Answer:
The how to produce question
Explanation:
When making a choice of how to produce goods and services, there are two considerations. Will method of production be labor based or capital intensive?
For labor based production it makes use of more labor and less capital of machinery. This is exemplified by the teller making payments.
Capital intensive means of production uses more of capital means or machinery, for example where ATM machines are used to pay money.
The school of philosophy that acknowledged the gods but taught that they had no influence on human life and that the principle goods of human life were contentment and pleasure, meaning a life free from fear and suffering, was inspired by which of the following?A. DemocritusB. EpicurusC. ZenoD. Socrates
Answer:
The correct answer is letter "B": Epicurus.
Explanation:
Greek philosopher Epicurus (341 b.C. - 270 a.C.) was immortalized in the Latin poem "On the nature of things" -Lucrecio- in which Epicurus is attributed that the object of wisdom is to suppress the obstacles that oppose to happiness. This does not imply the pursue of unbridled pleasure, but of a measured lifestyle in which the spirit can enjoy friendship and the cultivation of knowledge.
An asset would be debited and a liability would be credited if the business
Question options:
bought equipment on account.
incurred an expense and paid it.*not the answer*
bought supplies for cash.
incurred an expense and didn't pay for the expense immediately.
Final answer:
When buying equipment on account, a business debits the asset account for equipment and credits the liability account, reflecting an increase in assets and liabilities respectively. This maintains the balance in the T-account and adheres to the accounting equation.
Explanation:
Understanding T-Accounts and Transactions
When a business bought equipment on account, it means that the business acquired equipment without immediate cash payment, promising to pay the supplier in the future. In accounting, this transaction is recorded in T-accounts by debiting the asset account for the equipment, as it represents something of value the business now owns. Simultaneously, the liability account is credited, reflecting the business's obligation to pay the supplier. Debiting increases the asset's balance, while crediting increases the liabilities, keeping the accounting equation (Assets = Liabilities + Owner's Equity) in balance.
For example, if a company purchases a $5,000 piece of equipment on account, the equipment account (asset) is debited by $5,000, and accounts payable (liability) is credited by $5,000.
T-Account Structure and Bank's Balance Sheet
The T-account layout includes assets on the left and liabilities and owner's equity (net worth) on the right. A bank uses T-accounts to manage and track its financial instruments such as loans, reserves, and securities. A bank's balance sheet also reflects these categories with assets like cash and loans made, liabilities such as customer deposits, and the net worth which is the difference between total assets and total liabilities and is also known as bank capital.
Galen Company income under variable costing is $1,050,000. Fixed production costs in ending inventory are $300,000 and $250,000 in beginning inventory. What is Galen Company's income under absorption costing?
Answer:
Income under absorption costing = $1,100,000
Explanation:
Marginal and absorption costing are two different methods to deal with fixed production overheads and and decide whether or not they are included in valuation of inventory.
Valuation of inventory
Opening and closing inventory are valued at variable cost under variable costing. Whereas in absorption costing, opening and closing inventory are valued at full production cost (including fixed production overheads).
Reconciling profits reported under two different methods
When inventory levels increase or decrease during a period then profits will differ under absorption and marginal costing because of fixed production cost.
Net Income under absorption costing = Income under variable costing + fixed production cost in ending inventory – fixed production cost in beginning inventory
= $1,050,000 + $300,000 - $250,000
= $1,100,000
In a growing number of cities, stores are required either not to make available plastic or paper bags or to do so only for an additional fee. What kind of incentive is this fee?a. Neutral b. Direct c. Complementary d. Unintended e. Indirect
Answer:
The correct answer is letter "B": Direct.
Explanation:
Direct incentives are those that pursue making an immediate reaction in the audience to whom the incentive is directed. A direct incentive is usually applied when an urgent change must be made over a certain matter to avoid the exponential risks of not taking any action.
Thus, the fact that in most growing cities stores are not providing plastic bags is a direct incentive to stop polluting the environment.
The additional fee charged for plastic or paper bags in stores in some cities is a direct incentive, designed to encourage consumers to use reusable bags.
In this context, this fee can be classified as a
direct incentive
. Direct incentives are actions that can motivate individuals or businesses to alter their behavior in a particular way, usually to promote or discourage certain outcomes. In this case, the imposition of an additional fee for using plastic or paper bags is a direct incentive designed to reduce their usage and consequently, lessen the environmental impact of their disposal. This practice encourages customers to bring their own reusable bags to avoid the extra charge, hence, fostering environmentally beneficial behavior.
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While building the ancient pyramids, the Egyptians performed several management functions. They submitted written requests and consulted staff for advice before making decisions.
The Egyptians performed which of the following functions of management? Check all that apply.
a. Organizing
b. Planning
c. Controlling
d. Leading
Answer:
a, b and c i.e Organizing, Planning and Controlling
Explanation:
Note: Since more than one option is to be selected, the three terms have been provided as an answer
Organizing is the management function concerned with creation of organizational hierarchy, defining roles and objectives and authority and reporting responsibilities.
Planning refers to providing for unforeseen future events and deciding the ways to deal with them.
Directing refers to the management function of guiding, supervising and leading people with an objective to meet organizational goals and extract efficient performance.
In the given case, written request signifies planning, creation of a staff and consulting before arriving at decisions refers to organizing and controlling function.
The Egyptians performed planning, organizing, and leading functions of management while constructing the pyramids. They planned their actions, organized resources, and led their teams. However, it's unclear if they performed the controlling function.
Explanation:While constructing the ancient pyramids, the Egyptians performed certain key functions of management, including organizing, planning, and leading. Submitting written requests and seeking advice involves the process of planning, where they outline a roadmap for the completion of the objectives. Meanwhile, organizing is reflected in the structuring and coordination of the resources and activities. Lastly, leading is manifested in their manner of directing and engaging with their personnel. However, the function of controlling, which requires monitoring performance against a plan and making adjustments, is not clearly reported in the scenario given.
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Domingo Corporation makes a variety of headphones with logos. The company has discovered a new market for wireless headphones with logos. Market research indicates that these headphones would sell well in the market priced at $34.80 each. Domingo desires an operating profit of 20 percent of costs.
Required:
What is the highest acceptable manufacturing cost for which Domingo would be willing to produce the headphones?
Answer:
Manufacturing cost= $29 per unit
Explanation:
Giving the following information:
Market research indicates that these headphones would sell well in the market priced at $34.80 each. Domingo desires an operating profit of 20 percent of costs.
To calculate the cost we need to use the following formula:
manufacturing cost= selling price/ (1 + mark up) = 34.8/1.20= $29
The highest acceptable manufacturing cost for Domingo Corporation to produce wireless headphones is $29.00.
Explanation:To determine the highest acceptable manufacturing cost for the wireless headphones, we need to calculate the target cost. The operating profit desired by Domingo is 20% of the costs. So, we can calculate the target cost as follows:
Target cost = Desired profit / Percentage of profit
In this case, the desired profit is 20% of the cost, and the cost is the manufacturing cost. Let's calculate:
Target cost = ($34.80 / 1.2)
Target cost = $29.00
Therefore, the highest acceptable manufacturing cost for which Domingo would be willing to produce the headphones is $29.00.
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Carol Bates, a young, dynamic, and affluent banker, likes to shop online and try out new products. She likes to keep herself updated about the latest products introduced in the market. She is usually the first among her friends to buy the latest gadgets.
What trait best describes Carol?
Explanation:
Based on the given statement, Carol Bates is very much interested in grabbing the latest gadgets. It means that,
Carol is updatedAdaptable to changeHave exploring capability to upgradeA technology savvyMonitors market and has good knowledge on current trendsSelf-motivated to be on trackHas creative skills to use the latest gadgetsAll the above qualities describes that Carol Bates is innovative.
Global Enterprises has just signed a $3 million contract. The contract calls for a payment of $.5 million today, $0.9 million one year from today, and $1.6 million two years from today. What is this contract really worth if Global Enterprises can earn 12 percent on its money?
Answer:
$2.579 million
Explanation:
To obtain the real worth of the contract, the $0.9 million payment must be brought back by one period at a 12% rate while the $1.6 million payment must be brought back by two periods at a 12% rate. The present value of the contract is:
[tex]P = 0.5+\frac{0.9}{(1+0.12)} +\frac{1.6}{(1+0.12)^2}\\P=\$2.579\ million[/tex]
Global Enterprises' contract is actually worth $2.579 million.
If a gain of $5,634 is realized in selling (for cash) office equipment having a book value of $59,856, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is a.$5,634 b.$59,856 c.$54,222 d.$65,490
Answer:
d. $65,490
Explanation:
A cash flow statement (CFS) is a financial statement shows the amount of cash and cash equivalents that has entered and left an organisation. It only deals in cash and cash equivalents.
From the question, the sale for cash of office equipment with a book value of $59,856 at profit of $5,634 will be recorded in the Cash flows from investing activities section of the CFS based on the actual cash that entered the company. In this case, the total cash received from the sale and which is the actual cash that entered the company in respect of this transaction is the addition of the book value of $59,856 and the gain of $5,634 which is approximately $65,490.
Therefore, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is $65,490.
I wish you the best.
Gabe Industries sells two products, Basic models and Deluxe models. Basic models sell for $ 44 per unit with variable costs of $ 25 per unit. Deluxe models sell for $ 52 per unit with variable costs of $ 25 per unit. Total fixed costs for the company are $ 1 comma 323.00. Gabe Industries typically sells three Basic models for every Deluxe model.
What is the breakeven point in total units?
a. 50 units
b. 63 units.
c. 29 units.
d.32 units
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Basic models sell for $ 44 per unit with variable costs of $ 25 per unit. Deluxe models sell for $ 52 per unit with variable costs of $ 25 per unit. Total fixed costs for the company are $1,323. Gabe Industries typically sells three Basic models for every Deluxe model.
First, we need to calculate the weighted sales participation:
Basic= 3/4= 0.75
Deluxe= 1/4= 0.25
Now, we need to calculate the weighted average selling price and variable cost:
weighted average selling price= (selling price* weighted sales participation)= (44*0.75 + 52*0.25)= 46
weighted average variable cost= (variable cost* weighted sales participation)= (25*0.75 + 25*0.25)= 25
Now, we can calculate the break-even point in units:
Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)
Break-even point= 1,323/ (46 - 25)= 63 units
Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.2. If a pack of cigarettes currently costs $5 and the government wants to reduce smoking by 10%, it should increase the price by. If the government permanently increases the price of cigarettes, the effect on smoking 1 year from now will be_________ than the effect 5 years from now
To reduce cigarette smoking by 10%, the government should increase the price of a pack by 50% due to an elasticity measure of 0.2. Thus the price would be increased by $2.5 from $5 to $7.5. The long-term effects of this price increase will be greater than the short term as people adapt and may reduce consumption or quit smoking all together.
Explanation:Public policy aimed at smoking involves strategies to shift demand through educational initiatives or price manipulation, depending on the elasticity of the demand for cigarettes. Studies indicate the price elasticity of demand for cigarettes is about 0.2, meaning the demand is relatively inelastic. For a clearer perspective, let's examine the proposed scenario and break it down in terms of price elasticity and demand.
Firstly, when the price elasticity of demand is less than 1, as in this case, it means demand is inelastic. That is, a 1% increase in price results in less than a 1% decrease in quantity demanded. To reduce smoking by 10%, we would need a 50% increase in price due to the elasticity measure of 0.2 (10%/0.2), hence the price of a pack of cigarettes should increase by $2.5 from $5 to $7.5.
In terms of the effect on smoking 1 year from now compared to 5 years from now, if the price increase remains, the long-term effects are likely to be greater than the short-term effects. This is mainly because behavior change, especially for addictive substances like cigarettes, usually takes some time. Over a longer period, people may adapt to the new price by quitting smoking or reducing consumption.
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You are starting medical school today. Becoming a doctor is your lifetime dream, so you started saving money when you were little. You now have $200,000 in your account, and you are going to withdraw annually starting today over the next four years. If you can earn 3 percent interest on the account, how much a year can you withdraw? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)
Answer:
$52,238.26
Explanation:
Since he is going to withdraw annually starting today over the next four years, the formula to use to calculate how much to withdraw a year is the formula for annuity due.
Basically, annuity refers to financial investment that pays investors a fixed stream of amount for a specified period. It of two types: ordinary annuity that pays at the end of the period, and annuity due that pays at beginning of the period.
Since our focus here is annuity due, we employ the following annuity due formula:
PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] × (1+r) ....................................... (1)
Where
A
PV = Present value of an annuity due = $200,000
P = yearly withdrawal = ?
r = interest rate = 3% = 0.03
n = number of years = 4
Therefore, we have:
200,000 = P × [{1 - [1 ÷ (1+0.03)]^4} ÷ 0.03] × (1+0.03)
200,000 = P × [{1 - [1 ÷ (1.03)]^4} ÷ 0.03] × (1.03)
200,000 = P × [{1 - [1 ÷ 1.12550881]} ÷ 0.03] × (1.03)
200,000 = P × [{1 - 0.888487047915689} ÷ 0.03] × (1.03)
200,000 = P × [0.111512952084311 ÷ 0.03] × (1.03)
200,000 = P × 3.71709840281037 × 1.03
200,000 = P × 3.82861135489468
Rearranging, we have:
P = 200,000 ÷ 3.82861135489468
P = 52,238.26
Therefore, $52,238.26 can be withdrawn a year.
Vaughn Manufacturing's prepaid insurance was $197000 at December 31, 2021 and $90300 at December 31, 2020. Insurance expense was $62000 for 2021 and $55000 for 2020. What amount of cash disbursements for insurance would be reported in Vaughn's 2021 net cash provided by operating activities presented on a direct basis?
Answer:
Cash disbursements for insurance would be $ 168,700.
Explanation:
In accrual based accounting expenses are recorded when they are incurred. The payment against item purchased does not make it qualified to be recorded as expense. Any advance payment made is recognize as asset untill performance obligation has been completed. So in order to determine amount of payment we will use following accounting equation.
Payments = Prepaid current period + expenses - opening prepaid balance
Payments = 197,000 + 62,000 - 90,300 = $ 168,700
The adjusted trial balance of Armstrong Corporation at December 31 shows that sales revenue for the year was $ 520 comma 000 and other revenue was $ 47 comma 000. Cost of goods sold for that same period was $ 295 comma 000, while other expenses totaled $ 200 comma 000. The corporation declared and paid dividends of $ 15 comma 000 during the year. The balance of retained earnings before closing entries was $ 490 comma 000.
1. Prepare the closing entries for revenues, expenses, and dividends for the year.
Closing entries zero out the temporary accounts (revenues, expenses, and dividends) for the new fiscal year. In this case, the appropriate entries include debits to Sales Revenue and Other Revenue, a credit to Income Summary for the sum of those amounts, debits to Income Summary and credits to Cost of Goods Sold and Other Expenses, a debit to Retained Earnings and matching credit to Income Summary, and finally a debit to Retained Earnings and credit to Dividends.
Explanation:The closing entries in accounting purposefully zero out the balances of businesses' temporary accounts (revenues and expenses) to start fresh in the new fiscal year. Dividends are also temporary accounts treated the same way, reducing retained earnings without affecting income. Considering the given figures, the appropriate closing entries for Armstrong Corporation would be as follows:
Sales Revenue $520,000 debit to close the account, Other Revenue $47,000 debit to close the account, and Income Summary $567,000 credit (which is the sum of these revenues). Income Summary $495,000 debit (the sum of Cost of Goods Sold $295,000, and Other Expenses $200,000) and each of these accounts credit to close. Retained Earnings $72,000 debit (the difference between the two sums in Income Summary) and Income Summary $72,000 credit to close it. Retained Earnings $15,000 debit and Dividends $15,000 credit to close the dividends account.Learn more about Closing Entries here:
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In your opinion, what are the core capabilities of Harley-Davidson Motor Company motorcycles? How do these capabilities help Harley-Davidson compete against foreign competitors such as Yamaha and Suzuki?
Answer:
The Core Capabillities of Harley davison are their devotion to the moter cycle industry and that they are more of an american platforme. When most americans buy something they would perfer is be made right here in the U.S.
Explanation:
Harley-Davidson's core capabilities include brand name reputation, portfolio management skills, and human resource competencies, providing a differentiation advantage and loyal customer base that are difficult for foreign competitors to match.
The core capabilities of Harley-Davidson Motor Company motorcycles include their brand name reputation, distinctive design and deep-rooted American heritage. These capabilities resonate with a specific segment of consumers, creating a high value for customers. They are difficult for competitors to imitate due to the cultural history and lifestyle association that is built into the Harley-Davidson brand.
Additionally, portfolio management skills and human resource competencies enable Harley-Davidson to innovate and maintain a specialized workforce, furthering its competitive edge. Compared to foreign competitors, such as Yamaha and Suzuki, which may excel in affordability and technological advancements, Harley-Davidson's strong customer loyalty and brand community give it leverage across markets and contribute to its differentiation advantage. This brand loyalty is also evident in the statistical finding that Harley-Davidson motorcycles represent 14 percent of all motorcycles sold, yet only 8 percent of stolen motorcycles are Harleys, indicating less theft relative to their market share.
Harley-Davidson's core capabilities provide a differentiation advantage, allowing the company to compete successfully by focusing not just on the product, but on the lifestyle and experience that comes with owning a Harley-Davidson motorcycle. This strategy is different from the competition that may focus primarily on product features or cost efficiency.
During the current year, the company had the following summarized activities: Purchased short-term investments for $10,000 cash. Lent $5,000 to a supplier, who signed a two-year note. Purchased equipment that cost $18,000; paid $5,000 cash and signed a one-year note for the balance. Hired a new president at the end of the year. The contract was for $85,000 per year plus options to purchase company stock at a set price based on company performance. The new president begins her position on January 1 of next year. Issued an additional 2,000 shares of $0.50 par value common stock for $11,000 cash. Borrowed $9,000 cash from a local bank, payable in three months. Purchased a patent (an intangible asset) for $3,000 cash. Built an addition to the factory for $24,000; paid $8,000 in cash and signed a three-year note for the balance. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.
Answer:
short-term investment 10,000 debit
cash 10,000 credit
note receivables 5,000 debit
cash 5,000 credit
equipment 18,000 debit
cash 5,000 credit
note payable 13,000 credit
cash 11,000 debit
common stock 1,000 credit
additional CS 10,000 credit
cash 9,000 debit
note payable 9,000 credit
Patents 3,000 credit
cash 3,000 debit
Building 24,000 debit
cash 8,000 credit
note payable 16,000 credit
cash 1,000 debit
equipment 1,000 credit
Explanation:
To record the entries we need to alwasy make debit = credit
we must use account names to represent each concept which are quite easy you don't have to overthink ou write what it is telling you it happen
Whe nthe company use cash use cash account
when it purchase equipment use equiptment
Advantages of database approaches to AIS include: a. periodic reporting in accordance with GAAP b. real-time reporting as and when significant events occur and whenever required c. filtering data as events occur rather than when reports are generated d. both a. and b. e. both a. and c.
Answer:
b. real-time reporting as and when significant events occur and whenever required.
Explanation:
The aim of an AIS is to gather, archive, analyze and report on financial and accountant data that management or other parties involved may use in order to carry management decisions. Only the container for data storage is a database A database may be a computer, a structured data system, or a cabinet.
. Pratt was able to see the issue with student loans after she personally declared bankruptcy. Investors she spoke with in Silicon Valley thought parents should just pay off the loans. Their differences in view can be explained because of the __________ theory.a. deontologicalb. utilitarian ethicalc. casuist ethicald. moral relativism
Answer: D. Moral relativism
Explanation: The theory of moral relativism helps resolves issues bordering on truth and falsehood. It states that the truth or falsity of moral judgments, or their justification, is not absolute or universal, but is relative to the traditions, convictions, or practices of a group of persons concerned. With respect to justification, it says that judgment may be justified in one society but not in another. Here, no standpoint is uniquely privileged over all others, Pratt's, the investors or parents as the case may be.
Tina's Track Supply's market-to-book ratio is currently 4.5 times and PE ratio is 10.5 times. If Tina's Track Supply's common stock is currently selling at $100 per share, what is the book value per share and earnings per share? Multiple Choice $450, $1,050, respectively $1,050, $450, respectively $22.2222, $9.5238, respectively $9.5238, $22.2222, respectively
Answer:
$22.2222, $9.5238, respectively
Explanation:
The market-to-book ratio is given by a share's market value divided by its book value, if shares are selling for $100 on the market, the book value is:
[tex]B = \frac{\$100}{4.5}=\$22.2222[/tex]
The price to earnings ratio (PE ratio) is determined as a share's price divided by the earnings per share. Earnings per share are:
[tex]E=\frac{\$100}{10.5}\\E=\$9.5238[/tex]
The book value per share and earnings per share are $22.2222, $9.5238, respectively
What is the present value of a $100 perpetuity if the interest rate is 10%? Round your answer to the nearest cent.
Answer:
The correct answer is $1,000
Explanation:
According to the scenario, Given data are as follows :
Cash flow = $100
Interest rate = 10%
So, present value can be calculated by following method:
Present value = Cash Flow / Interest Rate
Present value = $100 / 10%
Present value = $100 / 0.1
Present value = $1,000
Hence, the correct answer is $1000.
The Aggregate Supply curve shows Group of answer choices a. the total quantity of output that firms will produce at a given price level. b. the potential output of an economy at a given price level. c. the downward sloping relationship between price level and output for suppliers.
Answer:
The correct answer is letter "A": the total quantity of output that firms will produce at a given price level.
Explanation:
Aggregate Supply is the total supply of goods and services an economy produces in a given period. It is the amount of goods companies plan to sell at given price levels. Essentially, aggregate supply is the relationship between price levels and the number of goods and services an economy produces.
The following is a partial year-end adjusted trial balance. Account Title Debits Credits Sales revenue $ 460,000 Loss on sale of investments $ 54,000 Interest revenue 6,500 Cost of goods sold 240,000 General and administrative expense 56,000 Restructuring costs 58,000 Selling expense 33,000 Income tax expense ? Income tax expense has not yet been recorded. The income tax rate is 25%. a. Determine the operating income (loss). b. Determine the income (loss) before income taxes.
Answer:
a) Operating Income = $73,000
b) Net income before income tax = $25,500
Explanation:
First part of the question is to determine the operating income or loss of the business
It is calculated as follows
Particulars Amount
Sales Revenue $460,000
Subtract: Cost of goods sold ($240,000)
General and Administrative exp. ($56,000)
Restructuring Costs ($58,000)
Selling Expenses ($33,000)
Operating Income $73,000
Second part is to determine the income or loss before income taxes
Particulars Amount
Operating Income $73,000
Add: Interest Revenue $6,500
Deduct:Loss on sales of investment ($54,000)
Income before Income Tax $25,500
Finally, the Net Income or loss after Income tax
$25,500 x .25 = $6,375
The operating income is $73,000 and the income before income taxes is $25,500. The income tax expense is $6,375.
Explanation:The operating income (loss) can be determined by subtracting the cost of goods sold and operating expenses from the sales revenue. In this case, the operating income (loss) would be $460,000 - $240,000 - $56,000 - $58,000 - $33,000 = $73,000 operating income.
The income (loss) before income taxes can be calculated by subtracting the loss on sale of investments and the interest revenue from the operating income (loss). In this case, the income (loss) before income taxes would be $73,000 - $54,000 + $6,500 = $25,500 income before income taxes.
To determine the income tax expense, we need to multiply the income (loss) before income taxes by the income tax rate of 25%. Therefore, the income tax expense would be $25,500 x 0.25 = $6,375 income tax expense.
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Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics.
For each cost incurrect at Northwest Hospital, indiciate whether it would most likely be a direct cost or an indirect cost of the specified cost object by listing the number and a "D" for direct or an "I" for indirect. For example: 1D, 2D, etc.Cost / Cost Object1 The wages of pediatric nurses / The pediatric department2 Prescription drugs / A particular patient3 Heating the hospital / The pediatric patient4 The salary of the head of pediatrics / The pediatric patient5 The salary of the head of pediatrics / The particular pediatric patient6 Hospital chaplain's salary / A particular patient7 Lab tests by outside contractor / A particular patient8 Lab tests by outside contractor / A particular department
Answer:
1.- Direct, the nurses wages are linked to the deparment
2.-Direct, the cost of the drug for the patient will be linked to it
3.-Indirect there is no direct relationship between the heat cost and the patient
4.-Indirect as is cannot be linked to all patient is indirect overhead
5.-Indirect as is cannot be linked to a patient is indirect overhead
6.-Indirect as is cannot be linked to a patient is indirect overhead
7.-Direct as the particular patient is the one requiring this test
8.-Direct as this cost can be linked to a study related to the department activity
Explanation:
Final answer:
Costs at Northwest Hospital can be categorized as direct (D) or indirect (I) based on their relation to specific cost objects. Direct costs are easily attributable and indirect costs are more general across the institution, such as administrative salaries or facility-wide expenses.
Explanation:
Identifying whether a cost is direct or indirect for a specified cost object at Northwest Hospital involves understanding their correlation. A direct cost can be easily attributed to a cost object, whereas an indirect cost is not directly tied to a specific cost object and often relates to supporting the organization as a whole.
D: The wages of pediatric nurses are a direct cost to the Pediatric department because they work specifically in that area.
D: Prescription drugs are a direct cost to a particular patient when they are specifically for that patient's treatment.
I: Heating the hospital would be considered an indirect cost to the pediatric patient, as it is a facility-wide expense.
I: The salary of the head of pediatrics is an indirect cost to the pediatric patient since it is a general administrative cost.
I: The salary of the head of pediatrics is also an indirect cost to the particular pediatric patient, again due to its administrative nature.
I: Hospital chaplain's salary is an indirect cost to a particular patient since the chaplain serves the whole institution.
D: Lab tests by outside contractor are a direct cost to a particular patient when they are ordered for that patient's diagnosis or treatment.
D: Lab tests by outside contractor are a direct cost to a particular department if they are specific to their operations.
Identify the many factors that affect decisions on location. Identify the many factors that affect decisions on a firm’s location strategy. Why is it important for a firm to have a location strategy?
Answer:
Location plays a pivotal role in development of business for both manufacturing and service industry. There are many factors which are directly affect the decisions related to the strategy of business.
Few of them are briefly discussed.
1. Competition
The competition especially in service and retail industry is primarily dependent on location. If you are the only player in the locality then you can have competitive advantage over others. Also some firms prefer the clustering strategy and select location where competition is fierce.
2. Labor
The labor in most of the manufacturing industries will be from local neighborhood and if the business require labor intensive with particular skills, the location will definitely affect the strategic decisions.
3. Logistics
Manufacturing industries are mainly dependent on the inbound logistics as they will supply raw materials and will be converted into products. The proximity of the raw materials plays in important role while deciding the location of a business.
4. Political Risk
If the location where a firm wants to operate has political risks involved, it definitely will consider other option. Thus it also plays an important role for selecting the location.
5. Community
The ethnicity and overall demography of the community can affect the performance of the business and thus must be accounted for while developing a business strategy.
6. Taxation and Government Policies
Some governments have developed industrial states and zones where tax rebates are offered and industries are clustered with better infrastructure. Thus it also becomes an important factor to be considered.
These are some of the factors which affect the location strategy.
Importance of having location strategy
As it is evident from the above mentioned factors that location strategy can play an important role in deciding what kind of business a firm is looking into and how it will be done. Also location strategy becomes important because it has many factors which will affect the unit cost of the product being manufactured. The pricing and marketing strategy will also depend on the location.
Therefore, almost all the functions of a business are affected by the location strategy which makes it important to develop after careful analysis.
For which of the following transactions would the use of the present value of an annuity due concept be appropriate in calculating the present value of the asset obtained or liability owed at the date of incurrence? A. A capital lease is entered into with the initial lease payment due upon the signing of the lease agreement.
B. A capital lease is entered into with the initial lease payment due one month subse-quent to the signing of the lease agreement.
C. A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 7%.
D. A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 9%.
Answer:
A capital lease is entered into with the initial lease payment due upon the signing of the lease agreement. The annuity begins with a payment
Explanation:
An annuity-due represnet an annuity were payment or deposits are perform at the beginning of the period.
B no. It doesn't start with a payment.
C no, there is no payment at issuance.
D same as C only the rates changes but this, do not change the essence of the annuity it is still a common annuity not annuity-due
Final answer:
The present value of an annuity due is used for scenario A, where the initial payment of a capital lease is made immediately upon signing the lease agreement.
Explanation:
The use of the present value of an annuity due concept would be appropriate in situations where payments are made at the beginning of each period. In the given scenarios, option A, which involves a capital lease with the initial lease payment due upon the signing of the lease agreement, fits this description. This is because the first payment is made immediately, and thus each subsequent payment is made at the beginning of the period. Calculating the present value of such a lease would require accounting for the fact that all payments are made one period earlier than they would be in an ordinary annuity. Therefore, scenario A is where the present value of an annuity due would be used to calculate the present value at the date of incurrence.
An entrepreneur is planning to start a factory to produce high-tech plastic containers in high volumes. She will use either an assembly line or batch process and has selected two possible sites, one in a small town and one in a big city. She has discovered the following: Based on the information just presented, which of the following should be chosen? A. Assembly line in city. B. Assembly line in small town. C. Batch process in city. D. Batch process in small town.
Answer:
(A). Assembly line in city.
Explanation:
In an assembly line manufacturing process, production is continuous. It involves adding parts to the product as it moves from one stage to another and is good for producing in high volumes.
Batch production is better for producing similar items in groups.
An assembly line in a city should be used by an entrepreneur who wants to produce high-tech plastic containers in high volumes because it is more efficient.
Answer:
Assembly line in a city
Explanation:
The question is to determine whether to start an assembly line or batch process in either a big city or a small town
Assembly Line
An assembly line represents a manufacturing process where a product continues to move from one workstation to another while relevant parts are progressively added from one station to another until the product is completed
Batch Processing
The batch processing type of manufacturing is such that a group of products are completed simultaneously or at the same time.
Based on this understanding,
It is advisable for the entrepreneur to select Assembly line in a city because since the production of the high-tech plastic containers will be produced in high volumes, then their is need access a large amount of capital to commence.
Secondly, the type of labour that will be required to carry out such work in the factory will be better accessed in the city .
Thirdly, an assembly line is more favourable to ensure quality process for the products since they are high tech in nature and close monitoring is required.
If Roten Rooters, Inc., has an equity multiplier of 1.49, total asset turnover of 1.50, and a profit margin of 5.9 percent, what is its ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
To calculate the return on equity (ROE), you need to multiply the equity multiplier (1.49), the total asset turnover (1.50), and the profit margin (5.9 percent). This will yield the ROE which should be represented in a percentage form.
Explanation:The subject of the question refers to three key financial indicators: equity multiplier, total asset turnover, and profit margin.
The return on equity (ROE) can be calculated by multiplying these three values together.
In this case, the equity multiplier of Roten Rooters, Inc., is 1.49, the total asset turnover is 1.50, and the profit margin is 5.9 percent (or 0.059 in decimal form).
Therefore, you can calculate ROE by following this formula: Equity Multiplier ×Total Asset Turnover ×Profit Margin.
So, 1.49 (Equity Multiplier) ×1.50 (Total Asset Turnover) × 0.059 (Profit Margin) = _______. Calculate this to get your ROE.
This will yield the ROE in decimal form, which can be converted to a percentage by multiplying by 100.
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A company has a $20 million portfolio with a beta of 1.2. It would like to use futures contracts on a stock index to hedge its risk. The index futures is currently standing at 1080, and each contract is for delivery of $250 times the index. What is the hedge that minimizes risk? What should the company do if it wants to reduce the beta of the portfolio to 0.6?
Answer:
Part A:
Number of contracts=[tex]\frac{1.2*20,000,000}{270000}[/tex]
Number of contracts=88.889≅ 89 contracts.
The hedge that minimizes risk is to short 88 contracts
Part B:
Number of contracts=[tex]\frac{(0.6-1.2)*20,000,000}{270,000}=-44.44[/tex]
Number of contracts≅-44
The company should short 44 futures contracts.
Explanation:
Part A:
The formula we are going to use is:
Number of contracts=[tex]\frac{\beta*Portfolio\ Value}{Futures\ Value}[/tex]
Future Value=Index futures*Multiplier
Future Value=1080*$250
Future Value=$270,000
Number of contracts=[tex]\frac{1.2*20,000,000}{270000}[/tex]
Number of contracts=88.889≅ 89 contracts.
The hedge that minimizes risk is to short 88 contracts
Part B:
Number of contracts=[tex]\frac{(\beta'-\beta)*Portfolio\ Value}{Futures\ Value}[/tex]
where:
[tex]\beta'[/tex] is the new value=0.6
[tex]\beta[/tex]=1.2
Future Value=$270,000 (Calculated above)
Number of contracts=[tex]\frac{(0.6-1.2)*20,000,000}{270,000}=-44.44[/tex]
Number of contracts≅-44
The company should short 44 futures contracts
Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of Procter & Gamble (PG), a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a. Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant b. Licensing payments for use of Disney characters on children products c. Maintenance supplies d. Packaging materials e. Paper used in bath tissue f. Plant manager salary for the Iowa City, Iowa, plant g. Resins for body wash products h. Salary of process engineers i. Scents and fragrances used in making soaps and detergents j. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant
Answer:
Explanation:
The direct material cost is the cost which is incurred for the raw material
The direct labor cost is the cost which is incurred to pay the wages to assembly workers, the labor cost, etc
And, the factory overhead cost is the indirect cost which is required at the time of producing the product. Example - depreciation, repairs & maintenance, etc
So, the categorization is shown below:
a. Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant = factory overhead cost
b. Licensing payments for use of Disney characters on children products = factory overhead cost
c. Maintenance supplies = factory overhead cost
d. Packaging materials = direct material cost
e. Paper used in bath tissue = direct material cost
f. Plant manager salary for the Iowa City, Iowa, plant = factory overhead cost
g. Resins for body wash products = direct material cost
h. Salary of process engineers = factory overhead cost
i. Scents and fragrances used in making soaps and detergents = direct material cost
j. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant = direct labor cost
The costs enlisted are classified as direct materials if they're raw materials used in production (paper, resins, scents), direct labor if they're wages paid to production line workers, and factory overhead if they're indirect costs related to production process (depreciation, licensing fee, maintenance supplies, wages of non-production staff).
Explanation:The costs described in the Procter & Gamble example can be classified as direct materials cost, direct labor cost, or factory overhead cost based on the roles they play in the manufacturing process.
Depreciation on assembly line equipment in the Pennsylvania plant - Factory Overhead Cost Licensing payments for use of Disney characters - Factory Overhead Cost Maintenance supplies - Factory Overhead Cost Packaging materials - Direct Materials Cost Paper used in bath tissue - Direct Materials Cost Plant manager salary in the Iowa City plant - Factory Overhead Cost Resins for body wash products - Direct Materials Cost Salary of process engineers - Factory Overhead Cost Scents and fragrances used in soaps and detergents - Direct Materials Cost Wages of production line employees - Direct Labor Cost Learn more about Cost Classification here:
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Wildhorse Corp. has total current assets of $12,152,000, current liabilities of $5,849,000, and a quick ratio of 0.94. How much inventory does it have?
Answer:
Wildhorse Corp. has inventory of $6,653,940
Explanation:
The quick ratio is a liquidity ratio that indicates a company's ability to pay its current liabilities when they come due without needing to sell its inventory or get additional financing. The quick ratio is calculated by the following formula:
Quick ratio = (Cash & equivalents + Short Term investments + Accounts receivable)/Current Liabilities
(Cash & equivalents + Short Term investments + Accounts receivable) = Quick ratio x Current Liabilities = 0.94 x $5,849,000 = $5,498,060
Inventory = Total current assets - (Cash & equivalents + Short Term investments + Accounts receivable) = $12,152,000 - $5,498,060 = $6,653,940