Answer:
Explanation:
2)
Calculation of P&L
Underlying Price = $ 57.70
Underlying Price is more than exercise price (40) ⇒ the option is exercised.
Initial Cash Flow = - $ 2.63
Cash Flow at Expiration = $ 57.70 - $ 40 = $ 17.70
Prrofit = $ 17.7 - $ 2.63 = $ 15.07
Ladders, Inc. has a net profit margin of 5.5 % on sales of $ 50.9 million. It has book value of equity of $ 40.9 million and total book liabilities of $ 28.6 million. What is Ladders' ROE? ROA? Note: Assume the value of Interest Expense is equal to zero.
Answer:
ROE=2.7995/40.9=6.84%
ROA=2.7995/69.5=4.03%
Explanation:
ROE
Return on equity of Ladder, Inc shall be calculated using the following formula:
ROE=Net profit/Equity
Net profit=5.5%*50.9=$2.7995 million
Equity=$40.9 million
ROE=2.7995/40.9=6.84%
ROA
Return on asset of Ladder, Inc shall be calculated using the following formula:
ROA=net profit/total assets
net profits=$2.7995 million
Total assets=Total equity+total liabilities
=40.9+28.6
=$69.5 million
ROA=2.7995/69.5=4.03%
Final answer:
Ladders, Inc.'s Return on Equity (ROE) is approximately 6.84%, calculated by dividing the net income by the shareholder's equity. The Return on Assets (ROA) is approximately 4.02%, found by dividing the net income by the total assets.
Explanation:
The student asks how to calculate a company's Return on Equity (ROE) and Return on Assets (ROA), using Ladders, Inc.'s financial data. To calculate the ROE, we use the formula: Net Income / Shareholder's Equity. With a net profit margin of 5.5% on sales of $50.9 million, Ladders' net income is $2.7995 million (0.055 * $50.9 million). The shareholder's equity is the book value of equity which is $40.9 million. Therefore, the ROE is $2.7995 million / $40.9 million, which gives approximately 6.84%.
For calculating ROA, the formula is: Net Income / Total Assets. Total assets are the sum of liabilities and equity, which is $28.6 million plus $40.9 million, equalling $69.5 million. The ROA would be the net income of $2.7995 million divided by total assets of $69.5 million, resulting in approximately 4.02%.
On August 15, we purchased equipment for $5,000. We paid $1,000 down with the remainder to be paid later. What account(s) would we credit when we journalize this entry? a. Cash and accounts payableb. Equipmentc. Equipment and accounts payabled. Accounts payable
Answer:
a. Cash and accounts payable
Explanation:
The journal entry to record this given transaction is shown below:
Equipment A/c Dr $5,000
To Cash A/c $1,000
To Account payable A/c $4,000
(Being the equipment is purchased for cash and on account)
Since the equipment is purchased for $5,000 that increase the asset account and the cash is paid for $1,000 so it would be credited plus the remaining amount is given on credit basis so we credited the account payable account
Answer:
a. Cash and accounts payable
Explanation:
On January 2, 2017, Coronado Corporation issued 31000 shares of 5% cumulative preferred stock at $100 par value. On December 31, 2020, Coronado Corporation declared and paid its first dividend. What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?
Answer:
$155,000
Explanation:
The amount of dividends that will be received by the Preferred stock holder before any dividend is made to the common stock holders shall be determined as follow:
Amount to be received by the Preferred stock holder=Number of preferred shares*Percentage on preferred shares*par value of preferred share.
Amount to be received=31,000*5%*100=$155,000
In this problem, you will be given three errors that may or may not affect the trial balance. You are to determine the following:(1) As a result of each error, will the trial balance still balance? Consider each error separately. If you determine that the trial balance will not balance as a result of the error, then answer the following questions:(2) What is the amount of the difference between the two columns of the trial balance? (3) Which trial balance column (debit or credit) will have the larger total?A. A payment of $490 on account for supplies previously purchased was recorded as a debit to Supplies Expense and a credit to Cash for $490B. A payment of $150 on account for supplies previously purchased was recorded as a debit to Accounts Payable for $150 and a credit to Cash for $510C. The $875 balance in Service Revenue was listed as a debit.
Answer:
1) This error will not effect balancing of trial.
2) Total difference in both columns will be of $500 and credit side of trial balance will have larger balance.
3) Total difference in both columns will be of $1,750 and debit side will exceed from credit side.
Final answer:
Error A does not affect the balance of the trial balance, whereas errors B and C cause imbalances. Error B results in a credit column excess of $360, and error C results in a debit column excess of $875.
Explanation:
Analysis of Trial Balance Errors
When analyzing trial balance errors, it is important to understand the effects each error has on the balance sheet. Looking at the presented errors one by one:
Error A: Since the transaction is correctly debited to Supplies Expense and credited to Cash for the same amount ($490), there is no effect on the trial balance equation. Both sides remain equal, and the trial balance will still balance.Error B: A payment recorded with a debit to Accounts Payable for $150 and a credit to Cash for $510 creates a discrepancy of $360. The trial balance will not be balanced due to this discrepancy. The credit column will have a larger total by the amount of $360.Error C: Listing the balance of Service Revenue, which should be a credit, as a debit creates an imbalance. This shifts the balance by $875, and the debit column will be larger by this amount.In summary, errors B and C will result in an unbalanced trial balance with disparities in respective columns based on the nature of the errors.
Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply. A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm. A plausible reason why Blue Hamster Manufacturing Inc.’s price to free cash flow ratio has decreased is that investors expect lower cash flow per share in the future. A decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors. A decline in the inventory turnover ratio can be explained by the new inventory management system that the company recently adopted, which led to more efficient inventory management.
Answer:
A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm
and
A plausible reason why Blue Hamster Manufacturing Inc.’s price to free cash flow ratio has decreased is that investors expect lower cash flow per share in the future
Explanation:
Please refer the calculated ratios below
Ratios Calculated
Year 1 Year 2 Year 3
Price to cash flow 6.80 4.76 3.81
Inventory turnover 13.60 10.88 8.70
Debt to equity 0.60 0.48 0.38
The statements that can be included in the analysis report include:
A decline in the debt-to-equity ratio simply means when there is a reduction in the creditworthiness that the firm has.A plausible reason why Blue Hamster Manufacturing Inc.’s price to free cash flow ratio has decreased is that there are investors who expect lower cash flow per share in the future.The following information were given in year 1:
Price to ratio flow = 6.80
Inventory = 13.60
Debt to equity = 0.60
The following information were given in year 2:
Price to ratio flow = 4.76
Inventory = 10.88
Debt to equity = 0.48
The following information were given in year 3:
Price to ratio flow = 3.81
Inventory = 8.70
Debt to equity = 0.38
In conclusion, based on the above information, the reduction in the debt-to-equity ratio from 0.60 to 0.38 simply means that there's a reduction in the creditworthiness that a firm has.
In conclusion, the correct options are A and B.
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Which term refers to the distinctive benefits that make a product different than any other
Answer:
Unique Selling Proposition (USP)
Explanation:
A unique selling proposition or unique product approval is a distinctive consumer motive, an alternative to image and “entertaining” advertising. USP is a part of the competitive advantage on the basis of which the client chooses a company or product (based on the properties of the product or service).
A unique selling proposition, according to the original theory, consists of three parts (implies the application of all approval points at the same time):
-Each advertising message contains an appeal to the buyer with a promise of specific benefits.
- The offer is formed in such a way that the competitor either cannot give it, or did not manage to put forward earlier.
-Offer must have great power to attract as many consumers as possible.
In marketing, the USP strategy is considered one of the main rational strategies for communicating with potential buyers, a strategy for advertising products.
-USP is determined not only by what is inherent in the product itself;
-USP is determined by what and how it is said about this product in advertising.
In order to skillfully use the UTP strategy in modern conditions, it is important for marketers to understand what kind of statements about a product are perceived as unique, and to be able to predict the features of perception of such advertising.
The task of the marketer, in relation to the USP, is the need:
-assessment of the conformity of the marketing proposal to the consumer's established notions of the integrated quality of the goods.
- anticipate unwanted reactions of potential consumers and try to neutralize them;
- evaluate the uniqueness of the competitors' offer and use a counter-proposal in communication or reveal another uniqueness;
All of the following are examples of total quality management practices except____________.
A)reduction in the movement required in a manufacturing job.
B) redesign of a product to reduce its parts by 50 percent.
C) separating the sales and services functions.
D) raisingraw material quality standards.
Answer:
C) separating the sales and services functions.
Explanation:
Total quality management refers to a method used by management to enhance quality and productivity in business. It puts a highlight on the processes that organizations use to manufacture their products, and it calls for organizations to characterize those processes and also persistently monitor and degree their execution, and utilize that execution information to drive improvements.
Therefore, Separating the sales and services functions is not involved in the processes of the Total quality management.
Total Quality Management (TQM) is a business practice aimed at enhancing quality and customer satisfaction. Examples are reducing required movement in manufacturing, redesigning a product to reduce parts, and improving raw material standards. However, separating sales and services functions isn't typically heard of as a TQM practice.
Total Quality Management (TQM) refers to a management approach for the long-term success of an organization through customer satisfaction. In TQM, all members of an organization actively participate in improving processes, goods, and services. Examples of TQM practices are: reduction in the movement required in a manufacturing job, redesign of a product to reduce its parts by 50 percent, and raising raw material quality standards. These practices aim to improve the overall quality and efficiency of business operations.
However, the practice of separating the sales and services functions is not typically considered a TQM practice. TQM involves integrating all business processes and functions to work harmoniously in enhancing quality and customer satisfaction, thus separation of functions does not foster this aim.
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Sylvestor Systems borrows $107,000 cash on May 15 by signing a 60-day, 6%, $107,000 note.
On what date does this note mature?
Answer:
14th July
Explanation:
The computation of the maturing date of the note is calculated below:
The Sylvestor Systems borrows the amount of $107,000 on May 15 at a 6% interest rate and the mature days of the note are 60 days
So, the maturity date would be
= 16 days in May month + 30 days in June month 14 days in July month
Therefore, the note is matured on 14th July
We simply calculated the 60 days from May to July months
Why do economists use models?
a. Models are used to add complexity to a simple world.
b.Models allow us to study a simplified version of a complex world.
c. Models allow us to control exogenous factors.
d. Models make the world harder to understand.
e. Models allow us to examine more factors than what actually exists in our world.
Answer:
b.Models allow us to study a simplified version of a complex world.
Explanation:
A economic model is a simplified version of reality that allows us to observe things.
Answer:
The correct answer is letter "B": Models allow us to study a simplified version of a complex world.
Explanation:
An economic model is a general and simplified assumption of real-world phenomena. Economists make models attempting to understand why those situations arise and to predict what their causes could be over time. In some cases, models can turn into theories after research and scientific support.
The two segments of the organization's environment are general and specific. Using an organization for which you are familiar, identify the factors that operate in each. Why is it important to understand an organization's environment?
Answer:
Explanation:
So, we can look at this from 2 perspectives.
First of all, general environmental aspects like political, economical, social, technological, environmental and legal factors (PESTEL).
Furthermore, there are more detailed environmental factors as suppliers, competitiors and customers.
All of these affect business and its nature. We can take any business (Apple, Target, Wall - mart, Hilton Hotels etc.) and observe that both general and specific external environmental factors affect these businesses and their operations.
The organization's environment consists of two segments, namely the general and specific environments. The general environment includes broader aspects like culture, economy, and technology, while the specific environment relates directly to the organization's operations. Understanding these environments is crucial for strategic decision-making and competitiveness.
Explanation:The organization's environment is split into two segments: general and specific. An example of a company that I am familiar with is Starbucks. The general environment consists of factors that could have an impact on any company, like economic conditions, cultural trends, or technological changes. For Starbucks, this could include the current economy's state, coffee consumption trends, and recent technology advancements being utilized in stores.
The specific environment comprises factors that directly impact the organization, such as competitors, suppliers, and customers. For Starbucks, competing coffee shops, coffee bean suppliers, and frequent coffee drinkers are all part of its specific environment.
Proper understanding of an organization's environment is crucial as it influences strategic decision-making, future planning, and overall sustainability of a firm. It enables the company to identify opportunities and threats, plan accordingly, and stay competitive within their industry.
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Which of the following are common accounting myths? (Select all that apply.) Select one or more: a. Accounting focuses only on math. b. Accountants focus only on the past. c. Accounting should be taught at culinary schools.
Answer:
a. Accounting focuses only on math. b. Accountants focus only on the past. c. Accounting should be taught at culinary schools.
Explanation:
a. Because accounting deals largely with numbers, some people therefore believe that accounting is mathematics and the focus of accounting is mathematics
b. The saying that Accounting focuses on a company's historical data is a traditional legendary story told and accepted by both the educated and the uneducated.
Because some of the information or data that form the basis of the accountant's report are from period that has ended in the past, Accountants analysis and report are seen as ex-post examination rather than ex-ante.
c. Another popular view is that accounting should be taught in areas relating to cooking.
ABC Corp. has a market price of $15 and a Price/Earnings multiple of 10. What was the corporation's Earnings Per Common Share?
Answer:
The correct answer is: $1,5.
Explanation:
The Price-to-Earnings ratio or P/E ratio is the relationship between a company's market value of per-share common stock and its earning per share. It is obtained by dividing the two factors previously mentioned and the result is the P/E ratio which is also called the multiple.
Thus, in the example:
P/E ratio = (market value per share) / (earning per share)
We can deduct:
Earnings per share = (market value per share) / P/E ratio
Then:
Earnings per share = $15/10
Earnings per share = $1,5
Indicate in which financial statement each item would most likely appear: income statement (I), balance sheet (B), statement of retained earnings (E), or statement of cash flows (CF).
(BS) Assets
(CF) Cash from operating activities
(E) Dividends
(BS) Equipment
(IS) Expenses
(BS) Liabilities
(CF) Net decrease (or increase) in cash
(IS) Revenues
(BS) Total liabilities and equity
Answer:
Assets (B)
Cash from operating activities (CF)
Dividends (E)
Equipment (B)
Expenses (I)
Liabilities (B)
Net decrease (or increase) in cash (CF)
Revenues (I)
Total liabilities and equity (I)
Explanation:
The balance sheet shows the assets, liabilities and equity of an entity as at a given date.
The income statement shows the revenue and expenses of the entity for the period ended while the statement of retained earnings shows the movements within the retained earnings account during the review period.
The statements of cashflow shows the net flow of cash from the company's activities namely; Operating, investing and financing activities.
The organization's leadership should establish the flow-down objectives to set the stage for establishing the guiding principles such as the vision and mission.a. Trueb. False
Answer:
The correct answer is letter "B": False.
Explanation:
The flow-down in management represents the activities executives perform when each individual department establishes their objectives and they are reported to the next level in the hierarchy department so the manager of that department approves or modifies it to align the overall organization's goals.
Setting the corporation's vision and mission is not part of this approach.
Yes, the organization's leadership should create flow-down objectives to lay the groundwork for formulating guiding concepts such as vision and mission. It's imperative that these objectives align with and support the wider strategy, vision, and mission.
Explanation:The statement is true. In an organization, its leadership should indeed create flow-down objectives. These objectives serve as specifics that result from the top-level goals of an organization and are passed down for execution. This action sets the stage for defining the guideposts like the vision and mission. It is crucial for leaders to ensure that these objectives align with, and support the realization of the organization's broader strategy, vision, and mission.
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Amazon was an e-commerce leader with its rapid distribution of a wide array of products, but the firm now faces competition from eBay, Yahoo, and Google.This example illustrates the __________.
Answer: The difficulty of maintaining competitive advantage.
Explanation:
Amazon is experiencing difficulty in maintaining its competitive advantage in internet marketing, as other competitors are now gaining greater portions of it's market. Competitive advantage in marketing, are those qualities a business possess that enables it to dominate it competitors.
The majority of all U.S. firms employ:
a.more than 5,000 employees.
b.1,000 to 3,000 employees.
c.3,000 to 5,000 employees.
d.500 or fewer employees.
The majority of all U.S. firms employ 500 or fewer employees.
Explanation:
In 2016 there had been 5.6 million employers ' companies in the U.S. According to information from the Yearly Businessmen Survey of the Census.
99.7 percent of all companies were corporations with less than 500 employees. The organization accounts for 98.2 percent, with less than 100 employees.Companies with less than 20 staff accounted for 89.0%.As per the Census Bureau of labor statistics of USA, among worker C companies in 2015. 84.9% of companies employed under 20 workers, 96.4% fewer than 100 workers and 99.0% had far less than 500 workers. When you bring in non-employer firms, 89.5 percent of all C companies are staffed with less than 20 employees.
If you are willing to purchase a house for $500,000 and you purchase the house for $500,000, this transaction will generate:
Answer:
c. $0 worth of buyer surplus and unknown amount of seller surplus
Explanation:
Given that
Selling price of house = $500,000
The purchase value of house =$500,000
By considering the above information, the purchase and sales value are the same which reflects that the buyer surplus is zero and there is no definite amount or unknown amount of seller surplus as the data is not given.
Hence, the correct option is c.
One of the most popular reasons why thousands of people seek to go into the restaurant industry is:_______
One of the most popular reasons why thousands of people seek to go into the restaurant industry is the possible financial rewards
Explanation:
Positive Reinforcement: While there’s a time and place for constructive criticism, positive reinforcement can be just as effective in increasing productivity. When you reward restaurant staff members who go the extra mile, it boosts their confidence and desire to take on more responsibility
Employee Retention: Deciding to reward restaurant staff could help reduce employee turnover.
Team Building: Everybody wins (including you) when you reward restaurant staff for a job well done. After employees receive a great reward or prize, expect to see them working more closely together on future projects.
Which strategy refers to the creative approach used throughout a campaign, which should flow from the brand's positioning statement
Answer:
The correct answer is: Creative strategy.
Explanation:
The creative strategy is the marketing plan a company sets to contribute to the achievement of its goal. Before this step, a study of the target market and customer of the company is necessary so the firm's publishers have an idea of who they are dealing with to introduce the good or service of the company in an engaging form.
The strategy in question is the creative strategy in advertising, including product-oriented and consumer-oriented strategies, and is embedded in a brand's advertising campaign to achieve certain objectives.
Advertising Strategies Based on Brand Positioning
The strategy that refers to the creative approach used throughout a campaign, flowing from the brand's positioning statement, is commonly part of the creative strategy in advertising. The process of developing this strategy involves turning resources into goals and does not solely depend on the amount of resources like money or people but rather on how these resources are utilized to achieve a particular purpose. Two main types of strategies are product-oriented and consumer-oriented.
Product-oriented strategy highlights the specific benefits and features of the product or service, such as absorbency and strength in paper towels or unique offerings from a brand like McDonald's famous french fries. On the other hand, the consumer-oriented strategy connects with the audience's lifestyle or aspirations, such as car commercials that show an attractive person driving along a scenic road, rather than focusing on the car's features. Moreover, it is possible to combine various ideas and strategies to increase the chances of accomplishing the campaign's goals.
The social marketing model outlines five steps in the campaign process: planning, theory, communication analysis, implementation, and evaluation. In the theory step, which involves completing a creative brief, advertisers seek the best way to achieve the campaign objectives by using research to inform strategic decisions. Additionally, aspects such as the message, color choices, layout design, and graphic elements play crucial roles in the overall theme of a brand.
On January 1, Year 1, Johnston Company purchased a 40% interest in the common stock of Truly Inc. for $100,000. Johnston has significant influence but not control. On December 10, Year 1, Truly declared and paid dividends of $20,000. Truly reported net income of $50,000 for Year 1.
What is the book value of Johnston’s investment in Truly at the end of Year 1?
Answer:
$112,000
Explanation:
The Equity method shall be used in this question for determining book value of investment made by the Johnston company in Truly Inc because the investment gives the Johnston company the significant influence over the Truly Inc.
Under equity method, the book value of investment made by the Johnston company as at end of year 1 shall be determined as follow:
Amount invested initially $100,000
Add: Net income for the year $20,000
(50,000*40%)
Less: dividends received ($8,000)
(20,000*40%)
Book value of investment at end of year 1 $112,000
The book value of Johnston's investment in Truly at the end of Year 1 is $112,000, calculated as the initial investment of $100,000 plus Johnston's share of earnings ($20,000) minus dividends received ($8,000).
To calculate the book value of Johnston's investment in Truly at the end of Year 1, you need to consider the initial investment, share of earnings, and dividends received:
Initial Investment:
Johnston purchased a 40% interest in Truly Inc. for $100,000.
So, the initial investment is $100,000.
Share of Earnings:
Johnston owns a 40% interest in Truly.
Truly reported a net income of $50,000 for Year 1.
Johnston's share of earnings: 40% * $50,000 = $20,000
Dividends Received:
Truly declared and paid dividends of $20,000.
Johnston's share of dividends: 40% * $20,000 = $8,000
Now, let's calculate the book value of Johnston's investment:
Book Value = Initial Investment + Share of Earnings - Dividends Received
Book Value = $100,000 + $20,000 - $8,000
Book Value = $112,000
So, the book value of Johnston's investment in Truly at the end of Year 1 is $112,000.
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On March 1, 2018, Beldon Corporation purchased land as a factory site for $65,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2018. Costs incurred during this period are listed below: Demolition of old building $ 6,500 Architect’s fees (for new building) 17,000 Legal fees for title investigation of land 4,500 Property taxes on land (for period beginning March 1, 2018) 3,500 Construction costs 550,000 Interest on construction loan 7,500 Salvaged materials resulting from the demolition of the old building were sold for $2,500.
Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
Answer:
$73,500; $578,000
Explanation:
Capitalized cost of land:
= Purchase of land + Demolition of old building + Legal fees for title investigation - Salvaged materials resulting from the demolition
= $65,000 + $6,500 + $4,500 - $2,500
= $73,500
Capitalized cost of building:
= Construction costs + Interest on construction loan + Architect's fees + Property taxes (before construction to be capitalized
= $550,000 + $7,500 + $17,000 + $3,500
= $578,000
se the following information to do a horizontal analysis of Rae Company's income statement for the current year and prior year Account Current year Prior year Dollar Change % Change Cost of goods sold $ 389 comma 000 $ 302 comma 000 Selling/general expense $ 63 comma 000 $ 41 comma 000 Gross profit $102,600 $76,800 Net income $17,160 $22,000 What is the percentage change in cost of goods sold? A. 79.79% B. 28.79% C. 25.33% D. 40.43%
Answer:
The Correct Answer is B. 28.79%
Explanation:
The percentage change in cost of goods sold is 28.79%. This is calculated by subtracting Current year Cost of Goods Sold from prior year Cost of Goods Sold and divide the answer by prior year Cost of Goods Sold. The answer is multiplied by 100 to get a percentage. The calculation will be [($389,000 - $302,000) / $302,000] * 100.
Wayne grants his cousin, Vinnie, a franchise in Wayne's local sandwich shop. Wayne writes the agreement so that he controls every detail of Vinnie's shop such that it is exactly the same as the original shop. He even consults with Vinnie about hiring employees and safety practices. One of Vinnie's employees fails to clean up a spill and a customer is injured. Wayne may be liable to the customer under.......................
Answer:
Agence law.
Explanation:
Agency law can be defined as an area of commercial law that deals with the relationship between a party that has legal authority to act in place of another, called an agent. The agent can be an individual, or some partnership or corporation. The agent deals with contractual, almost contractual and non-contractual fiduciary relationships.
The powers of the agency's law are to deal with contractual, almost contractual and non-contractual fiduciary relationships involving an agent.
A good process should __________ and remove the inflexibility of a defined procedure of operation.
1. facilitate the adaptability
2. partition your mindset
3. provide a framework
4. reduce the randomness
A good process should facilitate the adaptability and remove the inflexibility of a defined procedure of operation.
Answer: Option 1.
Explanation:
A good process is the one which does not remain the same forever. It should have facilities for accepting the changes where ever they are needed. The changes should be done with time.
A good process should not be inflexible and it should be flexible. The flexibility only should make it adaptable to the changes over a period of time for more development.
Which of the following identifies the motivation for much of the foreign direct investment by non-U.S. firms? a. The desire to disperse production activities to optimal locationsb. The need to suppress emerging economies such as China, India, and Brazilc. The demand for skilled workers in foreign nationsd. The lack of adequate environmental regulationse. The establishment of multinational treaties
Answer:
The correct answer is letter "A": The desire to disperse production activities to optimal locations.
Explanation:
Land and society are factors influencing where a business should take its production. Thanks to the worldwide economy, it is not necessary for firms to specialize in what their country can provide since they can manage their manufacturing process in the country where they think the business could provide them more revenues. This scenario, in most cases, implies low labor costs and fewer regulations for the company to operate.
Beta coefficients may be computed for investment companies and used to compute risk-adjusted rates of return.
O True O False
Answer:
True
Explanation:
The basic function of a beta coefficient is to measure the volatility or systematic risk. Firms and organisation analyse the beta coefficient before they invest in any new ventures because it helps to measure the risk-adjusted rate of returns. Beta coefficient measures the systematic risk which is the market risk, unpredictable and impossible to avoid.
Well-constructed goals provide a means by which the performance of managers can be evaluated. a. True b. False
Answer:
The correct answer is letter "A": True.
Explanation:
Achievement of goals can be considered as a factor to measure the performance of managers. If stated clearly, meaning establishing what the goal is, under what conditions it must be accomplished, and after what period, those objectives can determine if executives are doing what is necessary to manage the business properly.
A new product made from recycled bio-plastics needs 25 labor hours to complete the build for the first unit. If production operates at a 67% learning curve rate, calculate the average labor hours required per unit to produce five units.
Answer:
166.25 hours
Explanation:
It take 25 hours if the production is going at 100% capacity, but the production is only going at 67%, therefore, 33% of the capacity is under utilized. It takes 8.25 more hours to finish the unit since the capacity is only at 67%. Finally, it takes 25+8.25 hours to finish a single product, hence taking 166.25 hours for 5 units.
We do this like this:
--> 25 ------ 100
--> X ------ 33
--> 33*25 = 100*X
--> 825/100
--> X=8.25
Hope this clears everything. Thankyou.
Top managers of Marshall Industries predicted 2018 sales of 14,800 units of its product at a unit price of $9.50. Actual sales for the year were 14,600 units at $12 each. Variable costs were budgeted at 2.00 per unit and actual variable cost were $2.10 per unit. Actual fixed cost of 48,000 exceeded budget it fixed cost by 4,000.
Prepare a flexible budget performance report for the year. First,complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line.
Answer:
Budget Actual
$ $
Volume 14,600.00 14,600.00
Price 9.50 12.00
Sales 138,700.00 175,200.00
Variable cost Per unit 2.00 2.10
Total variable cost 29,200.00 30,660.00
Contribution Margin 109,500.00 144,540.00
Fixed cost 44,000.00 48,000.00
Operating Income 65,500.00 96,540.00
Explanation
First and foremost flexing a budget means revising the budget based on actual sales volumes, that is i what did above to calculate the margins as well as the operating income
Given that globalization connects countries in many ways, managers need to pay close attention to economic environments to understand how _____.
Answer:
distinguish one place from another.
Explanation:
Globalization corresponds to a process of economic, political, cultural and social integration between different countries, which was motivated by the advance of new technologies, which boosted communication and transportation between different countries.
Globalization has a significant impact on the world, it affects communication, the movement of goods and resources, international trade and other variables.
Therefore, it is important that in a company that wants to expand in the world market to have an organizational culture focused on a world view of management, prioritizing the internal and external environment that differs according to the country in which the business activities are implemented. It is necessary for managers to have an ethical view of doing global business, where there is respect for different cultures and a positive organizational climate.
It is also important to segment the local market, taking advantage of all the small opportunities that a new market can offer, such as reducing costs and maximizing profits, government incentives and hiring experienced employees in the local market.