Answer:
(a) operations
Explanation:
The section of the companies annual reports provides the management views on significant events and the trends and the uncertainties that pertain to the company and that is found in the framework of the operation and deals with the significance and the control of the products and services and significant events and trends.A department store, pressured to meet year-end targets, liquidated a large amount of merchandise at low prices even though it was likely to create problems in the new year. This is an example of which pricing objective?
a) maximizing current profit
b) determining consumer objectives
c) managing for long-run profits
d) targeting market share goals
e) maximizing employee earnings
Answer:
maximizing current profit.
Explanation:
Maximising current profit is the set of activities a business undertakes to ensure profit in the short term is positive. It also involves setting a product price that will give maximum profit, cash flows, return on investment in the short run.
This concept does not take into consideration future effects of action taken.
In this instance department store, pressured to meet year-end targets, liquidated a large amount of merchandise at low prices even though it was likely to create problems in the new year.
This is a profit maximising activity
Jipmor, an interior décor store in the city of Jeswayde, manufactures designer white oak furniture. Jipmor is highly dependent on Casode, which is the only store in Jeswayde that sells white oak wood, for the timely delivery of good-quality wood. In the context of the specific environment, which of the following concepts does this scenario best illustrate?
A) Path dependence
B) Supplier dependence
C) Buyer dependence
D) Internal dependence
Answer:
C) Buyer dependence
Explanation:
A specific environment refers to the part of the overall company status that connects directly to an organization attaining its goals.
The best illustration is Buyer dependence (when buyer depends on the supplier for raw material) as here Jipmor who is the buyer of good-quality wood from Casode, (which is the only store in that location for the timely delivery of good-quality wood) is highly dependent on Casode which shows the buyer dependency on supplier.
Answer:
B) Supplier dependence
Explanation:
Supplier dependence is the component defined by the degree of dependence on the supplier by the retailer or manfacturer for raw material due to lack of product availibility or lack of supplier in the region. It can create scarce to the buyer at times, also monopoly which is dangerous for buyer as there is high price volatility in the market.
In the given case, An interior decor store manufacture designer white oak furniture, which is highly dependent on the supplier, who is only supplier of Oak wood. Therefore, Supplier dependence concept best illustrate the scenario.
A firm has $200 million in total revenue and explicit costs of $190 million. Suppose its owners have invested $100 million in the company at an opportunity cost of 10 percent interest rate per year. The firm's economic profit is:_________.1. $400 million2. $100 million3. $80 million4. Zero
Answer:
4. Zero
Explanation:
Economic profit / loss is the net of the sale amount and all the costs including any opportunity cost.
According to the given data
Total revenue = $200 million
Total cost / Accounting cost/ Explicit cost = $190 million
Implicit cost / opportunity cost = $100 x 10% = $10 million
The Economic profit can be determined by the following formula:
Economic Profit = Revenue - ( Explicit cost + Implicit cost )
Or
Economic Profit = Revenue - ( Accounting cost + Opportunity cost )
Economic Profit = $200 million - ( $190 million + $10 million )
Economic Profit = $200 million - $200 million
Economic Profit = $0
A computer company has $3,000,000 in research and development costs. Before accounting for these costs, the net income of the company is $2,400,000. What is the amount of net income or loss after these R & D costs are accounted for?
Answer:
($600,000)
A loss of $600,000
Explanation:
The research and development costs will be accounted for as an expense in line with IAS 23 Borrowing cost under IFRS. As such, this will be deducted from the net income to properly account for it like every other expense that must have been initially deducted from sales.
Amount of net income or (loss) after these R & D costs are accounted for
= $2,400,000 - $3,000,000
= ($600,000)
What would be a sufficient user account to provide temporary access to the network for a user such as a vendor representative or a temporary employee?
Answer:
The correct answer is: Guest.
Explanation:
The guest user is a slightly special user. It has the same privileges as a standard user, but it is anonymous and without a password. That is, the purpose of the guest account is to allow any user without an account on the computer to log in and use the equipment.
From a security point of view, this is not always recommended. Therefore, by default, the guest account is disabled. So, if we want it to be available to login, we must activate it.
__________ is a strategy based on the use of IT to reduce the costs associated with the product assembly process or the way services are delivered to customers.
Answer:
Flexible manufacturing
Explanation:
A flexible manufacturing system (FMS) refers to a manufacturing system that has a certain degree of flexibility to swiftly respond to unpredicted changes in the manufacturing orders and processes. FMS generally result in a increase in labor productivity and machine efficiency, as well as shorter lead times and increased production rate. If well executed, FMS should provide the same benefits as economies of scale but without the large scale production.
A company using the periodic inventory system has inventory costing $152 on hand at the beginning of a period. During the period, merchandise costing $492 is purchased. At year-end, inventory costing $356 is on hand. The cost of goods sold for the year is:____________.A. $288B. $152C.$492D.$356
Answer:
A. $288
Explanation:
The cost incurred to produce or purchase the product which is being sold is called cost of goods sold.
Cost of Goods Sold = Beginning Inventory + Purchases in the period - Ending Inventory
Cost of Goods Sold = $152 + $492 - $356
Cost of Goods Sold = $288
Answer:
A. $288
Explanation:
We solve using the inventory identity
[tex]$$Beginning Inventory + Purchase = Ending Inventory + COGS[/tex]
We replace for the know values and solve for COGS like in a sovle for X question
152 + 492 = 356 + COGS
644 = COGS + 356
COGS = 644 - 356 = 288
An investor buys 100 shares of ABC at $50 per share and also sells 1 ABC April 45 call for 8. In the event that the investor is assigned an exercise notice and ABC is at 60, the trader's gain or loss on a per share basis would be:
Answer:
The investor earned $3 per share or $300 in total.
Explanation:
Investor's basis per share = $50 (purchase price)
Investor received $8 per share for selling the call option, and then he sold the stocks ate $45 per share.
investor's gain/loss = total revenue per share - cost basis = ($8 + $45) - $50 = $53 - $50 = $3 per share
since the investor purchased 100, shares, total profit = 100 x $3 = $300
Which of the following statements are correct regarding the method of valuation by comparables? (Choose 2). 1. A firm's market value can be estimated by using the share price of any similar sized firm. 2. A firm's market value can be estimated by finding the share price of a similar firm and using that value. 3. A firm's market value can be estimated by multiplying its book value by the market/book ratio for a similar firm. 4. A firm's market value can be estimated by multiplying its earnings per share by the P/E ratio for a similar firm.
Answer:
Option 3 & 4
Explanation:
A firm's market value can be computed by multiplying it's earnings per share with P/E Ratio of a similar firm.
Earnings per share = [tex]\frac{Earnings\ attributable\ to\ stockholders}{No.\ of\ shares\ outstanding}[/tex]
Price Earnings Ratio = [tex]\frac{Market\ Price\ per\ share}{Earnings\ per\ share}[/tex]
The product of the above two would be the market price per share of the firm.
Similarly, Market/Book ratio = Total Market Capitalization/Book Value
Also, known as price to book ratio, the product of Market/Book ratio of a similar company and Book value of a company yields Market value of the company.
The correct statements concerning the valuation by comparables method are: (1) a firm's market value can be estimated using the share price of a similar firm and (2) by multiplying its earnings per share by the P/E ratio of a similar firm.
Regarding the method of valuation by comparables, the two correct statements are:
A firm's market value can be estimated by finding the share price of a similar firm and using that value.
A firm's market value can be estimated by multiplying its earnings per share by the P/E ratio for a similar firm.
The valuation by comparables method relies on financial metrics and market ratios from similar companies to estimate a firm’s market value.
This is done to ascertain whether the stock is overvalued or undervalued, using key financial ratios like the P/E Ratio, which represents the price investors are willing to pay per dollar of earnings.
However, it is not advised to use the share price of just any similar-sized firm without consideration of financial specifics and market conditions.
The National Football League controls the performance-based pay for professional football players. For example, Tom Brady received $14,102.25. His annual salary is $20 million, so he may not have noticed when this hit his checking account. Since the way team members function as a group is as important to the team's success as the individual effort, the NFL performance payThe National Football League controls the performance-based pay for professional football players. For example, Tom Brady received $14,102.25. His annual salary is $20 million, so he may not have noticed when this hit his checking account. Since the way team members function as a group is as important to the team's success as the individual effort, the NFL performance pay:________.
Answer:
The NFL performance pay is not giving the right incentives.
Explanation:
In this case, the questions points out that for National Football League, the success is based on two things: the personal performance and how it works in the group's performance. So, if Tom Brady is a quarterback and has led his team to many Super Bowl wins in spite of who is around him, and if the impact on his account is not that big, it means that the league is not giving the right incentives.
Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Jacqui's economic profit from running her own business
Answer:
Jacqui's economic profit from running her own business is $5,000
Explanation:
Economic Profit / loss is the net of of revenue made from sale of an output and all the expenses associated with that sale including opportunity cost as well.
Economic profit = Income - Implicit Expenses - Explicit Expenses
Implicit expenses are the opportunity costs and Explicit Expenses are all those incurred to generate the sale.
As there is no Explicit cost. For accounting profit Calculation economists consider the best alternative as an Implicit cost. The best alternative option is $45,000
Economic Profit = $50,000 - 45,000 = $5,000
Suppose a perfectly competitive firm is producing 37 units output, and the marginal cost of the 37th unit is $3. If the firm can sell each unit of output for $5 and the firm's revenue is sufficient to cover its variable cost, the firm should:__________.
A. lower its price.
B. decrease production.
C. increase production.
D. raise its price.
Answer:
C) increase production.
Explanation:
Competitive firms maximize their accounting profits when marginal revenue (MR) = marginal cost (MC).
In a perfectly competitive market, all the producers and the consumers are price takers, so they cannot change the price of the goods. So changing the sales price is not possible. Since the marginal revenue is greater than the marginal cost, the firm should increase its production output until MR = MC.
In this scenario, the firm should increase production to generate more revenue.
Explanation:The firm should increase production because the revenue from selling each unit of output ($5) exceeds the marginal cost of producing the 37th unit ($3), indicating that the firm is generating a profit on each unit produced. Increasing production would allow the firm to sell more units and thus increase its overall revenue.
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A large national trucking company takes great care to remain nonunion by carefully selecting managers who display a participative leadership style, putting in place a nonunion grievance procedure, and paying wages and benefits at the top of the market range. This company is practicing:
A large national trucking company takes great care to remain nonunion by carefully selecting managers who display a participative leadership style, putting in place a nonunion grievance procedure, and paying wages and benefits at the top of the market range. This company is practicing: Union substitution.
Explanation:The approach that is used by the management of any firm in substituting the conditions which will make the employees to join together in trade union refers to the Union Substitution. This is a kind of strategy used by the management of a firm for making the employees to form a union.
When the strategy that is used by the management for not making the employees to form union, it refers to Union suppression. The management may threaten the employees saying that they may relocate or close the firm if any unionization occurs. In the given scenario, the management creates a condition that triggers the formation of union of employees and hence company is practicing: Union substitution.
Union substitution is an approach where management seek to substitute the triggers (or conditions) that would prompt workers to seek to join a trade union.Is a management strategy to avoid unionization that involves the victimization of union activists and supporters and threats to close or relocate the company if unionization occurs.
Firm A purchased Firm B for $4,000 when B's total owners' equity was $2,000. Firm A completed the qualitative test for goodwill impairment and determined that it is more likely than not that goodwill may be impaired. B had one asset worth $500 more than the book value. One year after the purchase, Firm B's total market value had dropped to $3,200 and the market value of its net identifiable assets was $2,000. What amount of goodwill impairment loss is recorded?
A. $0
B. $800
C. $400
D. $300
Answer:
D. $300
Explanation:
The goodwill is computed below:
Carrying value = Purchase price - Total owners equity - excess value of an assets
= $4,000 - $2,000 - $500
= $1,500
The implied value = Total market value - market value of its net identifiable assets
= $3,200 - $2,000
= $1,200
So, the difference is
= $1,500 - $1,200
= $300
The difference is term as a goodwill
Jacques relies on a cost-benefit analysis to decide if moving operations overseas is better than increasing the size of the current manufacturing facility in the United States. He is using the ________ approach to ethics to determine his answer.
Full question:
Jacques relies on a cost-benefit analysis to decide if moving operations overseas is better than increasing the size of the current manufacturing facility in the United States. He is using the ________ approach to ethics to determine his answer.
utilitarian
Friedman doctrine
naive moralist
difference principle
cultural relativist
Answer:
He is using the utilitarian approach to ethics to determine his answer.
Explanation:
The Utilitarian Approach evaluates activity in phases of its results or upshots; i.e., the excluding gains and costs to all stakeholders on an own level. It attempts to accomplish the most prominent good for the highest number while producing the most limited amount of impairment or anticipating the most elevated amount of suffering.
Utilitarianism does not care whether the gains are created by dishonesty, guidance, or intimidation. It ensures that every entity’s interests should be examined equally when progressing the decision, and this involves those of other kinds since they also are competent of suffering.
TickTock Clock Corporation is attempting to develop a truly diverse workplace. As a first step, they have decided to expand their recruiting efforts. Which of the following is not an appropriate way to do this? A. Host speaking and networking events. B. Offer internship programs for racial and ethnic minorities. C. Create informal mentoring programs. D. Offer scholarship for the children of current employes.
Answer:
D) Offer scholarships for the children of current employees
Explanation:
McKenna offers to sell Lori her collection of hand-painted European tiles. Before Lori has a chance to accept, McKenna says, "Sorry, I changed my mind. I'm not going to sell the tiles." McKenna has just made:_______.1. Restitution2. A counteroffer3. A rejection4. A revocation
McKenna has just made: revocation.
Explanation:Revocation can be considered as a process of cancelling any decision or a promise officially. This is act that makes something that exists previously to be null or void. For instance someone has accepted to sell his property to someone and now he has the rights top revoke or cancel that declaration officially.
In the given example, McKenna offers to sell her hand painted European tiles to Lori. But the cancellation of this offer occurs before Lori accepted the offer. She says to Lori that she has changed her mind and not ready to sell those tiles. Hence the example is associated with revocation.
Excavation, Inc., uses explosives to prepare land for construction projects. Strict liability is imposed on this activity because a. the activity is inherently negligent. b. Excavation is a corporation. c. the activity is extremely risky. d. the amount of liability can be added to the costs of construction
Excavation, Inc., uses explosives to prepare land for construction projects. Strict liability is imposed on this activity because The activity is extremely risky
Option (C) is correct.Explanation:
Excavation activity is an extremely risky activity. This activity has many accidents associated with it. every year many people die or get injured in accidents related to excavation. So due to the high risk associated with this strict liability is imposed on this activity.
Risks associated with excavation are explosion, gas escape, flooding, etc. Other dangers like hazardous atmospheres, the possibility of fatal accidents, Falling loads can also be there. These dangers are sudden and fail to give time to workers to escape. So before undertaking such activity permission must be obtained from the government.
Bridget, the youngest owner of a family-owned restaurant, wants to make sure her company’s culture is embedded in their organization. In a recent tradeshow workshop, she learned that she can do this by having company rites and rituals, continuing to tell stories about company legends, and being a role model to her employe .A. True B. False
Bridget, the youngest owner of a family-owned restaurant, wants to make sure her company’s culture is embedded in their organization. In a recent trade show workshop, she learned that she can do this by having company rites and rituals, continuing to tell stories about company legends, and being a role model to her employee - True
Explanation:The expectations, philosophy and the values and experiences that an organisation has refers to the culture of an organisation. This is unique to each and every firm. These are considered as an important values that can be used as a guide in making the employees of an organisation to know about the expectations and the inner working of the particular organisation.
Culture of any organisation plays a major role in influencing the people who are working in it. In the given example, Bridget who is a owner of a restaurant want to make sure that the culture and values of the organisation are embedded within it. Thus, she also tells stories about the legends so that the employee can consider them as their role model.
True. Company culture can be embedded in an organization through rituals, storytelling about company legends, and by founders or leaders being role models.
The statement that Bridget, the youngest owner of a family-owned restaurant, can ensure her company’s culture is embedded in their organization by having company rites and rituals, continuing to tell stories about company legends, and being a role model to her employees is true. Stories serve as a powerful tool to communicate the company's history, its values, and priorities, creating a bond between the employees and the organization. Examples such as 3M's creation of Post-it notes and Ben & Jerry’s adherence to their founders’ original values and vision demonstrate how founders' beliefs shape a company’s culture. Furthermore, creating new symbols and stories, as Continental Airlines did when changing its culture, highlights the importance of these elements in aligning employees with the company’s vision.
Suppose for a given consumer the marginal utility (MU) of a pizza is 100 utils and the MU of a hamburger is 80 utils, and that the price of a pizza is $15 and the price of a hamburger is $8. Given this information, the consumer ___________ in equilibrium, and should _________________.
Answer:
is not , consume more of hamburgers
Explanation:
A consumer is said to have achieved equilibrium when within his budget constraint, he purchases that combination of two goods which yield maximum satisfaction to him.
The equation for consumer equilibrium for two products is given by
[tex]\frac{MU_{x} }{P_{x} } = \frac{MU_{y} }{P_{y} }[/tex]
In the given case, [tex]\frac{MU_{x} }{P_{x} }[/tex] = [tex]\frac{100}{15}[/tex] = [tex]\frac{20}{3}[/tex] = 6.666
[tex]\frac{MU_{y} }{P_{y} }[/tex] = [tex]\frac{80}{10}[/tex] = 8
wherein, x= pizza
y= hamburger
As is evident, the marginal utility per dollar spent is greater in case of a hamburger, the consumer is not in a state of equilibrium.
Thus, he should consume more units of Hamburgers in order to maximize his utility.
Your online store is using Firebase as its SDK for its mobile app. The app integrates with your website. You're also using Google Ads to manage your marketing efforts. You want to automatically import conversions into Google Analytics for Firebase. Which action will accomplish this?
Answer:
C. Make Google Firebase your attribution provider
Explanation:
Based on the scenario being described within the question it can be said that the best action to accomplish this would be to make Google Firebase your attribution provider. By doing this you are making sure that Firebase handles all your user conversions from your online store as well as all of the information regarding where the users are coming from.
Shakira, a wealthy business woman, gave the following amounts to her alma mater: $7,500 for 30 season tickets for woman's basketball and $12,000 to its athletic foundation for preferential seating location and parking. The $7,500 is not deductible at all because the taxpayer is buying a product; but the $12,000 donation is limited to $8,000 (80% of $10,000) deduction.
Question: True or False
Answer:
By The Tax Cuts and Jobs Act (TCJA) of 2017, the $12,000 donation is not deductible in any portion
Shakira's donation for basketball season tickets is not tax-deductible, while her donation to the athletic foundation has a deductible amount limited to $8,000. Cities imposing license fees or taxes on sporting events will increase the cost of tickets, as these expenses are often passed on to the consumers.
Explanation:Charitable Giving and Price Effects in BusinessWhen Shakira donates money to her alma mater, the consideration for tax deduction comes into play. The donation of $7,500 for woman's basketball season tickets is not deductible since it provides a direct benefit to Shakira, i.e., the tickets. However, her $12,000 contribution to the athletic foundation, which is earmarked for preferential seating and parking, is partially deductible. According to tax laws, only 80% of such donations can be considered for deduction, calculating to an $8,000 tax deduction for Shakira based on the 80% endowment limit for the donor. The cost for charitable giving is effectively reduced for the donor after considering tax savings, making the price of giving only $1.00 for the beneficiary, but not the full amount for the donor due to tax deductions.
Several factors could affect the ticket prices for sporting events, such as the implementation of a city license fee, increased spending on scholarships, or city-imposed taxes per ticket sold. A city license fee would likely cause ticket prices to increase to cover the new expense. If the team increases spending on scholarships and wants to maintain profit maximization, this could also lead to higher ticket prices. A per ticket tax would likely result in a direct price increase to the customer, as the team would pass this cost onto ticket buyers.
Which of the following is not a likely reason that specific password requirements, such as length, the use of special characters and the like, are usually guidelines in an organization rather than policies?A) The specific password requirements can be changed more easily as needed if they are guidelines rather than policies.
B) Password guidelines are usually created and maintained by the IT department, which is in a better position to know best practices in password security.
C) Policies are created at a higher level in the "chain of command" and as such cannot be changed quickly in response to a particular security need.
D) Policies are not typically concerned with broad topics such as IT security and passwords.
Answer:
D) Policies are not typically concerned with broad topics such as IT security and passwords.
Explanation:
A company's policies may concern a lot of issues, ranging from very broad and general issues to more specific issues, e.g. like corporate governance, employee conduct, compensation policies, organizational structure, equal opportunity policies, substance abuse, etc., and of course they can include topics like IT security and passwords.
Frictional unemployment occurs when:___________.1. there is friction between an employer and employee. 2. a worker decides to quit one job to seek a different job. 3. a large corporation transfers a worker to another city. 4. college students go back to school at the end of the summer.
Answer:
2. a worker decides to quit one job to seek a different job.
Explanation:
Frictional unemployment occurs when workers are moving from one job to another. It happens when the available jobs and the workers' skills do not match. For example, a graduate from the university cannot find a job that matches the skills straight away. The period of searching for that first job is called frictional unemployment.
Frictional unemployment is naturally occurring in the economy. It is present when the economy is in full employment. It is present as workers are always searching for better opportunities elsewhere, and students are graduating and searching for their first employment.
Which of the following is true? Multiple Choice The Product "P" in the marketing mix stands only for physical goods. The Product "P" in the marketing mix stands for both physical goods and services. The Product "P" in the marketing mix stands only for tangible merchandise. The Product "P" in the marketing mix stands only for physical merchandise. The Product "P" in the marketing mix stands strictly for physical goods and tangible merchandise.
Answer:
Explanation:
The Product "P" in the marketing mix stands strictly for physical goods and tangible merchandise.
The correct option is b. The Product P in the marketing mix stands for both physical goods and services.
The marketing mix, often referred to as the 4 Ps, includes Product, Price, Place, and Promotion. The Product P encompasses more than just tangible physical goods; it also includes services. A product is anything that can be offered to a market that might satisfy a want or need. This includes intangible items such as services, which are a form of product that does not result in the ownership of anything. Services are characterized by their intangibility, inseparability of production and consumption, heterogeneity, and perishability.
Therefore, the Product component of the marketing mix is not limited to physical goods but also includes services. This broad definition ensures that the marketing mix is applicable to a wide range of offerings, whether they are physical products, services, or a combination of both.
Suppose a competitive market is comprised of first that face identical cost curves. The firms experience an increase in demand that results in positive profits for the firms. Which of the following events are then most likely to occur?
i. New firms will enter the market
ii. In the short run, price will rise; in the long run, price will rise further.
iii. In the long run, all firms will be producing at their efficient scale
Answer:
i. New firms will enter the market
iii. In the long run, all firms will be producing at their efficient scale
Explanation:
In the competitive market barriers to entry will be low as there is no monopoly. The firms in the market are experiencing increased profitability as a result of increased demand so the market will be attractive for new firms. This will result in new firms entering into the market. In the short run.
In the long run as more firms enter the market, the firm's will need to produce at efficient scales because of high competition, with the aim of minimising cost.
Formulate and use linear programming to solve the following problem. A firm wants to determine how many units of each of two products (products X and Y) they should produce in order to make the most money. The profit from making a unit of product X is $100 and the profit from making a unit of product Y is $80. Although the firm can readily sell any amount of either product, it is limited by its total labor hours and total machine hours available. The total labor hours per week are 800. Product X takes 4 hours of labor per unit and Product Y takes 2 hours of labor per unit. The total machine hours available are 750 per week. Product X takes 1 machine hour per unit and Product Y takes 5 machine hours per unit. Write the constraints and the objective function for this problem, solve for the best mix of product X and Y, and report the maximum value of the objective function
Answer:
Objective function: Maximize Z = $100 X + $80 Y .
Subject to:
4 X + 2 Y < = 800
1 X + 5 Y < = 750
Explanation:
The total labor hours per week are 800. Product X takes 4 hours of labor per unit and Product Y takes 2 hours of labor per unit.
4 X + 2 Y < = 800
The total machine hours available are 750 per week. Product X takes 1 machine hour per unit and Product Y takes 5 machine hours per unit.
1 X + 5 Y < = 750 ,
X = 138.89
Y = 122.22
Z = $23,666.67
Final answer:
This response explains how to use linear programming to determine the optimal product mix for maximizing profit within given constraints.
Explanation:
Linear programming involves maximizing or minimizing a linear objective function subject to linear constraints. In this case, the firm wants to maximize profit by determining the optimal mix of Product X and Product Y within the given constraints.
The constraints for this problem are:
4X + 2Y ≤ 800 (Labor hours constraint)X + 5Y ≤ 750 (Machine hours constraint)X, Y ≥ 0 (Non-negativity constraint)The objective function for this problem is to maximize profit, which can be expressed as Z = 100X + 80Y. Solving this linear programming problem will provide the best mix of Product X and Product Y and the maximum value of the objective function.
Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses and are included as other comprehensive income and as a separate component of stockholders' equity are:________.1. never-sell debt securities.
2. held-to-maturity debt securities.
3. trading debt securities.
4. available-for-sale debt securities.
Answer:
The correct option is 2,held-to-maturity debt securities
Explanation:
Option 1 is obviously wrong because never-sell debt securities is a class of debt securities that is non-existent.
Option 3 is also wrong because the gains or losses on trading debt securities are realized gains or losses accounted for directly in the profit or loss statement.
Also, the available-for-sale debt securities are expected to be treated in tha same manner as trading-debt securities
Lastly, the minute difference between trade debt securities and available-for-sale securities is that it is guaranteed that the former would be disposed in the normal trading cycle while the latter is available for sale, might sold or kept for some time
When auditors wish to issue an un-modified opinion but highlight that the entity changed its method of accounting for software development costs, they would most appropriately identify the change in accounting method in which of the following?A. The introductory paragraph.B. The opinion paragraph.C. An emphasis- of- matter paragraph.D. An other- matter paragraph.
Answer:
C) An emphasis of matter paragraph.
Explanation:
An emphasis of matter paragraph relates to matters already included in the financial statements of a company. The information included in this paragraph should be important in order to understand some specific issue about the financial statements.
In this particular case, the information about the method of accounting is always important and relevant, and the users should know about it.
Under an international regime of fixed exchange rates, countries with a BOP ________ should consider ________ their currency while countries with a BOP ________ should consider ________ their currency.
Answer: surplus, revaluing, deficit, devaluing.
Explanation: Revaluation of a currency is the official increase in value of a currency in relation to a foreign currency in a fixed international exchange rate system.
Therefore a country with a surplus Balance of Payment will have the bargaining power to achieve a revaluation of its currency. This will translate to increase in the BOP of the country because of the increased value of its currency.
However, a devaluation is the decrease in value of a currency, and this is what a country does when it encounters a BOP deficit.
Answer:
Under an international regime of fixed exchange rates, countries with a BOP SURPLUS should consider REVALUING their currency while countries with a BOP DEFICIT should consider DEVALUING their currency.
Explanation:
The advantage of a free floating currency exchange is that the balance of payments (BOP) will always be 0. That means that the currency exchange rate automatically adjusts to surpluses by appreciating the currency, while a deficit generates a depreciation of the currency.
When the exchange rate is fixed, several problems can occur, either by having a currency with a lower than normal value, or having a currency with a higher than normal value. The problem with fixed exchange rates is that adjustments aren't smooth and tend to very large and sudden.
We can use Argentina during the 1990s as an example. During more than a decade the Argentinean peso was pegged to the US dollar and it was worth exactly $1 per peso. At the beginning this high value of the peso helped the economy grow and stabilize from a rampant hiperinflation that had depressed the country's economy. So everyone was happy at least for a few years, but then the economy couldn't keep up its growth rate and their exports started to decrease due to high cost of manufacturing. Argentina's exports costed dollars while other Latin countries had costs in local currencies that were worth less than the dollar. Once the BOP's deficit got so large, Argentina had to devaluate its currency form 1 peso per $1, to more than 4 pesos per $1 in just one day.