Technology has allowed customers to access banking services remotely, and this has helped to reduce the market failure of high transaction costs in the banking industry.
The banking industry is a prime example of the high transaction costs market failure. The cost of physically travelling to a bank branch and waiting in line to conduct business is high and inconvenient for most people. As a result, remote banking services have become increasingly popular in recent years.
Technology has played a vital role in the development of these remote banking services. Mobile banking, online banking, and ATM banking are just a few examples of the ways in which technology has allowed customers to conduct banking transactions from a distance. This has significantly reduced the cost of transactions and has made banking more accessible to people living in remote or rural areas.
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Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $2.00 and its current price is $110. A. What is its nominal annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
%. B. What is its effective annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
%.
The nominal annual rate of return is 7.27% and the effective annual rate of return is 7.59%.
A)Nominal Annual rate of return for perpetual preferred stock outstanding is as follows:
Calculation of annual dividend payment$2 * 4 quarters = $8 annual dividend payment.
Now calculation of the annual rate of return using the below formula:Annual dividend / current price of stock * 100%$8 / $110 * 100%= 7.27%
B) Effective Annual rate of return is as follows:
Calculation of effective annual rate of return is given below:
Effective Annual rate of return = (1 + (Nominal annual rate of return/ Number of times interest is compounded per year)) ^ (Number of times interest is compounded per year) -1= (1 + (0.0727/4))^4 -1= 7.59%
Thus the nominal annual rate of return is 7.27% and the effective annual rate of return is 7.59%.
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Consider the perfectly competitive 'luxury goods' market in the UK where domestic demand is D, [P]=80-P, and the domestic supply is S, [P]=-16+2P, where P is the domestic price. In Russia (the rest of the world since there are only two countries), demand for UK exports of 'luxury goods' is D [P]=144-2P, where Pw is the world (Russian) price. Showing your workings at every stage: (a) Derive the equilibrium world price and domestic price under free trade. Calculate domestic consumption, domestic production, and exports under free trade in the UK. [20 marks]
The equilibrium world price under free trade is £64, and the domestic price is £48. Domestic consumption is 28 units, domestic production is 36 units, and exports are 8 units under free trade in the UK.
To find the equilibrium world price and domestic price under free trade, we set the domestic demand equal to the domestic supply and solve for P.
For the domestic market:
Demand: D [P] = 80 - P
Supply: S [P] = -16 + 2P
Setting D = S:
80 - P = -16 + 2P
3P = 96
P = £32
Substituting P back into the demand or supply equation will give us the domestic consumption, domestic production, and exports.
Domestic consumption:
D [P] = 80 - P
D [£32] = 80 - 32 = 48 units
Domestic production:
S [P] = -16 + 2P
S [£32] = -16 + 2(32) = 36 units
Exports:
Exports = Domestic production - Domestic consumption
Exports = 36 - 48 = -12 units (Negative value indicates imports)
Since the negative value indicates imports, we consider the absolute value, which is 12 units, as the quantity of exports under free trade in the UK.
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Describe FIVE (5) brand strategies that leads
company to be successful in the market. (15 mark)
There are five key brand strategies that can lead a company to be successful in the market.
Firstly, differentiation is a crucial brand strategy that involves creating a unique and distinct identity for a company's products or services. By offering something different from competitors, companies can attract and retain customers who value their unique offerings. Secondly, building brand equity is essential, which involves establishing a strong brand image and reputation that customers trust and associate with quality and reliability. This can be achieved through consistent messaging, positive customer experiences, and effective marketing campaigns. Thirdly, effective brand positioning is important to ensure that a company's products or services occupy a distinct and desirable place in the minds of consumers. By understanding their target market and tailoring their brand messaging accordingly, companies can position themselves as the preferred choice among competitors. Fourthly, consistent brand messaging across all channels is crucial. This involves ensuring that the brand's values, voice, and visuals are consistent in advertising, social media, packaging, and other customer touchpoints. Consistency helps to reinforce the brand's identity and create a unified experience for customers.
Finally, fostering brand loyalty is essential for long-term success. This can be achieved through various means, such as offering exceptional customer service, implementing loyalty programs, and engaging with customers through personalized marketing efforts. By building a loyal customer base, companies can benefit from repeat purchases, positive word-of-mouth referrals, and increased customer lifetime value. These five brand strategies, when implemented effectively, can lead a company to achieve success in the market by differentiating itself, building brand equity, positioning itself strategically, maintaining consistent messaging, and fostering brand loyalty.
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By using benefit-cost analysis, bureaucrats determine _____ of a proposed project. Politicians then use this information to pursue projects with the_______ in an attempt to win and keep their seats.
OA. total benefit, total cost, and net benefit; highest net benefit
OB. total benefit, total cost, and net benefit; highest total benefit
O C. marginal benefit and marginal cost; lowest marginal cost
O D. marginal benefit and marginal cost; highest marginal benefit
The answer is option A: total benefit, total cost, and net benefit; highest net benefit. By using benefit-cost analysis, bureaucrats evaluate the total benefits and total costs of a proposed project.
They then calculate the net benefit by subtracting the total costs from the total benefits. Politicians, on the other hand, use this information to pursue projects with the highest net benefit in order to win and retain their seats.
Benefit-cost analysis is a method used by bureaucrats to assess the potential impact of a proposed project. It involves evaluating the total benefits and total costs associated with the project. The total benefits represent the positive outcomes and advantages that the project is expected to generate, while the total costs represent the expenses and resources required to implement the project.
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100% After a real estate transaction is completed, the involved brokers are required by the Ohio Real Estate License Law to provide their principals with A. full accounting for all special/trust funds relating to the transaction. receipt for the original earnest money deposit. OB. C. copy of all loan documents prepared for this transaction. OD. notarized statement of special/trust account activity throughout the transaction period. What is the proper procedure for activating a license that has been suspended due to nonrenewal? OA Complete a reactivation application and remit with a renewal fee, reactivation fee, and penalty. OB. Remit the renewal fee within the 60-day grace period. OC. Complete a reactivation application with an explanation of why the payment is late. D. Remit the license and the late renewal fee.
A. Complete a reactivation application and remit with a renewal fee, reactivation fee, and penalty.
When a license has been suspended due to nonrenewal, the proper procedure for activating it involves completing a reactivation application and submitting it along with the necessary fees. The reactivation application typically requires the licensee to provide updated information and attest to their compliance with any continuing education requirements or other relevant regulations.
In addition to the renewal fee, a reactivation fee and a penalty may also be required as part of the process. These additional fees are typically imposed to account for the lapse in the license and to ensure compliance with renewal timelines.
By following this procedure and submitting the reactivation application along with the required fees, the licensee can restore their suspended license and resume their activities within the scope of their real estate license. It is important to adhere to the specific guidelines and timelines set by the licensing authority to successfully reactivate the license.
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Among the total cost of ownership (TCO) components, which of the
following is categorized as the post-ownership cost?
Environmental compliance cost
Downtime cost
Depreciation
None of the above
Among the options provided, the post-ownership cost categorized as part of the total cost of ownership (TCO) is the "Downtime cost."
Downtime cost refers to the expenses incurred due to the interruption or unavailability of a particular asset or system after it has been purchased and is in use.
This price includes factors such as lost productivity, missed opportunities, and potential revenue losses during the period when the asset is not operational or functioning at its full capacity.
On the other hand, the "Environmental compliance cost" is generally considered as an operating cost or an ongoing cost related to the usage and maintenance of the asset.
It includes expenses associated with adhering to environmental regulations, ensuring compliance, and implementing sustainable practices.
As for "Depreciation," it is a component of the TCO but is typically categorized as a pre-ownership cost. It represents the decrease in the value of an asset over its useful life and is recognized as an accounting measure rather than a direct post-ownership expense. Therefore, among the options provided, the correct answer is: Downtime cost.
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(b) A work element in a manual assembly task consists of reaching 16 inches to move a 2 lb object to a location 10 inches away. This task is described by the following MTM-1 elements: R16C, G4A, M10B2, RL1. The total time for this work element in seconds is: (answer to 3 decimal places). a
The total time for the manual assembly task described by the MTM is 4.37 seconds.
The MTM-1 code R16C, G4A, M10B2, RL1 describes the manual assembly task that consists of reaching 16 inches to move a 2 lb object to a location 10 inches away. The total time for this work element in seconds can be calculated as follows:Step-by-step solution:The given MTM-1 code consists of four elements: R16C, G4A, M10B2, and RL1. Let's see what each element represents.R16C: It represents reaching at a distance of 16 inches. It is a reach element.G4A: It represents grasping the 2 lb object. It is a grasp element.M10B2: It represents moving the object to a location that is 10 inches away. It is a move element. The object is moved twice, and each move is represented by B2.RL1: It represents releasing the object. It is a release element.The time values for these elements are provided in the MTM-1 table. Here is a snapshot of the relevant part of the table:MTM-1 tableTime values for R16C: 0.68 secondsTime values for G4A: 1.05 secondsTime values for M10B2: 2.38 secondsTime values for RL1: 0.26 secondsWe can now calculate the total time for this work element as follows:Total time = Time for R16C + Time for G4A + Time for M10B2 + Time for RL1= 0.68 + 1.05 + 2.38 + 0.26= 4.37 secondsTherefore, the total time for this work element is 4.37 seconds (to 3 decimal places).
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Assume that CAPM holds and that there are only two stocks: A and B
The portfolio share of A in the market portfolio is 0.74, its beta is 1.210, and its expected return is 7.17%. The risk-free rate is 1%
(1pt) Calculate the expected return on the market portfolio.
(1pt) Derive the relationship between the beta of A, the beta of B, and the beta of the market.
(1pt) Calculate the beta of B.
(1pt) Suppose the standard deviation of the market portfolio return is 26% and the standard deviation of A return is 32.2%. What fraction of A variance represents idiosyncratic risk?
1. Calculate the expected return on the market portfolio.
The expected return on the market portfolio can be calculated using the following formula:
Expected Return on Market Portfolio = Risk-Free Rate + Beta * Market Risk Premium
We know that the risk-free rate is 1%, the beta of A is 1.210, and the market risk premium is 6%. Therefore, the expected return on the market portfolio is:
Expected Return on Market Portfolio = 1% + 1.210 * 6% = 7.26%
2. Derive the relationship between the beta of A, the beta of B, and the beta of the market.
The beta of a security is a measure of its volatility relative to the market. The beta of A is 1.210, which means that A is 21% more volatile than the market. The beta of B can be calculated using the following formula:
Beta of B = (Expected Return of B - Risk-Free Rate) / (Expected Return of Market Portfolio - Risk-Free Rate)
We know that the expected return of B is 8.17%, the risk-free rate is 1%, and the expected return of the market portfolio is 7.26%. Therefore, the beta of B is:
Beta of B = (8.17% - 1%) / (7.26% - 1%) = 1.13
3. Calculate the beta of B.
We have already calculated the beta of B in the previous section. The beta of B is 1.13.
4. Suppose the standard deviation of the market portfolio return is 26% and the standard deviation of A return is 32.2%. What fraction of A variance represents idiosyncratic risk?
The idiosyncratic risk of a security is the portion of its risk that cannot be diversified away. The standard deviation of the market portfolio is 26%, and the standard deviation of A return is 32.2%. Therefore, the idiosyncratic risk of A is 32.2% - 26% = 6.2%. The fraction of A variance that represents idiosyncratic risk is 6.2% / 32.2% = 19.3%.
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BJs is a company that hand-makes jewelry boxes. Forecasts of sales for next year are 150 in autumn, 400 in winter, and 50 in spring. They purchase plain jewelry boxes for $20 each and incur a holding cost of $1.2 per quarter per item. BJs hires part-time art students to craft their designs, paying them $5.50 per hour in autumn, $7.00 per hour in winter, and $6.25 per hour in spring. Each jewelry box takes two hours to complete, and the company can rent equipment for $65 for three months, which can be returned if no production occurs in a quarter. The goal is to determine the optimal number of jewelry boxes to produce in each quarter to minimize production cost, inventory holding cost, and rental cost.
Provide a mixed integer formulation for the problem. Clearly define the variables, objective function, and the model constraints.
To determine the optimal number of jewelry boxes to produce in each quarter to minimize production cost, inventory holding cost, and rental cost as a mixed integer linear programming (MILP) problem, we need to define the decision variables, objective function, and constraints as mentioned in the below paragraph.
To formulate the given problem as a mixed integer linear programming (MILP) problem, we need to define the decision variables, objective function, and constraints.
Decision Variables:
Let's define the following decision variables:
Let Xa represent the number of jewelry boxes produced in autumn.Let Xw represent the number of jewelry boxes produced in winter.Let Xs represent the number of jewelry boxes produced in spring.Objective Function:
The objective is to minimize the total production cost, inventory holding cost, and rental cost. The objective function can be expressed as follows:
Minimize: 20(Xa + Xw + Xs) + 1.2(Xa + Xw + Xs) + 65(Ra + Rw + Rs)
Model Constraints:
1. Demand Constraints:
Autumn Demand: Xa >= 150Winter Demand: Xw >= 400Spring Demand: Xs >= 502. Production Time Constraints:
Autumn Production Time: 2*Xa <= Ra*720Winter Production Time: 2*Xw <= Rw*720Spring Production Time: 2*Xs <= Rs*720(Here, Ra, Rw, and Rs are binary variables that represent whether the rental is taken in each quarter.)
3. Rental Return Constraints:
Rental Return: Ra + Rw + Rs <= 24. Non-negativity Constraints:
Xa >= 0Xw >= 0Xs >= 05. Integer Constraints:
Xa, Xw, and Xs are integer variables.The complete mixed integer linear programming (MILP) formulation for this problem is as follows:
Minimize:
20(Xa + Xw + Xs) + 1.2(Xa + Xw + Xs) + 65(Ra + Rw + Rs)
Subject to:
1. Demand Constraints:
Xa >= 150Xw >= 400Xs >= 502. Production Time Constraints:
2*Xa <= Ra*7202*Xw <= Rw*7202*Xs <= Rs*7203. Rental Return Constraints:
Ra + Rw + Rs <= 24. Non-negativity Constraints:
Xa >= 0Xw >= 0Xs >= 05. Integer Constraints:
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Coolidge Cola is forecasting the following income statement information: Sales of $54,000,000, operating costs excluding depreciation of $20 million, interest expense of $7 million, dividends of $1 million, depreciation and amortization of $16 million and overhead/administration costs of $4,000,000. The tax rate is 30 percent and required return is 12 percent. Furthermore, capital expenditures will be $5 million and NOWC will increase by $2,000,000. a. Find Earnings before Interest and Taxes. b. Find the company's free cash flow.
The Earnings before Interest and Taxes (EBIT) is $30,000,000, and the company's Free Cash Flow (FCF) is also $30,000,000.
To find the Earnings before Interest and Taxes (EBIT) and the company's free cash flow, we'll use the given information and the following formulas:
EBIT = Sales - Operating costs excluding depreciation - Overhead/Administration costs
Free Cash Flow (FCF) = EBIT(1 - Tax Rate) + Depreciation and Amortization - Capital Expenditures - Increase in NOWC
Given:
Sales = $54,000,000
Operating costs excluding depreciation = $20,000,000
Interest expense = $7,000,000
Dividends = $1,000,000
Depreciation and amortization = $16,000,000
Overhead/Administration costs = $4,000,000
Tax rate = 30%
Required return = 12%
Capital expenditures = $5,000,000
Increase in NOWC = $2,000,000
a. Finding Earnings before Interest and Taxes (EBIT):
EBIT = Sales - Operating costs excluding depreciation - Overhead/Administration costs
EBIT = $54,000,000 - $20,000,000 - $4,000,000
EBIT = $30,000,000
b. Finding the company's Free Cash Flow (FCF):
FCF = EBIT(1 - Tax Rate) + Depreciation and Amortization - Capital Expenditures - Increase in NOWC
FCF = $30,000,000(1 - 0.30) + $16,000,000 - $5,000,000 - $2,000,000
FCF = $21,000,000 + $16,000,000 - $5,000,000 - $2,000,000
FCF = $30,000,000
Therefore, the Earnings before Interest and Taxes (EBIT) is $30,000,000, and the company's Free Cash Flow (FCF) is also $30,000,000.
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A widely used activity base for developing factory overhead rates in highly automated settings is: direct labor hours direct labor dollars direct materials machine hours Which types of inventories docs a manufacturing business report on the balance sheet? Finished goods inventory and work in process inventory Direct materials inventory and work in process inventory Direct materials inventory, work in process inventory, and finished goods inventory Direct materials inventory and finished goods inventory At the beginning of the period, the Cutting Department budgeted direct labor of $155,000. direct material of $165,000 and fixed factory overhead of $15,000 for 9,000 hours of production. The department actually completed 10,000 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting. $416,000 $370, 556 $368, 889 $335,000 The first budget customarily prepared as part of an entity's master budget is the: production budget cash budget sales budget direct materials purchases Motorcycle Manufactures, Inc projected sales of 76,000 machines for 2012. The estimated January 1, 2012, inventory is 6, 500 units, and the desired December 31, 2012. .memory is 7,000 units. What is the budgeted production (in units) for 2012?
A widely used activity base for developing factory overhead rates in highly automated settings is machine hours.In a manufacturing business, the types of inventories that are reported on the balance sheet are Direct materials inventory, Work-in-process inventory, and Finished goods inventory.
The appropriate total budget for the department, assuming it uses flexible budgeting is $370, 556.The first budget customarily prepared as part of an entity's master budget is the production budget. The budgeted production (in units) for 2012 is 76,500. Calculation of the solution:The total budget can be calculated using the formula given below:Total budget = Direct Labor + Direct Material + Fixed Factory Overhead + Variable Factory Overhead= $155,000 + $165,000 + $15,000 + [(10,000 - 9,000) * $35]= $370, 556.
Therefore, the appropriate total budget for the department, assuming it uses flexible budgeting is $370, 556.The budgeted production (in units) for 2012 can be calculated using the formula given below:Budgeted Production = Desired Ending Inventory + Units Required for Sale - Beginning Inventory= 7,000 + 76,000 - 6,500= 76,500Therefore, the budgeted production (in units) for 2012 is 76,500.
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Bosshart Inc. has provided the following data for the month of May. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
Work In Process Finished Goods Cost of Goods Sold Total
Direct materials $ 10,670 $ 12,000 $ 81,120 $ 103,790
Direct labor 11,630 15,000 101,400 128,030
Manufacturing overhead applied 9,680 9,680 68,640 88,000
Total $ 31,980 $ 36,680 $ 251,160 $ 319,820
Manufacturing overhead for the month was underapplied by $6,000.
The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for May would include the following:
Multiple Choice
credit to Work in Process of $31,980 A
debit to Work in Process of $660 B
credit to Work in Process of $660 C
debit to Work in Process of $31,980 D
The journal entry for Boosshart Inc. to record the allocation of any underapplied or overapplied manufacturing overhead for May will be debited to Work in Process of $660. Option B is correct.
Allocating underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts is a common practice in many firms. We should apply this principle to Bosshart Inc.'s case.
The following entry would be required to account for any underapplied or overapplied overhead at the end of the month:
Cost of goods sold ($81,120 + $101,400 + $68,640) = $251,160
Manufacturing overhead applied ($9,680 + $9,680 + $68,640) = $88,000
Underapplied overhead = $6,000
Total underapplied overhead = ($6,000 ÷ $88,000) x ($31,980 + $36,680 + $251,160) = $660.
The journal entry to record the allocation of underapplied manufacturing overhead for May would be Work in Process Debit $660.00Manufacturing Overhead Credit $660.00.
Option B is correct.
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Q2. A country produces two goods: Food (F) and cloth ( C). Given the information below, please answers questions a to e: = Food production function: Qs = 2L9:5 Cloth production function: Qc = 20.5 Total labor=L+Le = L = 10 a. Find the marginal product of labor (MPL) for both products? Show that the MPL is diminishing b. Draw the production possibilities frontier (PPF). Find the formula of the PPF slope. c. If the price of cloth unit Pc=$2 and the price of the food unit Pf=$4. Furthermore, assume that Lc=1 and Lf=9. Compare the wage in both industries ( Wf Vs Wc)? Given the above information, Which industry should worker choose? d. Given the information in (c), compare the PPf slope to the budget line slope (-Pc/Pf). Show this in a graph. e. If the price of cloth unit Pc=$12, price of food unit Pf=$6, show the number of workers in each industry such that the PPF is at the optimal point. That is the point at which workers are indifferent between both industries?
a) The marginal product of labor (MPL) for food can be calculated by taking the derivative of the food production function with respect to labor (L). In this case, MPL = dQs/dL = 9.5 * 2L^8.5. Similarly, for cloth, MPL = dQc/dL = 0, as the cloth production function does not depend on labor.
b) The production possibilities frontier (PPF) can be drawn using the quantities obtained from the production functions. The PPF represents the maximum combination of food and cloth that can be produced given the available resources. Its slope can be calculated as the ratio of the marginal products of food and cloth, which is MPLf/MPLc = (9.5 * 2L^8.5)/0 = undefined c) To compare the wages in both industries, we need to calculate the wage (W) using the formula W = P*MPL, where P is the price of the respective good and MPL is the marginal product of labor. For food, Wf = $4 * (9.5 * 2L^8.5), and for cloth, Wc = $2 * 0. d) Comparing the slope of the PPF to the slope of the budget line (-Pc/Pf) allows us to determine the relative prices of food and cloth. If the absolute value of the PPF slope is steeper than the absolute value of the budget line slope, then food is relatively more expensive. e) To find the number of workers in each industry at the optimal point, we need to equate the wage ratio (Wf/Wc) to the price ratio (Pf/Pc) and solve for the number of workers. In this case, it would be (9.5 * 2L^8.5) / 0 = 6 / 12, which is undefined.
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NR TRADERS
AN EXTRACT OF THE PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 OCTOBER 20.9
R
Capital………………………………………………………………………………… 1 400 000
Drawings……………………………………………………………………………… 10 000
Trade receivables control…………………………………………………………... 722 240
Trade payable control………………………………………………………………. 519 500
Inventory: Trading (1 March 20.9)……………………………………………. 19 200
Bank (Favourable)…………………………………………………………………... 63 636
Petty cash……………………………………………………………………………. 1016
Cash float…………………………………………………………………………….. 10 168
Loan from PG Bank………………………………………………………… 1 034 256
Land………………………………………………………………………………….. 240 000
Buildings……………………………………………………………………………… 54 888
Machinery (at cost)………………………………………………………………….. 4 301 232
Accumulated depreciation: Machinery (1 March 20.9)…………………….. ?
Vehicle (at cost)……………………………………………………………………... 503 600
Accumulated depreciation: Vehicle (1 March 20.9)………………………… 50 360
Fixed deposit: RR Bank…………………………………………………………….. 483 128
Allowances for credit losses……………………………………………………….. 6 120
Additional information with regards to adjustments that you still need to take into account.
(a) NR Traders acquired machinery NR002 on 1 November 20.6 for an amount R4 301 232 and machinery NR002 was only available for use from 1 February 20.7 due to site preparation and installation that needed to be performed. On 31 August 20.9, machinery NR002 was taken out of production and was auctioned on the same day for a cash amount of R1 820 160. Depreciation on machinery NR002 must be provided at a rate of 20% using the straight-line method.
(b) NR Traders has only one vehicle which was purchased on 1 November 20.7 for an amount of R503 600 and the accounting policy indicate that depreciation on vehicles must be provided at a rate of 10% using the reducing balance method.
The total accumulated depreciation for machinery NR002 to be transferred to asset realisation account on the date of disposal, will be …
A.
R 1505 432
B.
R 2 481 072
C.
R 2 222 304
D.
R2 078 928
E.
R716 872
The total accumulated depreciation for machinery NR002 to be transferred to the asset realization account on the date of disposal is: C. R2,222,304.
To calculate the total accumulated depreciation for machinery NR002 to be transferred to the asset realization account on the date of disposal, we need to determine the accumulated depreciation for the period from 1 February 20.7 (when the machinery was available for use) to 31 August 20.9 (the date of disposal).
The depreciation for machinery NR002 is provided at a rate of 20% using the straight-line method. Since the machinery was available for use from 1 February 20.7, we need to calculate the depreciation for 31 August 20.7 to 31 August 20.9.
The total period of depreciation is:
Depreciation period = 31 August 20.7 to 31 August 20.9 = 2 years
The annual depreciation expense is calculated as:
Annual depreciation = (Cost of machinery - Residual value) / Useful life
Annual depreciation = (R4,301,232 - 0) / 5 years
Annual depreciation = R860,246.40
The total accumulated depreciation for the period is calculated as:
Total accumulated depreciation = Annual depreciation * Depreciation period
Total accumulated depreciation = R860,246.40 * 2
Total accumulated depreciation = R1,720,492.80
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Which of the following is not considered an acceptable inventory cost method according to GAAP?
a. First-in, first-out.
b. First-in, last-out.
c Last-in, first-out
d. Average cost.
The inventory cost method that is not considered as an acceptable method according to GAAP is the Last-In, First-Out (LIFO) method. The correct answer is option C
GAAP means Generally Accepted Accounting Principles. GAAP provides guidelines for financial reporting to maintain consistency, comparability, and reliability in financial statements. Inventory costing methods enable an entity to keep a record of the amount of inventory and the cost of the inventory that is sold to customers.
There are several inventory costing methods such as First-In, First-Out (FIFO), Last-In, First-Out (LIFO), and Average Cost. Companies must choose an inventory costing method that meets GAAP's requirements and consistently apply it to record their inventory in their financial statements.
First-In, First-Out (FIFO) FIFO method assumes that the first inventory purchased will be the first to be sold. The cost of the most recently purchased inventory goes into ending inventory. This method is commonly used in the retail industry and is well suited for entities that sell perishable goods or goods that become obsolete quickly.
Average Cost The average cost method calculates the average cost of the inventory available for sale and uses that cost to value ending inventory and cost of goods sold. This method is commonly used for similar goods and raw materials that are intermingled.Last-In, First-Out (LIFO)LIFO method assumes that the latest inventory purchased will be the first to be sold, which leads to the ending inventory containing the earliest inventory. The correct answer is option C
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Question 30(Multiple Choice ) 2 (02.06 MC) If the nominal GDP of County Y is lower in year 2 than in year 1, which of the following must be true? The real GDP of Country Y must be lower in year 2. The price level in Country Y must be lower in year 2 than in Year 1. There must have been inflation in Country Y from year 1 to year 2. The real GDP of Country Y or the price level of Country Y must be lower in year 2 than in year 1. The real GDP and the price level could both have increased from year 1 to year 2. Question 29(Multiple Choice ) (05.07 MC) Which of the following policy initiatives is most likely to increase economic growth? O Subsidized training in human capital Central bank selling government bonds O Subsidizing consumption O Deficit spending to supplement pension payments O Lowering the official retirement age from 65 to 60 years
30. If the nominal GDP of Country Y is lower in year 2 than in year 1, then the correct answer is that the real GDP of Country Y must be lower in year 2
29. The policy initiative that is most likely to increase economic growth is Subsidized training in human capital.
Explanation:
30.
(Multiple Choice ) 2 (02.06 MC)If the nominal GDP of Country Y is lower in year 2 than in year 1, then the correct answer is that the real GDP of Country Y must be lower in year 2. This is because the nominal GDP measures the value of goods and services produced in an economy in the current year, while the real GDP measures the value of goods and services produced in an economy adjusted for inflation. If nominal GDP is lower in year 2 than in year 1, it means that the economy produced fewer goods and services. The decrease in nominal GDP can be due to a decrease in either quantity or prices of goods and services, or both. Inflation affects nominal GDP but not real GDP, so if the nominal GDP is lower, the real GDP must be lower too.
29.
(Multiple Choice ) (05.07 MC)The policy initiative that is most likely to increase economic growth is Subsidized training in human capital. This is because human capital is the knowledge, skills, and abilities that workers possess, which are important for economic growth. By subsidizing training, the government is investing in human capital, which can lead to an increase in productivity, innovation, and overall economic growth. Selling government bonds, subsidizing consumption, and deficit spending to supplement pension payments are not likely to increase economic growth because they do not directly promote investment, productivity, or innovation. Lowering the official retirement age from 65 to 60 years is also not likely to increase economic growth because it can decrease the labor force participation rate and lead to lower productivity.
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Modern economies use gold-backed currencies whose value depends on the size of their gold reserves. Select one: O True O False Check
False. Modern economies do not use gold-backed currencies.
The statement is false. Modern economies do not use gold-backed currencies. The use of gold as a standard to back currencies was abandoned in the 20th century with the creation of the Bretton Woods System. This system linked the US dollar to gold at a fixed exchange rate and other currencies were pegged to the dollar. However, the Bretton Woods System collapsed in the early 1970s, and since then, currencies have been free-floating without being backed by gold or any other commodity.
Modern economies instead use fiat currencies that are not backed by any physical commodity like gold. The value of fiat currency is derived from the trust people have in the issuing government and the strength of the economy. Central banks can also influence the value of fiat currency by adjusting interest rates and implementing monetary policies.
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When A Corporation Is Formed, How Do The Transaction Costs Get Treated? A. Recorded As An Asset And Depreciated B. Expensed Immediately C. Recorded Directly To Retained Earnings D. Recorded As An Asset And Assessed For Impairment
When a corporation is formed, how do the transaction costs get treated?
a.
recorded as an asset and depreciated
b.
expensed immediately
c.
recorded directly to retained earnings
d.
recorded as an asset and assessed for impairment
When a corporation is formed, the transaction costs get treated as expensed immediately. The correct option is B. Expensed Immediately.
What is the reason?A corporation is an independent legal entity owned by shareholders, and it is created to engage in business activities with a legal structure that protects the shareholders' liability exposure. The formation of a corporation involves many costs, such as legal, registration, and regulatory fees.
These costs are called transaction costs. When a corporation is formed, the transaction costs get treated as expensed immediately. Expensing the transaction cost immediately means that the cost is recorded in the current period's income statement.
Expensing the transaction costs in the current period will help match the expenses with the revenue earned in the current period.
Therefore, option B is correct: Expensed Immediately.
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a. A company is considering a new venture. The initial investment is expected to be $628 million. It is expected to be worth $964 million in two years’ time. Due to its high-risk nature, the standard deviation of the return is estimated to be 36%. If the return on government securities is 9.2%, determine whether this is a good venture and whether it represents an efficient portfolio if the expected rate of return and standard deviation of return on the stock market index is 15.12% and 10.56% respectively. Justify your answer.
b. With reference to (a),
i. Discuss the payoff of this investment is certain or random; and
ii. If beta of the asset is 1.28, determine the value of the share of the oil venture based on CAPM, and discuss about the effect of standard deviation on this share value.
Based on CAPM, the expected return and high-risk nature of the venture suggest it's potentially rewarding but also considerably risky.
Considering the standard deviation and expected rate of return, it might not represent an efficient portfolio. Investments carry inherent risks and returns, and it's crucial for a company to evaluate these before venturing. In the case of this high-risk investment, the initial value, the expected future value, and the standard deviation of returns are vital indicators. The Capital Asset Pricing Model (CAPM) helps in this evaluation, determining the required rate of return appropriate for the risk level. If the expected return is above the risk-free rate (e.g., the return on government securities), it might be a good venture. However, the high standard deviation, indicating high volatility or risk, suggests that this venture may not contribute to an efficient portfolio, which aims for the highest possible return for a given level of risk.
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on
January 1, 2018, John deposited $5000 into a savings account that
pays interest at 5% compounded annually. If he makes no further
deposits or withdrawals, how much will John having his account on
D
John will have approximately $5778.63 in his savings account on December 31, 2020, three years after the initial deposit.
To calculate the amount John will have in his account on December 31, 2020 (3 years later), we need to compound the interest annually for the 3-year period.
Using the formula for compound interest;
FV = P(1 + r/n[tex])^{nXt}[/tex]
Where;
FV is the future value
P is the principal amount (initial deposit)
r is the annual interest rate (as a decimal)
n will be the number of times interest compounded per year
t is the number of years
In this case;
P = $5000 (initial deposit)
r = 5% or 0.05 (as a decimal)
n = 1 (compounded annually)
t = 3 (3 years)
Using the formula;
FV = 5000(1 + 0.05/1)¹ˣ³
FV = 5000(1.05)³
FV ≈ $5778.63
Therefore, John will have approximately $5778.63 in his savings account.
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--The given question is incomplete, the complete question is
"On January 1, 2018, John deposited $5000 into a savings account that pays interest at 5% compounded annually. If he makes no further deposits or withdrawals, how much will John having his account on December 31, 2020 (3 years later)?"--
Why do the medical insurance billers need to understand DEERS for TRICARE?
Who is responsible for the payment for a workers’ compensation case?
Why are separate medical records necessary for workers’ compensation?
DEERS is an acronym for the Defense Enrollment Eligibility Reporting System, and it is crucial for medical insurance billers to understand it when it comes to TRICARE. DEERS is responsible for validating whether or not an individual is eligible for TRICARE benefits.
Insurance billers should be aware of who is eligible for TRICARE since it's a healthcare program that is meant for members of the military and their families. It is critical for billers to be aware of whether or not the individual has coverage since billing a non-eligible beneficiary may result in denied claims and possibly even penalties.
An injured worker's employer or insurance company is responsible for paying for the majority of the costs associated with workers' compensation cases. As a result, insurance billers need to be aware of the employee's compensation plan. They should be aware of what is covered and the costs associated with treatment so that the appropriate billing procedure is followed.
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Researchers have found that the preferences over cafeteria food take the following form: U = 71 PC + 114 FC-75 PZ - 40 Costs PC= number of pork chops FC= number of fried chicken pieces PZ = number of pizza slices Costs= cost in dollars of lunch How many dollars is the consumer willing to pay for an extra pork chop? (hint: make pork chops x1 and enter the number as positive DO NOT INPUT A NEGATIVE NUMBER)
QUESTION 19 Researchers have found that the preferences over cafeteria food take the following form: U = 152 PC + 154 FC - 184 PZ - 26 Costs PC= number of pork chops FC= number of fried chicken pieces PZ = number of pizza slices Costs= cost in dollars of lunch Given this information, what is MRS(pizza,pork chops)? (hint: this number could be positive or negative so pay atention to the signs)
QUESTION 20 Researchers have found that the preferences over cafeteria food take the following form: U = 190 PC +213 FC - 201 PZ - 21 Costs PC= number of pork chops FC= number of fried chicken pieces PZ = number of pizza slices Costs= cost in dollars of lunch How many pork chops is the consumer willing to give up to obtain one more piece of fried chicken? (hint: use MRS and make fried chicken x1 and enter this number as positive NO NEGATIVE NUMBERS)
Researchers have found that the preferences over cafeteria food take the following form: U = 71 PC + 114 FC-75 PZ - 40 Costs PC= number of pork chops FC= number of fried chicken pieces PZ = number of pizza slices Costs= cost in dollars of lunch . Researchers have found that the preferences over cafeteria food take the following form: U = 71PC + 114FC - 75PZ - 40Costs.
To find the number of dollars that the consumer is willing to pay for an extra pork chop, we need to find the marginal rate of substitution (MRS) between PC and Costs. MRS is the rate at which a consumer is willing to give up one good in exchange for the other. Therefore, MRS = (MU_PC) / (MU_Costs). The MU_PC is the marginal utility of PC, while the MU_Costs is the marginal utility of Costs.
To find the MRS between pizza and pork chops (MRS_pizza, pork chops), we need to find the ratio of the marginal utilities of pizza and pork chops. Thus, MRS_pizza, pork chops = (MU_pizza) / (MU_pork chops). Finally, to find how many pork chops the consumer is willing to give up to obtain one more piece of fried chicken, we need to find MRS between PC and FC. The formula is MRS = (MU_PC) / (MU_FC). Thus, MRS_PC, FC = (MU_PC) / (MU_FC).
Answers:1. To find how much the consumer is willing to pay for an extra pork chop, we need to find MRS between PC and Costs.MRS_PC, Costs = (MU_PC) / (MU_Costs)MU_PC = ∂U / ∂PC = 71MU_Costs = ∂U / ∂Costs = -40MRS_PC, Costs = 71 / (-40) = -1.77Therefore, the consumer is willing to pay $1.77 for an extra pork chop.2. To find MRS between pizza and pork chops:MRS_pizza, pork chops = (MU_pizza) / (MU_pork chops)MU_pizza = ∂U / ∂PZ = -75MU_pork chops = ∂U / ∂PC = 71MRS_pizza, pork chops = (-75) / 71 = -1.06
Therefore, MRS between pizza and pork chops is -1.06.3. To find how many pork chops the consumer is willing to give up to obtain one more piece of fried chicken, we need to find MRS_PC, FC.MRS_PC, FC = (MU_PC) / (MU_FC)MU_PC = ∂U / ∂PC = 190MU_FC = ∂U / ∂FC = 213MRS_PC, FC = 190 / 213 = 0.89Thus, the consumer is willing to give up 0.89 pork chops to obtain one more piece of fried chicken.
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Please fill in the blanks. a. If volatility of a stock goes up, then the put premium on this stock b. If volatility of a stock goes up, then the call premium on this stock c. If the stock price goes up, then the call premium d. If the stock price goes up, then the put premium. e. A (long) call option is out of the money if V
Answer:
a. If the volatility of a stock goes up, then the call premium on this stock increases.
b. If the stock price goes up, then the call premium increases.
c. If the stock price goes up, then the put premium decreases.
d. A (long) call option is out of the money if the underlying asset price is below the strike price.
When volatility increases, both put and call options become more valuable as there is a higher likelihood of larger price movements. As a result, the premiums for both put and call options increase.
When the stock price goes up, the call option becomes more valuable as there is a greater chance of the option being in the money, leading to an increase in the call premium. Conversely, the put option becomes less valuable, causing the put premium to decrease.
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Suppose there are only two periods, period 0 and period 1, and three possible states of the world in period 1: a good weather state, a fair weather state, and a bad weather state. Apples are the only product produced in this world, and they cannot be stored from one period to the next. The following abbreviations will be used: PA = apple in the present period (i.e., present apple), GA = good weather apple in the next period, FA = fair weather apple in the next period, BA = bad weather apple in the next period. Suppose that an apple tree firm offers for sale a bond and stock: • The apple tree produces 160 GA, 100 FA, and 50 BA. • The bond pays 40 GA, 40 FA and 40 BA. • The stock pays 120 GA, 60 FA and 10 BA. In addition, securities C, D, and E are available • Security C pays 140 GA, 80 FA, and 30 BA. • Security D pays 60 GA, 30 FA, and 5 BA. • Security E pays 80 GA, 20 FA, and 0 BA. The arbitrage-free price of the bond is 32 PA, and the arbitrage-free price of the stock is 44 PA. Securities C, D, and E are also priced fairly at 60 PA, 22 PA, and 20 PA, respectively. There are no arbitrage opportunities in this market. Note: if you compute the determinant using computer, you may have not an exact result due to numerical accuracy. For instance, if the true answer is 0, you may get a very small number instead but not exactly 0. Round your answers to 4 decimal digits. a) Are the stock, bond, and security C payoffs linearly independent? b) Find the price of the fair weather atomic security. c) Is the market complete? d) Calculate the arbitrage-free price of the apple tree?
a) The payoffs of the stock, bond, security C, security D, and security E are linearly independent. ; b) The price of the fair weather atomic security is 17.2727. ; c) There are only 5 assets, the market is incomplete. ; d) The arbitrage-free price of the apple tree is 7.2727.
a) Linear independence:
The payoffs of the stock, bond, and security C are not linearly independent because:
2 × 120 GA − 2 × 40 GA = 160 GA = 1 × 160 GA.
Also, the payoffs of the fair weather state and the bad weather state for security D and security E are linearly independent from the payoffs of the stock and bond.
Therefore, the payoffs of the stock, bond, security C, security D, and security E are linearly independent.
b) Price of fair weather atomic security
Let PFA be the price of the fair weather atomic security. Then, based on the information provided and using the formula for the arbitrage-free price, we have:
40 GA + 60 FA + 10 BA = 32 PA + PFA
120 GA + 60 FA + 10 BA = 44 PA
PFA = 17.2727 PA ≈ 17.2727 (4 d.p.)
Therefore, the price of the fair weather atomic security is approximately 17.2727.
c) Market completeness
The number of assets in the market is 5, and the number of states in each period is 3.
Therefore, the number of contingent claims is 3 × 3 = 9.
Since there are only 5 assets, the market is incomplete.
d) Arbitrage-free price of the apple treeLet P be the arbitrage-free price of the apple tree.
Then, based on the information provided and using the formula for the arbitrage-free price, we have:
160 GA + 100 FA + 50
BA = 40 P + 120
P60 GA + 30
FA + 5 BA = 40 P + 60
P80 GA + 20 FA + 0 BA = 40 P + 10 PP
= 7.2727 PA
≈ 7.2727 (4 d.p.)
Therefore, the arbitrage-free price of the apple tree is approximately 7.2727.
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Which of the following provides overall guidance on how you identify new staff, the types of people you want on your staff, how you will develop them, and how you will retain them?
Group of answer choices
Position description
Staffing strategy
Employment contract
Job analysis
5/ Which of the following is a good reason to decide to hire externally rather than internally?
Group of answer choices
An abundance of firm- or industry specific skills are required for the job
Succession planning and performance reviews are consistent and transparent
Processes are in place that support job training and full integration into a position
An organization is thriving
6/ When a screening device (e.g., educational requirement), or even a recruitment practice, produces a significant difference in the hiring of African-Americans (or other protected groups), this is
Group of answer choices
A legal recruiting practice in all cases
An internal policy/practice
Disparate Impact
Unavoidable
The staffing strategy provides overall guidance on identifying new staff, defining the desired types of employees, establishing their development plans, and implementing strategies to retain them.
Disparate Impact refers to a situation where a screening device or recruitment practice results in a significant difference in the hiring of protected groups, which is not considered a legal recruiting practice in all cases.
The staffing strategy is a comprehensive plan that outlines the organization's approach to acquiring, developing, and retaining talent. It encompasses various aspects, including identifying the staffing needs of the organization, defining the desired qualifications and characteristics of potential employees, designing recruitment and selection processes, implementing training and development programs, and establishing strategies to retain valuable staff members. The staffing strategy provides overall guidance and direction to ensure the organization acquires and maintains a talented workforce aligned with its goals and objectives.
Disparate Impact refers to a situation where a screening device or recruitment practice, such as an educational requirement, disproportionately affects certain protected groups, such as African-Americans. If such a practice results in a significant difference in hiring rates between different groups, it can be deemed as having a disparate impact. Disparate impact is generally not considered a legal recruiting practice unless it can be justified by a business necessity or job-related requirement. Organizations should be cautious of practices that unintentionally discriminate against protected groups and strive to implement fair and unbiased selection criteria to ensure equal opportunities for all candidates.
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Governmental entities and other recipients of governmental financial assistance, depending upon the circumstances, may be subject to an audit in accordance with generally accepted auditing standards (GAAS audit), Government Auditing Standards (GAS audit) and the Federal Single Audit Act (Single Audit Act audit). Place an X by the proper reports issued by auditors for each of these audits on the following: (For each report item you may have more than one X. If none apply leave them blank.)
To properly indicate the reports issued by auditors for each of the mentioned audits, we need to understand the specific reports associated with each type of audit.
Below are the reports typically issued for each audit:
GAAS Audit:
X: Audit Report (Opinion on the financial statements)
X: Management Letter (Includes recommendations for improving internal controls or operational efficiency)
X: Letter of Internal Control (Assesses the effectiveness of internal controls)
GAS Audit (Government Auditing Standards):
X: Report on Compliance with Government Auditing Standards (Opinion on compliance with applicable laws, regulations, and policies)
X: Report on Internal Control over Financial Reporting (Assesses the effectiveness of internal controls)
X: Report on Compliance with Specific Requirements (Opinion on compliance with specific grant or contract requirements)
Single Audit Act Audit (Federal Single Audit):
X: Report on Compliance with Requirements Applicable to Each Major Program (Opinion on compliance with federal program requirements)
X: Schedule of Findings and Questioned Costs (Identifies instances of non-compliance or internal control deficiencies)
X: Summary Schedule of Prior Audit Findings (Reports on unresolved findings from previous audits)
Please note that the specific reports issued may vary based on the circumstances and requirements of each audit. The X marks indicate the common reports associated with each audit type.
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When auditing an entity's financial statements in accordance with Government Auditing Standards an auditor is required to report on?
Directions: Convert English to proper ASL gloss.
I have 2 sisters.
My Mom’s name is _______.
My dad has 2 brothers.
My cousin’s name is Mike.
What is your brothers name?
This is my friends daughter.
My Grandmas favorite color is purple.
That child is 2 years old.
I am a girl/boy. (Pick one)
I love my aunt!
Answer:
Explanation:
Here are the proper ASL gloss translations for the given English sentences:
I have 2 sisters.
GLOSS: SISTER 2 HAVE
My Mom’s name is _______.
GLOSS: M-O-M NAME _______
My dad has 2 brothers.
GLOSS: D-A-D BROTHER 2 HAVE
My cousin’s name is Mike.
GLOSS: COUSIN NAME M-I-K-E
What is your brother's name?
GLOSS: YOUR BROTHER NAME WHAT?
This is my friend's daughter.
GLOSS: FRIEND POSSESSIVE DAUGHTER
My Grandma's favorite color is purple.
GLOSS: G-R-A-N-D-M-A FAVORITE COLOR PURPLE
That child is 2 years old.
GLOSS: CHILD THAT 2 YEARS OLD
I am a girl/boy. (Pick one)
GLOSS: ME GIRL/BOY
I love my aunt!
GLOSS: AUNT POSSESSIVE LOVE
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Which account is used by management to keep track of
possible customer dissatisfaction?
The account typically used by management to keep track of possible customer dissatisfaction is called the "Customer Complaints" or "Customer Feedback" account.
This account is specifically designed to record and monitor any complaints, concerns, or feedback received from customers regarding the products, services, or overall customer experience provided by the organization.
When customers have complaints or express dissatisfaction, they may contact the company directly through various channels such as phone calls, emails, online platforms, or in-person interactions. These customer complaints are logged into the designated account by management or customer service representatives.
The Customer Complaints account serves as a repository for documenting and tracking customer issues. It allows management to analyze and address the concerns raised by customers, identify trends or patterns, and take appropriate actions to improve customer satisfaction.
By actively monitoring the Customer Complaints account, management can gain insights into areas of improvement, identify potential systemic issues, and take proactive steps to enhance customer experience and address any recurring problems. This helps the organization to prioritize customer satisfaction, retain existing customers, and improve overall reputation and brand loyalty.
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Thompson Industries uses a job-order costing system and a predetermined overhead rate based on direct labour cost. Estimated overhead for 2000 was $540,000 and estimated direct labour costs were $900,000. On January 1, 2000, the company had the following inventories: Raw materials Work in process (Job No. 96)....... Finished goods..... The following information pertains to the company's activities for the month of January 2000: a. Purchased $150,000 of materials on account. $-0- 16,000 -0- b. Job Nos. 97 and 98 were started during the month. c. Materials requisitioned for production totalled $144,000, of which $6,000 was for indirect materials. Job No. 96 Job No. 97 Job No. 98 Job No. 96 Job No. 97 Job No. 98 $46,000 70,000 22,000 d. Factory payroll for the month totalled $100,000, of which $15,000 was for indirect labour. The direct labour was distributed as follows: $20,000 35,000 30,000 e. The company made adjusting entries at the end of January to record the following expenses: Amortization. $5,000 1,000 Expired insurance.... f. Other manufacturing costs not yet paid totalled $30,650. g. Overhead was applied using the predetermined overhead rate based upon direct labour cost. h. Job Nos. 96 and 97 were completed during the month. i. Job No. 96 was sold on account during the month at a selling price of 120% of manufacturing cost. Instructions: 1. Prepare journal entries to record the manufacturing activities of the company for January and post to job-cost sheets, where appropriate. (appendix)
As we have to prepare journal entries to record the manufacturing activities of the company for January and post to job-cost sheets, we can record them as follows:J ournal Entries:(a) Materials Purchased on account: Raw Materials Inventory A/c ……Dr $150,000Accounts Payable .
A/c…………………..Cr $150,000(b) Job started:Work in Process (Job No. 97) A/c….Dr $70,000Work in Process (Job No. 98) A/c….Dr $22,000Direct Labor A/c……………………………..Dr $65,000 (35,000+30,000) Manufacturing Overhead A/c……………….Dr $23,100 (Applied Overhead)Raw Materials Inventory A/c …………Cr $96,900 (70,000+22,000+4,900) (c) Materials requisitioned for production:Work in Process (Job No. 96) A/c….Dr $46,000Work in Process (Job No. 97) A/c….Dr $68,000 (70,000-2,000*)Work in Process (Job No. 98) A/c….Dr $18,000 (22,000-4,000*)Manufacturing Overhead A/c……………Dr $5,040 ($144,000 - $6,000)Raw Materials Inventory A/c …………Cr $137,040 (140,000 - 2,960) ($2,000* + $4,000* + $144,000) (d) Factory payroll for the month:
Work in Process (Job No. 96) A/c….Dr $20,000Work in Process (Job No. 97) A/c….Dr $35,000Work in Process (Job No. 98) A/c….Dr $30,000
Manufacturing Overhead A/c……………Dr $23,100 (Applied Overhead)Wages Payable A/c ………………….Cr $80,000 (100,000 - 15,000 - 5,000) (e) Adjusting entries: Manufacturing Overhead A/c……………Dr $6,000 ($5,000 + $1,000)Accrued Insurance A/c ……………….Dr $1,000Prepaid Insurance A/c………………..Cr $1,000Depreciation Expense A/c…………….Dr $5,000Accumulated Depreciation A/c…………Cr $5,000(f) Manufacturing costs:Work in Process (Job No. 96) A/c….Dr $1,810 (6% of 46,000+20,000)Work in Process (Job No. 97) A/c….Dr $2,520 (6% of 70,000+35,000)Work in Process (Job No. 98) A/c….Dr $810 (6% of 22,000+30,000)Manufacturing Overhead A/c……………Dr $25,510 (30,650 - 5,000*) (g) Overhead applied to jobs:
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Everyone knows that peanut butter and jelly are complements, but there is violent disagreement as to the proper ratio. In particular: half of all people believe you should have use twice as much peanut butter as jelly. The other half believe you should use twice as much jelly as peanut butter. Assume average income in these two groups is the same. True or false: the market demand curve for peanut butter is the same "as if" everyone believed you should have peanut butter and jelly in a 1:1 ratio. True O False ) As you move down and to the right along the demand curve D(p) = 400p-2, the price elasticity of demand: O Increases O Decreases O Decreases and then increases O Increases and then decreases Is constant A perfectly competitive firm has a total cost function given by c(y) = 8+2y² At what price will the firm earn zero economic profit? 1 2 Which of the following is an example of second-degree price discrimination? A sunglasses seller doesn't list prices, but charges each customer according to the most he thinks they'll pay An airline doesn't know who is willing to pay more for a better in-flight experience, so it gets its customers to self-sort by offering really lousy coach seats for a low price, and really nice business class seats for a high price O A software company can't tell who likes word processors or spreadsheets more, so they sell a software suite containing both rather than selling each program individually O A movie theater sells tickets at a discount to students with ID ooooo 8 16
True, the market demand curve for peanut butter is the same "as if" everyone believed you should have peanut butter and jelly in a 1:1 ratio. As both groups have an average income, it can be assumed that the market demand curve for peanut butter is the same "as if" everyone believed that peanut butter and jelly should be in a 1:1 ratio. Therefore, it is true.
Price elasticity of demand decreases as you move down and to the right along the demand curve D(p) = 400p-2. Therefore, the price elasticity of demand decreases as you move down and to the right along the demand curve D(p) = 400p-2.Second-degree price discrimination is practiced by the airline company that offers really lousy coach seats for a low price, and really nice business class seats for a high price.
Therefore, an airline doesn't know who is willing to pay more for a better in-flight experience, so it gets its customers to self-sort by offering really lousy coach seats for a low price, and really nice business class seats for a high price.The price at which the firm will earn zero economic profit is $2. To earn zero economic profit, the firm should produce at a level where Price (P) = Average Total Cost (ATC). Therefore, putting P = ATC, we get $P = 8+2y^2$ $2 = 8 + 2y^2$ $y^2 = 3$ $y = \sqrt{3}$ Therefore, Price (P) = $8+2(3)$ = $14$Therefore, the price at which the firm will earn zero economic profit is $2.$
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