The high-low method is used in managerial accounting to separate fixed and variable costs. By selecting the highest and lowest activity levels and corresponding costs, the variable cost per unit can be calculated.
The high-low method is a managerial accounting technique used to isolate the variable and fixed elements of a cost.The steps for using the high-low method to calculate the variable cost per unit and the total fixed costs of a company are as follows:
Step 1: Choose the highest and lowest activity levels from the data available, as well as the overall costs that correspond to each level. The higher and lower levels are typically denoted as H and L, respectively.
Step 2: Determine the difference in cost between the high and low activity levels and then divide by the difference in activity levels. The result is the variable cost per unit of activity.
Step 3: In the formula y = a + bx, where y is total cost, x is activity level, a is the total fixed cost, and b is the variable cost per unit of activity, solve for a by substituting the total fixed cost, variable cost per unit of activity, and either the high or low activity level.
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BUS 3103 Midterm - Version A- Page 3 of 5 06/06/22 2. choose 2 of the 4 Questions below and answer them. 1. What is the difference between the income approach and the expenditure approach to GDP 2. what are the 3 different types of economics? 3. What are the activities that impact GDP? 4. Draw a basic circular flow chart showing the relation between firms and individuals.
The income approach and the expenditure approach are two different methods used to calculate Gross Domestic Product (GDP), which is a measure of the total value of goods and services produced within a country's borders
The income approach to GDP calculates GDP by summing up all the incomes generated in the production process. It includes the wages earned by workers, profits earned by businesses, rents earned by property owners, and interest earned by lenders. It also takes into account indirect taxes (such as sales taxes) and subsidies. This approach focuses on the income generated by the production of goods and services.
On the other hand, the expenditure approach to GDP calculates GDP by summing up all the spending on final goods and services in the economy. It includes consumer spending (household consumption), investment spending (business investment in capital goods), government spending (government consumption and investment), and net exports (exports minus imports). This approach focuses on the total spending by different sectors of the economy.
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THIS IS ACTUALLY FOR PRINCIPALS OF MARKETING. Help me please
1. Define the marketing concept in your own words, and then explain why the notion of profit is usually included in the definition.
2. A supermarket chain is planning to open a number of new stores to appeal to Hispanics in Southern California. Give some examples that indicate how the four Ps might be adjusted to appeal to the Hispanic subculture.
3. Discuss briefly some of the pros and cons an advertising manager for a producer of sports equipment might want to think about in deciding whether to advertise on the Internet.
1. The marketing concept can be defined as a business philosophy that focuses on meeting the needs and wants of customers through effective product development, promotion, distribution, and pricing strategies.
It revolves around understanding the target market, creating customer value, and building long-term relationships with customers. The notion of profit is typically included in the definition of the marketing concept because it recognizes that businesses aim to generate revenue and achieve financial success. Profitability is essential for sustaining operations, investing in research and development, expanding market reach, and delivering value to customers. By aligning marketing efforts with profitability, organizations can ensure the viability and growth of their business.
2. To appeal to the Hispanic subculture in Southern California, a supermarket chain can make adjustments to the four Ps of marketing:
- Product: The chain can offer a range of products that cater to Hispanic preferences, such as authentic Mexican ingredients, traditional Hispanic food items, and popular brands from Hispanic countries.
- Price: Implementing competitive pricing strategies that consider the budget and price sensitivity of Hispanic consumers can be effective. Offering promotions and discounts on culturally relevant products may also attract this target market.
- Place: Opening new stores in areas with a high concentration of Hispanic residents can increase accessibility and convenience. Additionally, having bilingual staff and signage in both English and Spanish can enhance the shopping experience.
- Promotion: Employing culturally relevant marketing campaigns and communication channels is crucial. Utilizing Spanish-language advertisements, engaging with Hispanic influencers, and sponsoring community events that resonate with the subculture can help build brand awareness and loyalty.
3. When deciding whether to advertise on the Internet, an advertising manager for a producer of sports equipment should consider the following pros and cons:
Pros:
- Wide Reach: Internet advertising allows access to a global audience, potentially reaching a large number of customers.
- Targeting Capabilities: Online platforms provide tools for precise targeting based on demographics, interests, and browsing behavior, enabling better segmentation of the target market.
- Cost-Effectiveness: Compared to traditional media, online advertising often offers more affordable s, allowing better allocation of advertising budgets.
- Interactivity and Engagement: Internet ads can provide interactive features, such as videos, surveys, and social media integration, enhancing user engagement and brand interaction.
Cons:
- Ad Blocking: Many internet users employ ad-blocking software, which can reduce the visibility and impact of online ads.
- Measurement and ROI: Determining the effectiveness of online advertising and calculating return on investment can be challenging due to complex tracking methods and attribution models.
- Ad Fatigue: Internet users are exposed to numerous ads daily, which can result in ad fatigue and reduced attention to online advertisements.
- Viewability and Trust: Online ads may face issues related to ad fraud, viewability, and concerns about privacy and data security, potentially impacting trust in online advertising channels.
Considering these pros and cons, the advertising manager should carefully evaluate the target audience, campaign objectives, budget constraints, and available resources to make an informed decision about advertising on the Internet.
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Which is a disadvantage of using PEOs for staff leasing? Select one:
O a. Higher total payroll costs
O b. Higher benefit costs
O c. Complexity in the payroll function
Od. Increased record keeping
KSA's are important in Select one:
O a. The termination process
O b. The recruiting process
O c. Job analysis and job description
O d. All aspects of the employment process
A disadvantage of using PEOs (Professional Employer Organizations) for staff leasing is the complexity of the payroll function. KSAs (Knowledge, Skills, and Abilities) are important in all aspects of the employment process.
PEOs handle various HR functions, including payroll administration, but this can introduce complexities and challenges for businesses. KSAs (Knowledge, Skills, and Abilities) are important in all aspects of the employment process, not just in specific stages such as recruitment or termination. Using PEOs for staff leasing can have several advantages, such as cost savings and access to HR expertise.
However, one of the disadvantages is the complexity of the payroll function. PEOs take over the responsibility of payroll administration, but it can introduce complexities for businesses that need to coordinate with the PEO and manage various payroll-related tasks, such as tracking hours, managing deductions, and ensuring compliance with payroll laws and regulations. This can add an additional layer of complexity and may require businesses to invest time and effort in coordinating with the PEO to ensure accurate and timely payroll processing.
Whether it is job analysis, job description, recruitment, termination, or any other stage of the employment process, having the right KSA is crucial. KSAs help in identifying and evaluating the qualifications, capabilities, and competencies required for a particular role. They play a vital role in attracting suitable candidates, assessing performance, and ensuring that employees possess the necessary skills and knowledge to perform their job effectively. Therefore, KSAs are important considerations throughout the entire employment process, not limited to specific stages.
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Assuming you were managing a supply chain that is facing massive delays and you are required to implement a Materials Requirement Plan (MRP) to bring about improvements. discuss any four (4) success factors you would put in place to ensure that the MRP is a success.
Implementing a successful Materials Requirement Plan (MRP) in a supply chain facing delays requires accurate demand forecasting, effective communication, efficient inventory management, and leveraging technology and automation.
These factors help optimize production, minimize stockouts, and improve overall supply chain performance.
Implementing a successful Materials Requirement Plan (MRP) in a supply chain facing massive delays requires careful consideration and strategic planning. Here are four key success factors to put in place:
1. Accurate Demand Forecasting: One crucial factor for MRP success is accurate demand forecasting. It involves analyzing historical data, market trends, customer insights, and other relevant factors to predict future demand. By having a reliable forecast, you can align production and inventory levels to meet customer needs, minimize stockouts, and reduce excess inventory.
2. Effective Communication and Collaboration: Communication and collaboration are vital for the success of MRP implementation. It involves ensuring clear communication channels between different stakeholders, such as suppliers, manufacturers, distributors, and customers. Effective collaboration fosters better coordination, timely information sharing, and facilitates quick decision-making to address any bottlenecks or issues in the supply chain.
3. Efficient Inventory Management: Optimizing inventory levels is critical to MRP success. It requires implementing inventory control techniques such as just-in-time (JIT) inventory, economic order quantity (EOQ), or safety stock management. By maintaining the right inventory levels, you can minimize carrying costs, reduce stockouts, and ensure smooth production and delivery processes.
4. Advanced Technology and Automation: Leveraging technology and automation plays a significant role in streamlining MRP processes. Utilizing specialized MRP software or enterprise resource planning (ERP) systems can enhance accuracy, speed, and efficiency in demand forecasting, inventory management, order processing, and supply chain visibility. Automation can also help in real-time data integration, demand-supply matching, and generating accurate reports for informed decision-making.
By focusing on accurate demand forecasting, effective communication, efficient inventory management, and leveraging technology, you can increase the chances of a successful MRP implementation. It helps in minimizing delays, improving supply chain responsiveness, optimizing resources, and ultimately enhancing customer satisfaction.
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Justify whether public goods is beneficial for an economy, (10m) 5 Evaluate if subsidies should be provided to the travel industry to face the after effects of Covid-19. (10m) 6 Analyse if a market can always achieve equilibrium wages rates. (10m)
Public goods are beneficial for an economy as they are goods or services that are provided by the government and are available to everyone. In an economy, public goods are considered essential as they are non-excludable and non-rivalrous, meaning that they cannot be excluded from one person and are available to everyone without any competition.
Protection of national security, law enforcement, education, health services, infrastructure development, and environmental protection are some examples of public goods. The government provides these goods to ensure that they are available to everyone without discrimination and promote equitable growth.The provision of public goods has been instrumental in the growth and development of many economies, as it helps to create an environment conducive to growth.
Public goods also help to promote social welfare, as everyone can access them, and it reduces inequality by providing essential services to the poor and marginalized members of society.However, providing public goods can be expensive, and there may be a risk of overproduction or underproduction. Overproduction can lead to waste, while underproduction can lead to shortages and unfulfilled demands.Subsidies should be provided to the travel industry to face the after-effects of Covid-19.
The travel industry has been one of the most affected industries due to the pandemic. With the imposition of travel restrictions, lockdowns, and border closures, the industry has experienced a significant decline in revenue and demand.
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Cash withdrawals by a partner are increasing his/her capital account. True Fals
False. Cash withdrawals by a partner do not increase his/her capital account. In fact, cash withdrawals by a partner decrease his/her capital account.
A partner's capital account represents the partner's ownership interest in the partnership. It is initially contributed by the partner and can be increased through additional contributions or profits allocated to the partner. On the other hand, withdrawals by a partner represent the partner's personal use of partnership funds and are considered a reduction of the partner's ownership interest.
When a partner withdraws cash from the partnership, it is recorded as a decrease in the partner's capital account. This reflects the fact that the partner is taking out funds from his/her share of the partnership's capital. The partner's capital account is reduced by the amount of the cash withdrawal.
Therefore, cash withdrawals by a partner decrease his/her capital account and do not increase it.
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Most marketers cannot expect to maintain their profit rates unless they engage in which of the following behaviors? Introduce new products from time to time. Test-market new products. Allow their offerings to move through the product life cycle. Form venture teams to assist with product and/or service management.
Introducing new products from time to time .
Most marketers cannot expect to maintain their profit rates unless they engage in introducing new products from time to time.
Introducing new products from time to time is a necessary action for most marketers to maintain their profit rates.
The other options may be helpful for the marketers in terms of product and/or service management, but they do not directly contribute to maintaining profit rates.
Rather, they may contribute to other aspects of business operations, such as keeping offerings moving through the product life cycle, testing and refining new products, and forming venture teams to assist with product and/or service management.
It is worth noting that even with new product introductions, maintaining profit rates can be challenging in an ever-changing marketplace.
Marketers must continually monitor consumer preferences and adjust their offerings to meet the demands of the market.
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3. The income elasticities of demand for movies, dental services, and clothing have been estimated to be 13.4, 11, and
1 0.5, respectively. Interpret these coefficients. What does it
mean if an income elasticity coefficient is negative?
The coefficients 13.4 and 11 is a luxury goods. The coefficient 0.5 is a necessity. If the demand elasticity is negative, the product is a poor good.
Income elasticity of demand is a measure of how much a good or service’s quantity changes when consumers’ incomes change. Depending on the nature of the good or service (i.e., whether it’s an inferior good, a luxury good, or a necessity), the income elasticity can assume different values.
For example, for a standard good that’s a luxury, income elasticity is positive and higher than one. In other words, the demand for luxury or high-end goods increases by more than the increase in consumer income.
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Sheridan Company has the following year-end account balances on November 30, 2021: Service Revenue $37,000; Insurance Expense $2,700; Rent Expense $7,400; Supplies Expense $1,450; L. Wilfrid, Capital $43,000; and L. Wilfrid, Drawings $30,000. Prepare closing entries.
To prepare the closing entries for Sheridan Company, we need to close the temporary accounts (revenue, expenses, and drawings) to the owner's capital account.
To close the temporary accounts, we will perform the following closing entries:
Debit Service Revenue for $37,000:
Service Revenue $37,000
L. Wilfrid, Capital $37,000
This entry closes the Service Revenue account by transferring its balance to the owner's capital account.
Debit Insurance Expense for $2,700:
Insurance Expense $2,700
L. Wilfrid, Capital $2,700
This entry closes the Insurance Expense account by transferring its balance to the owner's capital account.
Debit Rent Expense for $7,400:
Rent Expense $7,400
L. Wilfrid, Capital $7,400
This entry closes the Rent Expense account by transferring its balance to the owner's capital account.
Debit Supplies Expense for $1,450:
Supplies Expense $1,450
L. Wilfrid, Capital $1,450
This entry closes the Supplies Expense account by transferring its balance to the owner's capital account.
Debit L. Wilfrid, Drawings for $30,000:
L. Wilfrid, Drawings $30,000
L. Wilfrid, Capital $30,000
This entry closes the L. Wilfrid, Drawings account by transferring its balance to the owner's capital account.
After these closing entries, the revenue and expense accounts will have zero balances, and the drawings account will also be closed. The owner's capital account will reflect the net income (or loss) for the period, and it will be ready for the next accounting period.
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.Consider a macroeconomy described by the production function:
Y=4K^0.4L^0.6
Please answer all of the following:
A. If capital stock K decreases at a rate of 3% per year, and labor stock L increases at a rate of 6% per year, what is the growth rate in total output Y?
B. What is the per-capita form of the above production function?
C. If capital stock K decreases at a rate of 3% per year, and labor stock L increases at a rate of 6% per year, how long would it take output per capita to double?
D. If capital depreciation depletes 3% of capital stock every year, if population increases at a rate of 4% per year, and if people save 20% of their income every year, what is this economy’s steady-state level of (i) output per worker, (ii) capital per worker, (iii) consumption per worker, (iv) investment per worker? (Make sure all number you’re working with are in decimals, not percentages.)
E. Given information in (d), what is this economy’s golden rule level of (i) output per worker, (ii) capital per worker, (iii) consumption per worker, (iv) investment per worker?
F. If the economy starts off at k = 100, do you expect the economy to grow or to undergo recession as it moves toward the steady-state?
G. If the economy starts off at k = 100 and the country obtains 5 more units of capital per worker through investment, what is the resulting growth rate of GDP per capita?
In the given production function Y = 4K^0.4L^0.6, where Y represents total output, K represents capital stock, and L represents labor stock, we can analyze several aspects.
A. To determine the growth rate in total output Y, we need to consider the rates of change in capital stock (K) and labor stock (L). Assuming K decreases at a rate of 3% per year and L increases at a rate of 6% per year, we can calculate the growth rate in total output by taking the weighted sum of the growth rates of K and L according to their respective exponents in the production function.
B. To obtain the per-capita form of the production function, we divide total output Y by labor stock L. This provides us with the expression Y/L = 4(K/L)^0.4, representing output per capita.
C. To determine the time it takes for output per capita to double, we use the rule of 70, dividing 70 by the growth rate of output per capita.
D. To calculate the steady-state levels of output per worker, capital per worker, consumption per worker, and investment per worker, we need to analyze the equilibrium conditions where the growth rates are zero, taking into account savings, depreciation, and population growth rates.
E. Without specific values for the production function's parameters, we cannot determine the golden rule levels of output per worker, capital per worker, consumption per worker, and investment per worker.
F. If the initial capital stock is below the steady-state level, as in the case of k = 100, we expect the economy to grow as it moves toward the steady-state.
G. The resulting growth rate of GDP per capita when obtaining 5 more units of capital per worker cannot be determined without the specific values for the production function's parameters.
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Outline the 16 section of work in a standard set of specifications provide an example of each section and the work covered.
A standard set of specifications usually includes 16 different sections that are used to describe a construction project or other types of projects. Here's an outline of the 16 sections of work in a standard set of specifications and examples of each section and the work covered:
1. General Requirements: This section specifies the overall requirements of the project, such as project scope, project schedule, project budget, and project quality standards.2. Site Preparation: This section outlines the work that must be done to prepare the site for construction, such as site clearing, excavation, grading, and erosion control.3. Concrete: This section covers the work related to the production and placement of concrete, such as mix design, concrete curing, and concrete testing.4. Masonry: This section outlines the work related to the installation of masonry units, such as brick, block, and stone.
5. Metals: This section specifies the requirements for the installation of metal components, such as steel framing, metal roofing, and metal cladding.6. Wood and Plastics: This section covers the work related to the installation of wood and plastic components, such as wood framing, wood decking, and plastic sheeting.7. Thermal and Moisture Protection: This section outlines the requirements for the installation of insulation, roofing, and waterproofing materials.8. Doors and Windows: This section specifies the requirements for the installation of doors, windows, and hardware.9. Finishes: This section covers the work related to the installation of finishes, such as painting, wallpaper, and flooring.
10. Specialties: This section outlines the work related to the installation of special equipment and systems, such as elevators, fire suppression systems, and security systems.11. Equipment: This section specifies the requirements for the installation of equipment, such as HVAC systems, plumbing systems, and electrical systems.12. Furnishings: This section covers the work related to the installation of furniture, fixtures, and equipment.13. Special Construction: This section outlines the requirements for the installation of special construction elements, such as swimming pools, fountains, and retaining walls.14. Conveying Equipment: This section specifies the requirements for the installation of elevators, escalators, and other types of conveying equipment.15. Mechanical: This section covers the work related to the installation of mechanical systems, such as HVAC systems, plumbing systems, and fire suppression systems.16. Electrical: This section outlines the work related to the installation of electrical systems, such as lighting, power, and communication systems.
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Write a detailed request for proposal that you would send to your proposed venue. This should include information regarding the space and assume that using on-premise catering will be mandatory. Write this from the point of view of an event manager that is trying to get all of the information needed- you will ask questions AND give details about your requirements to see if this will be a good fit.
These are a few examples of areas you could cover:
What are the damage deposits?
Are there other events scheduled at the same time?
Is there a food and beverage minimum?
Subject: Request for Proposal - Venue Inquiry for Event
Dear [Venue Contact],
I hope this email finds you well. I am writing as an event manager on behalf of [Company/Organization], and we are in the process of planning a special event. After conducting thorough research, we are impressed with your venue and believe it could be an ideal location for our upcoming event.
To proceed with our evaluation, we kindly request your assistance in providing us with the following information regarding your venue and services:
Space Availability:
a. Could you please confirm if the desired event date(s) are available?
b. How many event spaces do you offer? Could you provide a detailed description of each space, including square footage, capacity, and any unique features?
c. Are there any limitations or restrictions on the type of events that can be hosted at your venue?
Catering Requirements:
a. Is on-premise catering mandatory? If so, do you have an in-house catering team or preferred external vendors?
b. Could you provide information on the available catering packages, menus, and pricing?
c. Are there any food and beverage minimum requirements that we should be aware of?
Pricing and Payment:
a. What are the rates for renting the venue space(s)? Do these rates vary based on the day of the week or time of the year?
b. Are there any additional charges or fees that we should be aware of, such as service charges, cleaning fees, or equipment rental fees?
c. Do you require a damage deposit? If so, what is the amount and when is it due? Are there any conditions under which the deposit may be fully or partially refunded?
Event Logistics:
a. Are there any restrictions or guidelines regarding event setup, decor, or audio-visual equipment?
b. Is there a dedicated event coordinator or point of contact who will assist us throughout the planning and execution of the event?
c. Will there be any other events scheduled at the same time as ours that might affect access, parking, or noise levels?
Additional Services and Amenities:
a. Could you provide details about any additional services or amenities available at the venue, such as parking facilities, Wi-Fi access, or audio-visual equipment?
b. Do you have preferred vendors for services like photography, floral arrangements, or event entertainment?
We appreciate your prompt attention to our inquiry and request for proposal. Your responses to the above questions will greatly assist us in evaluating the suitability of your venue for our event. If there are any additional documents or brochures you can provide, please include them with your response.
Thank you for your time and consideration. We look forward to receiving the requested information and the possibility of partnering with your venue for our event. Should you require any further details or have any questions, please do not hesitate to contact me at [Your Contact Information].
Sincerely,
[Your Name]
[Your Company/Organization]
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A city "piggy-backs" its 3 percent sales tax on top of the state sales tax. During calendar year 2022 the state remits $1,000,000 to the city for sales taxes collected for the city. On January 25, 2023, the state sends the city $375,000 for sales taxes collected in the fourth quarter of 2022. On March 1, the state sends the city $56,250 for sales taxes applicable to 2022, but sent in by late filers. Historically, the state has sent the city about $37,500 every June for sales taxes applicable to previous years that either trickles in from additional late filers or that results from tax audits. The city has a stated policy of treating sales taxes as "available" if received by March 30 of the year after the applicable sales tax year. Based on the foregoing information only, how much should the city recognize as sales tax revenues in its financial statements for the year ended December 31, 2022? Select one: a. $1,431,250 b. $1,468,750 c. $1,000,000 d. $1,375,000
The amount that the city should recognize as sales tax revenues in its financial statements for the year ended December 31, 2022 is $1,375,000.What is sales tax A sales tax is a consumption tax that is levied on the sale of goods and services. Sales tax is often applied to transactions at the point of sale. Sales taxes can be levied by federal, state, or local governments.
What is the method used by the city The city uses a 'piggyback' approach, which means that it adds its 3 percent sales tax to the state sales tax.What is the city's sales tax revenue?The state remits $1,000,000 to the city for sales taxes collected for the city during calendar year 2022. The state sends the city $375,000 for sales taxes collected in the fourth quarter of 2022 on January 25, 2023. On March 1, the state sends the city $56,250 for sales taxes applicable to 2022, but sent in by late filers. Historically, every June, the state sends the city about $37,500 for sales taxes applicable to previous years that either trickles in from additional late filers or that results from tax audits.
Therefore, the total sales tax revenue for 2022 will be:$1,000,000 + $375,000 + $56,250 = $1,431,250Since the city has a policy of treating sales taxes as "available" if received by March 30 of the year after the applicable sales tax year, we must subtract $37,500. Therefore, the total sales tax revenue for the year ended December 31, 2022, that the city should recognize in its financial statements is:$1,431,250 - $37,500 = $1,375,000.
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The management of company has presented their fixed assets in the current assets. As an auditor you have to test the presentation and disclosure of the fixed assets. Determine the most applicable audit objective for the test. Select one: O A. Classification O B. Cut-off O C. Existence OD. Right and obligation Clear my choice Determine the main source of evidence to be used in the substantive test Select one: A. Journal listing B. Payment Vouchers Fixed Asset Register Fixed Asset Ledger O C. O D. Which test is predominantly used in auditing fixed assets? Select one: O A. Substantive test O B. Risk assessment O C. Test of control O D. Scanning Auditors establish the validity of Fixed Assets Register by the following actions except for ......... Select one: O A. Test check the additions and disposal B. Perform analytical procedures O C. Check the casting in the PPE register O D. Agree the total cost of PPE in the general ledger with that of the PPE register Auditors select a sample of PPE from physical inspection and trace them to the Fixed Assets Register. Determine the audit objective for the procedure, which is performed by the auditors. Select one: O A. Right an obligation O B. Existence O C. Valuation D. Completeness
The most applicable audit objective for testing the presentation and disclosure of the fixed assets is Existence. The purpose of this procedure is to establish that the fixed assets exist, are owned by the entity, and are included in the Fixed Asset Register.
The for this is that the existence objective is used to test whether the assets or liabilities exist at the balance sheet date. The auditor needs to verify that the fixed assets presented in the current assets exist and are owned by the entity. This objective is used to establish that the company's financial statements include all assets and liabilities that should be recorded and that these assets are the company's property.The main source of evidence to be used in the substantive test is the Fixed Asset Register. The Fixed Asset Register is the source document that provides information about each fixed asset owned by the company. It shows the acquisition cost, accumulated depreciation, and the net book value of each asset.
The auditor will need to test the accuracy and completeness of the Fixed Asset Register to ensure that it includes all the fixed assets owned by the company.The Substantive test is predominantly used in auditing fixed assets. This test involves gathering evidence from different sources to support the amounts and disclosures in the financial statements. It is used to detect material misstatements in the financial statements, which could arise from fraud or error. Auditors will use substantive tests to obtain evidence about the completeness, accuracy, and validity of the fixed assets register.Auditors establish the validity of Fixed Assets Register by performing analytical procedures, test check the additions and disposal, and agree the total cost of PPE in the general ledger with that of the PPE register. However, they do not check the casting in the PPE register because that is not an effective way to establish the validity of the fixed assets register.The audit objective for the procedure that auditors use to select a sample of PPE from physical inspection and trace them to the Fixed Assets Register is Existence.
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Cocomelon Umbrellas can purchase a new fabric gluing/sewing machine for $100,000. The new process will
reduce variable cost by $1 per unit. Fixed costs will rise to $310,000. Should the company make this purchase?
Explain
New contribution margin = $10Since the new contribution margin is lower than the old contribution margin, Cocomelon Umbrellas should not purchase the new machine.
Cocomelon Umbrellas wants to buy a new fabric gluing/sewing machine for $100,000, which will reduce variable cost by $1 per unit. Fixed costs will increase to $310,000.
Cocomelon Umbrellas has to make a decision on whether or not to purchase a new fabric gluing/sewing machine. The new machine will cost $100,000, and it will reduce variable costs by $1 per unit. Fixed costs will increase to $310,000 if the purchase is made.The contribution margin of a product is calculated by subtracting the variable cost per unit from the selling price per unit. By reducing variable costs by $1 per unit, the contribution margin per unit will rise by $1.
Therefore, the new contribution margin per unit after the purchase would be:
Contribution margin = Selling price per unit - Variable cost per unit
Contribution margin = Selling price per unit - (Variable cost per unit - $1)
Contribution margin = Selling price per unit - Variable cost per unit + $1
Contribution margin = Old contribution margin per unit + $1
Cocomelon Umbrellas can purchase the new machine if the contribution margin is greater than the old contribution margin. Therefore, the contribution margin for the product before and after the purchase must be compared:
Old contribution margin = $12 - $3
Old contribution margin = $9
New contribution margin = $12 - $2
New contribution margin = $10
Since the new contribution margin is lower than the old contribution margin, Cocomelon Umbrellas should not purchase the new machine.
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Peru has a GDP of 732,000 billion Peruvian soles, and a
population of 32 million. The exchange rate is 3.5 Peruvian soles
per U.S. dollar. The GDP per capita of Peru as measured in U.S.
dollars is app
Given that the GDP of Peru is 732,000 billion Peruvian soles and the exchange rate is 3.5 Peruvian soles per U.S dollar, we are to calculate the GDP per capita of Peru measured in U.S dollars with a population of 32 million.
We can find the total GDP of Peru in U.S dollars by dividing the GDP of Peru by the exchange rate:GDP of Peru in US dollars = (732,000 billion Peruvian soles) / (3.5 Peruvian soles/1 US dollar)= (732,000 billion/3.5) US dollars= 209,142.857 billion US dollars.GDP per capita is found by dividing the total GDP by the total population of Peru.
GDP per capita of Peru as measured in U.S dollars = (GDP of Peru in U.S dollars) / (Population of Peru)= (209,142.857 billion US dollars) / (32 million)= 6529.46484375 US dollars per capita (to four decimal places)Therefore, the GDP per capita of Peru measured in U.S dollars is approximately 6,529.46 US dollars.
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All of the following statements about the Trump Administration's environmental policies are true except:
Select one:
a. The Administration has issued an executive order requiring that for every new regulation adopted, two existing regulations must be eliminated.
b. The Trump Administration has cut the funding and staff at the US EPA.
c. The Trump Administration has replaced the Obama Administration's Clean Power Plan (which was designed to reduce CO2 emissions from the energy sector) with a policy that reduces CO2 emissions by about one percent.
d. All of the above-listed policies were adopted by the Trump Administration.
The correct answer is:
c. The Trump Administration has replaced the Obama Administration's Clean Power Plan (which was designed to reduce CO2 emissions from the energy sector) with a policy that reduces CO2 emissions by about one percent.
This statement is not true. The Trump Administration did replace the Clean Power Plan, but the replacement policy, called the Affordable Clean Energy (ACE) rule, has been criticized for being less stringent and not effectively reducing CO2 emissions. It is not accurate to say that the ACE rule reduces CO2 emissions by about one percent.
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Dana Company manufactures and sells a single product. The following costs were incurred during the Variable costs per unit: Manufacturing Direct materials $18 Direct labor $7 Variable manufacturing overhead 52 Variable selling and administrative 52 Fixed costs per year: Fixed manufacturing overhead $ 200,000 Fixed selling and administrative expenses $110,000 1 During the year, the company produced 20,000 units and sold 16,000 units. The selling price of the company's product is $50 per unit Required: Assume that the company uses absorption costing: a) Compute the unit product cost. (3 marks) b) Prepare an income statement for the year (use the detailed format of income statement which shows the calculation of the cost of goods sold
Unit product cost under Absorption Costing is $49 and the net operating loss under absorption costing is $926,000.
The unit product cost under absorption costing is calculated by adding all the variable and fixed costs of production. The following formula is used to calculate the unit product cost under absorption costing:
Unit Product Cost = Direct Materials + Direct Labor + Variable Manufacturing Overhead + Fixed Manufacturing Overhead / Number of Units Produced
Given, Direct materials cost per unit = $18
Direct labor cost per unit = $7
Variable manufacturing overhead cost per unit = $52
Fixed manufacturing overhead = $200,000
Total units produced = 20,000
Unit product cost= ($18 + $7 + $52 + $200,000/20,000) = $49
Income statement using absorption costing: The income statement for the year using the absorption costing method is as follows: Calculation of Cost of Goods Sold:
Details Amount Sales (16,000 x $50) $800,000
Cost of Goods Sold: Opening Stock = 0
Add: Cost of goods manufactured = (20,000 x $49) $980,000
Total Cost of goods available for sale $980,000
Less: Closing stock = (4,000 x $49) ($196,000)
Cost of Goods Sold $784,000
Gross Profit $16,000
Less: Selling and Administrative expenses:
Fixed Selling and Administrative Expenses $110,000
Variable Selling and Administrative Expenses (16,000 x $52) $832,000
Total Selling and Administrative expenses $942,000
Net Operating Loss ($926,000)
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A leftward shift of the market demand curve, ceteris paribus, causes equilibrium:
a. Price to increase and quantity exchanged to decrease.
b. Price to increase and quantity exchanged to increase.
c. Price to decrease and quantity exchanged to decrease.
d. Price to decrease and quantity exchanged to increase.
The leftward shift of the market demand curve, ceteris paribus, causes equilibrium to decrease the price and the quantity exchanged.
When we talk about ceteris paribus, it means that all other factors influencing the demand for the good or service remains constant. Therefore, when there is a leftward shift in the market demand curve, it means that the demand has decreased and that there is less willingness to buy the goods or services at the given prices.
Since there are fewer buyers in the market, there is no need to produce the same quantity of goods or services as the previous equilibrium. It results in less demand, and the equilibrium point will move to a lower quantity at a lower price than the previous equilibrium point.
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Since competition in the retail sector, especially grocery industry, is so strong, such retailers have historically used prices a Market positioning b. Brand recognition c. Bait and switch d. Game theory e. none of the above
Among the given options, the strategy that retailers in the highly competitive grocery industry historically used to cope with the strong competition is option a) Market positioning. This strategy involves positioning the retailer's offerings in the market based on factors such as price, quality, convenience, or unique product offerings to attract and retain customers.
Price has been a significant factor in the grocery industry as retailers strive to offer competitive pricing to attract price-conscious consumers. However, market positioning encompasses more than just pricing. It also involves factors such as the retailer's target market, product differentiation, customer service, and overall value proposition.
While brand recognition and other strategies like bait and switch or game theory may also play a role in the retail sector, market positioning, including pricing, has historically been a key approach used by retailers to gain a competitive edge in the grocery industry.
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intrinsically satisfying work can be a leadership substitute because such work
Intrinsically satisfying work can be a leadership substitute because such work holds inherent motivation and fulfillment for individuals, reducing the need for external guidance and direction from a leader.
When individuals find their work intrinsically satisfying, they are self-motivated to pursue and excel in their tasks without constant supervision or guidance. Here are a few reasons why intrinsically satisfying work can act as a leadership substitute:
1. Autonomy: Intrinsically satisfying work often provides individuals with a sense of autonomy and control over their tasks and responsibilities. They can make decisions and take ownership of their work, leading to increased engagement and self-direction.
2. Mastery and Growth: Intrinsically satisfying work allows individuals to develop and improve their skills, leading to a sense of mastery. The inherent satisfaction derived from personal growth and achievement can drive individuals to excel and take on new challenges without the need for constant direction.
3. Purpose and Meaning: When work aligns with an individual's values, passions, and sense of purpose, it becomes intrinsically satisfying. The inherent fulfillment derived from meaningful work can create a sense of purpose that drives individuals to perform at their best.
4. Intrinsic Rewards: In addition to external rewards such as promotions or monetary incentives, intrinsically satisfying work offers internal rewards like a sense of accomplishment, pride, and enjoyment. These intrinsic rewards can be powerful motivators, reducing the need for external leadership influence.
While leadership is still important for setting overall goals, providing support, and creating a positive work environment, intrinsically satisfying work can act as a powerful motivator and reduce the reliance on constant supervision and direction from leaders. It empowers individuals to take charge of their work and fosters a sense of autonomy, mastery, and purpose.
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How can firms increase profits through international expansion? (multiple answers might apply)
A. Realize greater cost economies from experience effects
B. Realize location economies
C. Enter new markets
D. Leverage skills developed in foreign operations and transfer them elsewhere in the firm
The correct answers are A, B, C, and D. By combining these strategies, firms can enhance their competitive advantage, drive revenue growth, and ultimately increase their profits through international expansion.
A. Realize greater cost economies from experience effects: By expanding internationally, firms can benefit from economies of scale and scope. As they gain experience operating in different markets, they can optimize their production processes, reduce costs, and improve efficiency, leading to increased profits.
B. Realize location economies: International expansion allows firms to locate their production facilities, sourcing, and operations in countries where they can benefit from lower costs, access to resources, favorable regulations, or proximity to key markets. By taking advantage of location economies, firms can reduce expenses and enhance profitability.
C. Enter new markets: International expansion enables firms to tap into new customer bases and enter untapped markets. By expanding their reach beyond domestic boundaries, firms can access larger customer segments, capture market share, and generate additional revenue, thereby increasing their profits.
D. Leverage skills developed in foreign operations and transfer them elsewhere in the firm: International expansion provides opportunities for firms to develop new skills, knowledge, and capabilities through their foreign operations. These skills can be transferred and applied within the firm's domestic operations, leading to improved performance and increased profitability.
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Q.
If the price elasticity of demand for medical care is estimated to
be 0.3, then doctors can raise total revenue by charging their
patients more for their services without fear a loss of patients.
A
If the price elasticity of demand for medical care is estimated to be 0.3, it suggests that the demand for medical care is inelastic. In this case, an increase in price would result in a proportionately smaller decrease in the quantity demanded.
Based on this information, doctors can potentially raise their total revenue by charging higher prices for their services without experiencing a significant loss of patients. Since the demand is inelastic, the increase in price would result in a less-than-proportional decrease in quantity demanded, leading to an overall increase in total revenue.
However, it is important to note that this analysis assumes that all other factors affecting the demand for medical care remain constant. In reality, there are various factors that can influence patients' decisions, such as affordability, availability of alternatives, and the necessity of the medical services.
Additionally, the elasticity of demand may vary across different segments of the population, and it is possible that some patients may be more price-sensitive than others.
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Risk that can be eliminated through diversification is called ______ risk.
Group of answer choices
unique
firm-specific
idiosyncratic
all of these options
The risk that can be eliminated through diversification is called idiosyncratic risk.
Idiosyncratic risk, also known as unsystematic risk or specific risk, refers to the risk associated with individual assets or securities. It is specific to a particular company or industry and can be mitigated through diversification. Diversification involves spreading investments across different assets or securities to reduce the impact of idiosyncratic risk on a portfolio.
By investing in a diversified portfolio that includes a variety of assets or securities from different sectors or industries, the idiosyncratic risk of individual assets is reduced. This is because the unique risks associated with specific companies or industries tend to be uncorrelated or have a lower correlation with each other. As a result, adverse events or negative outcomes affecting one asset or company are offset by positive outcomes in other assets or companies within the portfolio. Therefore, diversification helps to eliminate or minimize idiosyncratic risk, allowing investors to reduce their exposure to the risks specific to individual assets and enhance the overall risk-return profile of their investment portfolio.
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All costs of a product that are considered assets in a company's balance sheet when the costs are incurred and that are expensed as cost of goods sold only when the product is sold is called? Owentoriable costs O Product costs Variable costs Foodcasts
Product costs are the costs of a product that are considered assets in a company's balance sheet when the costs are incurred and that are expensed as cost of goods sold only when the product is sold.
Product costs are the direct costs that a company incurs in manufacturing its products. Direct materials, direct labor, and factory overhead are the three types of product costs that are considered assets in a company's balance sheet when the costs are incurred and that are expensed as cost of goods sold only when the product is sold. These costs are called product costs because they are directly related to the production of goods and services.
An example of a product cost is the cost of goods sold (COGS). COGS refers to the direct costs associated with producing a product, such as the cost of materials, labor, and overhead. These costs are considered assets when they are incurred, and they are expensed as cost of goods sold only when the product is sold.
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from the accompanying table, we would expect that, for amateur skaters, the price elasticity of demand for ice skates between $10 and $20 to be ________ than that of hockey players because ________.
For amateur skaters, the price elasticity of demand for ice skates between $10 and $20 to be higher than that of hockey players because they may have a wider range of alternatives.
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. It is influenced by various factors, such as the availability of substitutes, income levels, and consumer preferences.
If the table shows a higher percentage change in quantity demanded for amateur skaters compared to hockey players within this price range, we would expect the price elasticity of demand for amateur skaters to be higher. This means that amateur skaters are more responsive to changes in price compared to hockey players.
The difference in price elasticity can be attributed to several factors. Amateur skaters may have a wider range of alternatives or substitutes available to them, making them more sensitive to price changes. They may also have lower income levels compared to hockey players, making price a more significant factor in their purchasing decisions. Additionally, differences in consumer preferences and the importance of ice skating as a recreational activity for each group can contribute to the disparity in price elasticity.
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Page 8 of 8 ACCT 301, Final Exam Use the following information for questions 22-25. Dhahran Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of January Inventory, January 1 € 160,000 Sales (gross) € 1,000,000 Purchases (gross) 640,000 Sales retums 70,000 Freight-in 30,000 Purchases returns 30,000 Freight-out 30,000 22. Compute the Goods available for sales, assuming that the gross profit is 25% of sales. 818,000 a $788,000 b. $800,000 c. $818,000 d. $830,000 23. Compute the cost of goods sold, assuming that the gross profit is 25% of sales. 818,000 a. 5675,000 b. 8697,500. c. $800,000 d. $830,000 24. Compute the estimated inventory at January 31, assuming that the gross profit is 25% of sales. 143.000 25. 574,000. 26. S120,500 c. $125,000 580,000 27 Compute the estimated inventory at January 31, auming that the gross profit is 25% of cost 574,000 b. S120,500 $125,000 d $80,000
Based on the given information and assuming a gross profit rate of 25% of sales, the answers to the questions are as follows:
22. C. Goods available for sales: $818,000.
1. Cost of goods sold: $682,500.
2. Estimated inventory at January 31: $135,500.
3. Estimated inventory at January 31 (assuming gross profit is 25% of cost): $120,500.
The gross profit method is used to estimate inventory by applying a gross profit rate to sales. It assumes a consistent relationship between the cost of goods sold and sales. To compute the goods available for sales, we need to add the inventory at the beginning of the period (January 1) to the purchases made during the month. Using the given information, the calculation is as follows:
Goods available for sales = Inventory, January 1 + Purchases (gross) + Freight-in
Goods available for sales = €160,000 + €640,000 + €30,000 = €830,000 (approximately $818,000).
To compute the cost of goods sold, we multiply the sales (gross) by the gross profit rate:
Cost of goods sold = Sales (gross) - (Sales (gross) * Gross profit rate)
Cost of goods sold = €1,000,000 - (€1,000,000 * 0.25) = €750,000 (approximately $682,500).
The estimated inventory at January 31 is calculated by subtracting the cost of goods sold from the goods available for sales:
Estimated inventory at January 31 = Goods available for sales - Cost of goods sold
Estimated inventory at January 31 = €830,000 - €750,000 = €80,000 (approximately $135,500).
Lastly, to calculate the estimated inventory at January 31 based on the gross profit as a percentage of cost, we divide the estimated inventory at January 31 (based on sales) by (1 + Gross profit rate):
Estimated inventory at January 31 (based on cost) = Estimated inventory at January 31 (based on sales) / (1 + Gross profit rate)
Estimated inventory at January 31 (based on cost) = €135,500 / (1 + 0.25) = €108,400 (approximately $120,500).
Therefore, the correct answers are:
22. Goods available for sales: $818,000 (option c).
Cost of goods sold: $682,500 (option b).
Estimated inventory at January 31: $135,500 (option d).
Estimated inventory at January 31 (assuming gross profit is 25% of cost): $120,500 (option b).
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ent Correct! You Answered Correct Answer You Answered Correct Answer Question 3 Suppose that in a closed economy GDP is $13 trillion, consumption is $7 trillion, taxes are $3 trillion and the government runs a surplus of $1 trillion. Based on this information, private saving $ 3 saving is $4 7 trillion. Just enter a value. Do not include the "$".
Private saving is $3 trillion.
We know that in a closed economy, the following identity holds:
Y = C + I + G
where Y is GDP, C is consumption, I is investment, and G is government spending. Rearranging this equation, we get:
I = Y - C - G
We can use the values given in the problem to solve for private saving:
S = Y - C - G - T
where S is private saving and T is taxes.
Substituting the values given in the problem, we get:
S = 13 trillion - 7 trillion - (13 trillion - 1 trillion - 3 trillion)
S = 3 trillion
Therefore, private saving is $3 trillion.
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an unlevered firm has a value of $800 million. an otherwise identical but levered firm has $60 million in debt at a 5% interest rate. its cost of debt is 5% and its unlevered cost of equity is 11%. after year 1, free cash flows and tax savings are expected to grow at a constant rate of 3%. assuming the corporate tax rate is 35%, use the compressed adjusted present value model to determine the value of the levered firm. (hint: the interest expense at year 1 is based on the current level of debt.)
The value of the leveraged firm is as follows:$800 million + $3.27 million = $803.27 millionThus, the value of the leveraged firm is $803.27 million.Answer: $803.27 million.
The Compressed Adjusted Present Value Model (CAPV) model is a valuation model that incorporates the tax savings arising from tax-deductible interest payments. CAPM model is used to calculate the value of a leveraged firm. An unlevered firm with a value of $800 million and an identical leveraged firm with a $60 million debt, 5% interest rate, 11% unlevered equity cost, and 5% debt cost, have been given in the question. After year 1, free cash flows and tax savings are expected to grow at a constant rate of 3%. The corporate tax rate is 35%.To determine the value of the levered firm, we will use the Compressed Adjusted Present Value Model (CAPV).As per the CAPV Model, the value of a leveraged firm is equal to the value of an unlevered firm, plus the present value of tax shields, minus the present value of bankruptcy costs. For our problem, we'll start with the value of the unlevered firm, which is $800 million.Present Value of Tax Shields:To calculate the present value of tax shields, we first need to calculate the tax shield each year. In year 1, the interest rate is 5%, which is $3 million in interest expenses. Tax savings will be 35% of the interest rate, which is $1.05 million. This will grow at a rate of 3% each year. Calculate the present value of tax shields using the formula of present value of an annuity:$1.05 million * ((1 - (1 + 0.03)^-5) / 0.03) * (1 / (1 + 0.11)) = $3.27 millionPresent Value of Bankruptcy Costs:The bankruptcy costs are zero since the debt value is lower. Therefore, the value of the leveraged firm is as follows:$800 million + $3.27 million = $803.27 millionThus, the value of the leveraged firm is $803.27 million.Answer: $803.27 million.
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local presence is considered an obsolete paradigm because ______.
Local presence is considered an obsolete paradigm because of the following reasons: Globalisation has shrunk the world Local presence was useful when communication and transportation technologies were not advanced.
In those days, every business had to have a local presence. Communication was slow, and it was tough to coordinate and manage activities from a distance.
Business required an on-ground presence to make sure everything was going well.Local presence was also necessary because every region had its own set of rules and regulations, customs, and languages. It was challenging for a business located in one region to understand and comply with the rules of another region.
Globalisation has shrunk the world. With the advancements in communication and transportation technologies, it is easy for businesses to manage operations from remote locations. They can communicate with their partners, vendors, and customers in real-time.
This means businesses do not need to have a local presence in every region. They can coordinate and manage everything remotely, reducing the cost of setting up and maintaining local offices. Overall, local presence has become an obsolete paradigm because globalisation has changed the way businesses operate.
In today's world, businesses can have a global presence without having to be physically present in every region. Instead, they can use digital technologies to reach their target audience and manage their operations remotely. Hence, local presence is considered an obsolete paradigm.
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