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.
The development of a product that is closely related to one or more products in the existing product line, but designed specifically to meet somewhat different customer needs is best described as a(n) _______. a. quality modification b. aesthetic modification c. product modification d. brand extension
Answer:
d. brand extension
Explanation:
Brand extension is also called line extension. It involves using the same brand name for products that are closely related to the original but meet e different set of consumer needs. Additional items are introduced in the product category using the same brand name. For example introducing flavors, colours, ingredients, and package sizes.
Line extensions are of two types:
-Horzontal: price and quality are consistent, bit other factors like flavour and colour are changed.
-Vertical: involves increase or decrease of quality and price to create luxury and inferior goods
Suppose 52% of students support the idea of paying student government officers. A random sample of 400 students is taken. What is the probability that fewer than 50% of the students surveyed will express support for paying student government officers?
Answer: The probability that fewer than 50% of the students surveyed will express support for paying student government officers is 8.501 × 10^-65
Explanation:
Since fifty two percent (52%) of the surveyed students support the idea of paying student government officers, it consequently means that 48% (100% - 52%) of students are against the idea or not in support of it.
To find the probability that less than or fewer than fifty percent (< 50%) of the 400 surveyed students are in support, we must obtain the actual number of students that represent 50% of the individuals surveyed.
= (50/100) × 400
= 200 students.
Therefore, we are to find the probability that less than 200 of the surveyed students are in support of the payment. This means that at least, 201 of the surveyed students are not in support of the payment.
Since, 48/100 generally represents the percentage of students that are not in support of the idea, then we multiply 48/100 by itself up to 201 times. The opinions of the other 199 surveyed students doesn't matter
= (48/100)^201
= 8.501 × 10^-65
Sidney took a $850 cash advance by using checks linked to her credit card account. The bank charges a 3 percent cash advance fee on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived What was the cash advance fee? (Round your answer to 2 decimal places What was the interest for one month at an 12 percent APR? (Round your answer to 2 decimal What was the total amount she paid?
Answer: $884
Explanation:
To calculate the cash advance fee paid. We have:
3% cash advance fee multiplied by the amount borrowed.
0.03 x 850 = $25.50.
To calculate the interest for one month at a 12 percent APR.
850 x 0.12 x 1/12
= $8.50.
To calculate the total amount she paid:
850 + 25.50 + 8.50
= $884
KaiLynn has total job benefits of $41,000 per year in her sales job. She pays $63 each month for a cell phone for work. She is also required to purchase samples kits which cost $235 each. If KaiLynn paid for 4 samples kits last year, what was her total employment compensation? a. $39,304 b. $40,060 c. $40,244 d. $42,696 Please select the best answer from the choices provided A B C D
Answer: a. $39,304
Explanation:
Let us begin by calculating the yearly phone bill.
$63 per month so that is
= 63*12
= $756
A total of $756 per year is spent on the company phone.
Kailynn buys 4 sample kits at $235 per kit.
= 235*4
= $940 in total for the kits last year.
Add the two figures to get her total expenditure from the company.
=940+756
= $1696
Subtract this from her total job benefits,
=$41,000 - $1696
= $39,304
$39,304 was her total employment compensation.
Why are female fans particularly valuable to the sports industry? Cite two specific reasons.
Answer:
1. Potential huge target market for ticket sales
2. Advertising opportunities for different products
Explanation:
The proportion of female sports fan actually pretty low compared to the male counterpart. (For example, only around 22% of the basketball's fan base are women.)
That begin said , sports industry might want to focus on expanding the women's fan base because it could provide them with good financial incentives :
1. Potential huge target market for ticket sales and merchandise
More women fan base equal to more ticket sales that sold overall during the games, as long as it does not surpass the stadium's capacity. The sales of team's jersey and signs will also increase along with it.
2. Advertising opportunities for different products
Advertising is a huge chunk of sports teams' profit. Since the majority of sport fans are men, the products that partnered with the team for advertisement tend to be to targeted toward men (such as truck tire or male cologne).Having larger women fan base will provide opportunities for brands that targeted toward women.
EmployIT is a newly established recruitment company. It does not have adequate funds to rent out an office space for its employees so all the employees work from home. The employees communicate with each other through email and a third party video chat and voice call application. This scenario illustrates that the employees are part of a(n) _____.
Answer:
This scenario illustrates that the employees are part of a virtual team
Explanation:
Virtual organizations are firms set up to address the issues of space and time shifts.
Space shift is the traditional arrangement where employees are meant to be located in one single location in order to effectively function together as teams.
Time shift is the timing barrier where employees are expected to liaise with one another at the same time.
Virtual organization is a break from the norm by ensuring individuals that are geographically dispersed and operating in different time zones function together as a team with the aid of advancement in technology.
The employees of EmployIT are part of a 'virtual team', which consists of members working from different locations and using technology to communicate.
The scenario presented indicates that the employees of EmployIT are part of a virtual team. A virtual team is a group of individuals who work together from different geographic locations and rely on communication technology such as email, video conferencing, and online collaboration platforms to coordinate their work. The use of programs like Slack or Microsoft Teams facilitates efficient communication among remote team members.
Technology advancements have enabled virtual teams to operate effectively, offering the advantage of drawing from a diverse talent pool without being limited to one geographic area. This can help a business operate around the clock by employing staff in various time zones. While this arrangement offers significant benefits, it presents unique management challenges, such as ensuring robust communication and collaboration among team members who may never meet in person.
Htc started as an original equipment manufacturing firm (oem) for brand-name mobile device companies. later, it started offering a line up of innovative and high-performance smartphones by acquiring one & co., a san francisco-based design firm. this strategic move of htc is known as___________.
Answer:
Forward vertical integration
Explanation:
Forward vertical integration is a strategy that allows companies to get more control of their business value chain and be more competitive by including the distribution of the products to be able to reach the customers directly. According to this, the answer is that the strategic move of HTC is known as forward vertical integration as HTC acquired one & co. to be able to offer a line of smartphones which was a move to distribute the cellphones they manufactured directly to the customers.
The sf/$ 180-day forward exchange rate is sf1.30/$ and the 180 day forward premium is 8 percent. what is the outright spot exchange rate?
Final answer:
To calculate the outright spot exchange rate with a forward rate of sf1.30/$ and a forward premium of 8%, the formula Spot Rate = Forward Rate / (1 + Forward Premium) is used. The calculation yields a spot rate of approximately sf1.2037/$.
Explanation:
The question asks to calculate the outright spot exchange rate, given that the forward exchange rate is sf1.30/$ and the forward premium is 8 percent. The forward premium indicates how much higher (or lower) the forward rate is compared to the spot rate. It is calculated as:
Forward Premium (%) = [(Forward Rate - Spot Rate) / Spot Rate] x 100%
We can rearrange this formula to solve for the Spot Rate:
Spot Rate = Forward Rate / (1 + Forward Premium)
Given the forward rate (sf1.30/$) and the forward premium (8% or 0.08), we calculate the spot rate as follows:
Spot Rate = sf1.30/$ / (1 + 0.08)
Spot Rate = sf1.30/$ / 1.08
Spot Rate = sf1.2037/$ (rounded to four decimal places)
Therefore, the outright spot exchange rate is approximately sf1.2037/$.
Final answer:
To find the outright spot exchange rate, use the formula Forward Exchange Rate / (1 + Forward Premium) and substitute the given values.
Explanation:
The outright spot exchange rate refers to the current exchange rate between two currencies in the foreign exchange market, where currencies are traded for immediate delivery or settlement, typically within two business days.
The outright spot exchange rate can be calculated using the formula:
Outright Spot Exchange Rate = Forward Exchange Rate / (1 + Forward Premium)
Substitute the given values: Forward Exchange Rate = 1.30, Forward Premium = 0.08. Calculate: 1.30 / (1 + 0.08) = 1.30 / 1.08 = 1.2037. Therefore, the outright spot exchange rate is 1.2037.
You are the CEO of Disney, the largest entertainment company in the world. You have been approached with the opportunity to buy a national league hockey team. You can afford to buy the team and Disney has never owned a professional sports team before, but during board meetings the directors have discussed expanding into other areas of entertainment beyond movies, theme parks, and goods. This could create for you:
Answer:
conflict of interest
Explanation:
Conflict of interest occurs when an individual in an organisation has competing interests that can be financial or personal. Most times fulfilling an action results in abandoning another one. It can occur when the personal interest of an employee conflicts with the business decisions of the employer.
In this instance the CEO of Disney personally prefers to buy a national league hockey team, and sees it as an opportunity for Disney to own a professional sports team. However a conflicting idea is being proposed by the board, who want to expand into other areas of entertainment beyond movies, theme parks, and goods.
Owning a professional sports team can bring several benefits to Disney, such as increased brand recognition, new revenue streams, and the ability to cross-promote with other Disney properties.
Explanation:With the opportunity to buy a national league hockey team, as the CEO of Disney, you can create new opportunities for expansion into the sports entertainment industry. Owning a professional sports team can bring several benefits to Disney, such as increased brand recognition, new revenue streams, and the ability to cross-promote with other Disney properties.
For example, Disney could use the hockey team to create new content for its streaming platforms, feature team branding in movies and TV shows, and leverage the team's popularity to attract more visitors to its theme parks. Additionally, owning a sports team can provide Disney with a platform to engage fans, build partnerships with other organizations, and extend its influence in the entertainment industry.
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:
The answer us 4. Zero
Explanation:
Economic profit equals explicit cost minus implicit cost.
Explicit cost is also known as the accounting cost. It is the cost that are directly related or attributed to the production.
Implicit cost is the opportunity cost. It it the cost cost of the alternative forgone. The cost of the idea or business that wasn't chosen.
Explicit cost is $190 million
Implicit cost is $10 million( 10percent of $100million)
Total revenue is $200 million.
Therefore, economic profit is
($200 - $190 - 10)million.
= 0 or zero
Porsche AG uses the label "Top Guns" to describe one segment of its customers, namely those who care about power and control and who expect to be noticed. Such a profile would be based on which type of segmentation?
A) demographic
B) occupational
C) psychographic
D) behavioral
E) gender
Answer:
C) psychographic
Explanation:
Psychographic segmentation is a type of segmentation where customers are divided into a group based on their psychological characteristics. Such characteristics include beliefs and motivations.
Demographic segmentation is when customers are placed in a group based on their sex, religion, age or occupation.
I hope my answer helps you
Unstructured decisions are often used in _____. a. introducing a new product b. simple inventory problems c. record keeping d. capital acquisition analysis
Answer:
a. introducing a new product
Explanation:
Unstructured decisions are the decisions made on a case to case basis. There is no developed standard operating procedure on how to solve the issue. Unstructured decisions apply in unique and one-time situations.
Different decision-makers may offer varying solutions to the same problem in unstructured decisions. Decisions depend on the decision-maker's intuition, experience, and the information presently available. In unstructured decision- making, each situation presents unique challenges making it difficult to have a predetermined set of responses. Introducing a new product will involve making unstructured decisions as predicting the market reaction is not easy.
Statement that explains uses of Unstructured decisions is A:introducing a new product .
Unstructured decision making can be regarded as dynamic process which involves individual creating alternative as results of unavailable of a particular option. Though there may not be a known path to arrive at solution. This decision making can be utilised when introducing a new product.Therefore, option A is correct.
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A small Austrian fishery firm wanted to expand into a new region of the country, but was in competition with a bigger, more established firm. The smaller firm, however, was successful in developing and maintaining key political relationships and were ultimately granted the necessary government permits. Which of the following was key to the smaller firm’s success? a. causal ambiguity.
b. commoditization.
c. social complexity.
d. ambidexterity.
The smaller Austrian fishery firm achieved success through social complexity, developed through crucial political relationships that helped it obtain necessary government permits for expansion. This was a demonstration of strategic management through managing resources and capabilities.
Explanation:The key to the smaller Austrian fishery firm's success against a more established competitor was indeed c. social complexity. Social complexity refers to a firm's ability to create and manage relationships within its environment. This can include relationships with regulators, government officials, customers, and other important figures. In this case, the smaller firm was successful in developing and managing key political relationships, which were crucial in obtaining necessary government permits for expansion.
The term 'social complexity' falls under the larger umbrella of the resource-based view of the firm, a theory in strategic management that emphasizes the importance of firm-specific resources and capabilities in achieving competitive advantage. Here, the smaller firm's ability to navigate political dynamics and leverage its unique relationships became a valuable, intangible resource that could not be easily replicated by the bigger firm.
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The small Austrian fishery's successful expansion amidst competition was due to social complexity, which includes developing relationships and alliances that are hard for competitors to replicate.
Explanation:In the scenario described, the key to the smaller Austrian fishery firm's successful expansion into a new region despite competition was social complexity. Social complexity refers to the relationships, networks, or social interactions that a firm has developed, which can't be easily replicated by competitors or understood by outsiders. In this case, the smaller firm was able to establish and maintain critical political relationships, which ultimately led to them securing the necessary government permits.
Such social complexity, in business context, often includes relationships with key stakeholders, political figures, and the ability to navigate administrative or bureaucratic processes. It forms the core of a firm's socio-cultural environment and can become a strategic asset when it serves to differentiate the firm from its competitors. Simultaneously, it's one of the bases of competitive advantage and can protect the firm from threats or enhance its ability to seize opportunities.
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Guarantees also may trigger financial statement recognition of a liability. Which of the following guarantees would not require financial statement recognition on the books of the guarantor? a. Guarantee to repay the debt of another firm that is solvent and profitable (the interest rate of the debt was not reduced due to the guarantee) b. Guarantee to repurchase accounts receivable sold in a prior transaction if the receivables become uncollectible c. Guarantee to repay the debt of another firm that is insolvent d. Guarantee to repay the debt of another firm that is currently solvent but has no history of profitability (the interest rate of the debt was reduced due to the guarantee)
Answer:
a. Guarantee to repay the debt of another firm that is solvent and profitable (the interest rate of the debt was not reduced due to the guarantee).
Explanation:
According to the rules of full disclosure, the company is to disclose facts about all transactions or contracts that impact and business. For example of a business is most likely to go out of business because of an unfavourable court ruling, this information must be disclosed in the companie's financial statement. If however the activity will not impact the business there is no need to disclose.
In this instance the guarantee need not be disclosed since the guarantee is to repay debt of a company that is solvent and profitable. The chances that the guarantee will become enforceable is very slim.
Also the interest rate of the debt was not reduced due to the guarantee. So there is no financial impact on the business.
On June 1, 2018, Brooktown levied special assessments in the amount of $500,000, payable in 10 equal annual installments beginning on June 30, 2018. The assessment installments are intended to pay principal and interest on special assessment bonds for which the town has pledged its full faith and credit should assessments be insufficient. Assuming no allowance for uncollectible receivables, the journal entry in the debt service fund on June 1, 2018 would include:
Answer:Dr Revenue :special assessment service $500 000
Cr Account Receivables $500 000
Explanation:
Dr Revenue :special assessment service $500 000
Cr Account Receivables $500 000
recognizing Revenue generated from services rendered (special assessments services) which increases account receivables for Brooktown because the amount of $500 000 is payable in 10 annual instalments
$500 000 revenue will be paid in 10 equal instalments, 500 000/10 =
$50 000.
When the the first instalment is received on the 30th of June 2018, the following journal would be processed
Dr Bank $50 000
Cr Account receivable $50 000
Wholesome Pet Food has successfully specialized for 20 years in high-quality pet food made from all-natural ingredients and organically raised lamb. This brand has a strong following and is recommended by veterinarians who practice in affluent neighborhoods. Wholesome's main supplier of lamb has announced that the price for lamb will be 15 percent higher next year. Which of the following statements is true?A. Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer.B. Companies pursuing Wholesome’s business strategy are especially vulnerable to this risk.C. If Wholesome raises its pet food prices, customers will turn to less expensive brands such as Purina.D. Wholesome probably operates on very thin margins, and a cost increase will threaten its ability to earn average returns.
Answer:
A. Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer
Explanation:
From the information provided about Wholesome Pet Food; a few statements stand out:
1.The Years of operation (20years)
2.The Standard of Pet Food (high quality: natural ingredients & organically raised lambs)
3.The followership of the Brand (Strong)
4. The Brand endorsement (from leading Veterinarians)
5. Finally the most important element; the Customers Wholesome Pet Food serve are from the affluent neighborhoods
Although more information would have given us a full understanding of the Pet food business e.g the Competitive advantage of Wholsome Pet food over close rivals, the elasticity of its brand, the % of its Customer base that are affluent, middle class or Poor, it's Business profitability proposition etc
However, considering the 5 items listed above it will be a safe argument concluding that Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer
Vendors sometimes train the organizations employees or ________ to become inhouse train the trainer sessions.
Answer:
Super users.
Explanation:
A super user is a member of a department that has intimate knowledge of internal processes and bears responsibility of managing knowledge sharing in the department. Super users are the main source of support for end-users of a new product.
Super users assist end users with any issues, help them gain familiarity with the new software, and give feedback to the vendor on any issue.
Vendors also grant super users administration rights so they can resolve some problems independently.
Final answer:
Vendors sometimes train the organizations employees or 'train the trainer' to become inhouse train the trainer sessions. This method is seen as cost-effective, fosters continuous learning, and requires understanding of adult learning principles and effective training material development. The success of such programs relies on quality training and organizational support.
Explanation:
Vendors sometimes train the organization's employees or others to become in-house 'train the trainer' sessions. This method fits within a broader category of workplace learning and professional development strategies. In such programs, a vendor or an external expert educates select employees on specific skills or knowledge areas. Those employees then become equipped to teach their colleagues, creating a ripple effect of learning within the organization. This approach is not only cost-effective but also fosters a culture of continuous learning and adaptation. Key aspects of these programs include understanding adult learning principles, developing effective training materials, and mastering delivery techniques to engage diverse audiences.
There are several benefits to this approach, including tailored training that is directly relevant to the organization's needs, enhanced internal capacity for training, and increased employee engagement through peer learning. However, the success of train the trainer programs depends on the quality of the initial training, the ability of the identified in-house trainers to pass on the knowledge effectively, and the organizational support for learning and development initiatives.
Which of the following is true of advertising? Group of answer choices It can change consumers' deeply rooted values and attitudes. It is of less value for new entrants in the market. It ensures constant sales and market share improvements. It influences attitudes, beliefs, and ultimately, consumers' purchases.
Advertising can influence attitudes, beliefs, and consumers' purchases. Advertising in monopolistic competition can affect the demand curve and lead to increased sales and profits.
Explanation:Advertising influences attitudes, beliefs, and ultimately, consumers' purchases.
In the framework of monopolistic competition, advertising can either cause a firm's perceived demand curve to become more inelastic or cause demand for the firm's product to increase.
A successful advertising campaign may allow a firm to sell a greater quantity or charge a higher price, or both, resulting in increased profits.
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The expected rate of return for a stock whose next dividend is "DIV1", that has a required rate of return "r" and expects to grow its future dividends at a rate of "g" is ________. r = g r = DIV1/P0 r = DIV1 + P0/g r = (DIV1/P0) + g
Answer:
The correct answer is r=(DIV1/P0)+g
Explanation:
The expected rate of return for a stock is usually the dividend yield added to capital gains yield.
Dividend yield is the percentage of the share's price that the company pays to shareholders as dividends and the formula is the dividends divided by the share price, hence in this scenario it DIV1/PO
On other hand,capital gains yield is the percentage increase of the share price over time. In other words, the share price growth rate,which is a market expectation of the company's performance.The g given in the question depicted this.
Without mincing words,the expected rate of return on the stock is dividends yield(DIV1/P0) plus the capital gains yield(g)
According to the nine-box grid, the development plan for employees with outstanding performance but low potential typically emphasizes ________. a. finding them experiences that will continue to facilitate creativity and innovation b. moving them to a position that best matches their skill set c. performance improvement in their current position d. developing them for leadership positions in the company
According to the nine-box grid, the development plan for employees with outstanding performance but low potential typically emphasizes finding them experiences that will continue to facilitate creativity and innovation.
Explanation:The performance of the employees in an organisation can be evaluated by the 9-box grid. The potential that an employee has towards the contribution to an organisation in future and also the current level can be determined with the help of this assessment tool.
This tool is used by an organisation in the evaluation of talents that is present in an organisation currently and the leaders of an organisation in leaders. The individuals can be evaluated in two dimensions such as their performance in past and the potential in future. Thus this grid helps in the determination of experiences that will continue to facilitate creativity and innovation.
Comparing how many dollars it takes you to run your car each year to annual earnings on a job insteadof keeping track of costs in terms of gallons of gasoline and quarts of oil represents the use of money as:_______. a. means of payment.b. unit of account.c. store of purchasing power.d. form of plastic money.
Answer:
B
Explanation:
Money has several functions, one of its principal function is using it as unit of account. By comparing the amount in dollars spent on running a car yearly to annual earnings instead of keeping track in terms of gasoline cost and quarts of oil shows that money has been used as a unit of account.
This means that the amount of gasoline gallons bought and quarts of oil has been essentially replaced by the cost of these purchases and hence avail is the power to use money as a unit of account
Once the plan baseline has been approved and the project is underway, project teams deal with change by establishing and using a change control system to receive and review change proposals and accept or reject them after evaluating their impact on project scope, cost and schedule.Select one:A. True B. False
Answer:
A) True
Explanation:
A project's baseline plan refers to the project's plan starting point. It will serve as the reference point where you can measure the project's progress. Any proposed change to the project must be evaluated using the established change control system. The change control system is not a standard control tool and should be unique to the project based on the project's scope and budget. Changes that negatively affect the project's scope, budget and the schedule should be rejected.
Competing in the markets of foreign countries entails dealing with such factors except:_____. a) important country-to-country differences in consumer buying habits and buyer tastes and preferences. b) the prevalence of global brands. c) whether to customize the company's offerings in each different country market or whether to offer a mostly standardized product worldwide. d) fluctuating exchange rates, country-to-country variations in host-government restrictions and requirements, and variations in cultural, demographic, and market conditions. e) the fact that product designs suitable for one country are sometimes inappropriate in another.
Answer: b) the prevalence of global brands.
Explanation:
Competing in the markets foreign of countries entails dealing with dealing with such factors except the prevalence of global brands.when a company is competing in the Markets of foreign Country the prevalence of global brands is not the factor a company should be dealing with. Factors such as exchange rate fluctuations , country to country differences in consumer buying habits and preferences are factors a company deals with among other factors
When consumers need to purchase a refrigerator, they usually evaluate different models across a set of features or characteristics, such as storage capacity, freezer shelving, and energy cost efficiency. Such an evaluation is an example of a(n) _____.
Answer:
The correct answer is attribute-based evaluation.
Explanation:
The products are susceptible to an analysis of the tangible and intangible attributes that make up what can be termed as their personality.
This analysis is carried out through the evaluation of a series of factors that allow dissection of the product, starting from the central elements to the complementary ones, so that in view of both ours and those of the competition, we can elaborate the marketing strategy that allows us to position the product in the market in the most favorable way. In any case, the different factors that we include below have to serve us only as a script or reference, since depending on the product that we commercialize other totally different attributes will be studied.
Pastoria Enterprises has scheduled raw material purchases of $100,000 in January, $130,000 in February, and $150,000 in March. The company pays for 75% of its purchases in the month of purchase and 25% the month after the purchase. Calculate the expected cash disbursements for the month of February.
a. $135,000
b. $122,500
c. $107,500
d. $130,000
Answer:
B
Explanation:
The question asks to calculate how much will be disbursed by the company in February.
Firstly , we know that the company disburses 75% in the month of purchase and 25% during the month after purchase.
Now, 75% of $130,000 would be disbursed as February’s own payment:
Mathematically 75/100 * 130,000 = 97,500
Also, we should not forget that the company disburses 25% of previous month during the current. That is 25/100 * 100,000 = 25,000
Total amount disbursed is thus 25,000 + 97,500 = $122,500
Final answer:
The expected cash disbursements for February for Pastoria Enterprises is $122,500, calculated by adding 75% of February's purchases to 25% of January's purchases that are due in February.
Explanation:
The question asks us to calculate the expected cash disbursements for Pastoria Enterprises in the month of February.
To find this, we need to account for the purchases made in February as well as the outstanding 25% from the purchases made in January that will be paid in February. Pastoria Enterprises pays for 75% of purchases in the month of purchase and the remaining 25% the month after.
Calculate 75% of February's purchases: 0.75 x $130,000 = $97,500.Calculate 25% of January's purchases that will be paid in February: 0.25 x $100,000 = $25,000.Add both amounts to get the total cash disbursements for February: $97,500 + $25,000 = $122,500.Therefore, the expected cash disbursements for February is $122,500, which corresponds to option b.
Two countries, A and B, both are currently in recession. The values of the MPS for A and B are 0.1 and 0.5 respectively. The governments of both countries are planning to boost income through an expansionary policy of a tax cut of $1 billion.
Answer:
Explanation:
The policy of tax cut will be less effective in country B than in country A since the value of the tax multiplier is lower in country B.
The multiplier effect refers to the increase in final income arising from any new injections.
Calculating the Multiplier Effect for a simple economy
k = 1/MPS
A = 1/0.1 =10
B= 1/.5=2
The costs transferred from a prior process to a subsequent process are a.treated as another type of materials cost for the receiving department. b.referred to as transferred-in costs (for the receiving department). c.referred to as the cost of goods transferred out (for the transferring department). d.All of these. e.None of these.
Answer:
D. All of the above
Explanation:
The cost transferred from a previous process to a current process is known as transferred in cost. It is incured when cost in one department is move to another. It is treated as another type of material cost for the receiving department and it is the cost of goods transferred out of the transferring department. It is the cost of one department moved to another.
DMC3 Inc. will pay no dividend for 2016 or 2017. At the end of 2018, it will pay a dividend of $1.50. Thereafter dividends will grow at 4% per year. The required rate of return is 10%. The intrinsic value of DMC3 shares is:________.A) $33.50. B) $34.53. C) $34.91. D) $35.21.
Answer:
no option is correct, the correct answer is $20.66
Explanation:
we can determine the value of DMC3 stock using an adjusted perpetuity formula:
present value = [dividend / (required rate - growth rate)] / (1 + required rate)²
= [$1.50 / (10% - 4%)] / (1 + 10%)² = ($1.50 / 6%) / 1.1² = $25 / 1.21 = $20.66
The intrinsic value of DMC3 shares is $25.
Explanation:To calculate the intrinsic value of DMC3 shares, we can use the dividend discount model (DDM). The DDM calculates the present value of all expected future dividends. In this case, DMC3 will pay a dividend of $1.50 at the end of 2018, and then dividends will grow at a rate of 4% per year. The required rate of return is 10%. We can calculate the intrinsic value as follows:
Intrinsic Value = (Dividend / (Rate of Return - Dividend Growth Rate)
Intrinsic Value = ($1.50 / (0.10 - 0.04)
Intrinsic Value = $1.50 / 0.06
Intrinsic Value = $25
Therefore, the intrinsic value of DMC3 shares is $25. Option B) $34.53 is not the correct answer.
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Assume that the marginal cost (MC) of production is increasingincreasing. Can you determine whether the average variable cost (AVC) is increasing or decreasing? Explain.
Final answer:
When the marginal cost (MC) of production is increasing, the average variable cost (AVC) is also increasing.
Explanation:
The relationship between marginal cost (MC) and average variable cost (AVC) can be determined based on the behavior of the two curves. If the MC curve is increasing, it means that each additional unit of output is becoming more costly to produce.
This implies that the cost of producing each additional unit is higher than the average cost of production, so the AVC curve is also increasing. Therefore, when the MC is increasing, the AVC is also increasing.
Fascinating Fez, a 125-year-old hat and cap manufacturer, markets very high-quality stylish headwear, many of which cost more than $1,000 each, to fashionistas globally, always maintaining its reputation of superior value in its narrow market. Fascinating Fez is using a cost-focus strategy.A) TrueB) False
Answer:
B) False
Explanation:
In a cost focus strategy, the company tries to create a cost advantage in it's targeted market segment.
In the given case, the strategy employed by the hat manufacturer is differentiation focus strategy. By using such a strategy, a firm focuses on providing differentiated products i.e unique superior quality products which are different than those of the competitors.
Cost focus stresses upon lowering costs in narrow markets, while differentiation focuses upon providing specialized different products which are focused upon catering to the needs of the customers of a narrow markets segment.