Answer:
b.) Product to which they attach must be sold
Explanation:
According to the matching principle, the expenses incurred of a particular period should be matched with the revenues earned for that particular period
In other words, the revenues and the expenses should be matched
In the given case, for becoming the expenses, its important to sold the product so that it creates the revenue for the organization
The matching principle requires inventoriable costs to be recognized as expenses when the product is sold. These costs are initially recorded as an asset on the balance sheet and transferred to cost of goods sold on the income statement. Not all costs incurred to produce a product are considered inventoriable costs.
Explanation:The matching principle is an accounting concept that requires the recognition of expenses in the same period as the revenues they help generate. In the case of inventoriable costs, these are the costs incurred to produce a product. These costs are initially recorded as an asset on the balance sheet under inventory. When the product is sold, the cost is transferred from inventory to cost of goods sold (COGS) on the income statement, matching the expenses with the revenues.
For example, let's say a company manufactures and sells bicycles. The costs of purchasing raw materials, labor, and overhead to produce the bicycles are considered inventoriable costs. When the bicycles are sold, the costs incurred to produce them are recognized as expenses on the income statement, reducing the company's net income.
However, it's important to note that not all costs incurred to produce a product are considered inventoriable costs. Some costs, such as selling and administrative expenses, are expensed in the period they are incurred and are not included in the calculation of inventoriable costs.
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Three sources of flexibility in completing primary and support activities are particularly useful for firms using the integrated strategy. These are:______.a. flexible manufacturing systems, re-engineering, and total quality management. b. outsourcing, re-engineering, and flexible manufacturing systems. c. outsourcing, total quality management, and information networks. d. flexible manufacturing systems, total quality management, and information networks.
Answer: option (A). flexible manufacturing systems, re-engineering, and total quality management.
Explanation: Three sources of flexibility in completing primary and support activities are particularly useful for firms using the integrated strategy. These are :- Flexible Manufacturing Systems, Reengineering, and Total Quality Management.
ABC Company has a pretax loss on Division X, a held-for-sale component, of $50,000. ABC Company is subject to a 30% income tax rate. What is ABC Company's after-tax loss on Division X?
Answer:
$35,000
Explanation:
Data provided in the question
Pre tax loss on sale of a component = $50,000
Income tax rate = 30%
So, the after tax loss on Division X is
= Pre tax loss on sale of a component - Pre tax loss on sale of a component × income tax rate
= $50,000 - $50,000 × 30%
= $50,000 - $15,000
= $35,000
We deduct the income tax rate from the pre tax loss so that the after tax loss could come
Mariah was born in 1993. When she graduated from college, she got a job working for a small advertising company. Although the salary isn't what she expected, she likes that the company favors advancement, recognition, and improved capabilities. She also likes that her company allows her to work remotely two days per week. What generation does Mariah belong to?
Answer:
Millennials.
Explanation:
Millennials is the general term for people that are born in the 1980s and 1990s. Sometimes children born in the early 2000s are also included.
Millennials are also called generation Y and comes after generation X (1960s to 1980s).
These class have been characterised as being lazy, as is seen Mariah likes the fact that she can work from home.
They are also narsicistic, less concerned about helping the larger community, and prone to jump from one job to another.
They have positive attributes of being open minded, confident, self-expression, and liberal.
Imagine that someone offers you $100 today or $200 in 10 years. You would prefer to take the $100 today if the interest rate is Group of answer choices 4 percent. 6 percent. 8 percent. All of the above are correct.
Answer:
The best choice is to accept $200 in 10 years.
Explanation:
The offer is $100 today with interest for 10 years or $200 after ten years.
Applying the interest on $100
For 4% interest
4/100 *100 = $4
4*10 =40
Amount = $100+$40 =$140 --------a bad choice
For 6% interest
6/100*100 = $6
$6*10 = $60
Amount = $100+$60= $160---------still a bad choice
For 8% interest
8/100*100 =$8
$8*10 = $80
Amount = $100+$80 = $180 -------still not a better choice
The best choice is to accept $200 in 10 years.
Final answer:
The correct choice would be to take the $100 today if the available interest rate is 8 percent, because at this rate, the future value of $100 after 10 years would exceed $200.
Explanation:
The student's question involves present value analysis, which is a concept in finance that pertains to determining the value today (present value) of an amount of money to be received in the future, using a specified interest rate. The choice between $100 today versus $200 in 10 years depends on the opportunity cost of not having the money today, which can be evaluated by calculating the future value of $100 given different interest rates.
Let's calculate the future value of $100 at various interest rates after 10 years and compare it with the $200 offer:
At 4% interest rate, future value = $100 * (1 + 0.04)^10 = $148.02
At 6% interest rate, future value = $100 * (1 + 0.06)^10 = $179.08
At 8% interest rate, future value = $100 * (1 + 0.08)^10 = $215.89
Based on these calculations, you would prefer to take the $100 today if the interest rate is 8 percent, as the money can grow to be more than $200 in 10 years at that interest rate. Hence, the correct answer is 8 percent.
You notice that you always make your transaction at the very beginning of the round. Although it's nice to transact every time, offering a price so low that buyers immediately accept it might mean:___________.
Answer:
you're receiving too small of a gain
Explanation:
Based on the information provided within the question it can be said that offering a price so low that buyers immediately accept it might mean you're receiving too small of a gain. That is because if a buyer is immediately accepting it, then it can be because they realize that it is a great deal and that they will most likely not find a better price anywhere else and immediately decide to buy it from you. Therefore you can be selling it for an increased profit margin by increasing the price.
Which of the following costs is an important purchasing consideration when quantity discounts are offered? Question 2 options: Shortage costs Setup costs Holding costs Unit costs
Answer:
Set up cost
Explanation:
Set up is the cost incurred to purchase or buy equipments and items needed to start up production and it is a very essential cost to consider when quantity discounts are offered because it would help rearrange the cost that would be incurred in production.
Brennan Corporation's WACC is 10.00%, its end-of-year free cash flow (FCF1) is expected to be $75.0 million, the FCFs are expected to grow at a constant rate of 5.00% a year in the future. The company has 20 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock? Assume the firm has no debt or preferred stock outstanding.
Answer:
$75 million
Explanation:
Firm's value = FCF1 / WACC - growth
Equity Value = Firm's value - Debt value
Intrinsic value per share = Equity Value / Number of shares
Therefore Firm's value = $75.0 million / (0.10 - 0.05) = $1,500 million
Equity Value = Firm's value - Debt value = $1500 - 0 debt = $1,500 million
Intrinsic value per share = Equity Value of $1500 / 20 million shares =
$75 million
Answer:
$75 per stock
Explanation:
we can use the Gordon growth model to determine the price of the company:
company's total value = future cash flow / (WACC - growth rate)
company's total value = $75,000,000 / (10% - 5%) = $75,000 / 5%
company's total value = $1,500,000,000
to determine the price of each stock:
stock price = company's total value / total stocks outstanding
stock price = $1,500,000,000 / 20,000,000 million stocks = $75 per stock
Consider the following case: Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio:Stock Percentage of Portfolio Expected Return Standard DeviationArtemis 20% 8% 38%Babish 30% 14% 42%Cornell 35% 11% 45%Danforth 15% 5% 47% What is the expected return of Andre's portfolio?Suppose each stock in the preceding portfolio has a correlation coefficient of 0.4 with each of the other stocks. The market's standard deviation is around 20%, and the weighted average of the risk of the individual securities in the partially diversified portfolio of four stocks is 35%. If 40 additional, randomly selected stocks with a correlation coefficient of 0.3 with the other stocks in the portfolio were added to the portfolio, what effect would this have on the portfolio's standard deviation?
Answer:
answer is attached in figure below
Explanation:
Suppose you are a human resource executive, supporting strategy. Executives in your industry are concluding that a certain HR-related law no longer seems relevant in the Internet age. To which government branch would it be most effective to turn for addressing the need for a change in the legal environment?
A.
the executive branch, requesting it not enforce the existing law
B.
the executive branch, requesting a new law in this area
C.
the judicial branch, requesting a new law in this area
D.
the legislative branch, requesting a new law in this area
E.
the legislative branch, requesting it not enforce the existing law
Answer:
D. The legislative branch, requesting a new law in this area
Answer:
D. the legislative branch, requesting a new law in this area
Explanation:
The legislative branch of a government is saddled with the responsibility of making new laws and changing old laws. In the United States, this branch is composed of the House of Representatives and the Senate, making up the congress that writes or enact laws.
Therefore, the government branch that would be most effective to run for addressing the need for a change in the legal environment is the legislative branch of government.
The relationship between the consumer's expectations and the product's ________ determines whether the buyer is satisfied or dissatisfied with a purchase.
Answer:
Perceived performance
Explanation:
Perceived perception is the customer's perception about a particular product based on the expectations they had before making purchase.
The relationship between the consumer's expectations and the product's performance determines buyer satisfaction.
Explanation:The relationship between the consumer's expectations and the product's performance determines whether the buyer is satisfied or dissatisfied with a purchase. When a product meets or exceeds the consumer's expectations, they are more likely to be satisfied. On the other hand, if the product falls short of their expectations, they may be dissatisfied.
For example, let's say a consumer buys a smartphone with high expectations for its camera quality. If the camera performs exceptionally well and meets or exceeds the consumer's expectations, they will likely be satisfied with their purchase. However, if the camera does not meet their expectations and the picture quality is poor, they may be dissatisfied.
In conclusion, the relationship between the consumer's expectations and the product's performance is crucial in determining customer satisfaction with a purchase.
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The rental income generated by a lease can depend significantly on the proportion of property-level operating expenses paid by the tenant. In which of the following types of leases is the tenant responsible for all operating expenses?1. Gross lease2. Net lease 3. Net-Net lease4. Triple net lease
Answer:
4) Triple net lease
Explanation:
In a triple net lease (NNN lease), the tenant is responsible for all the expenses related to the leased property including property taxes, maintenance fees, reparations and property insurance. NNN leases are usually commercial leases only.
The landlord's disadvantage with a NNN lease is that the monthly lease payment tends to be lower since the tenant assumes all the costs related to the leased property. On the other hand, a NNN lease generally provides a stable cash flow, so its associated risk is lower.
Which of the following statutes applies to the hacking of another's computer or accounts? a. CAN-SPAM b. The Stored Communications Act c. The Unauthorized Access Computer Crimes d. Electronic Privacy Communications Act
Answer:
C. The Unauthorized Access Computer Crimes
Explanation:
Unauthorized access involves trespassing and accessing private information or data on a system without the consent of the computer user or owner. The unauthorized access computer crimes statutes accounts for hacking of another person's computer.
This makes it illegal and punishable under to law to access an individual's computer whether through remote access or internet access without the permission of the owner.
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his employees. Siegel used a(n) _____ style to increase Lacoste's sales.
Answer:
autocratic
Explanation:
The autocratic leadership style refers to a management style where all the important decisions are made by one single person, the leader. He/she will not even bother to ask their subordinates about their own ideas, they only trust their own judgment and generally refuse to take advice from others.
Final answer:
Robert Siegel used a centralized leadership style to revitalize the Lacoste brand, making all major decisions independently to target a younger audience. This differs from the approach of other companies that adopted team-based and horizontally structured organizations, resulting in increased productivity and sales growth.
Explanation:
In the context of Lacoste's strategy to attract younger customers, CEO Robert Siegel adopted a centralized leadership style. This approach involved making all key decisions unilaterally regarding product planning, distribution, and promotion without seeking input from his employees. In contrast, other companies such as Schneider Electric and Chico's have embraced team-based and horizontal organizational structures, empowering employees with decision-making capabilities, which led to increased productivity and substantial growth. Similarly, Mike Jeffries at Abercrombie & Fitch strategically marketed the brand to a specific demographic to enhance the brand's appeal and increase sales.
What variables have to be considered in designing the organizational structure for international operations? how do these variables interact, and which do you think are most important? 2. explain the need for an mnc to "be global and act local." how can a firm design its organization to enable this? 3. what is a transnational organization? since many large mncs are moving toward this format, it is likely that you could at some point be working within this structure. how do you feel about that? 4. discuss the implications of the relative centralization of authority and decision making at headquarters versus local units or subsidiaries. how would you feel about this variable if you were a subsidiary manager?
A company can be a MNC's only if the entity has sufficient funds to rely back upon
Explanation:
1. Operating cost , Product demand . As these variables help the company to have decision making for the working of the Business
2. Need- Most important is to reach out to the demand of the customers geographically .
3, Transnational Organisation- They are those that " transcend" the idea of nation state.
4. As a Subsidiary Manger delegation of Decision-Making should depend upon the size and the type of organisation.
Key considerations for an international organizational structure include strategic goals, product diversification, market complexity, cultural differences, and coordination needs. The concept of 'be global and act local' refers to the need for a transnational structure, striking a balance between global efficiency and local responsiveness. The centralization or decentralization of authority can vary depending on a company's specifics and the needs of local managers.
Explanation:When designing an organizational structure for international operations, several variables need to be considered. These include the company's strategic goals, the level of product diversification, the markets' complexity and diversity, regulations, cultural differences, and the communication and coordination needs between the headquarters and subsidiaries.
These variables interact in complex ways. For instance, a company with high product diversification might need a more decentralized structure to respond to different market demands. Cultural differences and regulatory constraints might also require adaptations at the local level.
The need for companies to 'be global and act local' is encapsulated in the concept of glocalization. This requires an organization to have a standard global approach while being flexible enough to adapt to local conditions. This can be achieved through a transnational organizational structure, where decision-making, resources, and responsibilities are distributed among multiple foreign operations.
A transnational organization is characterized by an integrated network of global subsidiaries. Many multinational companies (MNCs) are moving towards this structure, as it allows a balance between efficiency, local responsiveness, and learning innovation benefits from various subsidiaries.
The implications of relative centralization versus decentralization largely depend on the size and scope of the organization's operations. In my opinion, as a subsidiary manager, I would prefer a certain degree of autonomy in decision-making. But a trade-off exists, as local managers need coordination and support from headquarters.
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In New York City, a privately funded program pays low-income parents $50 every two months for each child who attends school regularly during that period. This incentive illustrates a _____ schedule of reinforcement.
Full question:
In New York City, a privately funded program pays low-income parents $50 every two months for each child who attends school regularly during that period. This incentive illustrates a _____ schedule of reinforcement.
A. fixed-interval
B. fixed-ratio
C. variable-interval
D. variable-ratio
Answer:
This incentive illustrates a fixed-interval schedule of reinforcement.
Explanation:
A fixed-interval schedule is a plan of reinforcement where the first acknowledgment is compensated only later a designated measure of time has transpired. This plan makes high amounts of returning near the end of the interval but much delayed responding quickly after the delivery of the reinforcer.
The acknowledgment rate in a fixed-interval reinforcement schedule is reasonably anticipated; it improves as the reinforcement time arrives and then falls off precipitously directly subsequent reinforcement. It can be an essential tool when preparing new behaviors.
When Dr. Footcare developed and launched a revolutionary new walking shoe, he knew that during the introductory stage of the product life cycle (PLC) __________.
Answer:
needs a rapid skimming
Explanation:
Rapid skimming: Launching the product at a high price and high promotional level.
The product introduction phase generally includes a substantial investment in advertising and a marketing campaign focused on making consumers aware of the product and its benefits. Assuming the product is successful, it enters its growth phase. Demand grows, production is increased, and its availability expands.
During the introduction stage, you should aim to:
Establish a clear brand identity Connect with the right partners to promote your product Set up consumer tests, or provide samples or trials to key target markets Price the product or service as high as you believe you can sell it, and to reflect the quality level you are providingThe rule preventing recovery for reasonably avoidable damages is often called the duty to mitigate. True or false
Answer:
True
Explanation:
In contract law and civil law, the duty to mitigate damages refers to the duty that the individual responsible for the wrongdoing must carry out to limit the harm or injury caused by him/her. The duty to mitigate applies both for contract breaches and victims or torts.
Two managers of a company have a conflict over resources required to complete their new projects. Both managers want the best employees of the firm to work in their projects. Eventually, they arrive at a decision where they equally share the number of top-performing employees. In the given scenario, which of the following methods have the managers used to resolve the conflict?
Answer: Integrated conflict management
Explanation: Integrated Conflict Management encourages alternative conflict resolution which strongly focuses on the interests and the needs of the people involved.
The people directly involved in the dispute are actively encouraged, supported, and prompted to take responsibility for managing their disputes.
Answer:
COMPROMISE
Explanation:
Conflict can be handled or resolved with strategies like: avoiding, defeating, compromising, accommodating, and collaborating.
Compromise is a big step toward conflict resolution, it is a situation where both parties look for a common ground. The concept of compromise is that everyone gives up a little bit of what they want, and no one gets everything they want.
Since the two managers arrived at a decision where they equally share the number of top-performing employees, therefore, the method the managers used to resolve the conflict is COMPROMISE.
Brenda, the district manager for Beautiful Florist, told the store managers in her district that she needs the sales goals for next year. A new manager, Paula, said, "I am going to sell over $100,000 in flowers next year." Brenda later told Paula that "I need to know specifically, in each category, how much you plan on selling." Brenda's request for a specific answer is an example of a:________.
Answer:
SMART goal
Explanation:
SMART is an acronym that is used to guide businesses in the process of setting it's goals.
The acronym stands for S- specific, does the goal have particular purpose.
M- measureable, is the goal something that can be measured.
A- attainable, is it realistic to achieve.
R- relevant
T- time bound, has a set timeline.
In this instance Brenda is using SMART goal technique to evaluate the statement made by Paula. She wants to find out if her goal is specific.
Even though he is not a manager, Mr. Brate is the one to see in the company when there is something you need. He will get it quickly, and can avoid the red tape that often delays action. Mr. Brate is also the one to see if you need advice or help. Mr. Brate is an important member of the firm's _________.
Answer:
Informal organization
Explanation:
The informal organization is the interlocking social structure that governs how people work together in practice. It is the aggregate of norms, personal and professional connections through which work gets done and relationships are built among people who share a common organizational affiliation or cluster of affiliations. It consists of a dynamic set of personal relationships, social networks, communities of common interest, and emotional sources of motivation. The informal organization evolves, and the complex social dynamics of its members also.
Mr. Brate exemplifies the vital role of informal organization in a company, using his networking skills to facilitate tasks and sidestep bureaucratic delays. His role underlines the importance of interpersonal relationships in achieving business objectives.
Explanation:Mr. Brate is an important member of the firm's informal organization. Even though he is not a manager, his ability to efficiently obtain resources and provide advice or help makes him a valuable asset. He plays a crucial role in the networking within the company, acting as a facilitator for tasks that might otherwise be bogged down by bureaucracy. This sort of role is key in the context of business operations because it emphasizes the importance of interpersonal relationships and the ability to navigate organizational structures to achieve objectives. According to the given statement, Mr. Brate exemplifies how vital informal connections are within a company’s ecosystem, particularly when dealing with project facilitation and problem-solving.
On May 1, 20Y6, Stanton Company purchased $100,000 of Harris Company's 12% bonds at 100 plus accrued interest of $4,000. On June 30, 20Y6, Stanton received its first semiannual interest. On February 1, 20Y7, Stanton sold $80,000 of the bonds at 103 plus accrued interest. The journal entry Stanton will record on February 1, 20Y7, will include a a. credit to Interest Revenue for $2,400. b. credit to Gain on Sale of Investments for $2,400. c. debit to Cash for $82,400 d. credit to Interest Receivable for $1,000.
Answer:
Credit to Gain on Sale of Investments for $2,400
Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $15 per share and it has 4.7 million shares outstanding. The firm's total capital is $110 million and it finances with only debt and common equity. What is its debt-to-capital ratio
Answer:
35.91%
Explanation:
The formula and the computation of the debt to capital ratio is shown below:
The debt to capital ratio equals to
= (Debt ÷ total invested capital) × 100
where,
Debt = Total capital - stock price × number of shares outstanding
= $110 million - $15 × 4.7 million shares
= $110 - $70.5 million
= $39.5 million
And, the total invested capital is $110 million
So, the debt to equity ratio is
= $39.5 million ÷ $110 million
= 35.91%
Final answer:
The debt-to-capital ratio of Kaye's Kitchenware is calculated by subtracting the market value of equity from the total capital to get the value of debt and then dividing that by the total capital. The result is a ratio of 0.359 or 35.9%.
Explanation:
The student is asking how to calculate Kaye's Kitchenware's debt-to-capital ratio. The market/book ratio of 1 indicates that the market value of equity equals the book value of equity. Since stock price is $15 per share and there are 4.7 million shares outstanding, the market value of equity is $15 multiplied by 4.7 million, which equals $70.5 million. Total capital is given as $110 million, and since the company finances with debt and common equity, we can subtract the market value of equity from total capital to determine the value of debt.
Debt = Total Capital - Market Value of Equity = $110 million - $70.5 million = $39.5 million
Finally, to find the debt-to-capital ratio, we divide the value of debt by the total capital:
Debt-to-Capital Ratio = Debt / Total Capital = $39.5 million / $110 million
Therefore, the debt-to-capital ratio of Kaye's Kitchenware is 0.359 or 35.9%.
Q: Lisa sells 10 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles, and the labels was $70. In addition, it took her 2 hours to make the ketchup and to do so she took time off from a job that paid her $10 per hour. Lisa's accounting profit is ............ while her economic profit is ..............
Answer:
Accounting Profit = $100
Economic profit = $80
Explanation:
Given that
Sales = 10
Cost = $10
The calculation of accounting profit and economic profit is shown below:-
Accounting Profit = Sales × Costs
= 10 × $10
= $100
For calculating accounting profit we simply multiply sales with costs.
Economic profit = Accounting profit - Opportunity cost
= $100 - 2 × $10
= $80
For calculating the economic profit we simply deduct the opportunity cost from accounting profit.
A sales clerk enters a customer's six-number customer account. The computer program uses the first five numbers to calculate a sixth number. This resulting number is then compared to the sixth number entered by the sales clerk. This is an example of a:_________________.1. Valid character test2. Missing data test3. Reasonableness test4. Checklist
Final answer:
The example you provided is an example of a Reasonableness test. In this case, the computer program uses the first five numbers entered by the sales clerk to calculate a sixth number and compares it to the sixth number entered by the sales clerk. If they are reasonably close, it is considered a valid entry.
Explanation:
The example you provided is an example of a Reasonableness test.
In this case, the computer program uses the first five numbers entered by the sales clerk to calculate a sixth number. The resulting number is then compared to the sixth number entered by the sales clerk. If the calculated number and the entered number are reasonably close, it is considered a valid entry.
For example, if a sales clerk enters the customer account numbers 123456 and the program calculates the sixth number as 7, the sales clerk should enter 7 as the sixth number. If the calculated number and the entered number are significantly different, it may indicate an error in data entry.
When Sebastian wrote the contract with BP for over two billion dollars, he included targets for performance that had to be met before a payment would be released. Sebastian was trying to avoid ________bias.
Answer:
The question is incomplete, The complete question with options should be;
When Sebastian wrote the contract with BP for over two billion dollars, he included targets for performance that had to be met before a payment would be released. Sebastian was trying to avoid ________bias.
A. overconfidence
B. escalation of commitment
C. sunk-cost
D. framing
E. hindsight
The answer is
B. Escalation of commitment
Explanation:
Escalation of commitment is a human behavior pattern in which an individual or group facing increasingly negative outcomes from a decision, action, or investment regardless continues the behavior instead of changing the course.
It simply means the irrational behaviour of investing additional resources to a project that is failing.
These resources could be time, energy and money that an individual continue to invest into a falling and sinking venture or business
So, in this situation, before releasing the payment, Sebastian ensures that the targets should be met for the performance. He is avoiding the situation of escalation of commitment bias of him continuing to release or invest money into an already failing contract.
If interest rates in general were to fall, 1. the prices of existing bonds would rise 2. the prices of existing bonds would fall 3. yields to maturity would rise 4. yields to maturity would fall
If general interest rates fall, the prices of existing bonds would rise as they become more attractive to investors looking for higher yields than the prevalent rate. Consequently, the yield to maturity for these bonds decreases because it's inversely related to the bond price.
Explanation:If general interest rates were to fall, the prices of existing bonds would rise and yields to maturity would fall. This occurs because when an existing bond has a yield higher than the prevalent rate, its price rises as it becomes more attractive to investors. Conversely, the yield to maturity falls because it's inversely related to the bond's price.
Financial markets display a wide range of interest rates, usually influenced by a combination of the federal funds rate and the forces of supply and demand in the lending and borrowing markets. Hence, a drop in general interest rates reduces the yields to maturity as well.
It's crucial to note that the relationship between bond prices, interest rates, and yields to maturity is specific and generally holds irrespective of whether the interest rates rise or fall. The present value calculation further elucidates this concept.
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For a particular competitive firm, the minimum value of the average variable cost (AVC) is $12 and is reached when 200 units of output are produced. For the same firm, the minimum value of the average total cost (ATC) is $15 and is reached when 230 units of output are produced. Which of the following statements is correct?
a. In the short run, the firm will shut down if the price of its product is $11.
b. In the long run, the firm will shut down if the price of its product is $14.
c. If the price of its product is $12, then the firm's loss if it produces 200 units of output is the same as its loss if it shuts down.
d. All of the above are correct.
its D i am 100% sure1
Answer:
d. All of the above are correct.
Explanation:
The following statements is correct are :
A) In the short run, the firm will shut down if the price of its product decreases by $11 .
B) In the long run, the firm will shut down if the price of its product is decreased by $14.
C) The minimum value of variable cost equals the variable cost of producing 1 single unit, not the variable cost of producing 200 units.
Thus, all the statements are correct.
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Valerie contracts with Esteban, who agrees to build a stone retaining wall and drain on her property. The wall and drain are necessary to prevent erosion of her land, which is falling into the creek on her property at a rapid rate. If Esteban breaches the contract, Valerie is under a legal obligation to:__________.
a. wait until Esteban is prepared to build the wall and drain.
b. mitigate her damages.
c. do nothing, because she is the innocent party and thus has no legal duties.
d. absorb all of the costs associated with the property erosion caused by Esteban's breach.
Answer:
The correect answer is b. mitigate her damages.
Explanation:
The duty to mitigate damages, also called the duty of cooperation or obligation for itself, constitutes a limit to the protection of the right of the affected party with the breach in regard to the amount of compensation, which arises after the cause of the damage.
This legal figure imposes on the creditor the duty to take reasonable measures at its disposal to reduce the damage arising from the breach of contract and, correspondingly, abstain of those unreasonable that can increase it. This means that the mitigation duty operates as a disincentive mechanism to the passive or negligent attitudes of the creditor in the face of default, and prompts him to prevent the aggravation of the damage.
Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts him completely. Whenever Levi needs to order new inventory from his supplier, he sends him information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough he is. Finding defective products are so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified. Refer to Scenario 8.1. Levi is getting ready to order another shipment of frying pans. However, he wants to switch from cast iron to aluminum. What type of purchase is Levi using?
Answer:
modified rebuy
Explanation:
A modified rebuy takes place when a buyer decides to make another purchase form his/her usual vendor, but the new purchase includes some different items or different characteristics than previous purchases. In this case, Levi is modifying the characteristics of the goods that he usually purchases from his usual vendor.
A company is recording the disposal of accounts receivable with two different transactions. One transaction affects the balance of two asset accounts and one stockholders' equity account, whereas the second transaction affects one asset account and two stockholders' equity accounts. Which of the following most accurately describes these transactions?
The first transaction records the sale of accounts receivable to a factor, whereas the second transaction records a sale that was paid using a national credit card.
The journal entry for the sale of receivables to a factor requires a debit to Cash (asset), a debit to Service Charge Expense (stockholders' equity), and a credit to Accounts Receivable (asset). Therefore, it affects two asset accounts and one stockholders' equity account. In contrast, the journal entry for a sale paid with a national credit card requires a debit to Cash (asset), a debit to Service Charge Expense (stockholders' equity), and a credit to Sales Revenue (stockholders' equity). Therefore, it affects one asset account and two stockholders' equity accounts. A sale made with a store credit card does not dispose of accounts receivable; instead, it increases Accounts Receivable and increases Sales Revenue.
The following statements more accurately describe the transactions:
- The first transaction records the sale of accounts receivable to a factor, whereas the second transaction records a sale that was paid using a national credit card.
- The journal entry for the sale of receivables to a factor requires a debit to Cash (asset), a debit to Service Charge Expense (stockholders' equity), and a credit to Accounts Receivable (asset). Therefore, it affects two asset accounts and one stockholders' equity account. In contrast, the journal entry for a sale paid with a national credit card requires a debit to Cash (asset), a debit to Service Charge Expense (stockholders' equity), and a credit to Sales Revenue (stockholders' equity). Therefore, it affects one asset account and two stockholders' equity accounts. A sale made with a store credit card does not dispose of accounts receivable; instead, it increases Accounts Receivable and increases Sales Revenue.
Explanation:
The assets owned by the company are recorded in the form of account known as asset account. Capital expenditures are debited to an asset account, and the expenditure is said to be capitalized. If the owner of the business increases the assets amount, the asset account will also be increased.
Equity account illustrates the financial representation of the ownership of a business. The payment made by the owner to the business or the earnings that are generated by the business are considered as equity. As the equity funds come from different sources, the equity is stored in multiple types of accounts.