Diego Company manufactures one product that is sold for $75 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 57,000 units and sold 52,000 units.

Variable costs per unit:
Manufacturing:
Direct materials $25
Direct labor $18
Variable manufacturing overhead $3
Variable selling and administrative $5
Fixed costs per year:
Fixed manufacturing overhead $627,000
Fixed selling and administrative expenses $645,000

The company sold 36,000 units in the East region and 16,000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.
Required:
What is the company’s total gross margin under absorption costing?

Answer:

Explanation:

a. If the last dividend paid was $2, what will the next dividend be?

b. If the discount rate is 15% and the steady growth rate after 3 years is 4%, what should the stock price be today?

You have to calculate the price in two parts: 1) present value of the dividends for 3 years, and 2) present value of the dividends after 3 years.

i) Present value of the dividends for 3 years

Year    Dividend                                        PV

1            $2.40                                        [tex]\dfrac{\$2.40}{(1+0.15)^1}=\$ 2.09[/tex]

2            [tex]\$2.40\times (1+0.20)=\$2.88[/tex]         [tex]\dfrac{\$2.88}{(1+0.15)^2}=\$ 2.18[/tex]

3        [tex]\$2.88\times (1+0.20)=\$3.46[/tex]             [tex]\dfrac{\$3.46}{(1+0.15)^3}=\$ 2.27[/tex]

The present value of those three dividends is:

ii) Present value of the dividends since year 4.

Equation to discount a perpetuity with constant rate g less than the discount rate.

         [tex]PV=\dfrac{\text{Dividend one year from now}}{r-g}[/tex]

Substitute with:

    [tex]PV=\dfrac{\$3.46\times (1.04)}{0.15-0.04}=\$ 36.13[/tex]

Since that is the value at the end of year 3, you need to discount it to the present day:

      [tex]PV_0=\dfrac{\$36.13}{(1+0.15)^3}=\$23.75[/tex]

iii) Add the present values of the two streams of dividends:

Based on the Gordon Growth Model, the next dividend from Tattletale News Corp. would be $2.4 and the current stock price should be approximately $23.93.

The concept involved in this question is the Gordon Growth Model which forms a pivotal part of corporate finance and valuation. In this case, we are using this model to calculate the dividends and the price of the Tattletale News Corp. stock.

a. The next dividend can be found by increasing the last dividend by the given growth rate. Hence, the growth of dividends is 20%, and the last dividend paid was $2. Thus, the next dividend can be calculated as:
Next Dividend = Last Dividend × (1 + growth rate) = $2 × (1 + 20/100) = $2.4

b. The price of the stock today is found by using the Gordon Growth Model after the next three years and then discounting it to the present value at the 15% discount rate. The Gordon Growth Model calculation is: Terminal Value = D/(k-g), where D is the dividend at the end of three years, k is the required rate of return or discount rate, and g is the steady growth rate.

First, we find D, which is the dividend paid at the end of 3 years (which would be grown at 20% per year):
D = [tex]\[2 \times (1 + \frac{20}{100})^3\][/tex]= $3.48

Then, we find the Terminal Value using the Gordon Growth Model:
Terminal Value = D/(k-g) = $3.48/(15%-4%) = $34.36

Finally, we discount this Terminal Value back to its present value:
Present Value = [tex]\[\frac{\$34.36}{(1 + \frac{15}{100})^3} = \$23.93\][/tex]

The stock price today should be around $23.93.

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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The present sum of $640,000.

The market interest rate is 13% per year and the inflation rate is 5% per year.

First, we need to calculate the real interest rate.

Real interest rate= interest rate - inflation rate

Real interest rate= 13 - 5= 8%= 0.08

Now, using the following formula we can calculate the future value on each year:

FV= PV*(1+i)^n

FV1= 640,000*1.08= 691,200

FV2= 691,200*1.08= 746,496

FV3= 746,496*1.08= 806,215.68

FV4= 806,215.68*1.08= 870,712.93

Answer:

It is called a "House Location" Survey, which is also sometimes called a "drive-by" survey, and its goal is to show the location of the house and other large structures on the property, as well as the orientation of those structures in relation to each other.

Answer:

c. can challenge the determination in court.

Explanation:

Ralph owns a forested land which he most likely purchased for the purpose of cutting timber. If the Department of the Interior has declared that a small fruitfly on his property is an endangered species and prevented the harvesting of trees, he can challenge this in court.

This is because the land is private property and the determination by the Department of the Interior will make the land useless to Ralph. Also the government only has the ability to enforce such directives on public property.

Answer:

Narrow spans of management ensure that employees operate efficiently.

Centralized decision making allows the organization to place tighter controls on the way work is done and, in the process, achieve economies of scale.

Explanation: When the spans of management is narrow, proper supervising and controlling and coordination of work is done to achieve effective and efficient work done by the Employees.

A centralised decision making process helps the Organisation to have a tight control on its spendings and in the way work is done, this will help the Organisation to cut cost and take strategic decisions for organisational growth and development.

A mechanistic structure with narrow spans of management and centralized decision-making aligns well with Dollar General's cost leadership strategy, driving efficiency and economies of scale.

Dollar General, using a cost leadership strategy, is suggested to be more effective with a mechanistic structure for several reasons. First, narrow spans of management ensure that employees operate efficiently because it simplifies supervision and communication channels, which is essential for maintaining low costs. Second, centralized decision-making allows the organization to enforce tighter controls, helping not only in achieving economies of scale but also in maintaining the uniformity and cost-effectiveness of the work being done.

Answer:

The correct answer is letter "B": added to liabilities and the two are equal to assets.

Explanation:

Owner’s equity mostly known as the shareholders' equity is a measure of a company's net worth. Shareholder's equity is calculated using the following formula:  

Shareholders' Equity = Total Assets - Total Liabilities

Thus:

Shareholders' Equity + Total Liabilities = Total Assets  

Shareholders' equity comes from two pots of money: the first port has money that was initially invested in the company, and any subsequent investments. The second pots contain retained earnings that are the gains the company holds on to and do not pay out as dividends to its shareholders.

Owner's equity is added to liabilities and the total is equal to assets according to the basic accounting equation: Assets = Liabilities + Owner's Equity. This means, the total value of a company's assets must always be equal to the sum of its liabilities and equity.

The correct option is that owner's equity is added to liabilities and the two are equal to assets. This reflects the basic accounting equation, which is Assets = Liabilities + Owner's Equity. This equation is the core of double-entry bookkeeping method which means, at all times, the total value of a company's assets must equal the sum of its liabilities and equity. For example, if a business has $100,000 in assets such as cash, equipment etc, and it's financed by $60,000 liabilities (like loans) and $40,000 equity (owner's contribution), the equation holds, as liabilities + Equity ($60,000 + $40,000) equals assets ($100,000).

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Answer:

The statement is: True.

Explanation:

Anywhere around the world, receiving bribes is unethical and unprofessional. Individuals offering and accepting bribes show their only drivers in life is money and not values. Unfortunately, even if in most cases bribes and other acts of corruption are legally sanctioned, bribes are still used to facilitate negotiations or influence public authorities' decisions.

If offered a bribe, an individual must refrain to accept it and, if possible, report this event to a lead for future reference. It is needless to open up a fight with the person offering the bribe but rejecting his or her proposal is vital to demonstrate the type of professional the corrupt individual has in front.

Final answer:

True, offering and accepting bribes is illegal and unethical, regardless of local customs. Laws like the FCPA and OECD Anti-Bribery Convention internationally prohibit bribery, necessitating that companies refuse such offers and maintain ethical business practices.

Explanation:

The statement provided suggests that if a bribe is offered during a business transaction, one should refuse it while maintaining professionalism and not offending the other party – which is true. Globally, corruption and particularly bribery are not only unethical but also illegal. Laws like the US Foreign Corrupt Practices Act (FCPA) and the OECD Anti-Bribery Convention prohibit bribery of government officials and others, regardless of cultural norms that may seem to accept such practices. Accepting bribes can lead to grave legal risks, undermine public interests, promote a culture of corruption, and result in severe legal penalties and public relations damage for the corporation involved.

Furthermore, behaviors that may appear as normal business practices in some cultures can be considered corrupt in others. The Chinese concept of guanxi, for example, refers to building networks of personal connections that could, under some circumstances, cross the line into corrupt practices. Thus, while some behaviors like gift-giving can have legitimate cultural roots, they can also, if not managed carefully, lead to unethical and illegal activities.

Therefore, companies are encouraged to develop internal policies that comply with anti-corruption legislation and maintain ethical negotiation practices, including transparent dealings and the avoidance of any form of bribery. In light of differing global standards, this manifesto of ethical business conduct becomes even more significant.

Answer:

a. Best deal is 30 end-of-year payments of $5.6 million

b. Best deal is 10 end-of-year payments of $9.5 million

c. Best deal is lump sum today of $62 million

Explanation:

Please see attachment for workings.

d. As the interest rate increases, the duration of value shortens. That is as the interest rate increases, the best choose based on their payment duration reduces

To choose the best option, we calculate the present value of each award option using the formula PV = CF / (1+r)^n. At 7% annually, Kristina should choose the lump sum option of $62 million. At 8% and 9% annually, the lump sum option is still the best choice. Interest rates influence the present value, with higher rates making lump sum payments more attractive.

To determine the best option for Kristina, we need to calculate the present value of each award option and choose the one with the highest present value. The formula to calculate the present value is: PV = CF / (1+r)n where PV is the present value, CF is the cash flow, r is the interest rate, and n is the number of periods.

Therefore, Kristina should choose the lump sum option as it has the highest present value of $62 million.

The lump sum option is still the best choice with a present value of $62 million.

Based on an interest rate of 9% annually, Kristina should choose the lump sum option with a present value of $62 million.

Interest rates have a significant impact on the present value of future cash flows. Higher interest rates result in lower present values. When interest rates increase, the present value of an annuity decreases, making lump sum payments more attractive. On the other hand, when interest rates decrease, the present value of an annuity increases, and the annuity option becomes more appealing. In this case, as the interest rate increases, the present value of the lump sum payment remains constant, but the present value of the annuity decreases, which makes the lump sum option more favorable.

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Answer:

After tax salvage value $1,278,852.8‬

Explanation:

MARCS five years class:

after four years we will have depreicate:

0.2 + 0.32 + 0.192 + 0.1152 = 0,8272‬

(Data from the attached MACRS)

tax basis of the asset:

6,170,000 x ( 1 - 0.8272) = 1.066.176‬

We will be taxed for the difference between the basis and the salvage value:

1,370,000 - 1,066,176 = 303,824‬ taxable gain:

303,824 x 30% = 91,147.2

After tax salvage value:

salvage valeu - income tax expense

1,370,000 - 91,147.2 = 1,278,852.8‬

Answer:  D. select a method results in lower taxes. (e) select a method results in lower net cash provided by operating activities

Explanation: Statement for LIFO and FIFO are rising definitely the organisation would want to reduce its taxes to significant amount and its operating activities would be checked during this period because it boils down to the price at which the product is being manufactured and sold out  to the different customers that buys the company good. Last in first out and first in First out.  This rule is used in  warehousing and  inventory management.

Answer:

12 weeks

Explanation:

Data:

Let the total amount be: = $ 1 817. 75

Deposit paid  = $ 600

Amount remaining after deposit = [tex]1 817.75 - 600[/tex]

                                                      = $ 1 217.75

Amount per week                         = $ 105.00

Therefore, the time taken to pay $ 1 217.75 = [tex]\frac{1 217.75}{105.00}[/tex]

                                                                        = 11.59

                                                                        = 12 weeks

Answer:

The answer is C.

Explanation:

Unearned revenue is a liability because the amount for the transaction has already been collected while the goods or services have not been delivered. Example of unearned revenue is magazine subscription fee for a year and the money for the subscription has been collected at the beginning of the year.

Revenue is only recognized as the service is being rendered, maybe monthly or quarterly while the unearned revenue (liability) in the balance sheet decreases by the same amount

Answer: c. Liability that is settled in the future when a company delivers its products or services.

Explanation: Firstly, liability an obligation, debt or responsibility owed to someone. They are a company's legal financial debts or obligations that are incurred during the course of business operations. Unearned revenues, a type of current liability (short term liability), defines a firm's liability to deliver goods and/or services at a future date after being paid in advance. The unearned revenue amount will be deducted in the future with an offsetting entry once the product or service is delivered.

The correct option is - A ( Risky shift)

Explanation:

Risk is the product of the probability and impact of an event. In this case A Cyber event.

There are 4 main ways to handle risk: Avoidance, mitigation, transfer and acceptance.

To avoid risk usually means to stop the activity or process which poses that risk. For instance: to avoid the risk of a hacker gaining access to the company through the internet, a company may choose to cut off all connection to the internet.

Avoidance is highly irregular, it will interfere with business processes and usually used as a last resort when the risk cannot be handled in any other way. Avoidance is mostly used by military and government organizations.

Answer:

(a) Purchase the equipment

Annual worth (AW, $)  

[tex]=-60,000 \mathrm{x} \mathrm{A} / \mathrm{P}(10 \%, 3)+23,000+[10,000 \mathrm{x} \mathrm{A} / \mathrm{P}(10 \%, 3) \mathrm{x} \mathrm{P} / \mathrm{F}(10 \%, 3)][/tex][tex]=-60,000 \times 0.4+23,000+[10,000 \times 0.4 \times 0.75][/tex]

= - 24,000 + 23,000 + 3,000

= 2,000

(b) Leasing

AW ($) = AW of cost of leasing + AW of annual benefits

[tex]=-21,000 \mathrm{x}(1.1) * *+23,000[/tex]

= - 23,100 + 23,000

= - 100

Since AW of savings from leasing option is negative and AW of benefits from purchase decision is positive, the equipment should be purchased.

**Since lease payments are at beginning of year, these are "annuity due" and annual lease payment is multiplied by (1 + MARR) to obtain AW.

To determine if the packaging equipment should be purchased or leased, we will calculate the Internal Rate of Return (IRR) of purchasing the equipment. If the IRR exceeds the Minimum Acceptable Rate of Return (MARR), it is more favorable to purchase the equipment. Otherwise, leasing may be the better option.

Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of an investment equal to zero. To determine whether the packaging equipment for Xi Cling Wrap should be purchased or leased, we will calculate the IRR of purchasing the equipment and compare it to the MARR.

The initial cost of purchasing the equipment is $60,000. The net savings per year for 3 years is $23,000, and the market value of the equipment after 3 years is $10,000. We'll use these numbers to calculate the NPV of purchasing the equipment. Then, we'll calculate the NPV of leasing the equipment for 3 years at a cost of $21,000 per year.

After calculating the NPV for both purchasing and leasing, we'll compare the IRR of purchasing to the MARR of 10 percent/year to determine whether the packaging equipment should be purchased or leased.

Answer:

Crane Corp.'s inventory turnover ratio is 1.68 times

Explanation:

Inventory turnover ratio an efficiency ratio that indicates how many times a company sells and replaces its stock of goods during a particular period

Inventory turnover ratio is calculated by using following formula:

Inventory turnover ratio = Cost of Goods Sold/Inventory

Crane Corp. has a gross profit margin of 30.00 percent.

Gross profit margin = Gross Profit/ Sales = (Sale - Cost of Goods Sold)/Sales

Cost of Goods Sold = Sales - Gross profit margin x Sales = $36,000,000 - $36,000,000 x 30% = $25,200,000

Inventory turnover ratio = $25,200,000/$15,000,000 = 1.68 times

Answer: The company would be engaged in Outsourcing.

Explanation:

Outsourcing is the practice whereby a company hires a party outside the company to perform services that could have been performed by the company's employees. Outsourcing is usually undertaken by companies to reduce cost such as labor costs, technology costs.

Outsourcing is also used by firms to focus on the main aspects of the business and give the less critical operations of the business to outside organizations. Outsourcing can include different functions ranging from purchases to recruitment to customer services. Buying chickens from local producers means the company is engaging in outsourcing.

Even if Cajun opens company-owned restaurants in a foreign country, it may have to buy local food products to supplement the menu; in fact, it may have to buy chicken from local producers for the standard menu. In doing so, the company would be engaged in import substitution. The correct term to fill in the blank is import substitution.

When a company like Cajun opens company-owned restaurants in a foreign country, it may need to purchase local food products to supplement its menu. This could include buying chicken from local producers for the standard menu. This practice is known as import substitution. Import substitution is an economic policy and strategy that advocates replacing foreign imports with domestic production. It is often implemented in an attempt to diversify the economy, reduce dependence on foreign trade, and improve the balance of trade.

In the context of Cajun's operations, by sourcing chicken locally instead of importing it from its home country, the company is substituting a local product for an imported one. This can have several benefits:

1. Cost Reduction: Local sourcing can reduce transportation costs and tariffs associated with imports.

2. Supply Chain Stability: Relying on local suppliers can make the supply chain more resilient to international disruptions.

3. Cultural Adaptation: Using local ingredients can make the menu more appealing to local tastes and cultural preferences.

4. Economic Contribution: Purchasing from local producers contributes to the local economy and can improve community relations.

5. Environmental Impact: Reducing the need for long-distance transportation can lower the company's carbon footprint.

By engaging in import substitution, Cajun is adapting its business model to the local context, which can be a key factor in the success of international operations. It also aligns with the broader economic goals of the host country by fostering local industry growth and reducing reliance on foreign goods.

The following list that is most appropriately associated with it:

1. Perpetual inventory system: Continuously records changes in inventory. Option i.

2. Periodic inventory system: Assumes items sold are those acquired last. Option d.

3. F.o.b. shipping point: Legal title passes when goods are delivered to a common carrier. Option a.

4. Gross method: Purchase discounts not taken are included in inventory cost. Option c.

5. Net method: Purchase discounts not taken are considered interest expense. Option g.

6. Cost index: Used to convert ending inventory at year-end cost to base year cost. Option h.

7. F.o.b. destination: Goods are transferred to another company but title remains with transferor. Option b.

8. FIFO: Assumes items sold are those acquired first. Option e.

9. LIFO: f. Assumes items sold are those acquired last. Option f.

Here are the pairs of terms and phrases associated with inventory measurement:

  - A perpetual inventory system keeps a real-time, up-to-date record of inventory levels, making it ideal for tracking inventory on an ongoing basis.

  - The periodic inventory system determines the cost of goods sold and the ending inventory by assuming that the items sold are the ones acquired most recently during the period.

  - F.o.b. shipping point means that the buyer assumes ownership and responsibility for the goods as soon as they are shipped by the seller, typically when they are delivered to a common carrier.

  - The gross method includes any purchase discounts not taken in the cost of inventory, assuming that the discounts will eventually be taken.

  - The net method treats any purchase discounts not taken as interest expense rather than including them in the inventory cost.

  - A cost index is used to adjust ending inventory from the current year's cost to the base year's cost for financial reporting purposes.

  - F.o.b. destination means that the seller retains ownership of the goods until they reach the buyer's specified destination.

  - FIFO (First-In-First-Out) assumes that the items sold are those acquired earliest in the inventory, leaving the most recently acquired items in the inventory.

  - LIFO (Last-In-First-Out) assumes that the items sold are those acquired most recently, leaving the earliest acquired items in the inventory.

These pairings help clarify the relationships between the terms and their associated inventory measurement methods and principles.

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Answer:

Based on the calculation made, the indicated value is $3,889.86014

Explanation:

Using direct capitalization method, indicated value can be calculated using the formula below:

Value = Annual net operating income NOI/Capitalization rate  

         = $44500/11.44%

Value= $3,889.86014

Based on the calculation made above, the indicated value is $3,889.86014.

Answer:

The correct answer is:

The contribution margin in dollars for a single product. (D.)

Explanation:

The unit contribution margin is the amount in dollars by which the price of selling a product exceeds the total variable cost incurred in the manufacture of that product. Mathematically it is the selling price of a product minus the total variable cost incurred on the single product. It is the proportion of sales revenue that is not consumed by variable costs, hence is used for the coverage of fixed costs.

The importance of unit contribution margin is that it is used to calculate the break-even price of the product, when fixed costs are made up for. It measures how growth in sales translates to growth in profits.

Answer:

Income per worker = 1.41 ; If rate of savings is 20% or 0.20 - Savings = 0.28

Explanation:

Y is output or income per worker, is given as a function of factors - Capital & Labour.

Y = F (K,L) = K^1/2.L^1/2

Given : 'Capital per worker' = 2

So, labour = 1 & capital = 2

Income [Y] per worker = (2)^1/2 . (1)^1/2

I.4 x 1

= 1.41

Savings [S] is a function of Income [Y]

S = f (Y)

S = s.f(Y) ; where s represents ratio / proportion of income saved.

Example : If 's' savings rate is 20% i.e 0.20

S = (0.20) (1.41)

= 0.28  

Answer:

1. Dr Interest expense   54

         Cr  Accrued interest      54

    ( To record interest expense )

Explanation:

Interest expense =  7200 * 9% = $648 * 1 /12 = $54 for the m/o dec

Answer:

$214,000

Explanation:

The computation of the break even point in dollars is shown below:

= (Fixed cost ) ÷ (Profit volume ratio)

where,  

Fixed cost = $141,240

And the profit volume ratio would be

= (Contribution margin) ÷ (Sales) × 100

= ($145.20) ÷ ($220) × 100

= 66%

where Contribution margin equal to

=  Selling price per unit - variable expense per unit

= $220 - $74.80

= $145.20

So, the break even in dollars is

= $141,240 ÷ 66%

= $214,000

This is the answer and the options that are given in the question are wrong

Answer:

The items are:

Goods in transit to Customers warehouse

Goods loaded in Trucks but not shipped as at stock Count

Explanation:

Annual stock count is meant to help determine our closing stock position as well as complete our revenue recognition processes in line with the IFRS.

Where Goods are in transit to Customers warehouse; we would consider if the risk and reward have been passed to the Customer or not based on the contract agreed to

A. if the Risk and reward have been passed  from the point the stock was loaded based on Contract with customer then the stock should not be added to the stock physically counted in the warehouse; if otherwise, we should add the stock to that counted in the warehouse and deduct it from Sales as Goods in transit.

B.Because these goods are loaded but haven't been shipped, Abbey company still holds the full risks and rewards of these stock. thus, we have to add back the Quantity on truck to that in the warehouse.

Answer:

The correct answer is letter "B": ​for goods with many substitutes than for goods with only a few.

Explanation:

Elasticity is a characteristic of certain items by which changes in their price represent a change in their quantity demanded. Demand elasticity is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal or greater than (1) the demand is elastic. If the demand is lower than 1, then it is inelastic.

Goods with many substitutes are considered elastic because minimal changes in their price represent considerable changes in their quantity demanded. As consumers have different options from where to select if the price of one of the substitutes increase (for instance), the quantity demanded for that good could face a drastic drop.

Answer:

The correct answer is letter "C": ​accountants consider explicit costs only.

Explanation:

Explicit costs are those necessary for the operations of the company such as wages, rent or raw materials. Implicit costs are the opportunity costs companies as a result of giving up factors such as purchases or qualified employee hires.

The accounting profit of a company is calculated by subtracting the explicit costs from the firm's total revenue. The economic profit is computed by subtracting the result of adding the explicit and implicit costs from the company's total revenue.

Accountants and economists differ in their calculations of profits. Economists consider sunk costs, while accountants consider explicit and implicit costs.

Accountants and economists differ in their calculations of profits. Economists consider sunk costs, which are costs that have already been incurred and cannot be recovered. Accountants, on the other hand, consider both explicit costs (actual out-of-pocket expenses) and implicit costs (opportunity costs or the value of the next best alternative forgone).

For example, let's say a business invested $10,000 in a project that turned out to be unsuccessful. Economists would consider the $10,000 as a sunk cost and exclude it from their calculation of profits. Accountants, however, would consider it as an explicit cost and include it in their calculation of profits.

Therefore, the correct answer to the question is d. all of the above. Accountants consider both explicit and implicit costs, while economists consider sunk costs.

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Answer:

d. Emeralda from " Clean as a Whilte Co." runs over patty Pedestrain in the dealership's parking lot.

Explanation:

Liability is the degree to which a person is responsible for injury that happens to another party in a lawsuit. Peter owns an auto dealership. Peter hires Cara as a receptionist, Ben as a salesperson, Stacy as a mechanic, and "Clean as a Whistle Co." as cleaners.

Peter will be least liable if Emralda from "Clean as a Whistle Co." runs over Patty I'm the dealership's parking lot.

This is because Peter hired the company as a seperate entity from the cleaning company employees. The conduct of employees from the cleaning company is responsibility of "Clean as a Whistle Co."

Answer: Options A and C are strengths while options B and D are weaknesses. See explanation below.

Explanation:

a. All employees must take at least five consecutive days off each year.

This is a strength in internal control. This would help to maintain stability in operational process and ensure leave days are effectively utilized. It also prevents staff from taking the leave days in piecemeal and sporadic manner thereby disrupting the operational process and causing team instability. It is also used to ensure leave days are promptly utilised and well accounted for.

b. The accounting department orders merchandise and approves invoices for payment.

This is a weakness in internal control. There should be a check and balance in this regard. In some organizations, proper scrutiny of the vendor and invoice is done by the Procurement Unit and the Expense Control Unit respectively. Even within the accounting department, there is approval hierarchy. Also, the unit within accounting department that is making the order should not be the one to approve the transaction.

c. Cash received over the counter is controlled by the sales​ clerk, who rings up the sale and places the cash in the register. The daily sales are recorded in the accounting records by the accounting department.

This is a strength in internal control as it ensures checks and balances. Fraud and error can be detected through this means. The accounting department should verify the transactions to the relevant supporting document before recording the transaction in the system.

d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.

This is a weakness in internal control in the sense that checks signed by the officer is binding in the court of law. The officer cannot claim ignorance if anything goes wrong. There is therefore a need for proper scrutiny and relevant questions asked before checks are signed.

Each scenario describes a different aspect of internal control within a company. Employees taking time off is a strength, providing a check against fraud. The accounting departments duties might be considered a weakness due to lack of duty segregation. Cash handling could be both a strength or a weakness, depending on accountability procedures. The officer not needing to check payments is a weakness - it indicates a lack of checks and balances.

The question is about identifying strength or weakness in internal control procedures in various situations. Let's analyze each:

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Answer:

The following statements are consistent with the efficient markets hypothesis:

Explanation:

Final answer:

According to the efficient markets hypothesis, stock markets reflect all available information and it is impossible to consistently outperform the market by studying publicly available information.

Explanation:

The efficient markets hypothesis (EMH) argues that stock markets reflect all available information about the value of stocks. According to EMH, this implies that stock markets are efficient in the sense that the current stock prices are the best estimates of true investment value, considering all public information. Therefore, consistently outperforming the market by using publicly available information or technical analysis should be impossible. Under this hypothesis:

Answer:

It increases the opportunity cost because you are foregoing more money for college.

Explanation:

Opportunity cost is the benefit profit, or value of something that is missed or given up when an individual chooses one alternative over another.  

The 10% rise in salary offered by the branch manager increases the opportunity cost of going to college. This is because the higher cost (money) you could have earned by not going to college is foregone.

Final answer:

The opportunity cost of attending college includes the foregone increased salary of $44,000 due to the 10% raise offer at Dunkin Donuts, which is higher than the original salary of $40,000.

Explanation:

The opportunity cost of going back to college has increased due to the branch manager's offer of a 10% salary increase to stay at Dunkin Donuts. If you are currently earning $40,000 and are offered a 10% increase, that would mean an additional $4,000, bringing your new salary to $44,000 per year. Therefore, if you choose to go to college instead of accepting this salary increase, the opportunity cost now includes this potential extra earnings, which can accumulate significantly over time, much like saving $5 a day on lunch can add up to a substantial amount such as the cost of a decent vacation over a year.

Answer:

d. A new government adopts tighter inflation controls.

b. Future prices of physical capital and raw goods become more predictable, as does the cost of borrowing money.

a. More investment in production facilities occurs.

c. More production takes place.

Explanation:

The process flow for implementing the right policy to resultant growth is shown above.

First the government adopts tighter inflation controls, institutionalising the policy that will bring growth.

As a result of the policy prices become more predictable.

Confidence of investors grow as they can forecast future profits. More investment in production occurs.

Finally more production takes place. Growth is achieved.