Answer:
$363,000 and $827,200
Explanation:
The computation of the payroll cost classified as a SG&A expense is shown below:
= Salary of the company president + Salary of the chief financial officer + Salaries of administrative secretaries + Commissions paid to sales staff + Salary of the vice president of marketing
= $75,000 + $42,000 + $60,000 + $146,000 + $40,000
= $363,000
The amount of payroll cost that would be included in cost of goods sold would be
= Wages of production workers + Salaries of middle managers + Salary of the vice president of manufacturing + Salaries of engineers and other personnel responsible for maintaining production equipment
= $703,500 + $147,000 + $50,000 + $133,500
= $1,034,000
For 4000 units it would be
= $1,034,000 × 4,000 units ÷ 5,000 units
= $827,200
Susan can bake 200 cookies in an hour or watch her favorite tv show. If she chooses to watch her show, her opportunity cost is
Answer:
200 cookies
Explanation:
The concept of opportunity cost arises as a result of the limited resources available to satisfy the unlimited human wants.
Opportunity cost is the cost or worth of the item forgone from the list of wants. Hence is is also called real cost or opportunity foregone.
The scale of preference ranks the wants in the order of preference.
If the resources available can only satisfy the first want, the second on the list is the opportunity cost.
As such, Susan's opportunity cost is the 200 cookies she failed to bake.
Moody Corporation uses a job-order costing system with a plant wide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production…………100,000
Fixed manufacturing overhead cost……………………………….$650,000
Variable manufacturing overhead cost per machine-hour…………$3.0
Required:
1. Compute the predetermined overhead rate
During the year, Job 400 was started and completed. The following information was available with respect to the job:
Direct materials requisitioned…………………..$450
Direct labor cost………………………………...$210
Machine-hours used……………………………….40
2. Compute the total manufacturing cost assigned to Job 400.
3. During the year, the company worked a total of 146,000 machine-hours on all jobs and incurred actual manufactured overhead costs of $1,350,000. What is the amount of underapplied or overapplied for the year? If this amount were closed out entirely to cost of Goods Sold would the journal entry increase or decrease net operating income?
Answer:
1. 9.50 per machine hour
2. $1,040
3. $37,000 ; Increase
Explanation:
1. Fixed predetermine overhead rate:
= Fixed manufacturing overhead cost ÷ Machine-hours required
= 650,000 ÷ 100,000
= 6.5 per machine hour
Variable predetermine overhead rate = 3 per machine hour
Total predetermine overhead rate:
= Fixed predetermine overhead rate + Variable predetermine overhead rate
= (6.5 + 3)
= 9.50 per machine hour
2. Total manufacturing cost:
= Direct material + Direct labor + Manufacturing overhead
= $450 + $210 + (40 × 9.5)
= $450 + $210 + $380
= $1,040
3. Applied overhead:
= Total machine hours × Total predetermine overhead rate
= 146,000 × $9.50
= $1,387,000
Actual overhead = $1,350,000
Over applied overhead:
= Applied overhead - Actual overhead
= $1,387,000 - $1,350,000
= $37,000
If this amount were closed out entirely to cost of goods sold then net operating income will be increase.
Final answer:
The predetermined overhead rate is derived from dividing total estimated overhead costs by estimated machine-hours. For Job 400, the total manufacturing cost includes direct materials, direct labor, and applied overhead based on actual machine-hours used. Overapplied or underapplied overhead is calculated by comparing actual and applied overhead costs, and closing out the difference to Cost of Goods Sold will affect net operating income.
Explanation:
Computing Predetermined Overhead Rate
To compute the predetermined overhead rate, we'll divide the total estimated overhead costs by the estimated machine-hours. The formula is: Predetermined Overhead Rate = (Estimated Fixed Overhead + (Variable Overhead Rate × Estimated Machine-Hours)) / Estimated Machine-Hours.
Total Manufacturing Cost for Job 400
The total manufacturing cost assigned to Job 400 is the sum of direct materials, direct labor, and applied overhead. Applied overhead is computed by multiplying the predetermined overhead rate by the actual machine-hours used by Job 400.
Calculation of Overapplied or Underapplied Overhead
To find whether the overhead is overapplied or underapplied, the actual overhead costs are compared with the applied overhead costs. If actual costs are higher, overhead is underapplied. Conversely, if applied costs are higher, overhead is overapplied. The difference will be closed out to Cost of Goods Sold, which will either increase or decrease net operating income depending on whether the overhead was underapplied or overapplied.
Quisco Systems has 6.3 billion shares outstanding and a share price of $ 17.03. Quisco is considering developing a new networking product in house at a cost of $ 457 million. Alternatively, Quisco can acquire a firm that already has the technology for $ 889 million worth (at the current price) of Quisco stock. Suppose that absent the expense of the new technology, Quisco will have EPS of $ 0.78. a. Suppose Quisco develops the product in house. What impact would the development cost have on Quisco's EPS? Assume all costs are incurred this year and are treated as an R&D expense, Quisco's tax rate is 35 %, and the number of shares outstanding is unchanged. b. Suppose Quisco does not develop the product in house but instead acquires the technology. What effect would the acquisition have on Quisco's EPS this year? (Note that acquisition expenses do not appear directly on the income statement. Assume the firm was acquired at the start of the year and has no revenues or expenses of its own, so that the only effect on EPS is due to the change in the number of shares outstanding.) c. Which method of acquiring the technology has a smaller impact on earnings? Is this method cheaper? Explain.
Answer:
Explanation:
current earnings available to equity shareholders :
EPS = current earnings available to equity shareholders / Shares outstanding
0.78 = current earnings available to equity shareholders / 6.3 billion
current earnings available to equity shareholder = 0.74*6.3 billion
= 4.662 billion
a) Calculation of EPS(develops the product in house)
Revised earnings available to equity shareholder = 4.662 billion - (.457 million*0.65) = 4.662 billion-0.297 billion
= 4.365 billion
Revised EPS = 4.365 billion / 6.3 billion
= 0.69
b) Calculation of EPS (does not develops the product in house)
current earnings available to equity shareholder = 4.662 billion
New shares issued = 0.889 billion/17.03
= 0.05202 billion
New shares Outstanding = 6.3 billion+ .05202 billion
= 6.3520 billion
Revised EPS = 4.662 billion / 6.3520 billion
= .73
c) Impact on EPS
Developing the product in house is cheaper,but it will affect the share price greatly since it has great impact on EPS.
Quisco's EPS will be affected by the method they choose to acquire new technology, either through in-house development or acquisition. The EPS impact can be calculated, but a smaller impact doesn't necessarily mean it is cheaper.
Explanation:Let's start by doing a. If Quisco develops the product in-house, they will incur R&D expenses of $457 million. Subtracting this R&D expense from their earnings before taxes and multiplying by the after-tax rate (1-0.35), we get the net income. Dividing this by the number of outstanding shares will give us the new EPS.
For b. If Quisco decides to acquire the technology, they will issue additional shares, and the total number of shares outstanding will increase. The acquisition cost in terms of stock would be $889 million / $17.03 (the share price) = about 52.18 million additional shares. Thus, the new EPS will be computed by dividing the net income (EPS * initial number of shares) by the new total number of shares.
Finally, for c. We must compare the new EPS in both cases to determine which method has a smaller impact on earnings. However, the method with smaller EPS impact isn't necessarily cheaper. The EPS is just a performance number. The actual cost is the expense incurred, either in cash (R&D expense) or in issuing shares (opportunity cost).
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Which of the following equations best represents the reporting shown in a statement of partnership equity? a.Beginning Balance of Partner Capital – Capital Additions – Net Income – Partner Withdrawals = Ending Balance of Partner Capital b.Ending Balance of Partner Capital + Capital Additions – Partner Withdrawals = Partnership Net Income c.Beginning Balance of Partner Capital + Capital Additions + Net Income – Partner Withdrawals = Ending Balance of Partner Capital d.Partner Withdrawals – Net Income – Partner Deficiency = Ending Balance of Partner Capital
Answer:
The correct answer is c. Beginning Balance of Partner Capital + Capital Additions + Net Income – Partner Withdrawals = Ending Balance of Partner Capital.
Explanation:
When a partnership is formed, all the partners invest capital as per their agreed share and that capital forms the Beginning balance of Partner Capital, after the partnership formation there is further capital investment by partners which should be added in the beginning balance. When the partnership business makes the profits, those profits or net income will be added to the capital account. When a partner withdraws some money, this is like he is extracting money from his investment in the business and share capital should reduce so the withdrawals should be subtracted. After all these actions we can have Ending Balance of Partner Capital.
The equation that best represents the reporting shown in a statement of partnership equity is c. Beginning Balance of Partner Capital + Capital Additions + Net Income - Partner Withdrawals = Ending Balance of Partner Capital.
Explanation:The equation that best represents the reporting shown in a statement of partnership equity is c. Beginning Balance of Partner Capital + Capital Additions + Net Income - Partner Withdrawals = Ending Balance of Partner Capital.
In a statement of partnership equity, the beginning balance of partner capital is the initial capital contributed by each partner. Capital additions represent any additional investments made by the partners. Net income is the total profit earned by the partnership. Partner withdrawals are the amounts taken out by the partners for personal use. The ending balance of partner capital is the remaining capital after accounting for additions, income, and withdrawals.
What is the ability of an organization to tailor its products or services to the customer's specifications?
Answer:
Mass Customization
Explanation:
Mass Customization -
It is a manufacturing and marketing strategy ,
where huge range of services and products are altered or changed according to the likes and dislikes of the customers , is referred to as mass customization.
It is also known as built - to - order and made - to - order.
These type of method are used in order to increase the sale of the goods and service , by modifying the goods according to the customers satisfaction.
Hence , from the question,
The correct term is mass customization.
The ability of a company to tailor its products or services to customer specifications is referred to as product differentiation. This includes physical attributes of the product and intangibles like guarantees, quality reputation, additional services, and promotional offers. Advertising plays a significant role in shaping customer preferences.
Explanation:The ability of an organization to tailor its products or services to the customer's specifications is often referred to as product differentiation. This is a key aspect in a company's core competency which refers to its fundamental knowledge, ability, or expertise in a specific subject area or skill set. For instance, a company that specializes in making customized t-shirts may consider its core competency to be the design and manufacture of these t-shirts according to customer specifications.
Product differentiation not only includes the physical attributes of a product, but also the intangible ones. These can include aspects such as guarantee of satisfaction, a reputation for high quality, services like free delivery, or offers like a loan to purchase the product. These intangible aspects can play a significant role in influencing customer preferences and add value to the product or service being offered. Advertising can also be a powerful tool in shaping these preferences.
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Personal care products that bring to the purchaser feelings of self-enhancement and security in addition to the essential benefits they offer are examples of ___.
a. physical product
b. generic product
c. tangible product
d. conventional product
Answer:
b. generic product
Explanation:
Generic product -
It refers to the products which is sled on the name of some other brand , is referred to as a generic product.
These products are very popular in local shops , which may or may not be having any brand name , these products also less expensive and hence, are prefered by most of the people , as they are efficient in their work , and these product are least advertised .
Hence , people really enjoy using these product .
The correct option is b. generic product .
If W. Edwards Deming was your management consultant, he would emphasize
A.quality through constant innovation and quality assurance training.
B.groups as important aspects of organizations.
C.analyzing organizations in their social context.
D.a clear division of labor and hierarchy of authority.
Answer:
Letter A. Quality through constant innovation and quality assurance training.
Explanation:
Alternative A is correct, as W. Edwards Deming was a pioneer scholar in the application of organizational quality management.
He was responsible for creating the 14 points, which are principles for management that will help the organization to achieve total quality. He was also responsible for popularizing the PDCA Cycle (PLAN, DO, CHECK, ACT), which is a strategic tool widely used worldwide to ensure continuous improvement and the quality of processes and products.
PLAN: define objectives, methods and resources.DO: Perform, educate and train.CHECK: Measure and evaluateACT: act correctly.Continuous improvement can be achieved through the correct and targeted use of the PDCA cycle towards organizational objectives. For Deming, without continuous improvement, there is no survival of the organization in the market, so he argues that continuous improvement must be implemented in all phases of the project, to achieve the benefits of continuous improvement of processes, increased productivity and reduced costs.
Suppose investment is $1,100 billion, private saving is $1,050 billion, and capital inflow from abroad is $100 billion. Solve the government budget deficit in the case.
Anoveoswer:
The government deficit is $150 billion
Explanation:
Current Account (CA) = Savings(S) -Investment(I).
Current account (CA) is also conventionally defined as (X-M) (value of exports – value of imports) + Net income from abroad. (R)
CA = (X-M) + (R)
In this case CA= $1050 billion - $1100 billion
CA= -$50 billion
Therefore CA = (X-M) + (R)
- $50 billion = x + $100 billion
X-M= -$100 billion + -$50 billion= -$150 billion
A manager that manages ""by the book"" exhibits which form of leadership style? Democratic. Autocratic. Bureaucratic. Free-rein.
Answer:
(c). Bureaucratic
Explanation:
Bureaucracy refers to following and abiding by rules and procedures strictly.
In such a form, the approach is highly resolute and lacks flexibility.
"By the book" conveys stringent rules and procedures, which means operations must be carried without deviating from the prescribed rules and norms.
Such form of leadership style is not flexible and often sticks to conventional methods without appreciating creative or handy suggestions.
Employees are expected only to perform what is asked of them, nothing less nothing more.
Usually such style of leadership is witnessed in those departments and areas wherein employees or workers handle those equipment, the negligent handling of which could result into fatal injuries or accidents.
How does a complete performance management system differ from the use of annual performance appraisals?
Answer:
PERFORMANCE MANAGEMENT is an ongoing process not periodic
PERFORMANCE APPRAISAL is a periodic activity
PERFORMANCE MANAGEMENT is aimed at the overall growth of the employees in terms of knowledge,skills etc
PERFORMANCE APPRAISAL is usually aimed at compensation and efficiency.
PERFORMANCE MANAGEMENT is a process
PERFORMANCE APPRAISAL is a system
PERFORMANCE MANAGEMENT involves multiple stakeholders
PERFORMANCE APPRAISAL involves the HR and Direct managers
Explanation: PERFORMANCE MANAGEMENT comprises of the overall processes involved in managing an employees development,growth,skills in order to ensure efficient performance of the entire team.
PERFORMANCE APPRAISAL is a periodic management system of evaluating its work force to determine compensation and improve efficiency, performance appraisal is part of the overall performance management approach.
Suppose a production possibilities frontier can be expressed as what is the opportunity cost of going from 1 unit of X to 2 units of X (in terms of units of Y)?
Answer:
Yes. A production possibility frontier can be expressed for this scenario.
Explanation:
A production possibility frontier tells the combinations of X and Y that can be produced with the given level of resources e.g. If 1 unit of X is produced than at the same time the Country can produce 50 units of Y. If 2 units of X are produced than at the same time the Country can produce 40 units of Y. This means that in order to produce 1 additional unit of X, the Country must forego 10 units of Y. This is the opportunity cost of going from 1 unit of X to 2 units of X (in terms of units of Y).
Pacific Petroleum holds huge reserves of oil assets. Assume that at the end of 2018, Pacific Petroleum's cost of oil reserves totaled $ 50,000,000, representing 5,000,000 barrels of oil.
Requirement:
1. Which method does Pacific Petroleum use to compute depletion?
Answer:
Units of production method
Explanation:
The formula to compute the depreciation expenses under the units-of-production method:
Depreciation per miles or hours = (Original cost - residual value) ÷ (estimated production)
For first-year or for another year, the depreciation expense would be
= Production units in a year × depreciation per miles or per hour
So, for computing the depletion, the unit of production method is used
Suppose trade between the United States and Canada results in a $100 billion increase in production of agricultural goods. This gain from trade will:
a. go to the U.S. because it is the larger country.
b. go to Canada because it is the smaller country.
c. be split equally between the U.S. and Canada.
d. be split between the two countries, but the division may not be equal.
Answer:
D
Explanation:
The gain from the trade will be split between the two countries but the division may not be equal because the division of gain depend on several factors such demand and supply for goods as well as the price which we don't have the information about.
At its simplest, acquisition management can be viewed as:
a. inventory management plus contract management
b. operations management plus contract management
c. project management plus contract management
d. project management plus operations management
Answer:
The correct answer is letter "D": project management plus operations management.
Explanation:
Acquisition management refers to all the efforts a company makes to obtain the materials necessary for the operations process stage to take place. Labor, land, and equipment are the main factors that the company must acquire to make its project become true. Under that scenario, project management and operations management are the core of the acquisition management.
In simplest terms, acquisition management can be defined as project management plus contract management. It involves overseeing all aspects of acquiring goods or services and managing the associated contracts within an organization.
Explanation:At its simplest, acquisition management can be accurately described as project management plus contract management, so the correct answer would be (c). The reason for this is that acquisition management involves overseeing and executing all aspects of acquiring goods or services within an organization. This process includes managing the contracts associated with these acquisitions, which aligns with contract management. At the same time, it also involves managing the entire acquisition 'project' from beginning to end, thus aligning with the principles of project management.
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When buyers are in a weak bargaining position, companies in the supplying industry must lower their prices to increase profits.
True/False
Answer:
The statement is FALSE
Who among the following persons said, "The social responsibility of business is to increase profits"? a. Kindle Jarry b. Please Mr. Postmanc. Ronald Postmad. Milton Friedman
Answer:
D: Milton Friedman
Explanation:
''The social responsibility of business is to increase profits'' pronounced by Milton Friedman. Friedman declares that a businessman when he announces that business is not involved only with profit but also with developing social boundaries means that he is supporting free enterprise. This social responsibility is defined as Corporate Social Responsibility, which is the faith that “corporations owe a greater duty to their communities and stakeholders” by owning a “social duty.”
Which production possibilities frontier (PPF) reflects increasing opportunity costs?
Answer:
bowed-out shape
Explanation:
Each type of good requires a different set of production resource. When the opportunity cost increases the production possibility frontiers tends to have a bowed-out shape. The reason for bowed-down shape is, goods need different production process and tools, that is why the firms have to choose which goods they want to produce and which are not feasible.
Few restaurant management students opt for ____________________management, believing it lacks the variety, glamour and opportunity for self-expression.
Answer: Quick service
Explanation:
According to the given question, the few restaurants student opting quick service management is the process of lack of varieties, opportunities and the glamour.
The Quick service is one of the disadvantage method using in the management as it contain the fast serving of the food and lack of the various types of variety in the food menu.
We are not able to manage all the stuff in order to satisfying the customer requirement and also lacks the opportunities for the self expression. Therefore, Quick service is the correct answer.
Here are some points to ponder when hiring data professionals:
1. Look for candidates with a strong educational background in analytics/statistics. You want someone who knows more than you do about handling copious amounts of data.
2. The ideal candidates will have specific experience in your industry or a related industry. "When you have all those Ph.D.s in a room, magic doesn’t necessarily happen because they may not have the business capability," said Andy Rusnak, a senior executive at Ernst & Young.
3. Search for potential candidates from industry leader organizations that are more advanced in big data.
4. Communication skills are a must. Look for a candidate "who can translate Ph.D. to English," says SAP Chief Data Scientist David Ginsberg. He adds, "Those are the hardest people to find."
5. Find candidates with a proven record of finding useful information from a mess of data, including data from questionable sources. You want someone who is analytical and discerning.
6. Look for people who can think in 8- to 10-week periods, not just long term. Most data projects have a short-term focus.
7. Test candidates’ expertise on real problems. Netflix's Director of Algorithms asks candidates, "You have this data that comes from our users. How can you use it to solve this particular problem?"
Questions:
1. Let’s say you work in a metropolitan city for a large department store chain and your manager puts you in charge of a team to nd out whether keeping the store open an hour longer each day would increase profits. What data might be
available to your decision-making process? What data would be important to your decision?
2. What kinds of data might we want in OB applications?
3. As Braver man notes, one problem with big data is making sense of the information. How might a better understanding of psychology help you sift through all this data?
Answer:1) forecasted sales return for the period, expenses to be incurred including overtime wages, utility bills etc, cost benefits
B) cost benefits.
2 The emotional need and the consent of the stakeholders including the staff,customer's, suppliers
3 A mental diagnoses of the reaction of stakeholders to the idea is very important and can only be deduce by psychology skills
Explanation: There is a need to find out whether staying open an extra hour will bring more sales and even with more sales , there is a need to find out if the workers will buy into the idea,they may feel that their private time is being encroached ,once the staff show dissension,it will be difficult to achieve the goal .the cost benefits of the process need to be established to make a positive decision.customers view can be gotten through questionnaire, survey etc.
2)this will allow for the emotion,mood and perception of the staff and other stakeholders be met before proceeding on this implementation,as they say happy staff means happy customer and more profits.
3) A good knowledge of psychology will help you ascertain the mood,ac ceptance of the proposal by all staff and where necessary incentives can be introduced
Wylie has been offered the choice of receiving $5,000 today or an agreed-upon amount in 1 year. While negotiating the future amount, Wylie notes that he would be willing to take no less than $5,700 if he has to wait a year. What is his TVOM in percent? Wylie has been offered the choice of receiving ,
Answer:
The answer is 14%
Explanation:
Formula for Future value (FV) FV = PV (1+ni)
Whereas FV= Future value, PV = present value, n= number of years, i= TVOM in percentage
Rearranging the formula for i
i = (FV/PV)-1
So, i = (5,700/5,000)-1
i = 1.14-1
i = 0.14
i = 14%
(0.14x100=14%)
___________ contains information needed to carry on the operations of a firm over long periods of time.
Answer:
The correct word for the blank space is: Reference document.
Explanation:
A reference document is a file stored containing procedures, practices or strategies used by a firm in the past for a specific purpose. The goal of keeping these documents is to avoid time in the future in case a similar problem happens by applying the solution method implemented in the past.
The project manager’s role with regard to interface management does not include interfacing:
Answer:
The correct answer to the following question will be "Between senior management and various external stakeholders"
Explanation:
The project manager is the person responsible for initiating, preparing, constructing, implementing, overseeing, ending and managing the project with success, ensuring that the threat is handled and that uncertainty is reduced.The project manager is accountable for the development project's progress. They supervise all aspects, including planning, execution, monitoring, monitoring, and closure. It guarantees that goals and objectives are achieved within the timeline.Therefore, it would be the right answer.
Which of the following describe some of the trade-offs faced by a family deciding whether to buy a new car? Check all that apply. A. An increase in the family's car payment means the family will be unable to afford a vacation. B. The vehicle is available in several colors. C. A newer model offers better protection and functions but is more expensive than an older model.
Answer:
The correct answer is letter "A" and "C": An increase in the family's car payment means the family will be unable to afford a vacation; A newer model offers better protection and functions but is more expensive than an older model.
Explanation:
Trade-offs are the result of comparing what must be acquired with what should be given up to satisfy most of a need. While selecting a new vehicle, a family must consider its capacity, size, and price. Besides, they will have to evaluate all the could be left behind for incurring such expenses like buying a new piece of furniture of use of most members of the family, remodeling part of the house or going on a family vacation.
Where can you obtain information about the responsibilities, compensation, and career potential of a certain job?
Answer:
Explanation:
There are several ways:
1. People in your networks (employees of the organization, guest speakers at your college)
2.Career service centers
3. Social media accounts and postings of job offerings and descriptions
4. You can visit employer's office or call them
5. Employment agencies
____________ refers to identifying the elements of a job and arranging its tasks and responsibilities for the purpose of creating a productive work unit.
Answer:
Person-organization fit.
Explanation:
The person-organization fit can be defined as the compatibility that exists between employees and a particular organization. There is compatibility between both when there are similar values or when one party is dependent on the other to meet any need.
There is research that indicates that the importance of the Person-Organization fit concept is to be based on the theory of attraction-selection-attrition, which corresponds to the relationship between an individual seeking to work in an organization with values similar to theirs, and the organization hiring these individuals during a selection process. Hence the idea of congruence and adequacy between the employee and the organization, which makes organizational activities and processes more effective, and guarantees essential benefits for organizational existence, such as:
Productivity increase , Work attitudes , Increased performance , Decrease in employee turnover.Answer:
Job design
Explanation:
Job design is one of key human resources functions which aims at ensuring employee performance and overcoming job dissatisfaction by giving special attention to the way a job or task is arranged. Job design relates the specification of content and allocation of specific tasks to individuals employees or a group of employees.
Job design can influence the work attitude and self esteem of staff in the work place.
are unsecured obligations that are not tied to specific assets for collateral. a. Bearer bonds b. No-load stocks c. Penny stocks d. Junk bonds
Answer:
The correct answer is letter "D": Junk bonds.
Explanation:
A junk bond is a debt security that is poorly rated because it has a high default risk. Junk bonds are also called high-yield or speculative bonds. These are considered riskier investments than higher-rated bonds and thus offer a higher interest rate per year.
Junk bonds can be issued by corporations or governments and have a principal amount, maturity date, and coupon but they are not linked to specific assets as collateral.
The College Board reported the following mean scores for the three parts of the Scholastic Aptitude Test (SAT) (The World Almanac, 2009): Critical Reading 502 Mathematics 515 Writing 494Assume that the population standard deviation on each part of the test is = 100.a. What is the probability a sample of 90 test takers will provide a sample mean test score within 10 points of the population mean of 502 on the Critical Reading part of the test (to 4 decimals)?b. What is the probability a sample of 90 test takers will provide a sample mean test score within 10 points of the population mean of 515 on the Mathematics part of the test (to 4 decimals)?c. What is the probability a sample of 100 test takers will provide a sample mean test score within 10 of the population mean of 494 on the writing part of the test (to 4 decimals)?
Answer:
a) [tex] P(492<X<512) = P(\frac{492-502}{10.54} <Z<\frac{512-502}{10.54}) = P(-0.949 < Z< 0.949)[/tex]
And we can use excel or the normal standard table to find this probability:
[tex] P(-0.949 < Z< 0.949)= P(Z<0.949) -P(Z<-0.949) =0.8287-0.1713=0.6574 [/tex]
b) [tex] P(505<X<525) = P(\frac{505-515}{10.54} <Z<\frac{525-505}{10.54}) = P(-0.949 < Z< 1.898)[/tex]
And we can use excel or the normal standard table to find this probability:
[tex] P(-0.949 < Z< 1.898)= P(Z<1.898) -P(Z<-0.949) =0.9712-0.1713=0.7998 [/tex]
c) [tex] P(484<X<504) = P(\frac{484-494}{10} <Z<\frac{504-494}{10}) = P(-1 < Z< 1)[/tex]
And we can use excel or the normal standard table to find this probability:
[tex] P(-1 < Z< 1)= P(Z<1) -P(Z<-1) =0.8413-0.1587=0.6827 [/tex]
Explanation:
Previous concepts
Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".
The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".
Part a
Let X the random variable that represent the scores for critical reading of a population, and for this case we know the distribution for X is given by:
[tex]X \sim N(502,100)[/tex]
Where [tex]\mu=502[/tex] and [tex]\sigma=100[/tex]
We select a sample of size n=90, since the distribution for X is normal then the distribution for the sample size is also normal
[tex]\bar X \sim N(\mu, \frac{\sigma}{\sqrt{n}}=\frac{100}{\sqrt{90}}=10.54)[/tex]
And for this case we want this probability:
[tex] P(502-10 < \bar X < 502+10)[/tex]
And for this case we can use the z score given by:
[tex] z= \frac{\bar X -\mu}{\sigma_{\bar x}}[/tex]
And if we use this formula we got:
[tex] P(492<X<512) = P(\frac{492-502}{10.54} <Z<\frac{512-502}{10.54}) = P(-0.949 < Z< 0.949)[/tex]
And we can use excel or the normal standard table to find this probability:
[tex] P(-0.949 < Z< 0.949)= P(Z<0.949) -P(Z<-0.949) =0.8287-0.1713=0.6574 [/tex]
Part b
Let X the random variable that represent the scores for Math of a population, and for this case we know the distribution for X is given by:
[tex]X \sim N(515,100)[/tex]
Where [tex]\mu=515[/tex] and [tex]\sigma=100[/tex]
We select a sample of size n=90, since the distribution for X is normal then the distribution for the sample size is also normal
[tex]\bar X \sim N(\mu, \frac{\sigma}{\sqrt{n}}=\frac{100}{\sqrt{90}}=10.54)[/tex]
And for this case we want this probability:
[tex] P(515-10 < \bar X < 515+10)[/tex]
And for this case we can use the z score given by:
[tex] z= \frac{\bar X -\mu}{\sigma_{\bar x}}[/tex]
And if we use this formula we got:
[tex] P(505<X<525) = P(\frac{505-515}{10.54} <Z<\frac{525-505}{10.54}) = P(-0.949 < Z< 1.898)[/tex]
And we can use excel or the normal standard table to find this probability:
[tex] P(-0.949 < Z< 1.898)= P(Z<1.898) -P(Z<-0.949) =0.9712-0.1713=0.7998 [/tex]
Part c
Let X the random variable that represent the scores for Writing of a population, and for this case we know the distribution for X is given by:
[tex]X \sim N(494,100)[/tex]
Where [tex]\mu=494[/tex] and [tex]\sigma=100[/tex]
We select a sample of size n=100, since the distribution for X is normal then the distribution for the sample size is also normal
[tex]\bar X \sim N(\mu, \frac{\sigma}{\sqrt{n}}=\frac{100}{\sqrt{100}}=10)[/tex]
And for this case we want this probability:
[tex] P(494-10 < \bar X < 494+10)[/tex]
And for this case we can use the z score given by:
[tex] z= \frac{\bar X -\mu}{\sigma_{\bar x}}[/tex]
And if we use this formula we got:
[tex] P(484<X<504) = P(\frac{484-494}{10} <Z<\frac{504-494}{10}) = P(-1 < Z< 1)[/tex]
And we can use excel or the normal standard table to find this probability:
[tex] P(-1 < Z< 1)= P(Z<1) -P(Z<-1) =0.8413-0.1587=0.6827 [/tex]
If 4 million kegs of beer are sold,MC exceeds MB , which means that:
Society is currently devoting the efficient quantity of resources to the production of beer.
It would be more efficient for society to devote fewer resources to the production of beer.
It would be more efficient for society to devote more resources to the production of beer.
It would be fairer for society to devote fewer resources to the production of beer.
Answer: The correct answer is "It would be more efficient for society to devote more resources to the production of beer.".
Explanation: If 4 million kegs of beer are sold,MC exceeds MB , which means that: It would be more efficient for society to devote more resources to the production of beer.
When producing 4 million barrels of beers, resources are not being used optimally, so more resources must be produced, so that resources can be used more efficiently (allocating less alternative resources).
When MC exceeds MB in selling 4 million kegs of beer, it would be more efficient to devote fewer resources to beer production.
Explanation:When MC (Marginal Cost) exceeds MB (Marginal Benefit) in the context of selling 4 million kegs of beer, it means that it would be more efficient for society to devote fewer resources to the production of beer. This is because the additional costs of producing each additional keg of beer outweigh the additional benefits gained from selling it. By reducing resources allocated to beer production, society can allocate those resources to other industries where the marginal benefit exceeds the marginal cost.
Learn more about Efficiency of resource allocation here:https://brainly.com/question/34390704
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A survey found that 69 percent of MBA students view maximizing shareholder value as the pri- mary responsibility of a company. Do you agree? What do you think this finding suggests about the ethical and socially responsible stance of cor- porate managers over the next couple of decades? .
Answer:
I agree
Explanation:
Social and ethical responsibilities: There are various parameters grounded on which the company or the firm should enact fro the benefit of the society. A firm need to consider the parameters while taking the decisions of the business as this will benefit the environment as well as the business economy.
The focus on the shareholders has rise as the companies are being concerned. At present there are a lot of completion and limit or restriction to managerial or technical edge, one could achieve over the competitors.
If the shareholders are with the company or firm, then the company or the firm is bound to grow, otherwise the company has many chances to fail.
Keeping the shareholders with the company, very much grounded on that how the company deals or handles them as there is more than a shareholder look from the company or the firm beyond the financial interest.
Final answer:
The survey result reflects a traditional focus on maximizing shareholder value among MBA students, aligning with Milton Friedman's views. However, evolving perspectives on corporate social responsibility suggest that future corporate managers may adopt more ethically and socially responsible approaches, balancing the interests of various stakeholders.
Explanation:
The finding that 69 percent of MBA students view maximizing shareholder value as the primary responsibility of a company suggests a traditional adherence to Milton Friedman's principle that the social responsibility of business is to increase its profits. However, this approach has been challenged by the evolving concept of corporate social responsibility (CSR), where the interests of all stakeholders, including employees, customers, and the community at large, are considered alongside those of shareholders.
The shift from shareholder primacy towards more inclusive stakeholder theory reflects a broader understanding of a company's role in society, suggesting that future corporate managers may adopt more ethically and socially responsible stances by balancing the interests of various stakeholders.
Modern debates in business ethics underscore the need for companies to operate not merely for profit maximization but also in a manner that is sustainable and responsible towards society. The Business Round table's endorsement of a modern standard for corporate responsibility, which emphasizes delivering value to all stakeholders, marks a significant shift from the longstanding principle of shareholder primacy.
This evolution suggests that corporate managers over the next couple of decades will likely place greater emphasis on ethical considerations and social responsibilities, going beyond the traditional focus on maximizing shareholder value.
Consider the production department of a manufacturer of laptop computers. Classify the cost of the processor chips.
-Direct
-Variable
-Product
Answer:
All the answers are correct.
Explanation:
The cost of the processor chips is a direct cost because it is the vital thing of any laptops. Without a processor, the laptop is nothing but a heartless product.
The cost is variable because the price of a processor varies as there are various processors in the computer market.
The cost is a product cost because it is directly related to manufacturing a laptop.