Cost Data for Managerial Purposes
As an analyst at Delta Airlines, you are asked to help the operations staff. Operations has identied a new method of
loading baggage that is expected to result in a 30 percent reduction in labor time but no changes in any other costs. The
current labor cost to load bags is $2 per bag. Other costs are $1 per bag.
Required
a. What differential costs should the operations staff consider for the decision to use the new method next year? What
would be the cost savings per bag using it?
b. Describe how management would use the information in requirement ( a ) and any other appropriate information to
proceed with the contemplated use of the new baggage loading method.

Answer:

Yes the given statement is true.

Explanation:

When we are speaking online, you should look into the camera only to have eye contact.

Now many training sessions are conducted online, many meetings are conducted through video conferencing, etc. So it is essential to look into the camera and speak, because

You can also take an example of taking selfie, if you look at the screen then when you are looking at your photo, your eyes will look somewhere else and not straight. So the same suit for online conversation too.

Answer:

Option "A" is the correct answer.

Performance-based incentive.

Explanation:

Performance-based incentives also include financial and pre-monetary incentives to encourage well being-related actions or accomplishment of performance goals. ... To change those health-related habits, they are transmitted electronically to families or patients.

Measuring performance accurately is essential for motivating managers using performance-based incentives or monetary rewards.

When there is a lack of good performance measures, it becomes difficult to motivate managers using performance-based incentives or monetary rewards. This is because without accurate performance measures, it becomes challenging to assess and reward individual performance effectively.

For example, if incentives are based on team performance without considering individual efforts, employees may be motivated to shirk in their jobs because they can still benefit from the rewards even if others do the work. This is known as the informativeness principle, which suggests that measures reflecting individual employee effort should be incorporated into employee contracts.

Therefore, the correct option is A. Performance-based incentives.

Answer:

a Cultural change.

Explanation:

This type of change can be characterized as a cultural change, due to the fact that there are changes in attitudes and mentality throughout the organizational process.

This is one of the most difficult changes to be implemented in an organization, because changing culture is changing the set of beliefs, values, habits and experiences of an organization. The culture is shared by all the parties that make up an organization, as it is defined as a belief, it is difficult for there to be change, there may be resistance on the part of managers and employees, due to the uncertainty of changing the way of carrying out an activity and its Therefore, it is necessary to have a culture change when the focus is on improving the organization.

When the resistance is broken, it is possible to have a better view of the positioning of the business, which leads to greater innovation and creativity to find solutions that help in organizational success.

This type of change whereby the organization changes to a quality assurance program that affects the production process instead of at the end of the process is A. cultural change.

A cultural change involves a change of mindset or attitude.

A cultural change is NOT:

Thus, the type of change involved when the organization changes to a quality assurance program that affects the production process instead of at the end of the process is a cultural change.

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Answer:

Explanation:

A. The Balance of Income Statement I mean Net Profit will decrease because of increase in expenses and the balance of Current Liabilities in Balance Sheet will increase because it will become salaries payable and  there will be no effect on statement of cash flows.

B. This will affect gross Profit and Net Profit negatively means bot will decrease and cost of goods sold will increase, in Balance sheet it will increase current assets as inventory is asset and it will also increase current liabilities and it is purchased on Credit. and there will be not affect on statement of cash flows.

C. This will increase sales and hence Net Profit in Income Statement. The balance on Balance sheet will will increase because it is sold so accounts receivable will increase which is current asset and also as inventory is sold so inventory will decrease but it will decrease by less amount because we record inventory on cost and we have sold it for more than its cost so the value of current assets will increase as the amount of accounts receivable will be greater than the decrease of the amount of inventory. there will be no change in statement of cash flows.

D. There will be no affect on Income Statement. There willbe no change in the balance of balance sheet because the accounts receivable will decrease by the same amount as cash will increase. Balance on statement of Cash Flows will increase as the company have received cash so it will increase its cash inflows.

E. There will be no change in the Balance of Income Statement as acquisition is related to balance sheet. This will not change the overall balance of balance sheet but it will decrease the balance of current assets as cash is paid for acquisition and it will increase the balance of fixed assets as equipment is bought. But the balance of total assets will remain same.  The balance of statement of cash flows will decrease because cash is paid so there is cash outflow.

F. This will not affect Income Statement. this will decrease the balance of current assets as cash is paid so it is a current asset and also it will decrease the balance of current liabilities as it was purchased on credit so accounts payable will decrease. also this will decrease the balance of statement of cash flows as it is a cash outflow.

G. This will not affect Income Statement. this will decrease the balance of balance sheet. as cash is paid so current assets will decrease and as notes payable are liabilities so it will also decrease because it has been paid off. there will be a decrease in the balance of statement of cash flows because it is a cash outflow.

H. The balance of Income statement will decrease means net profit will decrease as Interest is an expense. The Balance of Balance sheet will decrease because cash is paid and it is current asset. it will decrease the balance of statement of  cash flows because it is a cash outflow.

This question discusses the effects of various transactions on a company's financial statements, including the balance sheet, income statement, and statement of cash flows.

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Answer:

Visitors spend a greater amount of time at portal sites than they do at most other types of Web sites, which is attractive to advertisers. TRUE

Sites conducting monetizing campaigns are unconcerned about visitor backlash. FALSE

Explanation:

The first statement is true, as portals provide a great pace for advertisers to place their ads and marketing messages. Portals are places where people come with a specific purpose (usually loosely related to the marketing niche of the advertiser), so marketing messages can be subtly placed on portal sites.

The second statement is false, because if the dissatisfied visitors stop visiting the site, it would lose its audience. If that happened, they would not be able to conduct those campaigns in the first place, as no advertiser would get the incentive to communicate marketing messages to a smaller, decreased audience.

Answer:

The correct answer is letter "A": Standards of field work.

Explanation:

The Generally Accepted Auditing Standards or GAAS are the rules auditors follow when analyzing the financial statements of a company. The GAAS has three (3) main categories: general standards, standards of fieldwork, and standards of reporting. The body in charge of reviewing the GASS is the Auditing Standards Board (ASB).

Answer:

a. Have influence

Answer:

Last quarter of every year (October, November or December)

Explanation:

Last quarter of every year (October, November or December)

Answer:

Revenue Function = 90x

cost function = 50x + 800

Explanation:

given data

sales volume = 600 items

revenues = $54,000

total costs = $20,800

sales volume = 400 items

break-even point = 20 items

solution

first we get here Price per unit for Revenue Function  that is express as

Price per unit  = [tex]\frac{total\ sale}{no\ of unit}[/tex]

Price per unit  = [tex]\frac{54000}{600}[/tex]

Price per unit =  $90

so here Revenue Function  will be

Revenue Function = 90x   .......................1

here x is sale volume

and

cost function will be

cost function = ax +b     .........................2

here

a is Variable cost per unit  and b is fixed cost  and x is sale function

so when cost at 400 units  will be

$20800 = 400a + b     .......................3

and

Cost at break even point   will be

$90 ×  20 = 20a + b      ..........................4

as here  total cost = total revenue

so from equation 3 and 4 we get a and b

380a = $19000

a = $50

and

b = $20800 - 400 × 50

b =  $800

so here Cost Function will be from equation 2

cost function = 50x + 800

Final answer:

Finding the cost function requires separating fixed and variable costs from the total costs. However, the provided info includes a fixed cost of $40,000 and a variable cost of $0.3 per item, which doesn't align directly with the given data of $20,800 for 400 items. Additional context may be necessary for an accurate calculation.

Explanation:

The cost function for a business based on given information about sales volume, revenue, and costs. To find the cost function, we need to understand that it typically consists of fixed costs and variable costs. Given that the total costs for 400 items sold were $20,800, we can use this information to determine the variable cost per item and the fixed cost. However, the provided information hints at a fixed cost of $40,000 and a variable cost of $0.3 per item for an ice cream bar venture, which is not directly related to the figure provided. This discrepancy suggests that more specific details or context might be needed to accurately calculate the cost function based on the given data.

Final answer:

Paradise Corporation must manufacture 540,000 units during the next fiscal year to satisfy the planned sales and inventory levels, which includes ending inventory and subtracts the beginning inventory from the planned sales.

Explanation:

The question involves Paradise Corporation and their intent to budget for the next fiscal year. To determine the number of units Paradise Corporation must manufacture, we consider the planned sales, and beginning and ending inventories. The calculation to find out the number of units needed for production is:

Planned sales for next year

Plus ending inventory

Minus beginning inventory

The formula applied is as follows: Units to Manufacture = (Planned Sales + Ending Inventory - Beginning Inventory).

Here, we have:

Planned Sales for next year = 570,000 units

Ending Inventory of Finished Goods = 68,000 units

Beginning Inventory of Finished Goods = 98,000 units

Thus, the number of units to be manufactured is:

Units to Manufacture = (570,000 + 68,000 - 98,000) = 540,000 units

Paradise Corporation would have to manufacture 540,000 units during the next year to meet its planned sales and inventory levels.

Answer:

Comparison shows that the best investment is 8.95% compounded monthly. (Part C or Number 3 option is best)

Explanation:

General Formula For Future Value:

[tex]FV=PV(1+\frac{i}{n})^{n*k}[/tex]

Where:

FV is the future Value

PV is the present Value

i is the interest rate

n is the compound interest period

k is the Total number of years

Part A:

when i=9% . Using above formula:

n is the quarters in 1 year=4

[tex]FV=\$50,000(1+\frac{0.09}{4})^{4*10}\\ FV=\$121,759.4488[/tex]

Part B:

when i=8.90% . Using above formula:

Considering year of 365 days

n is the hours in 1 year=24*365=8760 hr/year

[tex]FV=\$50,000(1+\frac{0.089}{8760})^{8760*10}\\ FV=\$121,755.9321[/tex]

Part C:

when i=8.95% . Using above formula

n is the months in 1 year=12 months

[tex]FV=\$50,000(1+\frac{0.0895}{12})^{12*10}\\ FV=\$121,961.0711[/tex]

The above comparison shows that the best investment is 8.95% compounded monthly. (Part C or Number 3 option is best)

The investment with 8.90% interest compounded hourly offers the highest return and is the best choice for Linda's investment.

The subject matter relates to the mathematical concepts of interest compounding and financial management. Here, we need to determine which investment option will yield the highest return after 10 years.

The formula for compound interest is A = P(1 + r/n)^(nt), where:

We can plug in the given values for each opportunity and compare the results:

After calculating, we'll find that the second opportunity provides the highest return, thus is the best choice for Linda.

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Answer:

Coupon rate = 7.14 %

yield to maturity  = 7 %

correct answer is С. 7%

Explanation:

given data

face value = $1400

annual coupon = $100

par value of ​$1000

annual coupon = ​$75

today price =  $1004.50

solution

we get here first coupon rate that is

Coupon rate =  [tex]\frac{annual\ coupon}{face\ value}[/tex]    ...........1

Coupon rate = [tex]\frac{100}{1400}[/tex]

Coupon rate = 7.14 %

and

we get here yield to maturity that is  

yield to maturity = [ annual coupon + ( par value - today price ) ] ÷ today price  ...................2

put here value

yield to maturity = [tex]\frac{75 + (1000-1004.50)}{1004.50}[/tex]

yield to maturity =  0.070184 = 7 %

so correct answer is С. 7%

Final answer:

The schedule of cash payments for inventory purchases is completed by calculating the payment for current accounts payable and payment for previous accounts payable for each month. The amounts are calculated using the given percentage of 90% for the month of purchase and 10% for the month following the month of purchase.

Explanation:

To complete the schedule of cash payments for inventory purchases, we need to calculate the amount of payment for current accounts payable and payment for previous accounts payable for each month.

For April, 90% of the required purchase of $113,000 is paid in the month of purchase, which is $113,000 * 90% = $101,700. The remaining 10% of the purchase is paid in the month following the month of purchase, which is $113,000 * 10% = $11,300. Therefore, the payment for current accounts payable in April is $101,700 and the payment for previous accounts payable is $11,300.

Following the same calculation, in May, the payment for current accounts payable is $119,700 and the payment for previous accounts payable is $13,300. In June, the payment for current accounts payable is $130,500 and the payment for previous accounts payable is $14,500.

Therefore, the schedule of cash payments for inventory purchases is as follows:

AprilMayJune$101,700$119,700$130,500$11,300$13,300$14,500$113,000$133,000$145,000

a. The schedule of cash payments for inventory purchases is: Month-April: Payment for current accounts payable is $101,700, Payment for previous accounts payable is $11,300.Month-April: Payment for current accounts payable is $119,700, Payment for previous accounts payable is $13,300. Month-June: Payment for current accounts payable is $130,500.Total payment for current accounts payable is $121,350.

b. Vivian Books will report $14,500 of accounts payable on its pro forma balance sheet at the end of the second quarter.

a. Complete the schedule of cash payments for inventory purchases:

Given:

Required purchases (on account):

April: $113,000

May: $133,000

June: $145,000

Vivian Books pays 90% of purchases in the month of purchase and 10% in the following month.

1. Calculate payments for current accounts payable:

April purchases: 90% of $113,000 = $101,700 (paid in April)

May purchases: 90% of $133,000 = $119,700 (paid in May)

June purchases: 90% of $145,000 = $130,500 (paid in June)

So, the payments for current accounts payable are:

April: $101,700

May: $119,700

June: $130,500

2. Calculate payments for previous accounts payable (10% of previous month's purchases):

Payment for previous accounts payable in May: 10% of April purchases = 10% of $113,000 = $11,300

Payment for previous accounts payable in June: 10% of May purchases = 10% of $133,000 = $13,300

So, the payments for previous accounts payable are:

May: $11,300

June: $13,300

3. Total budgeted payments for inventory:

Summing up the payments:

April: $101,700 (current) + $11,300 (previous) = $113,000

May: $119,700 (current) + $13,300 (previous) = $133,000

June: $130,500 (current)

b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter:

To determine the accounts payable at the end of June, we need to calculate the total purchases made during June and subtract the payments made in June:

Purchases in June: $145,000

Payments for June (90% of June purchases): $130,500

Accounts payable at the end of June:

[tex]\[ \text{Accounts Payable} = \text{Total purchases in June} - \text{Payments for June} \\\text{Accounts Payable} = \$145,000 - \$130,500 \\\text{Accounts Payable} = \$14,500\][/tex]

Answer:

$12,000

Explanation:

Beginning cash balance = $47,000

Budgeted cash receipts = $131,000

Budgeted cash disbursements = $126,000

The desired ending cash balance = $64,000

The net movements around the cash opening balances, cash receipts, disbursement and borrowing results in the closing balance by the formula below;

The desired ending cash balance = Beginning cash balance + Budgeted cash receipts + Borrowing - Budgeted cash disbursements

$64,000 = $47,000 + $131,000 + Borrowing - $126,000

Borrowing = $64,000 + $126,000 - $47,000 - $131,000

Borrowing = $12,000

Borrowing required to achieve desired closing balance is $12,000

Answer:

to a large extend

Explanation:

Remember Semler's business was a marine-pump  business, which he transformed into a multi national business.

He did so by:

Ricardo Semler's leadership could succeed well in organizations valuing autonomy and innovation but may face challenges in highly regulated or traditional industries requiring stringent compliance and structure. Adaptation to organizational culture and industry context would be crucial for success.

Ricardo Semler's leadership approach, as exemplified by his practices at Semco, has been unconventional yet highly successful within the context of Semco. Evaluating the extent to which he would succeed in other types of organizations involves considering both the strengths and challenges of his leadership style:

Strengths:

1. Empowerment and Trust: Semler's approach emphasizes decentralization, empowerment of employees, and trust in their decision-making abilities. This can foster a more engaged and motivated workforce in any organization where employees desire autonomy and responsibility.

2. Flexibility and Adaptability: His model encourages adaptability to change and responsiveness to market conditions. This is crucial in dynamic industries or sectors where agility and innovation are key to staying competitive.

3. Employee Satisfaction and Retention: By prioritizing employee well-being, work-life balance, and democratic decision-making, Semler has achieved high employee satisfaction and retention rates. This can contribute to organizational stability and productivity in various contexts.

4. Innovation and Creativity: Semler's approach encourages innovation and creativity by challenging traditional hierarchical structures and promoting a culture of questioning and experimentation. This could be beneficial in industries that require continuous innovation.

Challenges:

1. Resistance to Change: Semler's leadership model may face resistance in organizations with deeply ingrained hierarchical structures or rigid corporate cultures. Implementing such radical changes requires strong leadership and gradual adaptation.

2. Risk Management: His decentralized decision-making approach might pose challenges in organizations where risk management and compliance are highly regulated or critical to operations.

3. Scale and Complexity: Scaling Semler's model to larger organizations or those with complex operations may present logistical challenges. Maintaining cohesion and alignment across diverse functions and geographies requires robust systems and processes.

4. Industry Fit: The applicability of Semler's model may vary across industries. For instance, highly specialized or regulated industries may require a more structured approach to ensure compliance and safety.

The complete question is:

Harvard Case study - Ricardo Semler : A revolutionary model of Leadership

To what extent do you think Ricardo would succeed as a leader in other types of organizations? Give Arguments

Answer:

The correct answer is letter "B": compensation and promotions.

Explanation:

It is unethical to influence or distort accounting information to benefit an employee over another in front of promotions or at the moment of providing benefits to workers. Sometimes and against the law, manager accountants are pushed to do so for the company to obtain extra income or when the decision of providing a better job position to an employee over another is biased.

Management accountants are most likely to face pressure to favorably influence numbers for compensation and promotions as these directly affect managers' performance evaluations, pay, and career opportunities.

Management accountants might experience outside pressure to influence the numbers favorably when the accounting information they provide is directly tied to outcomes that can significantly affect the company's financial status and the well-being of individual managers. Among the options provided, the most likely scenario where such pressure could occur is: Option B) Compensation and Promotions

In the context of compensation and promotions, accounting numbers directly impact the performance evaluation of managers, which could consequently influence their pay and career advancement. The desire to appear successful and to maximize personal gain might motivate some managers to apply pressure on accountants to adjust figures to create a more favorable impression. Meanwhile, the information used for budgeting, continuous improvement, and product costing is more about planning and operational efficiency, which is generally not as directly tied to individual compensation and promotions, hence less likely to elicit pressure on accountants to skew the numbers in a particular direction.

As firms grow and their financial data becomes more transparent to external investors like bondholders and shareholders, the company's revenues, costs, and profits are scrutinized. This increased scrutiny can lead to additional pressure on management accountants, especially when considering that these financial stakeholders rely on accurate reports to make investment decisions. Since explicit and implicit costs play into determining economic profit, accurate accounting is imperative for portraying a true representation of a firm's financial health.

Answer:

All the given statements except first statement are true.

Explanation:

If the Fed injects a huge amount of money into the markets, inflation is expected to decline and long-term interest rates are expected to rise

If the fed injects a huge amount of money into markets, then aggregate demand levels in the future are expected to rise and thereby inflation is also expected to rise not decline. To control the rising inflation, the Fed will increase the interest rates thereby implying an increase in longer term interest rates. Hence, the above statement is false.

Foreign investments fuel growth in a country. However, this investment is based on factors that affect the business environment and increase riskiness, such as macroeconomic policies, political changes, labor issues, tax rates and regulations

If the policies at the government (fiscal) and central bank (monetary) level are supportive of growth considering inflation, pro-business political changes, tax rates are progressive and other regulations support the economic system, then foreign investors would surely be attracted to invest in the country. Vice-versa will be the case if all the above mentioned factors go in another direction and unemployment level is higher. Hence, the above statement is true.

Countries with strong balance sheets and declining budget deficits tend to have lower interest rates

True.

The countries with stronger balance sheets, have lower interest rates as the monetary policy is investment supportive which boosts the GDP.

Declining budget deficits will involve lower deficit financing, which has a direct relation with inflation. Hence lower deficit financing implies lower inflation and lower interest rates thereby.

When the economy is weakening, the Fed is likely to decrease short-term interest rates

True. When the economy is weakening, the Fed would like to follow a monetary easing policy. This implies, it will lower the interest rates to boost investment and growth in the economy. Hence, interest rates are likely to decline in the shorter term thereby due to the weakening economy.

Answer:

The price should be increased to achieve a balance between supply and demand.

Explanation:

If visitors have to wait long for lift, this suggests that the demand is not matching the supply. In fact demand seems to be higher than supply which causes long wait for lift. An increase in price will cause the demand to fall and hence the supply will meet the demand and would result in less waiting for lifts.

"Unity of effort" requires coordination among government departments and agencies, as well as cooperation toward common objectives across commands.

Answer: Option C

Explanation:

At the national level the unity of effort is basically a cooperative effort involving a number of departments and agencies of the United States Government. "Unity of effort" is about teamwork and collaboration directed towards common goals although participants do not generally form part of the same command or organisation that is the result of effective unified action.

The aim of promoting cohesion of action is to generate a ellaborative consensus approach while applying national power instruments towards common goals. The unity of  effort is a continuous process which demand constant effort to sustain inter-organizational  relationships.

Answer:

B. represents the sum of the quantities demanded by all the buyers at each price of the good

Explanation:

The market demand curve is found by horizontally adding the individual demand curves.

The market demand curve slopes downward.

I hope my answer helps you

The market demand curve represents the total quantity demanded by all buyers at each price (option B). It is typically downward sloping, reflecting that lower prices induce greater demand.

The market demand curve can best be defined by statement B. It represents the sum of the quantities demanded by all the buyers at each price of the good. This curve is achieved by horizontally summing all individual demand curves. The market demand curve typically slopes downward, depicting an inverse relationship between price and quantity demanded.

An upward sloping curve is not generally characteristic of demand curves, but rather of supply curves. And the curve doesn't represent the sum of the prices that buyers are willing to pay, rather it represents the quantity of the good that buyers are willing to buy at each price level.

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Answer:

$100

Explanation:

The present value of a cash flow can be found by discounting the cash flow at the annual interest rate.

The formula for finding present value can be found in the attached image.

The present value can be calculated using a financial calculator.

Cash flow in year one = 0

Cash flow in year two = $121

Discount rate = 10%

Present value = $100

I hope my answer helps you

Answer:

(a) $8.20

(b) $1,125,000

(c) 125,000

Explanation:

(a) Unit selling price:

= (Total cost incurred + Desired profit) ÷ Number of units sold

= ($630,000 + $600,000) ÷ 150,000

= $8.20

(b) Profit = Dollar sales - Variable cost - Fixed cost

($ sales × 20% profit) = $ sales - ($ sales × 60%) - $225,000

($ sales × 20% profit) = ($ sales × 40%) - $225,000

$225,000 = ($ sales × 40%) - ($ sales × 20% profit)

$225,000 = ($ sales × 20%)

Dollar sales = $225,000 ÷  20%

                    = $1,125,000

(c) No. of units required to be sold:

= Dollar sales ÷ Selling price per unit

= $1,125,000 ÷ $9

= 125,000

Answer:

False

Explanation:

Rule of thumb is generally an important factor in the decision-making process and they are made to mitigate the chances of errors. In decision making, there are various aspects which are involved and every time a decision is made circumstances are different. That is why the rule of thumb doesn't work always. So, the above statement is false, the rule of thumb can lead to severe errors in the decision-making process.

Answer:

12%

Explanation:

Given that,

Net income = $50,880

Asset at the beginning = 362,000

Asset at the end = 486,000

Average total assets:

= (Asset at the beginning + Asset at the end) ÷ 2

= (362,000 + 486,000) ÷ 2

= $424,000

Therefore,

ROA = Net income ÷ Average total assets

        = $50,880  ÷ $424,000

        = 0.12 or 12%

Therefore, the Matured Water Services' ROA for the month of October is 12%.

The Return on Assets (ROA) of Matured Water Services for the month of October is 12% after calculating with the given figures of net income and average total assets.

The question is asking for the Return on Assets (ROA) of the company Matured Water Services for the month of October. The formula to calculate Return on Assets (ROA) is Net Income divided by Average Total Assets. In this case, the net income is $50,880. The average total assets are calculated as the sum of the beginning and ending total assets divided by 2, which in this case is $(362,000+486,000)/2 = $424,000. Therefore, the ROA is $50,880/$424,000 = 0.12, or 12%

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Answer:

Classic Model

Explanation:

Classical economists brought the view of market economy for the most effective solution of economic problems. They advocated that economic problems would be solved spontaneously and within the framework of the possibilities, if the rules of the market economy were followed, and they defined the state as a unit that operates in a limited area and does not interfere with the economy.

Classical economists argued that the economy would automatically stabilize at full employment level under conditions of full competition.

The basis of the classical model is the assumption that the economic units are rational. Consumers try to maximize their benefits, while manufacturers try to maximize their profits. Classical economists argue that the state should not interfere with the economy. Because, according to the classics, the economy will always be fully employed and the general level of prices will always make a certain level of decision. The state does not need to get involved in the economy in order to reach full employment and to get rid of excessive price movements such as inflation and deflation. The "invisible hand" in the economy provides spontaneous full employment and price stability.

The basic assumptions of classical economic theory are as follows;

- Full competition conditions apply in the economy.

- Fees, interest rates and commodity prices are flexible.

- Each supply creates its own demand. (Say's Law)

- In the economy, money is demanded only for trading purposes, money is neutral. Money supply only affects the absolute price level, not relative (relative) prices and the real economy.

The classic model was popular before the Great Depression. It was said the economy was developing freely and that prices and wages were adjusted according to the time-consuming ups and downs. In other words, when times are good, wages and prices are rising rapidly, and when times are bad, wages and prices are set free.  The main assumption of this model is that the economy is always in full employment, that is, everyone who wants to work is fully trained and able to work from all sources.  Classical economists believe that the economy is self-adjusting, meaning that no one needs help in the event of recession. This is a Classic Model.

Answer:

Total assets turnover = 5.5

Equity multiplier = 1.55

Explanation:

The return on assets (ROA = 11%) is defined as the profit margin (2%) multiplied by the total assets turnover (TAT):

[tex]0.11=0.02*TAT\\TAT = 5.5[/tex]

The return on equity (ROE = 17%) is defined as the product of the return on assets (ROA = 11%) by the equity multiplier (EM):

[tex]0.17=0.11*EM\\EM=1.55[/tex]

The company's total assets turnover is 5.5

The firm's equity multiplier is 1.55

The company's Total Assets Turnover is 5.5, indicating it generates 5.55 times its total assets in sales. The Equity Multiplier is 1.54, meaning there is more than one and a half times the total shareholders' equity in assets.

These calculations revolve around certain financial ratios that businesses often use to evaluate their performance. First, the Total Assets Turnover is calculated by dividing the firm's sales by its total assets, which can be rearranged as profit margin times total assets turnover equals Return On Assets (ROA). Given the fact that ROA is 11% and the profit margin is 2%, the Total Assets Turnover is therefore 11%/2% = 5.5.

Secondly, the Equity Multiplier, typically used to measure a company's financial leverage, is calculated by dividing the company's total assets by its total shareholders' equity. This can be rearranged as: Return on Assets (ROA) times the Equity Multiplier (EM) equals Return On Equity (ROE). With the details that ROA is 11% and ROE is 17%, the Equity Multiplier is calculated as follows: 17%/11% = 1.54.

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Answer:

The answer is e) None of the above statements is correct.

Explanation:

The current ratio, which measures the coverage of current assets against current liabilities, though used widely faces the limitation that it does not adequately reflect how well a company pays-off its short term debt. In simple terms, a high current ratio indicating how well a company pays short term debt is not forcefully appreciated in a given economic condition. as it is affected by elements such as time for collectinig bills. This is why to move in line with the going-concern principle, the acid test ratio is the best available measure of liquidity.

Du pont analysis is a form of financial ratio tools that comprises of 3 other financial ratios to provide better comprehension of the Return on Equity of a company. That is Net Profit Margin, Asset Turnover and Totat assets to Total equity ratios.

Interpretation of financial ratios requires the use of data so as to provide a comparison and determine the changes in the financial position of a company.

There are existing limitations to financial statement analysis such as the effect of inflation, the fact that data used for comparison is based on past information and it becomes to hard to predict the future. Considering these, analysts should rather be careful when communicating financial information.

The correct answer is 'b' - Du Pont's analysis is based on a relationship between ROE and three other ratios, not four. The statement 'a' isn't entirely true as the current ratio ignores the type and quality of current assets. Statements 'c' and 'd' are incorrect as analyzing a ratio without comparative data is misleading and limitations exist in financial statement analysis.

The correct statement about financial statement analysis is option 'b. Du Pont's analysis is based on the fact that return on equity (ROE) can be expressed as the product of three other ratios: the net profit margin, the total assets turnover, and the financial leverage ratio, not four. It's crucial to note that, while the current ratio can provide insight into a company's liquidity, it's not universally 'the best' measure because it fails to account for the nature and quality of current assets. Statements 'c' and 'd' are also incorrect; interpreting ratio data without comparative data lacks context and can be misleading, and financial statement analysis does have limitations such as not considering non-financial factors or possible manipulation of financial statements.

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Answer:

Explained below:

Explanation:

A staffing management plan refers to the plan produced to help businesses primarily identify and later procure the workers at all levels and in all departments of the business organization. The purposes of a staffing management plan to :  

Classify staffing needs.

Build timelines.

Establish funds considerations.

Devise and implement talent acquisition strategies.

Construct and execute an on boarding schedule.

Identify and design suitable training bodies and methods.

Follow the plan until it reaches effectiveness.

It addresses the requirements of the organization in many ways, depending upon its business model, its structure, and the system in which it finishes projects and reaches deadlines.

Answer:

The statement is: True.

Explanation:

Partnerships are organizations that share ownership of two or more people. Corporations, on the other hand, are owned by shareholders who decide how and who will run the business. Partnership owners are individually liable, implying that the owners' assets can be taken away in front of the debt.  

Debt or legal responsibility in companies is not individual. Liability is only dealt with at the company level. In reality, partnerships require reorganization when one of the partners is quitting or passing away, something that does not happen to corporations. For these factors, the majority of associations find it difficult to raise significant amounts of funds relative to companies.