Answer:
Socio economic view
Explanation:
The socio economic view relates to viewing organizational decisions in the light of their both social and economic consequences.
The concept of corporate social responsibility relates to discharge of those social obligations which an enterprise owes to it's various stakeholders.
A business operates within social bounds and thus it becomes indispensable for a business to contribute to social good which could be in the form of amenities, providing better sanitation facilities or better infrastructure.
As per the socio- economic view, economic gains which represent economic profits and social gains as a measure of social betterment, both are inter related and a corporation must not view them as separate.
Which of the following is not one of the value gaps that can undermine customer experiences and can damage relationships?
a. Knowledge Gaps
b. Translation Gaps
c. Performance Gaps
d. Elevation Gaps
e. Perception Gaps
f. Service Quality Gaps
Answer: B and A
Explanation:
The correct option is F. Service Quality Gaps are not one of the value gaps that can undermine customer experiences and can damage relationships.
Identifying gaps between client expectations and the actual services offered at various levels of service delivery is the goal of this model.
How many gaps are there in service quality?The gaps between the perceived and intended levels of service can be found using the GAP Model of Service Quality. In the process of providing services, there are five gaps that might arise, including those between customer expectations and management perceptions and between service quality specifications and perceptions.
Gather any pertinent business intelligence, use trackable KPIs, and make a list of all the contributing elements that led to the current state you're attempting to assess before attempting to pinpoint where a gap is. In this documentation, be as specific and comprehensive as you can.
Thus, F is the right answer. The value gaps that can harm relationships and impair consumer experiences do not include service quality disparities.
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Work teams often assume many activities traditionally reserved for managers. Which of the following is one of the responsibilities of work teams?
selecting new team members
scheduling work
coordinating work with customers and other units of the organization
My choice would be "Coordinating work with customer and other units of the organization".
Explanation:
The given options talk about team work and it purely depends on the responsibility assigned by Team lead to the team under him/her.
Selecting new member: It has to be done by Lead of team because he/ she will be aware of the future works and needs.Scheduling work: This is once again in focus with near future assignments and the Lead would be the right person to schedule work to his/her team.Coordinating work: This can be done by work teams, because they are the actual person who work for the customer and they possess skill to coordinate with minimum guidelines.Work teams in organizations often assume activities traditionally for managers including selecting new team members, scheduling work, and coordinating with customers and other units. This allows organizations to be more responsive to changes and needs while fostering a better understanding amongst team members and their tasks.
Explanation:In modern organizations, work teams often take on many of the activities traditionally managed by managers. Among these responsibilities are selecting new team members, scheduling work, and coordinating work with customers and other units within the organization. This shift allows organizations to be more agile and responsive to changes and needs.
Selecting new team members involves assessing candidates for skills and fit within the team's culture. This can often result in a better match than a manager might achieve because the team members understand their needs and dynamics more intimately.
Scheduling work involves planning and ensuring the jobs and tasks within the team are completed in a timely and effective manner. The team can adjust schedules based on their understanding of the tasks, their complexity, and interdependencies.
Coordinating work with customers and other units requires communication and collaboration skills. Teams may be better placed to understand and respond to the needs of customers and other units, as they are closely involved in the actual work.
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When you apply for credit, the lender will review the "Four C's" to decide whether you are a good credit risk, or in other words, whether you are likely to pay back the loan. Which of the following is NOT one of the "Four C's"? Capacity, Capital, Character, and Collateral.
Answer:
Collateral is not the one of the Four C's that the lender will consider before deciding to either give you the loan or not offering me a loan package.
Explanation:
The Four C's include Capacity of the borrower to payback, Capital requirement of the borrower, character of the borrower and the conditions on which the lender would agree to offer you a loan. So Collateral is not the one of the four C's that the lender would consider before offering loan to the borrower.
Answer:
The correct answer would be B) Family Size
Explanation:
Durable Plastics Company had the following total assets, liabilities, and equity as of December 31. Total Assets $420,000 Total Liabilities 133,000 Total Equity 287,000 What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.)
Answer:
debt ratio = 31.67 %
Explanation:
given data
Total Assets = $420,000
Total Liabilities = 133,000
Total Equity = 287,000
to find out
debt ratio
solution
we get here debt ratio that is express as
debt ratio = [tex]\frac{total\ liability}{total\ assets}[/tex] × 100 ............................1
put here value and we will get
debt ratio = [tex]\frac{133000}{420000}[/tex] × 100
debt ratio = 0.31666 × 100
debt ratio = 31.67 %
The debt ratio of Durable Plastics Company as of December 31 is 31.67%.
Explanation:The debt ratio is a financial ratio that measures the proportion of a company's total debt to its total assets. It indicates the percentage of a company's assets that are financed by debt. To calculate the debt ratio, divide the total liabilities by the total assets and multiply by 100. In this case, the debt ratio for Durable Plastics Company as of December 31 would be:
Debt Ratio = (Total Liabilities / Total Assets) × 100
Debt Ratio = (133,000 / 420,000) × 100
Debt Ratio = 31.67%
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Which of the following countries experienced a decline in total output from 2000 to 2005?
A. Canada.
B. Zimbabwe.
C. China.
D. Burundi.
E. Some countries, such as Zimbabwe, are unable to successfully grow their economies as population growth isgreater than GDP growth.
Answer: The correct answer is "B. Zimbabwe".
Explanation: GDP growth is crucial for an economy, since an increase in it reflects an increase in economic activity. If economic activity picks up, it means that unemployment tends to decrease and that per capita income increases.
In the case of Zimbabwe, population growth is far superior to GDP growth, therefore this makes economic growth much more difficult since there are more people per capita income is diminished.
In general, do you think that outliers would be more likely to occur in the salaries of heads of companies or in the ages of heads of companies? Explain
Answer:
Outliers are more likely to occur in the ages of head of companies than in the salaries of heads of companies.
Explanation:
An outlier is a data point that differs significantly from other observation, it is refer to as an extreme value, compare to other values.
Outliers are more likely to occur in the ages of head of companies than in their salaries because the ages of heads of companies varies, as that is determine by appointment or by efficiency , so anyone of any age that meet the required criteria can assume the position, one can find a youth of 25 as the head of a company or a man in his late 60s as the head of a company.
As for the salaries, it varies as well, but the difference in salaries when compared can not be very wide apart.
When a company introduces new audio products, it often initially sets the price high and lower the price about a year later.
This is an example of:
A) first-degree price discrimination.
B) second-degree price discrimination.
C) intertemporal price discrimination.
D) a two-part tariff.
Answer:
so every one would want to buy it so it would be A
Explanation:
You have just borrowed $20,000 to buy a new car. The loan agreement calls for 36 monthly payments of $700 each to begin one month from today. If the interest is compounded monthly, what is the effective annual rate on this loan?
Answer:
The effective rate on the loan is 13/18% or 0.722%
Explanation:
36 monthly payments of $700 will give = 700*36=$25200
Amount= $25200
Principal= $20000
Interest= amount - principal
Interest= 25200 -20000
=$5200
Rate= (100* interest)/principal*time
= (100*5200)/(20,000*36)
=13/18 %
= 0.722%
The effective annual rate on the loan is 0.722%
Dakota Company experienced the following events during 2018: Acquired $30,000 cash from the issue of common stock. Paid $12,000 cash to purchase land. Borrowed $10,000 cash. Provided services for $20,000 cash. Paid $1,000 cash for utilities expense. Paid $15,000 cash for other operating expenses. Paid a $2,000 cash dividend to the stockholders. Determined that the market value of the land purchased in Event 2 is now $12, 700. Required The January 1, 2018, general ledger account balances are shown in the following accounting equation. Record the eight events in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. Prepare an income statement for the 2018 accounting period. Prepare a statement of changes in equity for the 2018 accounting period. Prepare a year-end balance sheet for the 2018 accounting period. Prepare a statement of cash flows for the 2018 accounting period. Determine the percentage of assets that were provided by retained earnings. Can you determine the cash in retained earnings?
The question involves recording transactions in general ledger accounts, preparing financial statements, and analyzing a company's financial health. Accounting profit is determined by subtracting explicit costs from total revenues. Shareholders invest in a company typically through the purchase of stock, and a bank's net worth can be calculated by subtracting its liabilities from its assets.
Explanation:The student's question covers several fundamental accounting tasks, including recording transactions, preparing financial statements, and analyzing financial health through ratios. To record the events in the general ledger accounts, each transaction must be categorized and entered according to the principles of double-entry bookkeeping. Subsequently, financial statements such as the income statement, statement of changes in equity, balance sheet, and statement of cash flows can be prepared using the information from the ledger accounts.
For example, to calculate accounting profit, we subtract explicit costs from total revenues. Using the self-check question as a guide:
Accounting profit = total revenues minus explicit costs = $1,000,000 - ($600,000 + $150,000 + $200,000) = $50,000.
To address the question about shareholders and company financing:
A company typically obtains money from its sale through issuing shares which can occur during an IPO or secondary offerings.To create a T-account balance sheet for a bank:
Assets | Liabilities
-----------------------------------------|-------------------
Government Bonds: $70 | Deposits: $400
Loans: $500 |
Reserves: $50 |
-----------------------------------------|-------------------
Net Worth: $220
The bank's net worth is calculated as total assets ($70 + $500 + $50) minus liabilities ($400), which equals to $220.
Lastly, it is not possible to directly determine the cash in retained earnings from the information provided without additional context or a complete set of financial statements.
On September 1, Horton purchased $13,300 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $280. Payment for the purchase was made on September 18. Assuming Horton uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as inventory from this purchase?
a. $13,580
b. $13,300
c. $13,167
d. $13,447
Answer:
amount record inventory = 13,167
correct option is c. $13,167
Explanation:
given data
purchased = $13,300
terms = 1/15, net 30
Freight charges = $280
solution
we get here amount record inventory from the purchase
amount record inventory = purchased × ( 1 - 0.01 )
amount record inventory = 13300 × (1 - 0.01)
amount record inventory = 13300 0.99
amount record inventory = 13,167
correct option is c. $13,167
Whose responsibility is it to determine if all of the questions on an application have been answered?a. The agentb. The Clientc. The ownerd. None of these
Explanation:
Option A: Agent is the mediator who is responsible for answering all questions in the application.
Option B: The clients are not the person who can be taken into account for answering all the question. The client acts according to the agent
Option C: The owner does not have a role to answer question. So he cannot be taken into consideration. This option stands invalid.
Option D: None of these is invalid. Somebody has to be responsible for the said scenario.
The owner is responsible for determining if all of the questions on an application have been answered.
Explanation:The owner is responsible for determining if all of the questions on an application have been answered.
When an application is submitted, it is the owner's role to review it and ensure that all required questions have been answered. They have the authority to request additional information or clarification if needed.
The agent may assist the owner in reviewing the application, but ultimately, the responsibility lies with the owner.
Why would government officials need to restore confidence in the coins before people would sue them as money?
Answer:
At the microeconomic level there is confidence in the markets and people increase spending, leaving savings. Officials must demonstrate that they have knowledge of how to handle finances.
Appropriate services must be created in the cities and in this way at the social level, there will be confidence to increase overall spending.
To be a successful manager, the only skills an IT project manager needs to possess is excellent technical skills.
True/False
Answer:
false
Explanation:
For successful IT managers, IT knowledge is not only the skills that need to be inherited but skills like communication, organizational and negotiation skills are must also.
other skills other than IT is also play a very important role in the growth of an individual.
communication skills help to developed interpersonal skills. A good communicator is a good influencer and good motivator thus individual having good communication can help and guide their subordinate to bring the positive results
Amy sets herself a goal and says. "I'd like to lose 10 pounds." Which of the following criteria of the SMART system is missing in Amy's goal?
a. Specificity
b. time frame
c. measurability
d. realism
Answer:
Letter b is correct. Time frame.
Explanation:
The SMART system is defined as an aid tool for achieving goals. It is a tool that can be used both by an individual and in corporations.
In order to achieve a goal, it is necessary to have the ideal planning of the set of actions that will contribute to the achievement.
Therefore, each letter of the word SMART corresponds to a meaning relevant to the effective implementation and achievement of a goal
S: specific. When drawing up a goal you must be direct and specific.
M: Measurable. To achieve goals, it is necessary to use a tangible indicator that assists the measurement.
A: Achievable. A goal must be planned according to the real possibility of being achieved.
R: Relevant. Goals must be relevant and create positive results for a person or organization.
T: Time. It is necessary to determine a time for the goal to be achieved. In the question above, Amy lacked the planning for the deadline for achieving the goal, because without it there are great chances that the goal will not be taken seriously and not met.
Prat Corp. started the 2018 accounting period with $38,000 of assets (all cash), $16,000 of liabilities, and $13,000 of common stock. During the year, the Retained Earnings account increased by $15,050. The bookkeeper reported that Prat paid cash expenses of $30,000 and paid a $2,800 cash dividend to the stockholders, but she could not find a record of the amount of cash that Prat received for performing services. Prat also paid $11,000 cash to reduce the liability owed to the bank, and the business acquired $8,800 of additional cash from the issue of common stock.
Answer:
Revenues = $47,850
Explanation:
To find the revenue, we have to consider some of the things.
1. Increase in retained earnings: Net income increases retained earnings. To get net income, we need more revenues than expenses.
2. Expenses: As we have expenses, we can find the revenues with the help of retained earnings.
3. Dividends: After deducting the dividends, we can get whether retained earnings increase or decrease.
The following formula can be used -
Beginning retained earnings + Net income (current year) (revenues - expenses) - Dividends = Increase in retained earnings
Putting the value in the formula,
$0 + Revenues - $30,000 - $2,800 = $15,050
or, Revenues - $32,800 = $15,050
or, Revenues = $32,800 + $15,050 = $47,850
Violations of security policies are considered to be a(n) __________ issue upon which proper disciplinary actions must be taken.
a. law enforcement
b. employer-employee
c. executive-staff
d. implementation
Answer:
Violations of security policies are considered to be a law enforcement issue upon which proper disciplinary actions must be taken.
Explanation:
The security policies put into place by the organization actually serve as the first wall of protection for the organization. The organization makes it clear through its security policies what actions would be deemed as an attempt to breach the security and what actions are prohibited within and outside the premises of the organization as an employee of the organization:What is the quickest and most efficient way of getting your new employees connected to the intranet
Answer:
Intranet Connectivity:
Explanation:
For smooth working in the office, whether it is small or big business, the most crucial element is connectivity to the company intranet. This is crucial for conducting the work in a smartest and effective way.
The two type of intranet that company acquired is
a) intranet provided by the third party
b) network connectivity managed by the corporation itself
Which of the statement(s) is correct? i. Corporations rarely pay tax on the interest income. ii. Higher tax bracket people tend to buy municipal bond because it is federal tax exempt. iii. Short term capital gain and long-term capital gain are treated differently for individuals. iv. The corporate tax rates in the U.S. is one of the lowest among the developed nations. 6 A. i only B. ii only C. ii and iii D. iii and iv E. All the statements are correct
Answer:
E. All the statements are correct
Explanation:
i. Corporations rarely pay tax on the interest income.
This statement is correct. Some companies do not even pay any income taxes.
ii. Higher tax bracket people tend to buy municipal bond because it is federal tax exempt.
Correct, people who have high incomes, and are subject to a high federal income tax rate often buy municipal bonds because these bonds are exempt from federal income tax.
iii. Short term capital gain and long-term capital gain are treated differently for individuals.
Correct. Short-term capital gains are those obtained from the sale of property that was owned for less than one year. This gains are often treated with the highest tax rate.
Long-term capital gains are those obtained from the sale of property that was owned for more than one year, and are treated with more favorable tax rates.
iv. The corporate tax rates in the U.S. is one of the lowest among the developed nations.
This statement is correct. The corporate tax rate in the U.S. is a nominal 21% (the effective rate can be as low as 0% for some companies). This is one of the lowest rates among developed nations, whose rates hover around 25 to 30% on average.
You can actually give yourself a raise by increasing the flow of money into your own account and decreasing the money flowing out.true or false?
Answer:
True
Explanation:
If more money is coming into your account as compared to going out then you are in "positive cash flow". This means that you are in a situation where you can easily pay your bills and also save some money which is good.
If less money is coming into your account as compared to going out then you are in "negative cash flow". This means that you are in a situation where it is very diificult for you to cover your bills and you need more money to survive.
To conclude, the statement is true that you can give yourself a raise by increasing the flow of money into your account and decreasing the out flow.
The statement is false. Simply increasing the flow of money into your own account and decreasing the flow out does not guarantee an increase in income.
Explanation:The statement that you can give yourself a raise by increasing the flow of money into your own account and decreasing the money flowing out is false. Giving yourself a raise typically refers to increasing your income, which generally requires negotiating with your employer or finding additional sources of income. Simply increasing the flow of money into your own account and decreasing the flow out does not guarantee an increase in income.
While managing your finances effectively can contribute to a healthier financial situation, it does not necessarily lead to a raise in the traditional sense. It is important to explore various avenues for increasing your income, such as career advancement, additional education or skills development, or starting a business.
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Unbiased Expectations Theory The Wall Street Journal reports that the rate on four-year Treasury securities is 1.60 percent and the rate on five-year Treasury securities is 2.15 percent. According to the unbiased expectations theory, what does the market expect the one-year Treasury rate to be four years from today, E(5r1)? (LG6-7)
Answer:
Explanation: Unbiased Expectations Theory states that current long-term interest rates contain an implicit prediction of future short-term interest rates. More specifically, the theory states that an investor should earn the same amount of interest from an investment in a single two-year bond today as that person would with two consecutive investments in one-year bonds.
From the above question:
1 + 1R5= {(1 + 1R4)4(1 + E(5r1))}1/51.0215
= {(1.016)4(1 + E(5r1))}1/5(1.0215)5
= (1.016)4(1 + E(5r1))(1.0215)5 / (1.016)4
= 1 + E(5r1)1 + E(5r1)
= 1.0438E (5r1) = 4.38%
Implementing a marketing plan a. is the starting point of the marketing mix strategy to identify target markets. b. entails gauging the extent to which marketing objectives have been achieved during the specified time period. c. requires delegating authority and responsibility, determining a time frame for completing tasks, and allocating resources. d. provides the mechanisms for evaluating marketing results in light of the plan's objectives.
Answer:
Letter a is correct. Is the starting point of the marketing mix strategy to identify target markets.
Explanation:
A marketing plan can be defined as a detailed document that contains the actions that a company must take to achieve its marketing objectives. Through this document, it is possible to carry out a planning for a product, service and brand.
The stage of implementing the marketing plan is the starting point for the company to outline specific marketing strategies, such as the marketing mix, which is a strategic tool used to achieve its marketing objectives in the target market.
The marketing mix model most used by companies is that of 4P: product, square, price and promotion, and for each of the variables there is a set of specific activities that integrated help to achieve objectives and goals.
Therefore, the implementation stage is extremely relevant for the company, it is necessary to adjust expectations in order to set real and possible goals to be achieved in a certain time, it is also important to assemble a team with qualified professionals for the execution of the plan, so that the actions correspond to the organizational values and strategies. Communication is also essential for feedback, new ideas and suggestions.
It is important to note that a marketing plan is changeable, as several factors influence it to evolve and change, so it is necessary to have constant monitoring and evaluation, so that this is an effective strategy for the company.
Interest-rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items. A. positive; negligibleB. negative; negligibleC. negative; positiveD. positive; negative
Answer:
B. Negative, Negligible
Explanation:
Interest Rate is negatively related to Investment. Higher Interest Rate increases cost of investment, lower interest rate reduces cost of investment.
However, Investment in a particular sector/ industry is also defined by: Concentration of that sector in entire investment outlay & Income Elasticity of the sector's commodity demand. Implicatively, a sector with huge concentration of investment outlay & products with high income elasticity will have more Interest rate sensitive Investment and vice versa.
Construction Industry being very capital intensive has higher investment magnitude & also more Income Elastic demand. So, impact of higher interest rate will impact this industry more.
Necessity goods Industries are less capital intensive , investment concentrated & also have less Income Elastic Demand. So, impact of higher interest rate will impact this industry less.
(Demand's Income Elasticity is the responsiveness of a good's demand to change in Income. It is more in luxurious goods, less in necessity goods)
Interest-rate increases negatively affect the residential home construction industry due to higher borrowing costs, while their effect is negligible on industries producing essential goods like drugs or groceries, which see stable demand.
Interest-rate increases have a negative impact on the residential home construction industry and a negligible effect on industries that produce consumer necessities such as prescription drugs or basic grocery items. Therefore, the correct answer is B. negative; negligible. The relationship between interest rates and investment is directly linked to the cost of borrowing. Higher interest rates make loans more expensive, which reduces investment in sectors that rely heavily on financing, such as the residential home construction industry. On the other hand, industries producing essentials, like prescription drugs and grocery items, are less affected by interest-rate fluctuations because the demand for these products remains relatively stable, regardless of changes in interest rates.
Early in 2017, Sheryl Crow Equipment Company sold 500 Rollomatics during 2017 at $6,000 each. During 2017, Crow spent $20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis.Prepare 2017 entries for Crow assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $56,000 relates to sales of warranty contracts. Crow estimates the total cost of servicing the warranties will be $55,000 for 2 years. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 5 decimal places, e.g. 1.54657 answers to 0 decimal places, e.g. 5,125.)
Answer:
Explanation:
Debit $ Credit$
a. Cash 3000000
Sales revennue (500*6000) 3000000
Warranty expenses 55000
Estimated warranty liability 55000
Estimated warranty liability 20000
Cash account 20000
b. Cash account 3000000
Sales revenue (500*6000- 56000) 2944000
Unearned warranty revenue 56000
Warranty expenses 20000
Cash account 20000
Unearned warranty revenue 20364
Warranty revenue (56000*20000/55000) 20364
Abby consumes only apples. In year1, red apples cost $1 each, green apples cost $2 each, and Abby buys 10 red apples. In year 2, red apples cost $2, green apples cost $1, and Abby buys 10 green apples.a. Compute a consumer price index for apples for each year. Assume that year 1 is the base year in which the consumer basket is fixed. How does your index change from year 1 to year 2?b. Compute Abby’s nominal spending on apples in each year. How does it change from year 1 to year 2?c. Using year 1 as the base year, compute Abby’s real spending on apples in each year. How does it change from year 1 to year 2?d. Defining the implicit price deflator as nominal spending divided by real spending. Compute the deflator for each year. How does the deflator change from year 1 to year 2?e. Suppose that Abby is equally happy eating red or green apples. How much has the true cost of living increased for Abby? Compare this answer to your answers to parts (a) and (d). What does this example tell you about Laspeyres and Passche price indexes?
Answer:
Part A)
Consumer price index is an amount of the average variation over time in the amounts paid by customers for a market basket of customer goods and services.
CPI= (Updated Cost/Base Period Cost) x 100
For multiple products, we have to ruminate the weights or proportion of expenditure of an item
CPI2= (P2Red xQ1Red) + (P2grn x Q1grn) / (P1Red xQ1Red) + (P1grn x Q1grn)
CPI2= (2 x 10) + (1x0)/ (1x10) + (2x0)
CPI2= 2
Based on the CPI in year 2, prices have doubled.
Part B)
Nominal expenditure is the total worth of outcome produced or expended in each year.
In year 1 and year 2, Abby buys
Year 1= $1 x 10= $10
Year 2= $1 x 10= $10
So, nominal expenditure remains constant at $10.
Part C)
Real expenditure is the quantity consumed or the basket in the current year calculated at the base year price.
Base year prices: Red $1& Green $2
Real expenditure in year 1 = (P1rQ1r) + (P1gQ1g)
=$1x10 + X2x0
= $10
Real expenditure in year 2 = (P1rQ2r) + (P1gQ2g)
= (1x 0) + (2 x 10)
= $20
So, real expenditure has increased from $10 to $20
Part D).
Implicit value deflator in year 1, it is the base year so it will be continuously 1 as the actual and nominal amounts are equal.
Implicit price deflator in year = nominal expenditure/real expenditure
Implicit price deflator in year 1 = 10/10
= 1
Implicit price deflator in year2 = 10/20
= 0.5
Thus, the implicit value deflator proposes that prices have dropped by half. The cause for this is that the deflator evaluations how much Abby standards her appeals using prices dominant in year 1.
We can perceive from this perception that the green apples are appreciated more .And when Abby consumes more green apples in year 2, it appears that her consumption has augmented as the price deflator standards green apples more than the red apples.
Part E)
Abby considers that red apples and green apples as perfect alternatives, then the cost of living in this budget has not changed in both year it costs $10 to eat 10 apples.
Permitting to the CPl, however, the cost of living has gathered. This is because it only takes into justification the detail that the red apple price has gathered; the CPl overlooks the fall in the price of green apples as they were not in the consumption package in year 1.
In difference to the CPI, the implicit value deflator approximations the cost of living has shared.
CPI is calculated based on the Laspreyers Index method, where the amount in the numerator is the amount in the base year. Where as in the Passche price index, the numerator is the Recent price calculated for current capacity of consumption.
The Laspeyres index inclines to exaggerate rise (in a cost of living framework), while the Paasche index tends to understate it, because the indices do not account for the fact that consumers typically react to value variations by changing the amounts that they buy. For example, if prices go up for good X then, at ceteris paribus, amounts of that good should go downcast.
a) The consumer price index (CPI) for apples is 100 in Year 1 and 200 in Year 2.
b) Abby’s nominal spending on apples is $10 in both Year 1 and Year 2.
c) Abby’s real spending on apples is $10 in Year 1 and $5 in Year 2.
d) The implicit price deflator is 1 in Year 1 and 2 in Year 2.
Let's go through each part of the problem with detailed step-by-step calculations.
Part (a): Compute a Consumer Price Index (CPI) for Apples
Year 1 (Base Year):
- Red apples: $1 each
- Green apples: $2 each
- Abby buys 10 red apples.
Cost of the basket in Year 1:
[tex]\[ \text{Cost}_{\text{Year 1}} = 10 \times 1 = \$10 \][/tex]
Year 2:
- Red apples: $2 each
- Green apples: $1 each
To calculate the CPI, we use the same basket as in Year 1 (10 red apples):
[tex]\[ \text{Cost}_{\text{Year 2}} = 10 \times 2 = \$20 \][/tex]
CPI Calculation:
[tex]\[ \text{CPI in Year 1} = \frac{\text{Cost of basket in Year 1}}{\text{Cost of basket in Year 1}} \times 100 = \frac{10}{10} \times 100 = 100 \][/tex]
[tex]\[ \text{CPI in Year 2} = \frac{\text{Cost of basket in Year 2}}{\text{Cost of basket in Year 1}} \times 100 = \frac{20}{10} \times 100 = 200 \][/tex]
Part (b): Compute Abby’s Nominal Spending on Apples
Year 1:
[tex]\[ \text{Nominal Spending in Year 1} = 10 \times 1 = \$10 \][/tex]
Year 2:
[tex]\[ \text{Nominal Spending in Year 2} = 10 \times 1 = \$10 \][/tex]
Part (c): Compute Abby’s Real Spending on Apples (Using Year 1 as the Base Year)
Year 1:
[tex]\[ \text{Real Spending in Year 1} = \text{Nominal Spending in Year 1} = \$10 \][/tex]
Year 2:
[tex]\[ \text{Real Spending in Year 2} = \frac{\text{Nominal Spending in Year 2}}{\text{CPI in Year 2}} \times 100 \][/tex]
[tex]\[ \text{Real Spending in Year 2} = \frac{10}{200} \times 100 = \$5 \][/tex]
Part (d): Compute the Implicit Price Deflator
Year 1:
Deflator in Year 1 =Nominal Spending in Year 1 / Real Spending in Year 1 = 10/10 = 1
Year 2:
Deflator in Year 1 =Nominal Spending in Year 2 / Real Spending in Year 2 = 10/5 = 2
Summary
1. CPI Calculation:
- CPI in Year 1: 100
- CPI in Year 2: 200
2. Nominal Spending:
- Nominal Spending in Year 1: $10
- Nominal Spending in Year 2: $10
3. Real Spending:
- Real Spending in Year 1: $10
- Real Spending in Year 2: $5
4. Implicit Price Deflator:
- Deflator in Year 1: 1
- Deflator in Year 2: 2
From Year 1 to Year 2, the CPI for apples increases from 100 to 200, Abby’s nominal spending remains constant at $10, her real spending decreases from $10 to $5, and the implicit price deflator increases from 1 to 2.
Complete question : Abby consumes only apples. In year 1, red apples cost $1 each, green apples cost $2 each, and Abby buys 10 red apples. In year 2, red apples cost $2, green apples cost $1, and Abby buys 10 green apples. a) Compute a consumer price index for apples for each year. Assume that year 1 is the base year in which the consumer basket is fixed. How does your index change from year 1 to year 2? b) Compute Abby’s nominal spending on apples in each year. How does it change from year 1 to year 2? c) Using year 1 as the base year, compute Abby’s real spending on apples in each year. How does it change from year 1 to year 2? d) Defining the implicit price deflator as nominal spending divided by real spending, compute the deflator for each year. How does the deflator change from year 1 to year 2?
Which of the following best describes how information sharing helps eliminate the bullwhip effect? a) Information sharing reduces information lead time, enabling each organization to plan according to end demand and not according to the orders placed immediately downstream. b) Information sharing reduces price fluctuations by ensuring that all members of the supply chain have access to price and cost information along the entire supply chain. c) Information sharing supports activity-based costing. d) None of these answers are correct.
Information sharing reduces information lead time, enabling each organization to plan according to end demand and not according to the orders placed immediately downstream.
Explanation:
The Bullwhip effect is a trend of the distribution channel where estimates result of inefficiencies in the supply chain. Of reaction to fluctuations the market demand the inventory swings are growing, as the supply chain continues to grow.
The effect of the bullfight generally flows up the supply chain, starting from the retailer, wholesaler, dealer, producer and then the supplier of the raw materials.
This method does not include daily fluctuations to run level. Another way of reducing the bullwhip effect is by eliminating the delays along the supply chain. In general, the fluctuations in the supply chain can be reduced by 80% by cutting order to supply time by half in both real supply chains and supply chain simulations
a) Information sharing reduces information lead time, enabling each organization to plan according to end demand and not according to the orders placed immediately downstream.
Information sharing is crucial in eliminating the bullwhip effect within a supply chain. By reducing information lead time, organizations can better predict actual customer demand rather than reacting to the orders placed by their immediate downstream partners. This helps to eliminate misunderstandings and amplifications of demand variations as information moves upstream. Key benefits include:
Improved demand forecasting accuracy.Reduction in excess inventory costs.Enhanced coordination among supply chain partners. Decreased variability in order quantities.Agile and adaptive supply chains that prioritize knowledge-flow can swiftly respond to changes in market and environmental conditions, ultimately aligning interests across the supply chain to optimize overall performance.
Watunga County Bank agrees to lend Marigold Granite Company $592000 on January 1. Marigold Granite Company signs a $592000, 8%, 9-month note. The entry made by Marigold Granite on January 1 to record the proceeds and issuance of the note is
Answer:
Explanation:
The journal entry is shown below:
On January 1
Cash A/c Dr $592,000
To Note Payable A/c $592,000
(Being issuance of the mortgage note payable is recorded)
For recording this transaction we debited the cash account as it increases the cash account and credited the note payable so that the correct posting could be done
A large grocery chain has implemented a new "scan, bag, and go" technology that allows customers to shop with greater independence. Which of the following options BEST describes the effect of this technology on business?
A. Information technology allows businesses to respond rapidly to changing customer demand.
B. Business supply chains are a lot faster because of new information technologies.
C. Businesses are using information technology to achieve higher levels of operational efficiency.
D. Businesses are using social networking tools to connect their employees, customers, and managers worldwide.
E. Maintaining just-in-time inventory has been an important consequence of information technology in business.
Answer:
The correct answer is letter "C": Businesses are using information technology to achieve higher levels of operational efficiency.
Explanation:
Information technology is mainly designed to make individuals' lifestyles better, fastening most of their daily activities so they could enjoy more free time. When talking about corporations, information technology has helped their operational efficiency to raise substantially by introducing new techniques of doing things but reducing the processing time.
What is the total federal income tax withholding reported on the Matthews’ Form 1040?
a . $2,803
b . $3,974
c . $5,056
d . $6,778
Answer:
correct answer is d . $6,778
Explanation:
we get here total federal income tax that will be
as we know that
federal income tax withholding barbara = $2784
federal income tax withholding mark =$2253
form SSA 1099 = $1721
and form 1099 interest income = $20
we get total federal income tax that is sum of all four
total federal income tax = $2784 + $2253 + $1721 + $20
total federal income tax = $6,778
so correct answer is d . $6,778
Exercise 12-04 Sosa Company reported net income of $190,000 for 2022. Sosa Company also reported depreciation expense of $35,000 and a loss of $5,000 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $4,000 increase in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2022. Use the indirect method.
Answer:
Operating activities of cash flow: $228,000
Explanation:
The operating activities section of the Sosa company cash flow can be determined using the following way.
Net income as reported by Sosa company $190,000
Add:depreciation expense $35,000
Add: a loss on the disposal of asset $5,000
Less:increase in accounts receivable ($15,000)
Add:increase in accounts payable $17,000
Less: increase in prepaid expenses ($4,000)
Operating activities of cash flow: $228,000
Pfizer Inc., a pharmaceutical company, reported net income for fiscal 2016 of $7,215 million, retained earnings at the start of the year of $71,993 million and dividends of $7,448 million, and other transactions with shareholders that increased retained earnings during the year by $14 million.If there were no additional transactions during the year that affected retained earnings, what was the balance of retained earnings at the end of the year?
Answer:
$71,774 million
Explanation:
Given that,
Beginning retained earnings = $71,993 million
Net income = $7,215 million
Dividends = $7,448 million
Other transactions = $14 million
Balance of retained earnings at the end of the year:
= Beginning retained earnings + Net income - Dividends + Other transactions
= $71,993 million + $7,215 million - $7,448 million + $14 million
= $71,774 million
Therefore, the balance of retained earnings at the end of the year is $71,774 million.