Answer:
This leads to a reduction in net income
Explanation:
Manufacturing overheads refer to those costs which indirectly relate to a good's production. Examples of manufacturing overheads would include depreciation charged on equipments used for production, rent of the factory wherein production takes place.
The effect of recognition of $400 of estimated manufacturing overheads would be reduction in net income since their recognition raises the cost of production which reduces gross profit. Consequently this would reduce the net income.
Artisanâ Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 6 comma 500 units during the year. The company has provided the followingâ information: Sales Revenue $ 590 comma 000 Purchasesâ (excluding Freightâ In) 302 comma 000 Selling and Administrative Expenses 67 comma 000 Freight In 15 comma 000 Beginning Merchandise Inventory 43 comma 000 Ending Merchandise Inventory 43 comma 000 What is the operating income for theâ year?
Answer:
206,000
Explanation:
Sales = 590000
- CGS = 302000
Gross profit = 288,000
Less Operating Expenses:
Sellings and Admin expenses = 67000
Freight in = 15000
Total Operating expenses = 82000
Operating Income = 206,000
CGS = Beginning inventory + Purchases - Ending Inventory
CGS = 43,000 +302,000 - 43,000 = 302,000
Indicate whether the following items would appear on the income statement, balance sheet, or retained earnings statement.
(a) Notes payable Select a statementEntry field with correct answer
(b) Advertising expense Select a statementEntry field with incorrect answer now contains modified data
(c) Common stock Select a statementEntry field with correct answer
(d) Cash Select a statementEntry field with incorrect answer now contains modified data
(e) Service revenue Select a statementEntry field with correct answer
(f) Dividends
Answer:
Explanation:
The income statement records the total revenues and total expenses during a particular period of time
The balance sheet reports the assets and the liabilities that determines the financial position, performance of the company
The retained earnings statement is similar to the statement of stockholder equity which reports the dividend, net income, beginning balance, and the ending balance of this above accounts
So, the categorization is shown below:
(a) Notes payable = Liabilities side on the balance sheet
(b) Advertising expense = expense side on the income statement
(c) Common stock = Balance sheet
(d) Cash = Asset side on the balance sheet
(e) Service revenue = Income side on the income statement
(f) Dividend = Shown on retained earnings statement in a negative amount
Which of the following would NOT be a benefit of purchasing call options for the stocks of a number of different companies?
[A] If the underlying stocks decline, the investor's losses would be limited to the amount of the premiums.
[*B] By exercising the calls early, the investor could limit the risk in his portfolio.
[C] If the underlying stocks moved upward, the investor could participate in this upward movement.
[D] Added diversification would be provided to the investor only until the calls expire.
Answer: Option B
Explanation:
Call option is the purchase of the right to purchase the product at a fixed price before the time agreed. Buying call options, would limit the risk level to the premiums paid for the calls. So the option A is correct and by the exercise of this call option early cannot limit risk on the portfolio. The remainder two are the benefit of purchasing call options.
Option B is the incorrect benefit, as exercising calls early doesn't limit risk but can result in the loss of the option's time value. Call options can limit losses, offer potential gains, and provide diversification until expiry.
Explanation:The correct answer to the question of which following would NOT be a benefit of purchasing call options for the stocks of a number of different companies is option B: By exercising the calls early, the investor could limit the risk in his portfolio. This statement is false because exercising a call option early typically does not limit risk; instead, an investor may lose the remaining time value of the option. The benefits of call options include loss limitation to the premium paid (option A), potential upward participation (option C), and added diversification until expiry (option D).
Note that with options trading, while it allows for diversification and potential profit if the underlying stock's price rises, it also comes with considerable risk. As per the advice by financial experts, most individual investors are better off avoiding options unless they fully understand the risks involved. Diversification through traditional means like mutual funds, which spread out investments across various assets, is often advisable to mitigate individual asset volatility.
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $15.00 per direct labor-hour and $11.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $18.00 per hour. The following information pertains to Job N-60:
Assembly Testing & Packaging
Direct materials $360 $33
Direct labor $117 $45
Required:
1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate calculations.)
2. If Job N-60 consists of 10 units, what is the unit product cost for this job? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
Instructions are listed below
Explanation:
Giving the following information:
The predetermined overhead rate:
Assembly and Testing= $15.00 per direct labor-hour
Packaging= $11.00 per direct labor-hour
The company’s direct labor wage rate is $18.00 per hour.
Job N-60:
Assembly Testing & Packaging
Direct materials $360 $33
Direct labor $117 $45
A) We need to use the following formula:
total cost= direct material + direct labor + manufacturing overhead
First, we need to determine the number of direct hours used:
Assembly= 117/18= 6.5 hours
Packaging= 45/18= 2.5 hours
total cost= (360 + 33) + (117 + 45) + (6.5*15 + 2.5*11)= $680
B)
Unitary cost= 680/10= $68
Final answer:
The total manufacturing cost assigned to Job N-60 is $680.00, which includes direct materials, direct labor, and overhead for both Assembly and Testing & Packaging departments. If Job N-60 consists of 10 units, the unit product cost for this job is $68.00.
Explanation:
The total manufacturing cost assigned to Job N-60 can be calculated by summing the costs of direct materials, direct labor, and manufacturing overhead for both the Assembly and Testing & Packaging departments.
Assembly direct materials: $360
Assembly direct labor: $117
Testing & Packaging direct materials: $33
Testing & Packaging direct labor: $45
To determine the manufacturing overhead for each department, we use the predetermined overhead rates:
Assembly overhead: $15.00 per direct labor-hour
Testing & Packaging overhead: $11.00 per direct labor-hour
Calculating the direct labor-hours for each department using the direct labor cost divided by the wage rate of $18.00 per hour, we get:
Assembly hours = $117 / $18.00 = 6.5 hours
Assembly overhead = 6.5 hours * $15.00 = $97.50
Testing & Packaging hours = $45 / $18.00 = 2.5 hours
Testing & Packaging overhead = 2.5 hours * $11.00 = $27.50
Adding up all the costs, we have:
Total manufacturing cost for Job N-60 = $360 + $117 + $97.50 + $33 + $45 + $27.50 = $680.00
To calculate the unit product cost when Job N-60 consists of 10 units, we divide the total manufacturing cost by the number of units:
Unit product cost for Job N-60 = $680.00 / 10 = $68.00 per unit
What is the same 100 per year in number 1 worth if it only lasts for 15 years? Same rate. (855.948)
Answer: PV(0.08,15,100.0)
Explanation:
PMT= 100
r= 0.08
Kenzie Godfrey was a passenger in a taxi when it collided with a car driven by Dawn Altieri. Altieri had originally leased the car from G.E. Capital Auto Lease, Inc. By the time of the accident, she had bought it, but she had not fully paid for it or completed the transfer-of-title paperwork. Godfrey suffered a brain injury and sought to recover damages from the owner of the car that Altieri was driving.
1. Who had title to the car at the time of the accident? Explain
Answer:
Explanation:
Let's look at some facts:
1. Dawn Altieri has leased a car from GE Auto lease
2. Dawn Altieri had an accident where she caused an injury to Kenzie Godfrey
3. At the same time of an accident, Dawn Altieri owned the car although she had not completed the transfer of title formalities.
4. Kenzie Godfrey suffered brain damage and claimed damages from owner of the car
Under the UCC it is assumed that when the physical goods are handed by the seller to the buyer the title has passed. However, when the goods are leased the title remains with the lessor-owner.
Although Dawn Altieri has originally leased the vehicle, she had now purchased it. Therefore, even though final formalities have not completed, she was the tile-holder of the vehicle.
Therefore, Dawn Altieri was liable for the damages claimed by Kenzie Godfrey.
For the fiscal year 2019, your company has total revenues of $250,000 and total expenses of $213,000. Assets had a book value of $750,000, Liabilities had a value of $225,000, and dividends paid to shareholders were $50,000.
Create an Income statement below.
Answer:
Income Statement for the fiscal year ended 2019
Revenue $250,000
Expenses $213,000
Net Income $37,000
Explanation:
The income statement for the year ended 2019 is made by deducting all the total expenses from revenue generated to find net income. The revenue is provided in the question which is $250,000. Total expenses are then presented in the income statement the amount is $213,000, this figure is deducted from revenue which derives the net income figure of $37,000.
If everyone paid taxes equal to 10 percent of their total annual income, the value of correlation coefficient for income and taxes would be nearest to____________.
Answer:
the value of correlation coefficient for income and taxes would be nearest to 1
Explanation:
Correlation coefficient measures the strength of relationship between two variables. If r is close to one there is a positively strong correlation between the two variables, if it is close to -1, the is negatively weak relationship between the two variables.
the value of correlation coefficient for income and taxes would be nearest to 1, if everyone paid taxes equal to 10 percent of their total annual income.
__________ departs from the often dimly lit restaurant operated by a Chinese family and offers, instead, an exhibition kitchen.
Answer:
The correct word for the blank space is: China Bistro.
Explanation:
P. F. Chang's China Bistro mainly known as China Bistro is an Asian-themed restaurant offering diverse dishes of Asian gastronomy. The restaurant is characterized by the elegance of its accommodations and offers buffets with a wide variety of foods as a form of an exhibition. P. F. Chang's China Bistro has a presence in different countries around the world such as Brazil, Dominican Republic, United Arab States, Qatar, South Korea, the United Kingdom, and the United States.
This type of research allows researchers to collect information aboutattitudes, beliefs, and behaviors of a population. a. experiment b. interview c. survey d. case study
Option C, Survey
Explanation:
The general definition of survey research is a systematic approach for collecting information by numerous survey questions from a sample of respondents.
Public opinion polls, reports on public health, consumer studies, policy investigations and censuses all provide examples of quantitative research that uses polling methodology to address demographic questions.
Surveys can take multiple forms, but they are most often written or online in the form of a questionnaire. Essentially, a survey is a way of collecting data from a sample of people, usually in order to generalize findings for a larger population.
The type of research that allows for collection of information on attitudes, beliefs and behaviors is a survey. It uses interviews or questionnaires to collect data from a large group of people in a structured way.
Explanation:The type of research that allows researchers to collect information about attitudes, beliefs, and behaviors of a population is a survey. A survey allows for data collection from a large group of people about their views, thoughts and behaviours in a structured way. This can be done through various means such as online, telephone, face-to-face interviews, and questionnaires. It’s a cost-effective method and can be used to gather data from a large geographical area.
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Bravo's complete assets and liabilities are Accounts Receivable $800, Equipment $10,000, Accounts Payable $4,200, Prepaid Rent $2,000, Supplies $400, Bank Loan $1,600, and Tools $300. Bravo's total assets are: _______
Answer:
$13,500
Explanation:
Given that,
Accounts Receivable = $800,
Equipment = $10,000,
Accounts Payable = $4,200,
Prepaid Rent = $2,000,
Supplies = $400,
Bank Loan = $1,600
Tools = $300
Total Assets:
= Accounts Receivable + Equipment + Prepaid rent +Supplies + Tools
= $800 + $10,000 + $2,000 + $400 + $300
= $13,500
Starbucks elected to pay higher prices to coffee growers who meet a list of quality standards that impact social, environmental, and economic standards. Which part of the triple bottom line does this impact?
a. Environmental performance
b. Social performance
c. Financial performance
Answer:
c. Financial performance
Explanation:
Financial performance -
It is the type of measurement method , where the better he firm can get revenue from the primary mode of business gets a better performance , is referred to as financial performance.
Financial performance of a company also give information about the financial health of the company.
Hence, from the given scenario of the question,
The correct term is c. Financial performance .
Proctor & Gamble departmentalizes by Tide, Pampers, Charmin, and Pringles. This is an example of departmentalization by
Answer:
Product
Explanation:
Departmentalization - This is the breakdown of a single business into smaller unit under the same coordination for administrative and operational convenience.
Departmentalization by product - When business entity is divided into smaller manageable unit along the line of products produced by the organisation, that is what we called departmentalization by product.
Identical products or products with similar characteristics are placed under the same department.
Proctor & Gamble's organization of its operations around Tide, Pampers, Charmin, and Pringles is an example of departmentalization by product. This strategy allows for the focused development, marketing, and management of each brand, leveraging specialized teams to enhance product quality and market competitiveness.
Explanation:Proctor & Gamble departmentalizes by Tide, Pampers, Charmin, and Pringles. This is an example of departmentalization by product. In this structure, the organization segments its operations around products or product lines, allowing for specialized development, marketing, and management of each brand. Each product (Tide, Pampers, Charmin, Pringles) operates as a semi-autonomous unit with its own department that handles the planning, production, and marketing activities specifically for that product. This approach enables Proctor & Gamble to focus on the individual performance and strategic development of each brand, catering to different consumer needs and market segments more effectively.
By departmentalizing around products, companies like Proctor & Gamble benefit from dedicated teams that have specialized knowledge and focus, which can lead to innovations and improvements in product quality, enhanced brand recognition, and stronger market positions for each product line. Hence, departmentalization by product is a key organizational strategy that aligns with the objectives of managing diverse product portfolios and maximizing the competitive advantage within different market segments.
When an accountant examines projected financial statements, the accountant's report should include a separate paragraph that:
Answer:Gives a description of the limitations on the projection's usefulness.
Explanation: Financial statements are documents that contains the financial status of a given entity,it includes both the previous position, present position and the projections. A financial statements also describes the limitations ( possible short comings or factors that are capable of adversely affecting the the positive outcome of the expected projections. A financial statement is not complete until it has captured all the possible positive and projected negative outcomes expected to hinder the full implementation of the Project or activity.
Hulu allows people to watch television shows and movies on the Internet. Hulu's business opportunity was made possible by ________ that enhanced the ability of television shows and movies to be uploaded to the Internet and played by anyone with a suitable computer and an Internet connection.
Answer:
technological advances.
Explanation:
Technological advances have impacted the lives of all individuals, changed the way we relate and interact with the world. The creation of the internet was a technological advance that revolutionized the world, through which greater integration and speed of information is possible, which optimized work activities, human relations and the obtaining of any type of information, at the click of a computer or cell phone.
Paid streaming platforms like Hulu, are characterized as a TV service over the internet, emerged from new consumer trends. Through research it was found that people were watching less television to access content on the internet. The success of streaming companies is due to the analysis of trends and the possibility for consumers to have control over what they want to watch and when to watch, thus consolidating the success of these platforms that, from market analysis, fit into a market niche each increasingly growing.
Final answer:
Hulu's business opportunity was enabled by technological advances, particularly in Internet bandwidth and data compression, allowing for the streaming of high-quality video content. These changes, coupled with shifts in consumer behavior towards convenience and on-demand content, paved the way for streaming services' success.
Explanation:
Hulu's business opportunity was made possible by technological advances in Internet bandwidth and data compression algorithms. These advances significantly enhanced the ability to upload and stream video content on the Internet, allowing instant access to television shows and movies for anyone with a computer and an Internet connection. The invention of cable and the exponential growth of the Internet infrastructure in the 2000s, along with the development of streaming services like Netflix, contributed to changing consumer habits. People shifted from renting or purchasing physical media to subscribing to online libraries of content. This was accompanied by innovations in how content was monetized, moving from traditional advertising to product placements and subscription models. Furthermore, the increased Internet bandwidth and compression techniques enabled high-quality streaming of video content, making it feasible for companies like Hulu to offer on-demand content that can be watched over various devices including computers, smartphones, and smart TVs.
The switch to digital streaming was driven by consumer desire for convenience, leading to the rise of "binge-watching" habits. Additionally, the saturation of information and various media forms became possible due to these technological improvements. Cable and satellite providers also adapted, offering on-demand programming to meet consumer expectations for accessibility and immediacy.
Brookman Inc.’s latest EPS was $2.75, its book value per share was $22.75, it had 315,000 shares outstanding, and its debt/total invested capital ratio was 44%. The firm finances using only debt and common equity and its total assets equal total invested capital.
How much debt was outstanding?
a) $4,586,179 b) $4,827,557 c) $5,081,639 d) $5,349,094 e) $5,630,625
Answer:
Option (E) is correct.
Explanation:
EPS = $2.75
Book Value Per Share = $22.75
Shares Outstanding = 315,000
Debt Ratio = 44%
Total equity = Shares outstanding × Book Value Per Share
= 315,000 × $22.75
= $7,166,250
Total assets = Total equity ÷ (1 - Debt Ratio)
= $7,166,250 ÷ (1 - 0.44)
= $12,796,875
Total Dept = Total assets - Equity
= $12,796,875 - $7,166,250
= $5,630,625
In economic decision making related engineering projects, which of the following factor is a non-economy factor. a. Operating cost b. Taxes c. Benefits d. Morale
Answer:
The answer is d. Morale
Explanation:
The economic factors are really important to be considered in a project whether it is beneficial or not. The non economic factor is Morale. The enthusiasm of a person working on a project cannot be an economic factor. Operating costs, Taxes and Benefits are economic factors. Economic factors can satisfy human needs but non economic factors help in providing psychological satisfaction.
In economic decision making for engineering projects, 'Morale' is a non-economic factor as it relates to psychological aspects rather than direct monetary values, unlike operating costs, taxes, and measurable benefits.
Explanation:In the context of economic decision making related to engineering projects, several factors come into play when assessing the feasibility and profitability of a project. These include:
When evaluating options, economists and project managers often utilize a cost/benefit analysis or compare marginal costs to marginal benefits. Common factors that influence these decisions include operating cost, taxes, and the benefits derived from the project.
However, the question specifically asks which option is a non-economy factor among the given choices. The answer is 'd. Morale'. Morale is a psychological factor that affects the satisfaction and productivity of an engineering team but does not directly involve monetary values or economic assessment.
Factors like financial rewards, work meaningfulness, autonomy, and personality can influence job satisfaction and productivity, which are part of the broader domain of organizational behavior. Morale can similarly impact overall productivity and job satisfaction but is not quantifiable in the same way as direct economic costs such as operating cost, taxes, and measurable benefits.
What do you think companies should do to make themselves more moral organizations? How can they promote a healthymoral climate inside the company?
To become more moral, companies should enforce a global ethics code, offer ethics training, lead by example, and provide transparent reporting mechanisms. Additionally, wellness programs, work-life balance, and mental health support can help foster healthy habits among employees. Encouraging ethical behavior improves job satisfaction and retention, ultimately benefiting the company.
To make themselves more moral organizations, companies should develop and enforce a robust ethics code globally. This code would guide behavior and decision-making, promoting a healthy moral climate that respects diverse ethical values. Promoting such a climate involves leadership demonstrating ethical behavior, providing ethics training, and ensuring transparent communication channels for reporting ethical concerns.
Alternative methods to motivate employees to adopt healthy habits could include wellness programs that provide education, resources, and incentives. These wellness programs might involve fitness challenges, health screenings, and discounts on health insurance premiums. Encouraging a work-life balance and providing mental health support can also significantly contribute to healthier employee habits.
By understanding that an ethical environment can lead to happier, more committed employees who engage more frequently in ethical behaviors, companies can focus on creating policies and a work culture that emphasizes these values. This is not only the right thing to do but is also good for business, as it can improve job attitudes and worker retention while reducing health care costs associated with unhealthy habits.
One year ago, you purchased 300 shares of Southern Cotton at $32.60 a share. During the past year, you received a total of $280 in dividends. Today, you sold your shares for $35.80 a share. What is your total return on this investment?
Answer:
Total Return on investment=12.678%≅12.68%
Explanation:
Given;
Number of Shares= 300
Purchasing price of each share=$32.60
Total Dividends= $280
Selling price of each share= $35.80
Find:
Total Return on investment=?
Solution:
Total Return on investment=[tex]\frac{(Selling\ Price-Purchase\ Price + \frac{Total\ Dividends}{Shares})}{Purchase\ Price}[/tex]
[tex]Total\ Return\ on\ investment=\frac{\$35.80-\$32.60 +\frac{\$280}{300}}{\$32.60} \\[/tex]
Total Return on investment=0.12678
In Percentage:
Total Return on investment=12.678%≅12.68%
Successful implementation of the differentiation strategy requires a structure that Group of answer choices c. focuses on the finance function. d. is dominated by the operations function. b. decentralizes decision making. a. has specialized job
Answer:
The correct answer is letter "B": decentralizes decision making.
Explanation:
A differentiation strategy is adopted by companies in the attempt of producing a unique good or at least one that can be differentiated from competitors attracting consumers' attention. For differentiation strategy to be effective, firms must be willing to make researches, come up with strong marketing plans, and decentralize their decision-making to fasten the production process.
A new product made from recycled bio-plastics needs 17 labor hours to complete the build for the first unit.
If production operates at an 87% learning curve rate, calculate the average labor hours required per unit to produce five units.
The average labor hours required to produce five units using the 87% learning curve rate is approximately 13.118 hours.
Explanation:The Learning Curve theory in this case refers to the concept that, with each unit produced, the time taken to manufacture decreases due to experience and learning. This specifically indicates an 87% learning rate, which means that the labor time for each unit drops to 87% of the time of the previous unit.
To find the cumulative average time to produce five units using a learning curve, we start with the first unit, which requires 17 labor hours. Then, each subsequent unit's labor hours are determined by multiplying the previous unit's labor hours by the learning rate (0.87). Finally, we sum all the labor hours and divide by the total number of units (5).
Unit 1: 17 hoursUnit 2: 17 hours * 0.87 = 14.79 hoursUnit 3: 14.79 hours * 0.87 = 12.8673 hoursUnit 4: 12.8673 hours * 0.87 = 11.194141 hoursUnit 5: 11.194141 hours * 0.87 = 9.7388027 hoursThe total labor hours for 5 units = 17 + 14.79 + 12.8673 + 11.194141 + 9.7388027 = 65.5892437 hours
The average labor hours required per unit = 65.5892437 / 5 = approx. 13.11784874 hours
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Holding all else constant, a higher price for ski lift tickets would be expected to: A. increase the number of skiers B. decrease ski sales C. decrease the demand for other winter recreational activities D. decrease the supply of ski resorts
Answer:
Option (b) is correct.
Explanation:
The law of demand states that there is a negative relationship between the price of the product and the quantity demanded for the product. This means that as the price of ski lift tickets increases then as a result the quantity demanded for ski tickets decreases. Alternatively, if there is a fall in the price of ski tickets then as a result the quantity demanded for sky tickets increases.
A higher price for ski lift tickets is expected to decrease the number of skiers according to the law of demand. In the financial market, a rise in supply leads to lower interest rates, while an increase in loan quantity can result from either a rise in demand or supply. A price ceiling does not shift demand or supply but creates excess demand.
Explanation:Holding all else constant, a higher price for ski lift tickets would be expected to decrease the number of skiers as it makes skiing less affordable for consumers. This scenario is explained by the law of demand, which states that, ceteris paribus, when the price of a good or service increases, the quantity demanded decreases, and vice versa.
For the questions from the financial market perspective:
A decline in interest rates would be expected with a rise in the supply of loanable funds, as this increases the availability of money to lend and typically leads to lenders reducing interest rates to attract borrowers.An increase in the quantity of loans made and received would occur with either a rise in demand for loans or a rise in supply. Both scenarios lead to more transactions in the loan market.A price ceiling typically does not shift the demand or supply curve itself, but it can create excess demand by setting a price below the equilibrium, leading to shortages.Suppose Natasha currently makes $50,000 per year working as a manager at a cable TV company. For the soap making opportunity she anticipates annual revenue of $465,000 and costs for the necessary land, labor and capitol of 395,000 per year. For the internet opportunity she anticipates costs for land labor and capitol of$ 3,250,000 per year as compared to revenues of $3,275,000 per year. Should she quit her current job to become an entrepreneur? If she does not quit her current job which opportunity would she pursue?
Answer:
She should quit her job, become an entrepreneur and choose the soap making for the highest profit/ income of $70,000
Explanation:
Step 1: Calculate Natasha's annual profit if she should start the soap business
The annual profit from Soap Business = Annual Revenue - Costs for the year
The annual profit = $465,000- $395,000 = $70,000
Step 2: Calculate Natasha's annual profit if she should start the internet opportunity she anticipates
The annual profit for the internet business = Annual Revenue - Costs for the year
= $3,275,000 - $3,250,000= $25,000
Since she is to make a choice between three options,
1. Manager Job per year = $50,000
2. Soap Making= $70,000
3. Internet Opportunity= $25,000
Then she should quit her job, become an entrepreneur and choose the soap making for the highest profit of $70,000
.Can competitors imitate FedEx’s approach in international markets and take market share away from the company? Why or why not?
Answer: why, to ward off threat from their competitors. Why not, they should avoid unholy competition fair practices and exhibit only those practices that are capable of sustaining perfect competition.
Explanation:
Courier service : This is a service provided by a private postal organizations that specializes in fast, quick delivery of mail's, parcels for people,. FedEx is an American multinational company that specializes in the provisions of these services both local and around the world. Their services ranges from the provisions of quick delivery of mail's and parcels to their destinations promptly, ensure that their customers goods or parcels are delivered safely to their destinations that is their is no loss of goods in transit, they also provides extended hours of services to their customers. In addition, they also insure the goods or parcels with the insurance company in order to provide an insurance cover for the goods or parcels in case of loss.
The competitors are the firms operating within the same industry and providing similar or substitute product or services. The aim of every competitors in the market is to gain the largest share of the market. The competitors want to become the market leader. The question now is why or why not, to answer the question of why, the competitors should imitate the approach of their competitors in order to learn about the operations of their competitors with a view to ward off whatever threat that may come from them.they can do these by looking at the competitors product packaging, pricing policies, Discount structures, promotional and distribution strategies. All these need to be well understood. The knowledge of these would help the organization to understand and respond positively to pressures from their competitors. For instance, if their competitors has been making use of advertising, the firm should consider other alternatives such as promotion or publicity.
To answer the question of why not, a firm should not imitate the approach of FedEx in the international market and take market share away from the company, because a firm should avoid a reckless and damaging competition rather they should see one another as partners in progress. They should avoid an unholy competition fair practices, they should always exhibit only those practices that are capable of sustaining perfect competition.
Competitors could imitate FedEx's approach but face barriers due to the company's strong brand and efficient operations.
Competitors could imitate FedEx's approach in international markets and potentially take market share away from the company. This is because globalization has opened up opportunities for firms worldwide to enter new markets, leading to increased competition.
However, FedEx's strong brand recognition, efficient operations, and established network could serve as barriers to entry for competitors. Additionally, the company's focus on rapid and reliable delivery services sets it apart in a market where speed is crucial. Globalizing early can provide a competitor with a first-mover advantage in emerging markets, making it essential for FedEx to continually innovate and adapt to stay ahead of potential competitors.
Suppose a manufacturing plant purchased a new heating system in December, 2015 and, after installing and testing the equipment, it was put into service on January 1, 2016. The total cost to put the equipment into service was $55,000; it is expected to have a useful life of 5 years and a salvage value of $5,000.
Record the Transaction:Using the straight-line method of depreciation, what will the entry be to record depreciation for the 6 months ending June 30, 2016?
Answer:
Depreciation for 6 months ending June 30, 2016 is $ 5,000 and the accounting entry to record the transaction is:
Depreciation Expense - Debit $ 5,000
Allowance for Depreciation - Credit $ 5,000
Explanation:
The depreciation charge for the year is calculated as follows:
Total cost of the equipment $ 55,000
Salvage Value $ 5,000
Net Depreciable value $ 50,000
Estimated Useful Life 5 years
Annual Depreciation expense(50000/5) $ 10,000
Depreciation for 6 months (10000/2) $ 5,000
The manufacturing plant would record a depreciation expense of $5,000 for the first 6 months of 2016, using the straight-line method of depreciation.
Explanation:The subject of this question is the calculation of depreciation using the straight-line method, that is widely used in business and accounting. The system's original cost is $55,000 with a salvage value of $5,000 expected after 5 years. Therefore, the total depreciation over its 5-year life (useful life) would be $50,000 ($55,000 - $5,000).
To calculate the annual depreciation, you would divide the total depreciation by the useful life. So, $50,000 ÷ 5 equals $10,000. This is the amount of depreciation that should be recorded each year.
However, the question asks for the depreciation expense for the first 6 months of 2016 (January to June). Therefore, you would halve the annual depreciation. So, $10,000 ÷ 2 equals $5,000. This is the depreciation expense to be recorded for the first 6 months of 2016.
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Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $2,500,000 $1,840,000 Property, plant, and equipment 5,600,000 6,072,000 Intangible assets 1,900,000 1,288,000 Current liabilities 2,000,000 1,380,000 Long-term liabilities 3,400,000 3,680,000 Common stock 920,000 920,000 Retained earnings 3,680,000 3,220,000 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity.
The comparative balance sheet calculates each asset category as a percentage of total assets, and every liability and stockholders' equity item as a percentage of total liabilities and stockholders' equity for two fiscal years. This helps in identifying shifts in a company's financial structure.
Explanation:The question pertains to preparing a comparative balance sheet for Alvarez Company for two consecutive fiscal years, indicating each asset as a percentage of total assets and every liability and stockholders' equity item as a percentage of the total liabilities and stockholders' equity. First, we calculate the total assets, total liabilities, and total stockholders' equity for each year. For the current year, total assets are $10,000,000 ($2,500,000 current assets + $5,600,000 property, plant, and equipment + $1,900,000 intangible assets). Accordingly, each asset category's percentage of total assets can be calculated. Repeat this procedure for total liabilities and stockholders' equity. The same calculations should be repeated for the previous year's amounts. This helps in understanding changes in the company's financial structure over time.
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The following variable production costs apply to goods made by O'Brien Manufacturing Corporation: Item Cost per Unit Materials $ 6.00 Labor 3.00 Variable overhead 3.50 Total $ 12.50 Required Determine the total variable production cost, assuming that O'Brien makes 4,000, 8,000, or 12,000 units.
Answer:
$50,000 ; $100,000 ; $150,000
Explanation:
The computation of the total variable production cost is shown below:
For 4,000 units, it would be
= 4,000 units × $12.50
= $50,000
For 8,000 units, it would be
= 8,000 units × $12.50
= $100,000
For 12,000 units, it would be
= 12,000 units × $12.50
= $150,000
Simply we multiplied the total variable cost per unit with the respective units
You currently pay $10,000 per year in rent to a landlord for a $100,000 house, which you are considering purchasing. You can qualify for a loan of $80,000 at 9% if you put $20,000 down on the house. To raise money for the down payment, you would have to liquidate stock earning you a 15% return. We neglect other concerns, like closing costs, capital gains, and tax consequences of owning. 1. Explain the concept of opportunity cost. 2. Explain the fixed cost and the the hidden cost fallacy. 3. Given the described situation, determine whether it is better to rent or own. Show all your calculations and logical arguments.
Answer:
1. Opportunity Cost: This is the alternatives forgone when a decision is taken. If we intend to buy two items for example rule and pen. If we decide to purchase pen, the opportunity cost of purchasing pen is the price of ruler. If we keep our cash balance in safe at home instead of depositing in a saving account, the opportunity cost is interest lost.
Opportunity cost is also known as implicit cost. If you work in your company instead of getting another job. The opportunity cost is the salary you would have earned in the other employment.
2. Fixed Cost: Fixed cost is the cost that remain the same irrespective of the level of output. Fixed cost is different from variable cost because variance costs varies with the level output. Example of fixed cost is rent, administrative cost, etc.
The hidden-cost fallacy is the situation when all cost or relevant costs are not considered. Example of hidden cost fallacy is when opportunity costs are ignored.
3. Cost of Rent:
Rent per year: $10,000.
Cost of purchase:
Annual interest on loan - $7,200
Stock interest forgone -$3,000
$10, 200
It is better to rent.
Explanation:
Rent will cost only $10,000 per annual while purchasing will cost $10,200 per annual. Annual cost of purching is higher by $200.
When organizing the outline for your speech, you should first identify at least five major ideas you want your audience to remember.
Explanation:
A speech with the best pointers gets succeeded rather than the lengthier speech which does not have any highlights.
When we are presenting a speech, content is the first things that comes right in front of us, then comes the body posture, gestures, tone of voice, etc.
It is important to google for a best pointers, which is rarely known, few facts, few positive aspects, the challenges so that the speech will attract mass listeners.
The content gets successful only with the help of gestures and tone of voice. So we need major ideas and good tone of voice along with good gestures.
In this example of an "inflation cooling" tax increase, the economy was initially struggling with a ________ annual rate of increase in the price level..
The economy was initially struggling with a high annual rate of increase in the price level before the introduction of an 'inflation cooling' tax increase. Inflation can range from low (creeping inflation) to very high (hyperinflation), impacting economic stability and business planning. Moderate inflation can coexist with a growing economy, whereas high inflation may hamper productivity and economic growth.
In this example of an "inflation cooling" tax increase, the economy was initially struggling with a high annual rate of increase in the price level. Inflation is measured by the percentage increase in the price level over a year and can be classified into different types based on the rate of increase. Creeping inflation occurs at a slow pace of 0% to 2% per year. In contrast, galloping inflation occurs at a much faster pace of 10% to 20% per year. In extreme cases, the economy can experience hyperinflation, which could involve rates as high as 40% per month.
Low levels of inflation, such as 2%, 3%, or 4%, are generally not considered a crisis for an economy, and are preferential to deflation that often happens during severe recessions. On the other hand, galloping or hyperinflation can have catastrophic effects on an economy, leading to profound social and economic consequences.
It is imperative for businesses to adapt their strategies according to the inflation level. If inflation is moderate and stable, long-term strategies may be viable. However, with substantial volatility in inflation, taking shorter-term approaches may be more prudent. Economic progression is contingent on managing inflation levels effectively. Moderate inflation of less than 3% per year is often compatible with healthy economic growth, whereas high levels of inflation can impede business planning and overall economic productivity.
Inflation's impact depends on its rate, ranging from mild to severe. In this case, the economy faced low inflation before a tax increase was implemented.
In this scenario, the economy was initially struggling with a low annual rate of increase in the price level. When inflation is increasing slowly at around 0% to 2% per year, it reflects creeping inflation, which is a mild form of inflation, not yet considered a national crisis.