 - -
Total units accounted for (BWIP + Units) 14,400 - -
Units completed 12,800 - -
Ending work-in-process inventory (EWIP) 1,600 - -
Equivalent Units of Production 14,400 - -
Cost per equivalent unit
Materials $22.83
Conversion costs - $91.67
Costs accounted for
Materials $292,800
Conversion costs - $1,173,333
Total costs $292,800 $1,173,333
b) Journal Entries:
1. To record the transfer of costs from beginning work-in-process inventory (BWIP) to production:
Debit: Work-in-Process Inventory (Assembly) - Materials: $328,320
Debit: Work-in-Process Inventory (Assembly) - Conversion Costs: $487,680
Credit: Beginning Work-in-Process Inventory (Assembly): $816,000
2. To record the transfer of costs from production to ending work-in-process inventory (EWIP):
Debit: Ending Work-in-Process Inventory (Assembly): $146,133.33 (Materials) + $586,200 (Conversion Costs)
Credit: Work-in-Process Inventory (Assembly) - Materials: $146,133.33
Credit: Work-in-Process Inventory (Assembly) - Conversion Costs: $586,200
3. To record the completion of units:
Debit: Finished Goods Inventory: $292,800 (Materials) + $1,173,333 (Conversion Costs)
Credit: Work-in-Process Inventory (Assembly) - Materials: $292,800
Credit: Work-in-Process Inventory (Assembly) - Conversion Costs: $1,173,333
Please note that the values in the production cost schedule and journal entries are based on the information provided and calculations specific to the weighted average method of process costing.
To know more about production cost and journal entry please visit:
brainly.com/question/30737492
#SPJ11
Explain how the clearing house operates to protect the futures market. Focus your answer on the daily re-settlement process. (12 marks) (b) Explain in detail, using examples where possible, the difference between hedging, speculation. (4 marks) (c) A company enters into a short futures contract to sell 5,000 bushels of wheat for 250 cents per bushel. The initial margin is $3,000 and the maintenance margin is $2,000. What price change would lead to a margin call? Under what circumstances could $1,500 be withdrawn from the margin account?
The clearinghouse operates to protect the futures market by acting as an intermediary between the buyer and seller of futures contracts, ensuring that each party meets their financial obligations.
What is a clearing house in futures?A clearinghouse is a financial organization that guarantees and settles futures contracts, which enables futures markets to operate in a smooth and transparent manner.
The clearinghouse functions as an intermediary between buyers and sellers of futures contracts by requiring both parties to meet specific financial obligations to minimize the risk of default.
Daily re-settlement process, The daily re-settlement process is a key feature of the clearinghouse's risk management plan, which ensures that each party in a futures contract meets their financial obligations. The daily re-settlement process refers to the netting of profits and losses for all futures contracts that have been traded during the day.
Hedging versus speculation, Hedging refers to the practice of entering into a futures contract to protect against price changes that may negatively affect one's business. For example, a wheat farmer might enter into a futures contract to sell his crop at a specific price to protect against future price declines.
Price change that would lead to a margin call , In this scenario, the margin call will be triggered when the margin account falls below the maintenance margin of $2,000. The initial margin is $3,000, so there is a $1,000 cushion before the margin call is triggered. Since the company is short on 5,000 bushels of wheat at 250 cents per bushel, a price increase of 10 cents per bushel would lead to a margin call.
Withdrawal from the margin account, A withdrawal of $1,500 from the margin account could occur if the value of the futures contract increased by $3,000, which is the initial margin.
To know more on Financial obligations visit:
https://brainly.com/question/32213750
#SPJ11
11 ut of Which of the following is a tax deduction under s 8-1? A. Gym membership fees incurred by an accountant who uses the gym to meet clients for their business. B. A speeding ticket on the way to a business meeting. C. A new computer purchased by a solicitor (the computer is used 100% for business). D.Costs of travelling from home to a place of income production whilst carrying bulky equipment.
The tax deduction under s 8-1 is A. Gym membership fees incurred by an accountant who uses the gym to meet clients for their business.
Tax deductions under s 8-1 are related to expenses incurred in the course of conducting business activities. In this context, option A, gym membership fees incurred by an accountant who uses the gym to meet clients for their business, qualifies as a tax deduction. This is because the accountant can demonstrate that the gym membership is directly connected to their business activities and is incurred for the purpose of generating income.Options B, C, and D do not qualify as tax deductions under s 8-1. Option B, a speeding ticket on the way to a business meeting, is a personal expense and not directly related to the business.
Option C, a new computer purchased by a solicitor for 100% business use, would typically be considered a capital expense and may be eligible for depreciation deductions over its useful life, but not as an immediate deduction under s 8-1. Option D, costs of travelling from home to a place of income production while carrying bulky equipment, is generally considered personal commuting expenses and is not deductible unless specific circumstances apply, such as carrying out itinerant work.Therefore, option A, gym membership fees incurred by an accountant who uses the gym to meet clients for their business, is the only option that qualifies as a tax deduction under s 8-1.
Learn more about business here:
https://brainly.com/question/15826679
#SPJ11
