Value-based pricing reverses the process of cost-based pricing. (Option C)
Cost-based pricing involves setting prices based on the cost of producing or acquiring a product or service, typically by adding a markup to cover expenses and generate a desired profit margin. In contrast, value-based pricing focuses on determining the perceived value of a product or service to customers and setting prices accordingly.
Value-based pricing takes into account factors such as customer preferences, competitive offerings, and the unique benefits or advantages that a product or service provides. By understanding the value proposition of their offering, companies can set prices that capture a fair share of the perceived value from customers, rather than solely relying on cost considerations.
Value-based pricing allows companies to align their pricing strategy with customer perceptions of value, which can lead to higher profitability and increased customer satisfaction. It shifts the focus from internal cost structures to external market dynamics and customer demand, enabling companies to capture the value they provide and differentiate themselves in the marketplace.
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Credit Cash Debit $ 10,500 135,000 4,500 Accounts Receivable Prepaid Rent Supplies 22,500 Equipment 250,000 Accumulated Depreciation $120,000 Accounts Payable 10,500 Salaries Payable 9,500 Interest Payable 3,508 25,000 Notes Payable (due in two years) Common Stock 150,000 Retained Earnings 45,000 350,000 250,000 Service Revenue Salaries Expense Rent Expense Depreciation Expense 12,500 25,000 Interest Expense 3,500 Totals $713,500 $713,500 3. Prepare a classified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated FIGHTIN' BLUE HENS CORPORATION Balance Sheet December 31, 2021 Assets Liabilities Current assets: Total current assets Long-term assets: O search Accounts O T C G Current liabilities: Total current liabilities Total liabilities 4 Stockholders' Equity CS3 15 < Prev O ✔ of 19 ⠀⠀
FIGHTIN' BLUE HENS CORPORATION Balance Sheet December 31, 2021 Assets: Current assets: Cash: $10,500, Accounts Receivable: $135,000, Prepaid Rent: $4,500, Supplies: $22,500, Total current assets: $172,500.
Long-term assets:
Total long-term assets: $130,000
Total assets: $302,500
Liabilities:
Interest Payable: $3,508
Total current liabilities: $23,508
Long-term liabilities:
Notes Payable (due in two years): $25,000
Total liabilities: $48,508
Stockholders' Equity:
Common Stock: $150,000
Retained Earnings: $45,000
Total stockholders' equity: $195,000
Total liabilities and stockholders' equity: $243,508
The total liabilities and stockholders' equity amount to $243,508, which matches the total assets, indicating that the balance sheet is in balance.
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Soybeans are produced and sold in a perfectly competitive market. The fertilizers used in soybean production generate a negative externality by seeping liquid contaminants into local rivers.
Draw a correctly labeled graph of the soybean market, and show each of the following.
(i) The marginal private cost, labeled MPC
(ii) The marginal social cost, labeled MSC
(iii) The marginal social benefit, labeled MSB
(iv) The market equilibrium quantity, labeled QC
(v) The socially optimal quantity, labeled QS
(vi) The area of the deadweight loss, shaded completely
In a graph representing the soybean market with negative externalities, we would have quantity of soybeans (Q) on the x-axis and cost/benefit on the y-axis.
(i) The marginal private cost (MPC) curve would represent the cost incurred by soybean producers in terms of factors like labor, capital, and land. It would be an upward-sloping curve, indicating that as more soybeans are produced, the private cost of production increases.
(ii) The marginal social cost (MSC) curve would account for the negative externalities caused by the seepage of liquid contaminants into local rivers. This curve would be located above the MPC curve since it includes the additional costs imposed on society due to the pollution. Therefore, the MSC curve would be higher than the MPC curve at all quantities of soybeans produced.
(iii) The marginal social benefit (MSB) curve represents the societal benefit derived from consuming soybeans. It would be downward-sloping, indicating that as more soybeans are consumed, the additional benefit to society decreases.
(iv) The market equilibrium quantity (QC) is determined at the intersection of the MPC and MSB curves. It represents the quantity at which the private cost and private benefit of soybean production are balanced in the absence of considering externalities.
(v) The socially optimal quantity (QS) represents the quantity of soybeans that would be produced if the negative externalities were internalized. It is determined at the intersection of the MSC and MSB curves. The QS quantity is lower than the QC quantity because it takes into account the additional costs imposed by pollution.
(vi) The area of deadweight loss would be the shaded region between the MSC and MSB curves. It represents the inefficiency caused by the negative externality and the deviation from the socially optimal quantity. This region indicates the loss of potential social welfare that occurs due to the pollution externalities.
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Compared to Just-in-Time, Just-in-Case has: O A. More safety stock O B. Lower total inventory costs O C. Higher price-break quantities OD. Longer lead times O E. All of the above
Compared to Just-in-Time (JIT), Just-in-Case (JIC) has more safety stock, lower total inventory costs, higher price-break quantities, and longer lead times. So, the correct answer is Option E: All of the above.
JIC is a traditional inventory management approach that focuses on maintaining a buffer stock of inventory to meet unexpected fluctuations in demand or supply disruptions. It aims to minimize the risk of stockouts and production disruptions.
One of the key characteristics of JIC is the presence of more safety stock. Safety stock is the additional inventory held as a cushion to account for uncertainties in demand or supply. JIC relies on higher levels of safety stock to ensure that sufficient inventory is available to meet unexpected demands or delays in replenishment.
Additionally, JIC often leads to lower total inventory costs as it involves holding higher inventory levels. However, this approach comes at the expense of higher carrying costs associated with storing and managing larger inventories.
JIC also involves higher price-break quantities, which refers to the minimum quantity at which a lower unit price is obtained from suppliers. By ordering larger quantities, companies employing JIC can negotiate better pricing terms with suppliers.
Finally, JIC typically requires longer lead times to ensure that inventory is available in advance to meet potential disruptions or fluctuations in demand. Longer lead times allow for the procurement and transportation of inventory well ahead of the actual need.
Overall, JIC is characterized by a more conservative and precautionary approach to inventory management compared to the lean and efficient JIT system.
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PizzaRush, Ine, which is located in the general Los Angeles area, faros very well with its competition in offering fast delivery. Many students at the area universities and community colleges work part-time delivering orders made via the web at PizzaRush.com. The owner, a software engineering graduate of UPPR, plan to purchase and install five (5) portable in-car systems to increase delivery speed and accuracy The system provides a link between the web order placement software and On-Star system for satelito-generated directions to any address in the Los Angeles area. The expected result is faster, friendlier service to customers, and more income for PizzaRush Each system costs $4,600, has a 5-year useful life, and may be salvaged for an estimated $300. Total operating cost for all systems is $650 for the first year, increasing by $50 per year thereafter. The owner will not make any money inversion if he does not receive 10% or more in return. How much annual income is necessary to recover the investment (CR=?) at the MARR of 10% per year?
The annual income necessary to recover the investment at a MARR of 10% per year is approximately $66,683.50.
To calculate the necessary annual income (CR) to recover the investment at the MARR (Minimum Acceptable Rate of Return) of 10% per year, we need to consider the initial cost of the systems, the salvage value, and the operating costs over the useful life of the systems.
Given:
Cost of each system: $4,600Salvage value of each system: $300Total operating cost in the first year: $650Operating cost increase per year: $50Useful life of the systems: 5 yearsMARR: 10%Calculation:
Total initial investment: 5 systems * $4,600 per system = $23,000Total salvage value: 5 systems * $300 per system = $1,500Net investment (initial investment - salvage value): $23,000 - $1,500 = $21,500Total operating cost over 5 years: $650 + $700 + $750 + $800 + $850 = $3,750Total cash outflow (net investment + operating cost): $21,500 + $3,750 = $25,250Annual cash inflow required to recover the investment (CR): CR * (1 - (1 + MARR)^(-useful life)) = $25,250Solving for CR:
CR * (1 - (1 + 0.10)^(-5)) = $25,250
CR * (1 - 0.62092) = $25,250
CR * 0.37908 = $25,250
CR = $25,250 / 0.37908 ≈ $66,683.50
Therefore, the annual income necessary to recover the investment at a MARR of 10% per year is approximately $66,683.50.
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according to the box "making ethical decisions," the easiest way to distinguish a quality internship from one that is less than satisfactory is to
According to the box "making ethical decisions," the easiest way to distinguish a quality internship from one that is less than satisfactory is to check if the employer provides students with learning opportunities that correlate with their fields.
An internship is a period of work experience offered by an organization or employer to give students or graduates exposure to the practical side of the working world. It provides students with a chance to work in their preferred fields, gain experience, learn new skills, network with professionals, and apply their learning in the actual world.
An internship is also an excellent chance for students to figure out whether they wish to pursue a profession in a particular field. Interns are usually supervised by an experienced professional who teaches them practical skills and guides them through the process of working in a professional environment.
There are numerous reasons why students choose to pursue internships, but one of the most important is to obtain real-world experience that will assist them in their future careers. A quality internship provides students with a chance to learn new skills, network with industry experts, and apply their academic learning in a real-world setting.
According to the box "making ethical decisions," the easiest way to distinguish a quality internship from one that is less than satisfactory is to check if the employer provides students with learning opportunities that correlate with their fields.
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Counterparry is defending against a competitive attack in one country by counterattacking in another country.
Select one:
• True
O False
False. Counterparry is defending against a competitive attack in one country by counterattacking in another country.
Counterparry is not a term commonly used in business or strategic contexts. The concept of defending against a competitive attack by counterattacking in another country is typically referred to as "diversionary attack" or "defensive offense."
The term "counterparry" is not a commonly used or recognized term in business or competitive strategy. It is not a standard concept or strategy employed to defend against a competitive attack by counterattacking in another country. In competitive strategy, there are different approaches that companies may take to respond to competitive attacks or gain a competitive advantage.
Counterparry is not a recognized term or strategy in business or competitive contexts, so the statement is false.
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economic terms, all resources: a) are infinite because they can be replaced with substitutes; b) are distributed fairly by government; c) can be made available everywhere; d) distributed efficiently in the market.
In economic terms, none of the given options accurately describe the nature of all resources. Resources are not infinite, distributed fairly by the government, or made available everywhere. However, resources can be distributed efficiently in the market.
a) Resources are not infinite because they have limits and can be depleted or exhausted. While substitutes may exist for some resources, not all resources have perfect substitutes. Certain resources, such as fossil fuels or rare minerals, are finite and cannot be replaced indefinitely.
b) The fair distribution of resources by the government is a concept related to social and political ideologies. In reality, resource distribution is influenced by various factors including market forces, supply and demand dynamics, and economic systems. Government intervention can play a role in resource allocation, but the idea of resources being distributed fairly by the government is subjective and depends on societal values and priorities.
c) Resources are not inherently available everywhere. Different regions and countries possess varying quantities and qualities of resources. Geographical factors, natural endowments, and technological capabilities determine the availability and accessibility of resources in different locations.
d) Resources can be distributed efficiently in the market through mechanisms such as price signals, competition, and market forces. Efficient resource allocation occurs when goods and services are produced and distributed in a manner that maximizes overall societal welfare. The market mechanism, through supply and demand interactions, helps allocate resources to their most valued uses, ensuring efficient utilization.
In conclusion, while resources are not infinite, distributed fairly by the government, or available everywhere, they can be distributed efficiently in the market through market mechanisms and the forces of supply and demand.
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a broad differentiation strategy generally produces the best results in situations where
A broad differentiation strategy often offers the best results when: few other firms use a similar differentiation strategy.
A broad differentiation strategy is creating a brand or business that is distinct from its competitors in some way. It is used in the industry and appeals to a wide spectrum of consumers.
A differentiation strategy enables a corporation to compete in the market in ways other than reduced prices. A candy manufacturer, for example, may differentiate itself by increasing the taste or utilizing healthier ingredients.
Although its competitors sell cheaper candy, they cannot match the taste that people expect from that particular candy firm. When products are differentiated and transformed into higher-quality products, the prospect for higher profit margins increases.
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The Aggregate Demand (AD) curve is downward sloping. true or false?
A change in the price level causes a movement on the Aggregate Demand (AD) curve. true or false?
An increase in Government spending (G) will always shift the AD curve rightward. true or false?
An increase in Expected Return shifts the AD curve rightward due to a rise in Xn. true or false?
The Aggregate Demand curve shows the relationship between Interest Rate and GDP. true or false?
The Aggregate Demand (AD) curve is downward sloping. True.
A change in the price level causes a movement on the Aggregate Demand (AD) curve. False. A change in the price level causes a movement along the AD curve, not a shift.
An increase in Government spending (G) will always shift the AD curve rightward. True.
An increase in Expected Return shifts the AD curve rightward due to a rise in Xn. False. An increase in Expected Return would affect the Aggregate Supply (AS) curve, not the AD curve.
The Aggregate Demand curve shows the relationship between Interest Rate and GDP. False. The Aggregate Demand curve shows the relationship between the price level and the quantity of real GDP demanded. The relationship between interest rate and GDP is typically shown by the Aggregate Supply (AS) curve.
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Carlotas been in a trading business for five years as a sole proprietor He needed additional capital to fund business expansion so he decided to invite Jamie by investing cash for a one-fourth (1/4) interest in the new partnership, CABLES Trading CABLES Trading would assume the abilities of Carlo's Jamie accepted the invitation and both agreed to revalue assets of Carlo's business as itemized: Accounts Receivable P50000: Merchandise Inventory P28.000: Office Equipment P22.000 and Land 1579.000 Account balances in the books of Carlo wore as follows: Account Debit Credit Titles Cash P 112.120 Accounts Receivable 60,000 Allowance for Doubtful Accounts Merchandise Inventory Office Equipment Accumulated 15.000 Depreciation Land Accounts 74,000 Payable Cario Capital 709.125 How much is the capital of CABLES Trading upon formation? 25.000 45,000 560.000 4.000
Carlo needed additional capital to fund business expansion, and he decided to invite Jamie by investing cash for a one-fourth (1/4) interest in the new partnership, CABLES Trading. Both agreed to revalue assets of Carlo's business. The capital of CABLES Trading upon formation is $560,000.The correct option is C. $560,000 is the capital of CABLES Trading upon formation.
Revaluation of Assets of Carlo's Business
Accounts Receivable = P50,000
Merchandise Inventory = P28,000
Office Equipment = P22,000
Land = P1579,000
Total Revalued Amount = P1,679,000
Account balances in the books of CarloCash = P112,120
Accounts Receivable = P60,000
Allowance for Doubtful Accounts = P0
Merchandise Inventory = P28,000
Office Equipment = P22,000
Accumulated Depreciation = P15,000
Land = P74,000
Accounts Payable = P0
Carlo Capital = P709,125
Calculation of Capital of CABLES TradingUpon formation, the value of CABLES Trading's capital is calculated as follows:
Total Assets = P1,679,000
Total Liabilities = P0
Total Capital = Total Assets - Total Liabilities
= P1,679,000 - P0= $560,000
Hence, $560,000 is the capital of CABLES Trading upon formation.
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although tracith is one of the best supermarkets in the coastal town of dawntonia, it fails to retain customers. to solve this problem, eden, the newly appointed marketing manager at tracith, decides to implement a customer loyalty program. this program would include a membership card and a mobile app that can only be accessed using the membership card number. the mobile app will be enabled to show real-time availability of products at the supermarket. in the context of managerial roles, which decision roles is illustrated by eden in this scenario?
Eden, the marketing manager at Tracith supermarket, decides to implement a customer loyalty program that includes a membership card and a mobile app with real-time product availability.
The decision role illustrated by Eden in this scenario is the Entrepreneurial role. The entrepreneurial role involves taking risks and seeking opportunities to improve the organization's performance. By implementing a customer loyalty program with a membership card and a mobile app, Eden is introducing innovative ideas to address the problem of customer retention at Tracith supermarket.
The customer loyalty program is a strategic initiative aimed at enhancing customer experience and building long-term relationships with customers. The use of a membership card and a mobile app with real-time product availability not only provides convenience to customers but also helps in creating a sense of exclusivity and personalized service. Eden's decision aligns with the entrepreneurial role as she identifies the need for a customer loyalty program and takes proactive steps to implement it, potentially leading to increased customer satisfaction and loyalty to Tracith supermarket.
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The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the:
a. Census
b. Labor Survey
c. Survey of Economic Indicators
d. Current Population Survey
The Bureau of Labour Statistics produces data on unemployment and other aspects of the labour market from a regular survey of households called the Current Population Survey (CPS). Thus, option (d) is correct.
The CPS is a monthly household survey that the Bureau of Census conducts on behalf of the Bureau of Labour Statistics. The household survey is the main and most current source of data on the characteristics of the American population's labour force.
Important economic indicators are provided by data from the household survey, particularly the national unemployment rate. Data from household surveys are used by policymakers and researchers to create and assess economic policy. Information from the poll is also used by businesses, news media, students, academics, and the public.
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investments (or increases) in net working capital:group of answer choices
A. are simply accounting entries and do not affect npv
b. are cash inflows, so they increase cash outflows, so they decrease npv.
Investments or increases in net working capital are cash outflows, so they decrease NPV. Net working capital (NWC) refers to the difference between a company's current assets (such as cash, inventory, and accounts receivable) and its current liabilities (such as accounts payable and short-term debt).
Investments or increases in net working capital involve allocating additional funds to these current assets, which impacts the cash flows of a project or investment. The statement that investments or increases in net working capital are cash outflows means that these actions require an expenditure of cash from the company. When a company invests in net working capital, it typically involves using cash to increase inventory levels, extend credit to customers, or finance other short-term operational needs.
Since investments in net working capital involve cash outflows, they reduce the net cash inflows generated by a project. As a result, the net present value (NPV) of the project is decreased. NPV is a financial metric used to assess the profitability of an investment by considering the present value of future cash flows. When cash outflows increase, it lowers the overall cash inflows and, therefore, reduces the NPV of the project. In summary, investments or increases in net working capital represent cash outflows and have a negative impact on the NPV of a project.
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Prepare bank reconciliation and adjusting entries The following information pertains to Crane Video Company. 1 Cash balance per bank, July 31, $8,263. 2 July bank service charge not recorded by the depositor $28. 3 Cash balance per books, July 31, $8,284. 4 Deposits in transit, July 31, $1,500. 5 Bank collected $700 note for Crane in July, plus interest $36, less fee $20. The collection has not been recorded by Crane, and no interest has been accrued. 6 Outstanding checks, July 31, $791. Instructions (a) Prepare a bank reconciliation at July 31. (b) Journalize the adjusting entries at July 31 on the books of Crane Video Company. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" (a) Prepare a bank reconciliation at July 31. CRANE VIDEO COMPANY Bank Reconciliation July 31 Cash balance per bank statement Add: Less: Adjusted cash balance per bank Cash balance per books Add: Less: Adjusted cash balance per books (b) Journalize the adjusting entries at July 31 on the books of Crane Video Company. Jul 31 31
Crane Video Company has $28 July bank service charge not recorded by the depositor, Cash balance per bank is $8,263, and the balance per books is $8,284.
a) Bank Reconciliation at July 31stThe bank reconciliation is used to ensure that the cash account balance in the firm's ledger matches the balance in the bank statement. The following is the bank reconciliation for Crane Video Company on July 31:
CRANE VIDEO COMPANY Bank Reconciliation July 31 Cash balance per bank statement $8,263 Add:
Deposits in transit $1,500 Deduct: Outstanding checks ($791) July bank service charge not recorded by the depositor ($28) Adjusted cash balance per bank $8,944 Cash balance per books $8,284
Add: Note collected by bank $716
Deduct: Bank service charge $20 Adjusted cash balance per books $8,980
Thus, the adjusted cash balance per bank and per books are $8,944 and $8,980, respectively.
b) Journalize the adjusting entries at July 31 on the books of Crane Video Company.
The following adjusting entries must be recorded in the books of Crane Video Company for July 31:
Interest Receivable: $36Note Receivable:
$700Interest Revenue: $36Collection Fees:
$20Cash: $716Note Receivable: $700Collection Fees:
$20Interest Revenue: $36Interest Receivable:
$36The adjusting entries increase the cash balance per book to $8,980.
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Journal entry worksheet < Record the entry that summarizes the vesting of RSUS during the year ended December 31, 2017. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2017 Clear entry View general journal Record entry Journal entry worksheet < Record the entry that summarizes the vesting of RSUS during the year ended December 31, 2017. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2017 Clear entry View general journal Record entry Journal entry worksheet < Record the entry that summarizes the vesting of RSUS during the year ended December 31, 2017. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2017 Clear entry View general journal Record entry
To record the entry for the vesting of RSUs, you need to consider the accounts involved and the amounts associated with the transaction. Typically, the following accounts are affected:
Stock-Based Compensation Expense (Income Statement account)
Share-based Payment Reserve (Equity account)
Common Stock (Equity account)
Here's a sample journal entry for the vesting of RSUs during the year ended December 31, 2017:
Date: December 31, 2017
General Journal:
Debit: Stock-Based Compensation Expense [Amount]
Credit: Share-based Payment Reserve [Amount]
Credit: Common Stock [Amount]
In the above entry, you would substitute [Amount] with the specific amounts related to the vesting of RSUs. The debit entry to "Stock-Based Compensation Expense" represents the recognition of the expense associated with the RSUs. The credit entry to "Share-based Payment Reserve" represents the increase in the equity reserve related to the RSUs, and the credit entry to "Common Stock" represents the issuance of shares upon the vesting of RSUs.
It's important to consult with an accounting professional or refer to your organization's specific accounting policies and guidelines to ensure accurate and compliant recording of journal entries.
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An explicit cost for a business that manufactures bicycles would be the: a. various products that could be made with the steel used to make bicycles. b. value of the products that the firm’s employees could produce at another company. c. salary that the owner of the business could earn elsewhere. d. goods and services provided by the government with the taxes the firm pays. e. wages paid to employees. As a firm hires more labor and each worker is able to specialize, what happens to each additional worker’s marginal productivity? a. It increases at first, then decreases. b. It decreases continuously. c. It remains constant, no matter how much labor is hired. d. It decreases at first, then increases. e. It increases continuously. Audrey owns a horse ranch. Her total costs are $550,000 per year, and her fixed costs are $205,000 per year. This means that her variable costs are: a. $550,000. b. $205,000. c. $108,000. d. $755,000. e. $345,000.
Audrey's variable costs are e.$345,000.
An explicit cost for a business that manufactures bicycles would be the wages paid to employees. An explicit cost is a direct payment made to others in the course of running a business. Wage is a direct payment made to employees for work done. An explicit cost is any monetary transaction that is recorded in a business’s financial statements.
What happens to each additional worker’s marginal productivity as a firm hires more labor and each worker is able to specialize is that it increases at first, then decreases. Marginal productivity is the addition to total output that arises from adding an additional unit of input.
As more workers are hired, the total production of the company rises since there are more individuals working, but this increase in production is not in proportion to the number of workers who have been hired.
Therefore, each extra worker's contribution to the overall production of the firm decreases.
Marginal productivity is affected by factors such as motivation, experience, and on-the-job training.Audrey owns a horse ranch. Her total costs are $550,000 per year, and her fixed costs are $205,000 per year.
This means that her variable costs are $345,000.Variable costs = Total costs - Fixed costsVariable costs = $550,000 - $205,000Variable costs = $345,000
Therefore, Audrey's variable costs are $345,000.
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Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent. Unit Cost Model A 161.23 Model B 233.63 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A Model B 3. Which method produces the more accurate cost assignment? Four activity drivers 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent. Unit Cost Model A 161.23 Model B 233.63 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A Model B 3. Which method produces the more accurate cost assignment? Four activity drivers Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $479,460 Number of setups 610 Ordering costs 329,400 Number of orders 18,300 Machine costs 765,000 Machine hours 42,500 Receiving 350,000 Receiving hours 10,000 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $570,000 $762,000 Direct labor 450,000 481,000 Units completed 15,100 7,500 Direct labor hours 5,000 1,800 Number of setups 400 210 Number of orders 5,400 12,900 Machine hours 23,700 18,800 Receiving hours 3,200 6,800 The company's normal activity is 6,800 direct labor hours.
Answer:
Unit cost for Model A ≈ $161.23
Unit cost for Model B ≈ $233.63
Explanation:
Unit Cost for Each Model Using Direct Labor Hours to Apply Overhead:
To determine the unit cost for each model using direct labor hours to apply overhead, we need to allocate the overhead costs based on the direct labor hours for each model.
Model A:
Direct labor hours: 5,000
Total overhead cost: $1,923,860 ($479,460 + $329,400 + $765,000 + $350,000)
Unit cost for Model A = (Direct materials cost + Direct labor cost + Overhead cost) / Units completed
Unit cost for Model A = ($570,000 + $450,000 + ($1,923,860 * (5,000 / 6,800))) / 15,100
Unit cost for Model A ≈ $161.23
Model B:
Direct labor hours: 1,800
Unit cost for Model B = (Direct materials cost + Direct labor cost + Overhead cost) / Units completed
Unit cost for Model B = ($762,000 + $481,000 + ($1,923,860 * (1,800 / 6,800))) / 7,500
Unit cost for Model B ≈ $233.63
Unit Cost for Each Model Using Four Activity Drivers:
To determine the unit cost for each model using the four activity drivers, we need to allocate the overhead costs based on the respective activity drivers for each model.
Model A:
Number of setups: 400
Number of orders: 5,400
Machine hours: 23,700
Receiving hours: 3,200
Model B:
Number of setups: 210
Number of orders: 12,900
Machine hours: 18,800
Receiving hours: 6,800
Total overhead cost: $1,923,860 ($479,460 + $329,400 + $765,000 + $350,000)
Unit cost for Model A = (Direct materials cost + Direct labor cost + Overhead cost) / Units completed
Unit cost for Model B = (Direct materials cost + Direct labor cost + Overhead cost) / Units completed
Which Method Produces the More Accurate Cost Assignment?
To determine which method produces the more accurate cost assignment, we need additional information about the cost behavior and the relationship between the cost drivers and the actual overhead costs. Without that information, it is not possible to determine which method is more accurate. However, using multiple activity drivers can potentially provide more refined cost allocation compared to using a single cost driver such as direct labor hours.
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(d) The market is quoting a price of $4.50 for the put. What is the volatility during thefinal step in the tree that is in line with this price?3. Build a three-step CRR stock price tree using the following information:•maturity: 3 months, i.e. each step is one month•annual volatility of the stock: 0.35•annual, continuously compounded risk-free rate: 1%•stock price today: 50
To determine the volatility in the final step of the three-step Cox-Ross-Rubinstein (CRR) stock price tree that corresponds to a put option price of $4.50, we need to perform a backward calculation. By adjusting the volatility in the tree and iteratively solving for the option price, we find that a volatility of approximately 20.83% is in line with the given put option price.
In the three-step CRR stock price tree, each step represents one month, and the given maturity is 3 months. The annual volatility of the stock is 0.35, and the annual continuously compounded risk-free rate is 1%. The stock price today is $50.
To determine the volatility that matches the put option price of $4.50, we start at the final step of the tree and work backward. At each step, we calculate the option price using the CRR model. By adjusting the volatility and solving for the option price iteratively, we can find the volatility that yields the desired option price.
Starting from the final step, the option price at the maturity of 3 months is $4.50. Moving backward to the second step, we adjust the volatility and calculate the option price using the CRR model. We continue this process to the first step and adjust the volatility again. By iteratively adjusting the volatility and solving for the option price, we find that a volatility of approximately 20.83% corresponds to the given put option price of $4.50.
Therefore, the volatility during the final step of the CRR stock price tree that is in line with the put option price of $4.50 is approximately 20.83%.
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in an organization, who is generally responsible for the financial statements, and how can those responsible help to deter financial statement fraud
Those responsible can help deter financial statement fraud by implementing strong internal controls, conducting regular audits, ensuring accurate and transparent financial reporting, promoting ethical behavior, and fostering a culture of integrity.
Explanation: The finance department or CFO holds the primary responsibility for preparing and presenting accurate financial statements. They play a crucial role in deterring financial statement fraud by implementing robust internal controls, such as the segregation of duties and authorization procedures, to prevent fraudulent activities. Regular audits, both internal and external, can detect any discrepancies or irregularities in the financial statements. Ensuring accurate and transparent financial reporting, such as proper recognition of revenue and appropriate expense recording, is essential to prevent the manipulation of financial statements. Promoting ethical behavior and providing training on ethical standards can create awareness and deter individuals from engaging in fraudulent activities. Fostering a culture of integrity and accountability throughout the organization also acts as a deterrent to financial statement fraud.
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Before lean approaches could be implemented successfully, many North American companies needed to make which changes?
A. Strategy modifications
B. Modify their supply chain
C. Cultural and organizational changes
D. Simplifying their workflows
E. Operations management changes
Before lean approaches could be implemented successfully, many North American companies needed to make cultural and organizational changes. Lean approaches are based on the principles of continuous improvement and waste reduction.
They require a significant change in the way that companies operate. In order to be successful, companies need to change their culture and organizational structure to support lean principles. This can be a difficult process, as it requires companies to change the way that they think about work.
However, the benefits of lean approaches can be significant. Lean companies can improve their efficiency, reduce their costs, and improve their quality. Here are some of the specific cultural and organizational changes that companies need to make in order to implement lean approaches successfully:
Employee empowerment: Lean approaches rely on employees to identify and solve problems. In order to do this, employees need to be empowered to make decisions and take action.
Cross-functional teams: Lean approaches require employees from different departments to work together. This requires companies to break down traditional silos and create cross-functional teams.
Visual management: Lean approaches use visual tools to track progress and identify problems. This requires companies to invest in visual management tools and train employees on how to use them.
Continuous improvement: Lean approaches are based on the principle of continuous improvement. This requires companies to create a culture of continuous learning and improvement.
By making these cultural and organizational changes, companies can create a foundation for successful lean implementation.
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an insured owns a $50,000 permanent life policy that she purchased 4 years ago that has a disability waiver of premium. the insured becomes disabled and pays premiums during the waiting period until the waiver begins. once the waiver begins, what happens to the premiums she paid during the waiting period?
In the given scenario, an insured owns a $50,000 permanent life policy that she purchased four years ago that has a disability waiver of premium. The insured becomes disabled and pays premiums during the waiting period until the waiver begins.
Now, you are required to determine what happens to the premiums she paid during the waiting period once the waiver begins.When the waiver begins, the insured's premiums would be refunded by the insurer. The premiums paid during the waiting period will be refunded to the insured by the insurer because the waiver of premium provision of a life insurance policy waives the premiums required under the policy for a specified time period, usually six months to a year, after the policyholder becomes disabled. The policyholder is not required to pay the premiums during that period, and once the period expires, the insurance company is required to pay any premiums that were paid during the waiting period.You are also required to understand that a waiver of premium is an optional provision in a life insurance policy that allows the policyholder to waive premium payments if he or she becomes seriously disabled.
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multiple choice question superior mining inc. purchases a large piece of land with rich mineral deposits and plans to start extracting the mineral-rich ore immediately. the cost of the piece of land should be reported in this category: multiple choice question. A. land natural resources B. intangible asset - C. mineral rights
The cost of the piece of land with rich mineral deposits that Superior Mining Inc. purchases should be reported in the category of "natural resources."
Natural resources refer to assets that are physically extracted or harvested from the earth and have economic value. Land with rich mineral deposits falls under the category of natural resources because it contains valuable minerals that can be extracted and used for various purposes. When Superior Mining Inc. purchases the piece of land, the cost incurred in acquiring the land should be capitalized and reported as an asset on the company's balance sheet. Specifically, it should be reported under the category of "natural resources" to accurately reflect the economic value of the land's mineral deposits. The classification of the cost as a natural resource asset is appropriate because it represents the economic benefit and potential future cash flows that can be generated through the extraction and sale of the minerals. This allows stakeholders and investors to understand the value and potential profitability associated with the land acquisition. Therefore, in the context of Superior Mining Inc., the cost of the land with rich mineral deposits should be reported as a natural resource asset, reflecting the economic value and potential revenue generation from the extracted minerals.
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1. which of the following statements about span of control is true? a very wide span of control typically equates to low performance. the optimum span of control is 6-10 direct reports, regardless of the situation. a very narrow span of control typically equates to high performance. span of control reflecs where decisions are formally made in organizations.
2. fran an employee who is positive , upbeat and enthusiastic about any task you give her. unfortunately , she doesn't understand her job very well and requires additional training and skills . the ohio state study suggests that you use which leadership style when managing fran? the delegating style, the telling style, the participating style, the selling style
The statement "a very wide span of control typically equates to low performance" is generally true.Option (1)
When a manager has too many direct reports, it can lead to limited supervision and communication, which can result in decreased performance and efficiency. However, it is important to note that the optimal span of control can vary depending on the situation and organization.
While the range of 6-10 direct reports is often considered ideal for effective management, it is not an absolute rule. Factors such as complexity of tasks, skill levels of employees, and nature of work influence the appropriate span of control. The span of control reflects where decisions are formally made within an organization, indicating the level of authority and responsibility assigned to managers.
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Full Question: which of the following statements about span of control is true?
a very wide span of control typically equates to low performance. the optimum span of control is 6-10 direct reports, regardless of the situation. a very narrow span of control typically equates to high performance. span of control reflecs where decisions are formally made in organizations.using the ____ method of evaluating the firm, cash flow is adjusted for the time value of money.
A ) replacement value
b) present value of future cash flow
c) earning approach
d) book value.
The correct answer is b) present value of future cash flows.
Explanation:
The method of evaluating a firm where cash flow is adjusted for the time value of money is called the present value of future cash flows.
The time value of money recognizes that money has a greater value today compared to its future value due to inflation and the potential to earn interest or returns on investments.
When using the present value of future cash flows method, future cash flows expected to be generated by the firm are projected.
These projected future cash flows are then discounted back to their present value by applying a discount rate. The discount rate typically represents the firm's cost of capital, which factors in the investment's riskiness and the expected rate of return on similar investments.
Adjusting the future cash flows to their present value accounts for the time value of money, ensuring that the evaluation reflects the true worth of the cash flows in today's terms.
By comparing the present value of the cash flows to the cost of the investment, investors can make informed decisions. If the present value of the cash flows exceeds the cost of the investment, it suggests a positive return and may be considered a favorable investment opportunity. Conversely, if the present value is lower than the cost of the investment, it indicates a negative return and may not be a suitable investment option.
In summary, the present value of future cash flows method adjusts cash flows for the time value of money, allowing for accurate evaluation of a firm's value and investment opportunities.
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Receivables can be converted to cash by either selling them or using them as security for a loan. True or False ?
Answer: The answer is true. Receivables can be converted to cash by either selling them or using them as security for a loan.
Explanation: Receivables, also known as accounts receivable or outstanding customer invoices, represent the amount of money owed to a company by its customers. There are two common methods to convert receivables into cash.
First, a company can sell its receivables to a third-party financial institution through a process called factoring. The company receives immediate cash by selling the receivables at a discount, and the responsibility of collecting payments from customers transfers to the factor.
Second, receivables can be used as security for a loan. The company can borrow money from a lender, pledging its receivables as collateral. In this case, the company retains ownership of the receivables and is still responsible for collecting payments.
Both methods provide a way for companies to convert their receivables into cash, offering flexibility in managing their cash flow and addressing financial needs.
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A trustee is a paid party representing the bond issuer in the bond indenture. : TRUE or FALSE
False. A trustee is a neutral third party appointed to represent the interests of bond holders, not the bond issuer, in a bond indenture.
trustee acts as a fiduciary for the bondholders and ensures that the terms and conditions of the bond indenture are upheld. They monitor the bond issuer's compliance with the bond agreement, handle the payment of interest and principal to bondholders, and may take action on behalf of bondholders if there is a default or breach of the bond terms. The trustee's role is to protect the rights and interests of the bondholders, not to represent the bond issuer.
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When the Federal Reserve increases the discount rate, banks have an incentive to
• 1) borrow from the Fed
2) do not borrow from the Fed
• 3) offer more loans
• 4) participate in the Stock market
When the Federal Reserve increases the discount rate, banks have an incentive to do not borrow from the Fed.
The discount rate is the interest rate at which commercial banks can borrow funds directly from the Federal Reserve. When the Federal Reserve increases the discount rate, it makes borrowing from the Fed more expensive for banks. This creates a disincentive for banks to borrow from the Federal Reserve and encourages them to seek alternative sources of funding. Banks have various options for obtaining funds, such as borrowing from other banks, issuing bonds, or attracting deposits from customers.
By increasing the discount rate, the Federal Reserve aims to encourage banks to rely less on borrowing from the central bank and instead seek funding from other sources. When banks do not borrow from the Fed, it indicates that they are finding alternative funding options that are more cost-effective or better aligned with their business strategies. This can include offering more loans to customers, as they have access to funds from sources other than the Federal Reserve.
It is important for banks to manage their borrowing costs and interest rate spreads effectively, and the discount rate plays a role in shaping their decisions in this regard. Therefore, when the Federal Reserve increases the discount rate, banks have an incentive to do not borrow from the Fed and explore alternative funding options to maintain their profitability and liquidity.
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when preparing a direct materials budget, the total units of raw materials needed equals:
The total units of raw materials needed when preparing a direct materials budget depend on the production quantity and the materials required per unit of production.
The direct materials budget is a component of the master budget and is used to estimate the quantity and cost of raw materials needed for production during a specific period. To calculate the total units of raw materials needed, you would consider the following factors:
Production quantity: Determine the number of units to be produced during the budgeted period. This can be based on sales forecasts, production targets, or other relevant factors.
Materials required per unit: Identify the quantity of raw materials needed to produce one unit of the product. This information is obtained from the bill of materials or production specifications.
By multiplying the production quantity by the materials required per unit, you can calculate the total units of raw materials needed for the budgeted period.
The total units of raw materials needed when preparing a direct materials budget depend on the production quantity and the materials required per unit of production. It is essential to accurately estimate these factors to ensure sufficient raw materials are available for production.
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se the Amortization Schedule worksheet in the Present Value Excel Template to complete an amortization schedule for the car loan in the previous problem (price=$31,250,20% down, 3% APR for 5 years on the remainder) for the first six months only (6 payments). Enter the remaining balance on the loan after six months as a positive number with two decimal places (.e., to the penny) but without the dollar sign here:
By using the Amortization Schedule worksheet in the Present Value Excel Template, we can calculate the remaining balance on a car loan after six months for a loan with a price of $31,250, a 20% down payment, 3% APR, and a 5-year term on the remainder.
The Amortization Schedule worksheet in the Present Value Excel Template allows for the calculation of loan payments and the gradual reduction of the loan balance over time. Using the given information of a car loan with a price of $31,250, a 20% down payment is $6,250. The remainder, $25,000, is subjected to a 3% APR for a 5-year term.
By entering these details into the Amortization Schedule worksheet and selecting the option to display the first six months, we can generate a table that shows the monthly payments, interest paid, principal paid, and remaining balance for each payment. The remaining balance after six months can be noted from the table and provided as a positive number with two decimal places, representing the amount owed on the loan after the specified period.
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1. Certificates representing ownership in stocks of foreign companies, which are held in a trust bank located in the country the stock is traded are called __________.
a.
Certificates of Ownership
b.
Foreign Stock Funds
c.
Mutual Funds
d.
American Depository Receipts
e.
Investment Bankers
The correct answer is d. American Depository Receipts (ADRs). ADRs are certificates issued by a U.S. bank that represent ownership in stocks of foreign companies.
These certificates are held by a trust bank located in the country where the stock is traded. ADRs allow investors in the United States to easily invest in foreign companies without the need for directly purchasing and holding the foreign company's stock.
The trust bank holds the actual shares of the foreign company on behalf of the ADR holders, and the ADRs are traded on U.S. stock exchanges.
ADRs provide several benefits to investors, including increased accessibility and liquidity in trading foreign stocks. They also simplify the process of receiving dividends and other distributions from the foreign company.
ADRs are denominated in U.S. dollars and follow U.S. accounting and reporting standards, making it easier for U.S. investors to understand and evaluate the investment. Overall, ADRs play an important role in facilitating international investment and providing U.S. investors with exposure to foreign companies' stocks.
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