Answer: The correct answer is A) Net Income would be overstated (Expenses understated) and Balance Sheet liabilities would be understated.
Explanation: An omission of a posting of an expense incurred during a financial year and payable in thesubsequent year will lead to an understatement of expenses and understatement of liabilities.
In general, when an expense is omitted it leads to increased net income as less expense will be knocked off against income.
The balance sheet on the other hand will be understated in terms of a reduced liability balance.
While Steve is cleaning out his garage, he finds an old surfboard that he no longer needs. As he walks to the dumpster to throw it out, his neighbor John asks if he could have it. John offers Steve a 6-pack of beer (worth $10) in exchange, which Steve happily accepts. Steve has achieved a producer surplus of:_______
a) $50, because that's what the surfboard was likely worth.
b) $o, since he was just going to throw out the board
c) $5, because Steve and John benefited equally from the $10 transaction.
d) $10, the value of the beer he received
Answer:
b) $0, since he was just going to throw out the board
Explanation:
Producer surplus would have applied if the old surfboard that he no longer needs was produced by him.
Producer surplus measures the benefit to sellers of participating in a market. It is measured as the amount a seller is paid minus the cost of production. For an individual sale, producer surplus is measured as the difference between the market price and the cost of production, as shown on the supply curve.
There is a difference between profit and Producer Surplus which is the fixed cost of production.
In conclusion Steve benefited $10 but that cannot be called a producer surplus.
When you have a nice steak dinner at a local restaurant, literally thousands of people engage in actions that make your dinner possible. Identify at least 10 people who were involved in your steak dinner and briefly describe their role.
Answer:
Explanation:
1. The person who raised the cows, the farmer
2. The person who butchered the animal, the butcher
3. The driver who delivered the meat,
the delivery person
4. The person who orders and receives the meat and food products, kitchen manager
5. The food prep person who prepares your food, food preparation worker
6. The person who washes the dishes so you can have clean dishes, the dishwasher
7. The hostess who seats you and your table, the hostess
8. The person who creates the menu, the head chef
9. The chef who cooked your food, the chef
10. The waiter (or waitress) who took your food to the table, the waiter( or waitress)
Many people are involved in the process of getting a steak dinner to your table at a restaurant, including individuals such as ranchers, feed suppliers, butchers, transport drivers, restaurant owners, chefs, cooks, waitstaff, dishwashers, and other suppliers.
Explanation:A great number of individuals are involved in the process of serving a steak dinner at a restaurant. Here are ten people who, in one way or another, contribute:
Rancher: Raises the cattle that is eventually transformed into your steak at the restaurant.Feed Supplier: Provides the necessary feed for the cattle to grow.Butcher: Slaughters the cattle and prepares the cuts of meat that arrive at the restaurant.Transport Driver: Ensures the safe, sanitary, and efficient transportation of the meat from the butcher to the restaurant.Restaurant Owner: They select the items on the menu, including the steak you order.Executive Chef: Develops the recipes for each dish, including the cooking method for your steak.Line Cook: Executes the recipe and physically cooks your steak.Waitstaff: Takes your order, serves your food, and provides service throughout your meal.Dishwasher: Cleans the dishes on which your meal is served.Supplier of other ingredients or sides: Everything else in your meal from the potatoes to the garnishes to your dessert. Learn more about Steak dinner process here:https://brainly.com/question/11131493
#SPJ3
Job HE-65 at Wilson Manufacturing Inc. required $300 of direct materials and 15 direct labor hours at $10 per hour. The company’s estimated total overhead cost for the year was $900,000 and estimated direct labor hours were 30,000.
Answer:
Job HE-65 total cost 900 dollars
Explanation:
predeterminated overhead rate:
expected cost / expected driver
900,000 / 30,000 = $30
Each labor hour generates $30 dollars of overhead according to our expectation
Now we solve for the cost of job HE-65
materials 300
labor 15 hours x $10 = 150
and overhead 15 hours x $30 each = 450
total cost 300 + 150 + 450 0 900
Answer:
$900
Explanation:
costs for Job HE-65:
direct materials = $300
direct labor = 15 x $10 = $150
applied overhead = ??? = $30 per labor hour x 15 labor hours = $450
⇵
if we apply predetermined overhead rate based on direct labor hours, then we should apply $900,000 / 30,000 = $30 per labor hour.
the total costs for JOB HE-65 = $300 + $150 + $450 = $900
Which of the following operations decisions is not a long-term strategic decision?
Capacity planning
Work shift scheduling
Manufacturing process selection
Facility location
Product design
Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position?
Top management involvement
Delivery speed
Coping with changes in demand
Delivery reliability
Process quality
Answer:
The answer is Work shift scheduling.
Work shift scheduling is done on either a daily or a weekly/monthly basis. In addition, work has to be scheduled whenever a strategic change has been made or whenever an outside effect influences the company processes.
The second answer is Top management involvement. Competitive pricing, fast and reliable delivery along with adjusting to the changing demand of customers are all competitive strategic dimensions yet Top management do not need to involve in every process of a company. They do formulate the policies, yet there is no universal rule for them to participate in everything.
Explanation:
. A firm decides to pay for a small investment project through a $1 million increase in short-term bank loans. This is best described as an example of a(n): A. financing decision. B. investment decision. C. capital budgeting decision. D. capital market decision.
Answer:
A. financing decision.
Explanation:
The financial decision refers to that decision which reflects the borrowing and fund allocation. It also results in the investment that is paid and expenses held that can increase the shareholder wealth.
It consists of capital structure, working capital management decisions. The capital structure shows a mix of debt and equity whereas the working capital shows the current assets and the current liabilities
According to the given situation, since the small investment project is paid through a $1 million that shows a financing decision
A person with a FICO score of 780 applies for a loan and gets an interest rate of 5% with a monthly payment of $439. A second person, with a FICO score of 550 applies for the same loan and gets a rate of 22% with a monthly payment of $511. What is the monthly savings for the person with the highest credit score?
Answer:
C. $72
Explanation:
Answer: 72
Explanation:
A company borrows $100,000 from a bank; this is part of the: a. Secondary debt market b. Primary debt market c. Secondary equity market d. Primary equity market
Answer:
The answer is B. Primary Debt Market
Explanation:
Primary Debt Market is a type of market in which participants issue/obtain loan(bonds, notes, bills etc.)directly from a company(bank or lender).
The money is directly from the bank to the debtor(the company that is borrowing money).
Option B is incorrect because secondary debt market is from hand to hand i.e from debtor to debtor.
For example, Mr A. obtains a loan of $1000 dollar from a bank. This is primarily debt market. And afterwards Mr A. sells this particular loan to Mr B. This is secondary debt market because it is not directly from the bank.
Option C and D are incorrect because this transaction is a debt transaction and not an equity transaction
Expansionary fiscal policy actions include __________ government spending and/or __________ taxes, while contractionary fiscal policy actions include __________ government spending and/or __________ taxes.
Answer:
increasing; decreasing; decreasing; increasing
Explanation:
Answer:
Expansionary fiscal policy actions include __increase__ government spending and/or _decrease_ taxes, while contractionary fiscal policy actions include __decrease_ government spending and/or __increase__ taxes.
Explanation:
The fical policy stand for what is the government doing to the aggreate demand curve.
When it is expanding it means it increase their defecit or reduces their surplus
As increases the expenses or reduces the taxation on the agent ( enterprise and families). Both, makes more demand for good as the consumer will consumer a protion of the tax-cut and save another (increasing investing) while the spending will consume goods.
The opposite will occur at a contractionary fiscal polocy. In this policy the state weight in the economy decreases.
The following chart describes opportunities and challenges in the external environments that surround businesses. Which of the following statements best characterize and fit in the shaded cells? Databases present themselves as a challenge and threat in the technological environment; while globalization has provided for an increase in the standard of living in the global environment. Identity theft is a challenge in the technological environment of businesses, while the desire for green living presents opportunities for new businesses in the global environment. E-commerce is a costly technological environment challenge, while the leisure time of seniors creates an opportunity in the global environment. Identity theft remains a technological environment challenge, while war and terrorism satisfy opportunities in the global environment due to the fact that they remain a small cost to society
Answer:
Identity theft is a challenge in the technological environment of businesses, while the desire for green living presents opportunities for new businesses in the global environment.
Explanation:
The following statements best characterize and fit in the shaded cells these statements accurately reflect the opportunities and challenges presented by the technological and global environments for businesses.
1. Databases present themselves as a challenge and threat in the technological environment.
2. Globalization has provided for an increase in the standard of living in the global environment.
3. Identity theft is a challenge in the technological environment of businesses.
4. The desire for green living presents opportunities for new businesses in the global environment.
For similar questions on shaded cells
https://brainly.com/question/37455473
#SPJ3
Each of the following is a primary consideration in the choice of business entity, except: a. The degree to which the founders' personal assets are protected from liabilities of the business b. The availability of favorable tax strategies c. The desirability for potential investors and lenders d. The entrepreneur's lifestyle
Answer:
d. The entrepreneur's lifestyle
Explanation:
One of the principles of accounting is business entity, the business is a distinct entity from the owners. So the lifestyle of the enterpreneur does not affect the business.
Also because of this financial transactions of the business and those of the owners are mutually exclusive. For example if an entrepreneur buys a house for himself, this is not connected to the business and the business cannot lay claim on it. This also applies vice versa when the business obtains property the owner cannot claim it for personal use.
Answer:
D
Explanation:
A business entity means that the business is its own owner and it is a completely different and distinct entity from the entrrpreneur. Definitely the lifestyle of the enterpreneur cannot affect the business.
The finances owned by the business and that owned by the enterpreneur doesn"t have a meeting point and are seperate entities
If the business buys a car for itself, this is not connected to the enterpreneur even though he might be using it and the enterpreneur cannot lay claim on it. In case the business is liquidated the car is sold as an assest of the business. This goes for the enterpreneur personal property also. So his lifestyle is not part of the business entity.
On January 1, 2021, Solis Co. issued its 10% bonds in the face amount of $8,000,000, which mature on January 1, 2031. The bonds were issued for $9,080,000 to yield 8%, resulting in the bond premium of $1,080,000. Solis uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2021, Solis's adjusted unamortized bond premium should be
Answer:
1,006,400
Explanation:
To know the unamortized portion we have to solve for the amount amortizated at the first payment in December 31th,2021.
Under the effective-rate method we will calculate the amortization as follow:
interest expense:
9,080,000 x 8% = 726,400
cash outlay:
8,000,000 x 10% = 800,000
amortization on premium:
800,000 - 726,400 = 73,600
the unamortized bond premium at year-end should be:
1,080,000 - 73,600 = 1,006,400
Beta Corporation is planning operations for the coming year. Beta uses normal costing and applies overhead on the basis of direct labor hours. The estimated overhead cost amounts to $10,000,000, estimated direct labor hours are 125,000, estimated direct labor cost amounts to $3,200,000, and estimated direct materials cost is $23,000,000. What is Beta's predetermined overhead rate?
Answer:
The correct answer is $80 per hour.
Explanation:
According to the scenario, the given data are as follows:
Estimated overhead cost = $10,000,000
Estimated direct labor hours = 125,000 hours
Direct labor cost amount = $3,200,000
Direct material cost = $23,000,000
So, we can calculate the predetermined overhead rate by using following formula:
Predetermined overhead rate = Estimated overhead /Estimated Direct labor hours
= $10,000,000 / 125,000 hours
= $80 per hour
Hence, the predetermined overhead rate is $80 per hour.
John decides to leave college early and play professional sports. Which of the following economic principles does John use? i) personal economic policies ii) marginal cost versus marginal benefit analysis iii) normative versus positive economics
Answer:
i) personal economic policies ii) marginal cost versus marginal benefit analysis
Explanation:
Marginal costs and benefits are an integral part of the economy as they help to calculate costs and benefits accurately at a particular production stage and usage stage.
An economic policy is an act that aims at influencing or controlling economic behavior.
At this stage John believes his decision will influence his economy positively and he sees more long-term benefits than costs for him if he plays professional sports rather than staying in college.
John's decision involves a marginal cost versus marginal benefit analysis, where he assesses the immediate benefits of professional sports against the costs of leaving college early.
John's decision to leave college early and play professional sports primarily involves marginal cost versus marginal benefit analysis. This economic principle suggests that John is assessing the additional costs and benefits of his next immediate action. Essentially, he is comparing the marginal benefit of earning immediately through professional sports against the marginal cost of forgoing his education temporarily or permanently. This analysis allows individuals to make choices that they believe will maximize their utility or satisfaction, based on the concept that people make decisions by considering the incremental costs and benefits of their actions. In John's case, if the perceived benefit of playing professional sports outweighs the cost of leaving college early, his choice aligns with this economic principle. This approach is practical in various decision-making processes where individuals weigh the immediate benefits against the potential costs.
The following situations should be considered independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)1. John Jamison wants to accumulate $75,000 for a down payment on a small business. He will invest $35,000 today in a bank account paying 8% interest compounded annually. Approximately how long will it take John to reach his goal?PV= $35,000, n=?, i=8%, FV=$75,0002. The Jasmine Tea Company purchased merchandise from a supplier for $43,700. Payment was a noninterest-bearing note requiring Jasmine to make six annual payments of $8,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement?PV=$43,700, n=6, i=%, Annuity Payment= $8,0003. Sam Robinson borrowed $18,000 from a friend and promised to pay the loan in 10 equal annual installments beginning one year from the date of the loan. Sam’s friend would like to be reimbursed for the time value of money at a 9% annual rate. What is the annual payment Sam must make to pay back his friend?Table or calculator function: PVA of $1. PV= $18,000, n=10, i=9%, Annual Installment=?
Answer:
Explanation:
(1)
FV = PV x (1 + r)^N
FV = $75,000
PV = $35,000
r = 8%
75,000 = 35,000 x (1.08)^N
(1.08)N = 2.1429
N ln 1.08 = ln 2.1429
N = ln 2.1429 / ln 1.08 = 0.33 / 0.033 = 10 years
(2)
FV = Annual payment, A x PVA
FV = $43,700
n = 6 years
A = 8,000
43,700 = 8,000 x PVA
PVA = 5.4625
PVIFA (6 years, r%) = 5.4172
r=3%.
(3)
PV = Annual payment, A x PVIFA (r%, n years)
PV = $18,000
n = 6 years
r = 9%
$18,000 = A x PVIFA (9%, 6 years) = A x 4.4859 [From PVIFA table]
A = $18,000 / 4.4859 = $4,012.57
John will take approximately 7.52 years to reach his investment goal of $75,000 at 8% annual interest rate. Jasmine Tea Company's home agreement indicates an implicit interest rate of approximately 6.35%. Sam must make an annual installment of $2,702 to repay his $18,000 loan over 10 years at 9% interest.
Explanation:1. To calculate how long it will take John to reach his goal, we would need to use the formula for future value of $1: FV = PV*(1+i)^n. Solving for n, we get n = log(FV/PV) / log(1+i). Plugging in the given values, we get n ≈ 7.52 years.
2. To find the implicit interest rate, we first calculate the present value of the annuity using the given value. Then, we equate it to the formula of present value of annuity: PV = Annuity Payment * PVA of $1 factor(n,i). Solving for interest rate i, we require iterative process or financial calculator to find i ≈ 6.35%
3. To calculate Sam's annual installment, we will use the formula for the present value of an annuity: PV = Annual Installment * PVA of $1 factor(n,i). Solving for 'Annual Installment', it results in $18,000 / PVA of $1 factor(n,i) = $2,702.
Learn more about Financial Mathematics here:https://brainly.com/question/31955701
#SPJ3
When the price of a good (e.g., oranges) or service (e.g., hair cut) changes,
a. the demand curve of that good or service shifts in the same direction.
b. the demand curve of that good or service shifts in the opposite direction.
c. the supply curve of that good or service shifts in the opposite direction.
d. there is a movement along the demand curve of that good or service.
Answer:
d. there is a movement along the demand curve of that good or service.
Explanation:
A change in price of a good or service leads to a movement along the demand curve either up or down. If price increase, quantity demanded falls and there's a movement up the demand curve. If prices fall, quantity demanded rises and there's a movement down the demand curve.
I hope my answer helps you
When the price of a good or service changes, there is a movement along the demand curve of that good or service, not a shift in the curve. This movement represents a change in the quantity demanded due to a change in price.
Explanation:When the price of a good or service changes, it does not cause the demand curve or the supply curve to shift. Instead, it results in a movement along the existing demand curve. This is because the demand curve represents the relationship between price and quantity demanded, all else being equal. This is known as the law of demand. Therefore, a change in price results in a change in the quantity demanded, which is a movement along the demand curve, not a shift of the curve itself.
For example, if the price of oranges decreases, according to the law of demand, the quantity demanded for oranges will increase. This represents a movement down along the demand curve for oranges. So the correct answer is (d) there is a movement along the demand curve of that good or service when its price changes.
Learn more about Price Change and Demand Curve here:https://brainly.com/question/14844856
#SPJ12
In year 8, Mondo Magazines began selling one- and two-year subscriptions to its publications. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales activity revealed the following:____________
Answer:
$450,000
Explanation:
Deferred subscription revenue (or unearned subscription revenue) is a liability account since your customers paid you in advance for goods or services that you must provide in the future.
The net unearned revue for 2018 and 2019 is = $390,000 and $460,000 respectively.
Of the 2018 amount, only $115,000 (= $390,000 - $115,000 - $160,000) remain as a liability during 2019 since they expire on 2020.
Of the 2019 amount, $335,000 (= $460,000 - $125,000) remain as a liability during 2019 since they expire on 2020 and 2021.
By December 31, 2019, unearned revenue = $115,000 + $335,000 = $450,000
A company has 10,000 shares of $100 par, 6% cumulative preferred stock outstanding. If the company declares a total of $200,000 of cash dividends for the year for both its common and preferred stock and the preferred stock is two years in arrears, how much will be allocated to the (1) preferred stockholders and (2) the common stockholders?
A) (1) $60,000 and (2) $140,000
B) (1) $120,000 and $80,000.
C) (1) $180,000 and $20,000.
D) (1) $200,000 and (2) $0.
E) None of the above.
Answer:
A) (1) $60,000 and (2) $140,000
Explanation:
Number of preferred share = 10,000
Price of Preferred share = $100
Total value of Preference share = 10,000 x $100 = $1,000,000
(1) Preferred dividend = $1,000,000 x 6% = $60,000
Total Dividend Announced = $200,000
Dividend for common stockholders = Total Announced Dividend - Dividend for Preferred Stockholders
(2) Dividend for common stockholders = $200,000 - $60,000
Dividend for common stockholders = $140,000
The employees at Titanium Inc. have the freedom to plan their own schedules and areempowered to make decisions. They also believe in sharing common goals. The managers have highlevels of trust in their employees and foster team work. These beliefs and attitudes constituteTitanium's _____.
(A) opportunistic behavior
(B) industry regulation
(C) general environment
(D) organizational culture
Answer: Organizational culture
Explanation:
The organizational culture is the term which refers to the vales, assumptions and the beliefs of the people that helps in governing the people behavior in an organization.
The main objective of the organizational culture is that it helps control the behavior of the employees in an organization or any workplace.
According to the given question, Titanium Inc. is one of the organization in which the employees easily plan their own schedule and also have the freedom for making the various types of decisions.
Therefore, These given attitude and the beliefs constitute the Titanium's organizational culture.
"A cost that is constant within a relevant range but differs outside the relevant range of activity is best classified as what type of cost?"
Consider the following: Cash in Bank - checking account of $18, 500 Cash on hand of $500. Post dated checks received totaling $3 500 and Certificates of deposits totaling $24,000. How much should be reported at cash in the balance sheet?
a. $18.500
b $19,000
c. $22, 500
d. $130, 500
Answer:
b $19,000
Explanation:
The reconciliation between the book balance and the bank statement examines the transactions recorded in either account but omitted in the other and the transactions recorded wrongly in both accounts.
Given the following transactions
Cash in Bank - checking account = $18, 500
Cash on hand = $500
Post dated checks received = $3 500 and
Certificates of deposits = $24,000
Cash balance in balance sheet = $18, 500 + $500 + $24,000
= $43,000
The post dated check is not included as the cash is yet to be received. The balance in the post dated check will form part of the receivables balance and not that of cash.
The certificate of deposit may be accounted for as part of cash and cash equivalent as shown in the computation above. Where the certificate of deposit is accounted for as a short term investment,
Cash balance in balance sheet = $18, 500 + $500 = $19,000
The total cash that should be reported on the balance sheet is $19,000, accounting for the sum of cash in the checking account and cash on hand, but excluding post-dated checks and certificates of deposit.
The question asks how much should be reported as cash in the balance sheet, considering various forms of cash and near-cash items. To find the correct answer, we must identify which items can be classified as cash or cash equivalents. Cash in the bank - checking account of $18,500 and cash on hand of $500 are clear-cut cash items. Post-dated checks received totaling $3,500 are not immediately accessible as cash and therefore should not be included. Certificates of deposits totaling $24,000, while often considered a cash equivalent, are subject to specific criteria such as maturity dates and are not typically classified as cash for most reporting purposes. Hence, the sum of the cash items suitable for reporting on the balance sheet as cash is $19,000 ($18,500 in the checking account + $500 cash on hand), making option b the correct answer.
Dora and Keith are managers at ABC Corporation. Keith is having problems in his department due to lack of innovation. In response, he consults the corporate procedures manual and speaks with his boss about the right way to solve the problem. Dora is also having a similar problem in her own department but decides to confront it by hosting team luncheons where she can learn new perspectives and discuss new "outside the box" ways to deal with the problem.
Keith is an example of a(n) _____ thinker.
Answer:
Convergent Thinker
Explanation:
A convergent thinker is the one who gives correct answers to the problems and does not considers other options whereas divergent thinker considers all the possible options to choose the best options. It doesn't matter who you are, all that matters is what is your decision. You can not be right all the times. Divergent thinker is bit more risk averse approach and creative people are always divergent thinkers.
Clear Colors Corporation uses a predetermined overhead rate based on direct labor costs to apply manufacturing overhead to jobs. At the beginning of the year the Corporation estimated its total manufacturing overhead cost at $350,000 and its direct labor costs at $200,000. The actual overhead cost incurred during the year was $362,000 and the actual direct labor costs incurred on jobs during the year was $208,000. The manufacturing overhead for the year would be:a. $12,000 underapplied
b. $2,000 overapplied
c. $12,000 overapplied
d. $2,000 underapplied
Answer:
b. $ 2,000 overapplied
Explanation:
Firstly, we need to determine the predetermined overhead rate based on direct labor costs.
Estimated total manufacturing Overhead $ 350,000
Estimated direct labour costs $ 200,000
Predetermined overhead rate $ 350,000 / $ 200,000 $ 1.75 per $ of direct labour costs.
The total manufacturing overhead applied on direct labor costs of $ 208,000, is:
$ 208,000 * $ 1.75 $ 364,000
Actual overhead costs incurred $ 362,000
Manufacturing overhead over applied $ 2,000
Final answer:
The correct answer is b. $2,000 overapplied. Clear Colors Corporation had a predetermined overhead rate of 175%, resulting in $364,000 of overhead being applied based on the actual direct labor costs of $208,000, while the actual overhead cost was $362,000.
Explanation:
Clear Colors Corporation calculates the predetermined overhead rate by dividing the estimated total manufacturing overhead cost by the estimated direct labor costs. For the current year, they estimated their overhead cost at $350,000 and direct labor costs to be $200,000, which gives us a predetermined overhead rate of 175% (350,000 / 200,000).
During the year, the actual direct labor costs were $208,000. To find the applied overhead, we multiply the actual direct labor costs by the predetermined overhead rate: $208,000 × 175% = $364,000. This is the amount of overhead that should be applied to the jobs based on the actual direct labor costs.
The actual overhead costs incurred were $362,000. Comparing this to the applied overhead ($364,000), we see that overhead was overapplied by $2,000 because the company applied more overhead to the jobs than the actual costs incurred.
Therefore, the correct answer to the question is b. $2,000 overapplied.
Jane contracts Tom, a home developer, to build her a new house. In the contract it states that all necessary parts of the home must be complete before the contract is to be considered finished. However, Tom decides it is simply too much work to carpet and tile the home and finishes his work without completing the carpet and tile. Tom breached his contract with Jane. To initiate a lawsuit against Tom, Jane must:
Answer:
Simply file a complain in the court. The court will read the contract and then order Tom to finish the necessary parts of the company which means that the finishing of the tiles and carpet was an implied clause in the contract. So it seems better for Jane to sue Tom to mitigate for damages.
Mark is refinishing an antique china cabinet and has already spent $180 on the restoration. He expects to be able to sell the cabinet for $360. Mark discovers that he needs to do an additional $200 of work to make the cabinet worth $360 to potential buyers. He could also sell the cabinet now, without completing the additional work, for $100. What should he do?
Answer:
He should complete the additional work and sell the cabinet for $360.
Explanation:
This is because if he is to sell for $100 without completing the additional work, he will be making a loss of $80, having spent $180.
But on completion of the additional work, he would have spent a total of $380, therefore, if he sells the cabinet for $360, he will only be making a loss of $20.
Therefore, the better option is to complete the additional work and sell for $360.
Caitlin is a highly motivated sales executive for a company that sells business textbooks. She always strives to create personal relationships with the professors of colleges and universities. When a committee of professors at Bridgeton University was constituted to select a new marketing book, her book was selected. Her amiable relationship with the committee chairman paved the way for this selection. The committee chairman trusts Caitlin and believes that she will meet his expectations. Identify the type of relationship between Caitlin and the committee chairman in this scenario.
A. Relational partnership
B. Functional relationship
C. Internal partnership
D. Solo market transaction
E. Strategic partnership
Answer:
A. Relational partnership
Explanation:
Relational partnership - This type of partnership is based on trust and close relationships. In this type of relationship, both parties are open on discussion and always ready to tackle the objection or obstacle by working together.
In every partnership, both parties are trying to get more money but the main focus on this partnership is to get that money for a longer period of time.
Mostly relationship partnership built because of prior relationship but mostly it is happened due to financial necessity.
Check My Work The strategic planning process begins with _______. a. SWOT analysis b. finance objectives c. business-unit strategies d. organizational mission and goals
Answer:
d. organizational mission and goals
Explanation:
Strategic planning process has following sequence:
1. Organizational mission and goals
2. SWOT analysis
3. Marketing objectives
4. Finance objectives
5. Business-unit strategies
So according to above sequence the correct option is b. organizational mission and goals
. What are the advantages of (a) management contracts and (b) franchising? Discuss their impacts on the development of the hotel industry.
Answer:
It enhances Effective and efficient performance
It enhances expansion.
It helps to build strong and competitive brands
FRANCHISING
It enhances Globalization of businesses
It enhances brand recognition
Explanation: Management contracts are contracts through which the management of an business entity is handed over to another set of managers in order to achieve certain objectives.
Franchising is allows a business entity expand more rapidly by using funds from the Franchise investors'. Franchising factors both parties.
Franchising started with Hotels in 1907, top brands in the United States of America a currently into Franchise agreement throughout the world.
Nick, a hotel general manager, has had great success using MBO. Vivian, his district manager, has found that Nick’s employees are highly motivated. Because Nick _________, Vivian is able to discern that he is using MBO.
Answer:
Rewards his employees with compliments, raises, and other benefits as they meet their goals.
Explanation:
The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management states that significant ethical issues should be discussed first with an immediate superior unless the superior is involved. If satisfactory resolution cannot be achieved when the problem is initially presented, then the issues should be:a. submitted to the next higher managerial level.b. submitted to the chief executive officer of the firm.c. submitted to the audit committee, executive committee, board of directors, or owners.d. submitted to outside legal counsel.
Answer:
a. submitted to the next higher managerial level.
Explanation:
IMA states the following standards of conduct in management accounting: competence, confidentiality, integrity and credibility.... Confidentiality entails accountants to divulge information only at the behest of their supervisor. Integrity forbids managers to engage in unethical behavior. Once an issue can't be resolved the standard procedure is to move a step up the ladder for further assistance.
MNM & Co incurred depreciation expenses of $36,810 last year. The sales were $903,480 and the addition to retained earnings was $11,530. The firm paid interest of $7,711 and dividends of $7,500. The tax rate was 33 percent. What was the amount of the costs incurred by the company?
Answer:
The costs incurred by the company is the same as the costs of good sold of the company-MNM&Co ,last year.
The costs of good sold=$830,556.01
Explanation:
The detailed computation is found in the excel file attached.