Answer:
9.45%
Explanation:
the cost of preferred stock is given by the question.
the formula that we can use to calculate the cost of preferred stock = preferred dividends / market price per preferred stock
remember that preferred dividends are paid with after tax earnings, so they do not reduce taxes
One of the toughest problems in investigating systems requirements is ensuring that they are complete and comprehensive. Imagine that you are a systems analyst. Decide the primary way in which you would ensure that you secure the necessary information during an interview session with a client. Devise a plan for accommodating conflicting responses for the same procedure from two different people you interviewe
Answer:
A) One of the most professional ways of acquiring information from a client during an interview is to approach the exercise in a semi-structured manner.
B) In order to accommodate conflicting responses from the same procedure from two different people, it is important to seek to understand what their interests are.
Explanation:
A) Semi-structured questions allow flexibility. Though the business analyst comes to the table with a set of pre-determined questions, they must be prepared to go outside of that list in order to get to the root of the problem which the clients needs to solve.
Another job of the analyst is to see beyond the immediate needs of the client and communicate to them, based on the information they provided any other problem that needs to be catered to.
Recording all information provided by the respondent is mission-critical.
B) Clarity of interests helps the analyst to determine what approach is best for accomodating both responses.
Cheers
1. When you played the New York City Budget game, how did this change your opinion on how governments operate cities? What are some of the ways a city can earn revenue?
2. What are the similarities and differences between balancing a city budget and balancing a personal budget?
QUESTION 10 of 10: Good market research can help you determine your break-even point, which is: a) When variable costs equal fixed costs b) When even one more problem will break you c) The point at the geometric center of your target customer base d) The number of units you need to sell, taking into account variable costs, in order to cover fixed costs.
Answer:
d) The number of units you need to sell, taking into account variable costs, in order to cover fixed costs.
Explanation:
Breakeven analysis can be defined as a financial accounting method or technique used for determining the number of units a business firm must sell at a specific price so as to cover all of its costs. It is a concept that allow business owners or financial experts to determine and know what they need to sell either on a monthly or annual (yearly) basis, in order to be able to cover the costs of doing the business.
Basically, it helps us to determine the amount of revenue required for the smooth operation of a business, amount of money needed to cover both fixed and variable costs. Using the breakeven analysis, production costs can be categorized as;
1. Variable costs: these are costs that usually change with respect to changes in the level of production or output. Examples are direct labor, maintenance of equipment or machines, raw materials costs etc.
2. Fixed costs: these are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Examples are rent, depreciation, administrative cost, research and development costs, marketing costs etc.
Hence, a good market research can help you determine your break-even point, which typically is the number of units you need to sell, taking into account variable costs, in order to cover fixed costs.
The stage which relates to
development of decision making
abilities, interpersonal and technical
competencies is known as:
Select one:
a. Facilitating the improvement
of quality and employee
productivity
b. Norming
c. Storming
d. Forming
= Storming
Explanation:
The stage which relates to
development of decision making
abilities, interpersonal and technical
competencies is known as storming
'Team development' consists of five distinct stages with each having its own significance in ensuring smooth and effective performance by every member for attaining the desired goals.
The stage of team development that is associated with making a decision by ruling out internal conflicts or competencies would be:
c). Storming
'Storming' is described as the stage at which the various members of the team come up with a variety of ideas. Each member attempts to make sure that his/her idea stands out and this leads to arguments, competition, and conflicts among the team members. As a result, the original goal of the team is often sidelined. Therefore, the leader plays a key role in managing these conflicts and strike focus back to the goal. The leader of the team communicates with the team and makes a decision that helps in gathering the team as a unit for setting out the norms in the next stage.
Thus, option C is the correct answer.
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Raw materials inventory was $5,000 at the beginning of the year and $12,000 at the end of the year. During the year, a total of $27,000 in raw materials were purchased, including $4,000 of indirect materials that were put into manufacturing overhead during the period. Calculate the cost of direct materials used during the period.
Answer:
Direct material used= $16,000
Explanation:
Giving the following information:
Beginning inventory= $5,000
Ending inventory= $12,000
Direct material purchased= 27,000 - 4,000= $23,000
To calculate the direct material used, we need to use the following formula:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 5,000 + 23,000 - 12,000
Direct material used= $16,000
On December 18, Intel receives $260,000 from a customer toward a cash sale of $2.6 million for computer chips to be completed on January 23. The computer chips had a total production cost of $1.6 million. What journal entries should Intel record on December 18 and January 23
Answer:
December 18
Debit : Cash $260,000
Credit : Deferred Revenue $260,000
January 23
Debit : Cost of Sales $1.6 million
Debit : Deferred Revenue $260,000
Debit : Trade Receivable $2,340,000
Credit : Inventory $1.6 million
Credit : Sales Revenue $2.6 million
Explanation:
During December 18, the firm receives cash and must recognize this asset. On the other hand it should recognize the Liability, Deferred Revenue for the sale not yet completed.
During January 23, reverse the Deferred Revenue and recognize the Sales Revenue for that amount. Also recognize the cost of sales and decrease in inventory. the remainder not yet paid is a Trade Receivable and must be recognized.
International macroeconomics focuses on: isolated nations. market-specific variables such as the price of orange juice. city-level economic problems.
Answer:
Isolated nations
Explanation:
Macroeconomics is a branch of economics that studies the economy as a whole. Macroeconomics studies economic aggregates such as inflation, unemployment, GDP and growth rate.
International macroeconomics focuses on economic activities of various countries and how its consequences
The first step in the decision-making process requires you to do what?
Identify the decision that needs to be made and determine the desired goal.
Set aside some time to reflect on your career path.
Chart the decisions your competitors have made in the past three years.
Create a survey and send it to everyone in your company.
Answer:
think.....all you have to do is think XD
but in all honesty the answer is a determine your descision
You know that one of your shortcomings is that you have no real job experience to speak of. You are considering beefing up your resume by exaggerating the extent of the class project you worked on for a few weeks at your brother-in-law’s small consulting firm. You could reword the resume to make it sound as if you were actually employed there and that your responsibilities were greater than they actually were. What would you do?
Answer:
Obviously, I will not reword the resume in order make it sound as if I was employed.
Explanation:
Solution:
Obviously, I will not reword the resume in order make it sound as if I was employed.
Because:
1. It is ethically wrong.
2. If I reword the resume, then obviously, I would present fake certificates to the company in order to prove the rewording or exaggerating presenting in the resume.
3. Fake documents and certificates can not be hidden for long.
4. It is really dangerous and illegal to present fake data and certificates. You can get a job on those fake profiles but after some time, chances are very high that you will be caught red handed. And consequently, you can face severe legal proceedings as well.
Hence, I will definitely not exaggerate or reword the resume. Better way is to get an internship experience for free and then provide real certificates to secure a job.
The United States imports a lot of cars, despite having its own auto industry. Each of the following statements are arguments some people could make for restricting imports of cars into the United States. For each statement, identify the threat to the U.S. industry that the argument is trying to counter, and identify the opportunities that would be given up if the argument wins.
Choose the correct answer:
a. "Foreign manufacturers are offloading their cheap cars onto the U.S. market. We should stop this so that consumers have access to higher-quality U.S. cars."
-National security requires that strategically important goods be produced domestically.
-Protection can help infant industries develop.
-Foreign competition may lead to job losses.
-Anti-dumping laws prevent unfair competition.
-Trade should not enable foreign firms to skirt U.S. regulations.
b. "We must foster the innovation of small car companies, like Tesla. Allowing foreign electric vehicle manufacturers to sell cars in the U.S. will eliminate any chance of creating those cars domestically."
-Foreign competition may lead to job losses.
-Anti-dumping laws prevent unfair competition.
-National security requires that strategically important goods be produced domestically.
-Trade should not enable foreign firms to skirt U.S. regulations.
-Protection can help infant industries develop.
c. "You should not buy a car from Nissan or BMW! You are putting people here out of a job."
-Foreign competition may lead to job losses.
-Anti-dumping laws prevent unfair competition.
-National security requires that strategically important goods be produced domestically.
-Trade should not enable foreign firms to skirt U.S. regulations.
-Protection can help infant industries develop.
Answer:
a. "Foreign manufacturers are offloading their cheap cars onto the U.S. market. We should stop this so that consumers have access to higher-quality U.S. cars."
-Anti-dumping laws prevent unfair competition.
DUMPING REFERS TO GOVERNMENTS SUBSIDIZING EXPORTS IN ORDER TO LOWER THEIR PRICES. THIS IS AN ILLEGAL PRACTICE NOT ACCEPTED BY THE WORLD TRADE ORGANIZATION.
b. "We must foster the innovation of small car companies, like Tesla. Allowing foreign electric vehicle manufacturers to sell cars in the U.S. will eliminate any chance of creating those cars domestically."
-Protection can help infant industries develop.
EVEN THOUGH CAR ARE MANUFACTURED IN THE US SINCE MANY YEARS AGO, TESLA AND OTHER ELECTRIC CAR MANUFACTURERS ARE STILL AN INFANT INDUSTRY.
c. "You should not buy a car from Nissan or BMW! You are putting people here out of a job."
-Foreign competition may lead to job losses.
JOBS MAY BE AT RISK WHEN A DOMESTICALLY PRODUCED GOOD IS REPLACED BY AN IMPORTED GOOD
This year, Johnson Mills has annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. The firm paid $700 in dividends, $280 in interest, and has a total tax rate of 21 percent. The firm will add $2,810 to retained earnings. What is the depreciation expense?
Answer:
$3,857
Explanation:
From the above, we do know that;
Revenue - Expenses = Net income
But
Expenses = Revenue - Cost of goods sold - Admin expenses - Depreciation expenses
Also,
Net income tax = Income before taxes × ( 1 - tax rate)
Since we do not know Net income taxes,
Net income - Dividends = Change in retain earnings
Net income = $2,810 + $700
= $3,510
Income before taxes = $3,510 / 0.79
= $4,443
$37,800 - $23,200 - $6,300 - Depreciation expenses = $4,443
Therefore,
Depreciation expenses = $3,857
Matthew purchased a new piece of equipment to be used in its new facility. The $400,000 piece of equipment was purchased with a $40,000 down payment and with cash received through the issuance of a $360,000, 9%, 5-year mortgage payable issued on January 1, 2022. The terms provide for annual installment payments of $92,553 on December 31.
Required:
Prepare an installment payments schedule for the first five payments of the notes payable.
Answer:
The ending balance after the first five payments of the notes payable is $1.70.
Explanation:
Note: See the attached excel file for the installment payments schedule for the first five payments of the notes payable.
In the attached excel file, the following are calculated as follows:
Beginning balance for the year 2022 = Value of the note payable
For other years, Beginning balance for a particular year = Previous year's ending balance
Interest expense for each year = Beginning balance for each year * Interest rate
Principal paid for each year = Annual installment - Interest expense for each year
Ending balance for each year = Beginning balance for each year - Principal paid for each year
From the attached excel file, the ending balance after the first five payments of the notes payable is $1.70.
The following Is a list of well-known companies.
1. Alcoa Inc.
2. Boeing
3. Caterpillar
4. Citigroup Inc.
5. CVS
6. Dow Chemkal Company
7. eBay Inc.
8. FedEx
9. Ford Motor Company
10. Gap Inc.
11. Block
12. Hilton Hospitality, Inc
13. Procter & Gamble
14. SunTrust
15. Walmart Stores, Inc.
Required:
Indicate whether each of the above companies are primarily a service, merchandise, or manufacturing business.
Answer:
The companies Indication
1. Alcoa Inc. Manufacturing business
2. Boeing Manufacturing business
3. Caterpillar Manufacturing business
4. Citigroup Inc. Service business
5. CVS Merchandising business
6. Dow Chemkal Company Manufacturing business
7. eBay Inc. Service business
8. FedEx Service business
9. Ford Motor Company Manufacturing business
10. Gap Inc. Merchandising business
11. H&R Block Service business
12. Hilton Hospitality, Inc Service business
13. Procter & Gamble Manufacturing business
14. SunTrust Service business
15. Walmart Stores, Inc. Merchandising business
Whispering Winds Corporation owns equipment that cost $64,800 when purchased on April 1, 2013. Depreciation has been recorded at a rate of $10,800 per year, resulting in a balance in accumulated depreciation of $51,300 at December 31, 2017. The equipment is sold on July 1, 2018, for $12,960. Prepare journal entries to (a) update depreciation for 2018 and (b) record the sale
Answer:
(a) update depreciation for 2018
Debit ; Depreciation $10,800
Credit Accumulated Depreciation $10,800
(b) record the sale
Debit : Cash $12,960
Debit : Accumulated Depreciation $62,100
Credit : Profit and Loss $10,260
Credit : Equipment at Cost $64,800
Explanation:
(a) update depreciation for 2018
Recognize deprecation
(b) record the sale
Recognize proceeds from sale and profit or loss from sale
Scottie Barnes has an investment that will pay him $6,400, $6,450, $7,225, and $7,500 over the next four years. If his opportunity cost is 10 percent, what is the future value of the cash flows he will receive
Answer:
Total FV= $34,947.44
Explanation:
Giving the following information:
Cash flows:
1= $6,400
2= $6,450
3= $7,225
4= $7,500
Opportunity cost= 10%
To calculate the future value of the cash flows, we need to use the following formula on each cash flow:
FV= Cf*(1+i)^n
i= opportunity cost
FV1= 6,400*1.1^4= 9,370.24
FV2= 6,450*1.1^3= 8,584.95
FV3= 7,225*1.1^2= 8,742.25
FV4= 7,500*1.1= 8,250
Total FV= $34,947.44
How does a business survive and maintain a profit?
Answer:
Make sure you don't copy and paste. Have a good day!!!
Explanation:
1. Customers
Find and keep your own customers – you have to be able to solve their real problems & sell yourself effectively.
Too many businesses rely on ‘being in the supply chain’, have too few major customers and do not invest personal time and effort in developing and maintaining customer relations – remember, ‘people buy people’.
Check their credit rating and monitor their speed of payment.
You have not made a sale until they’ve paid the bill. Some customers have bad habits over slow payment; some are big enough to know better. Some will go under before they pay – avoid them.
2. Risks
Assess risks & their potential impact – e.g. customer or supplier closure
Develop contingency plans to mitigate risks
We live in a risky business environment. Don’t assume everything will be OK – look at the potential risks, pitfalls and liabilities for your business and at how you can reduce the biggest risks or anticipate how you will respond if the worst happens.
3. Opportunities
Look for ways to create new value – e.g. new pricing, products & offers to stimulate demand
It often takes longer and costs more than you think to innovate or do anything new.
Use the technology – social media, tablet computing and smartphones are constantly changing the ways we can do business
There are always new opportunities and growing confidence in the economy accelerates these. Many of the most attractive are not in the UK but are international.
Innovation and new approaches can open up promising opportunities but experience tells us that when doing anything new often costs more and takes longer to implement than you first expect, so be prepared to increase your investment of time and money for those new ideas. That means doing your research to find out just how attractive an opportunity it is in the first place.
4. Money in – manage cash and break even
Forecast and monitor your cash flow very closely
Aim to maintain/increase profit margins rather than just increasing sales turnover (bottom line not top line)
Monitor breakeven on the business, customers, products, staff.
Beware of ‘buying’ work at cut-throat margins. Profitable businesses can fail because they run out of money, often suffering from slow payment and lack of credit. Aim to be cash-positive and you will sleep better at night. Break-even is the point at which the business, a person or a contract starts making a profit and is always an important measure.
5. Money out – manage costs and debt
Keep your fixed costs down: avoid costs which are not essential.
Aim to grow sales on a variable cost basis – borrow, rent or lease assets but don’t buy things or hire people you don’t need.
Keep in contact with creditors & lenders to avoid nasty surprises.
Businesses can be wasteful; you don’t need to be. Invest your money only in assets and projects which will provide a strong return. The worst time to ask a lender for more money is when you really need it. Up to date management accounts are essential and you must read them to monitor the health of the business.
6. People
Optimism – positive, realistic leadership with open communications
Set & monitor clear & realistic targets – sales, costs, project completion, debt etc.
Move unproductive people & customers out of the business.
At the end of the day it’s all about how you manage relationships with people. You can tell a lot about a business from the quality of interactions between its managers, employees, customers and suppliers.
Answer:
Explanation:
No business can survive for a significant amount of time without making a profit, though measuring a company's profitability, both current and future. Without sufficient capital or the financial resources used to sustain and run a company, business failure is imminent.
What types of firms lend to businesses needing capital or long-term funds?
A) Insurance companies
B) Pension and trust services
C) Commercial finance companies
D) Pension funds
Answer:
c
Explanation:
There are some Companies that lend money and treat loans. The type of firms lend to businesses needing capital or long-term funds is Commercial finance companies.
A financial institution (FI) is known to be a type of company that is involved in the business dealings where financial and monetary transactions such as deposits, loans, investments are made.Commercial finance company is simply known to be a type of finance institution where loans are made available to manufacturers and wholesalers.
Conclusively, this Commercial finance company gives loans that can be paid back in a longer run to people who want to start up business.
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A rise in the price of Pepsi that causes a household to shift its purchasing pattern toward Coke and away from Pepsi is the ________ effect of a price change. A) income B) substitution C) complementary D) diminishing marginal utility
Answer:
B
Explanation:
Substitution effect is the change in demand as a result of the change in the price of a good relative to the price of another good.
As a result of the increase in price of Pepsi, the demand for coke increases. This is an example of substitution effect
On January 1, 2021, Blossom Corporation signed a 10-year noncancelable lease for certain machinery. The terms of the lease called for Blossom to make annual payments of $185015 at the end of each year for 10 years with the title passing to Blossom at the end of this period. The machinery has an estimated useful life of 15 years and no salvage value. Blossom uses the straight-line method of depreciation for all of its fixed assets. Blossom accordingly accounted for this lease transaction as a financial lease. The lease payments were determined to have a present value of $1241466 at an effective interest rate of 8%. With respect to this lease, Blossom should record for 2021
a. interest expense of $82764 and amortization expense of $69431.
b. interest expense of $99317 and amortization expense of $82764.
c. interest expense of $83317 and amortization expense of $124147.
d. lease expense of $99317.
Answer:
the interest expense os $99,317 and the depreciation expense of $82,764
Explanation:
The computation of the interest expense and the depreciation expense is given below:
Interest expense is
= Present value × effective interest rate
= $1,241,466 × 8%
= $99,317
And, the depreciation expense is
= Present value ÷ estimated life
= $1,241,466 ÷ 15 years
= $82,764
Hence, the interest expense os $99,317 and the depreciation expense of $82,764
This is the answer but the same is not provided in the given options
A company estimates that 0.7% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $150. If they offer a 2 year extended warranty for $12, what is the company's expected value of each warranty sold
Answer:
$10.97
Explanation:
Calculation for what is the company's expected value of each warranty sold
First step is to calculate the outcome
Outcome=$150-$12
Outcome=138
Second step is to calculate the outcome probability
Outcome probability=1-0.007
Outcome probability=0.993 and 0.007 respectively
Now let calculate the company's expected value of each warranty sold
Expected value of each warranty sold=$12*0.993+(-$138)*0.007
Expected value of each warranty sold=$10.97
Therefore Expected value of each warranty sold is $10.97
How do firms operating in the formal economy identify and analyze the parts of the informal economy relevant to their strategies
Answer:
Business forms strategy to earn profits. Formal economy restricts business from extra ordinary profits and the business activities are regulated by government.
Explanation:
Formal economy focuses on commercial activities that generate government taxes. In informal economy the businesses are not regulated and taxes are not paid. The competition is distorted in the market and business make unfair profits. Informal economy poses a threat to formal economy system.
Examples of imperfections in the financial system which allow banks to exist include which of the following? A. Informational asymmetry B. Efficiency of markets C. Divisibility of assets D. Adequate liquidity E. All of the examples are of the imperfections that exist.
Answer: A. Informational asymmetry
Explanation:
There exists an information asymmetry in the financial markets that rises from people being unable to adequately analyse the riskiness of various business endeavours.
Banks overcome this information asymmetry by having experience and well trained personnel that are capable of adequately assigning risk to ventures and charging them the appropriate interest rate to make a return on that venture.
On January 2, 2020, Vaughn Manufacturing began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows:
January 2, 2020 $ 599000
September 1, 2020 1801200
December 31, 2020 1801200
March 31, 2021 1801200
September 30, 2021 1220000
Vaughn Manufacturing borrowed $3230000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $13680000 in 7% bonds outstanding in 2020 and 2021.
The interest capitalized for 2020 was:
a. $159600
b. $479060
c. $478800
d. $119940
Answer:
d. $119,940
Explanation:
We must first calculate the weighted accumulated expenditures 2020:
January $599,000 x 12/12 = $599,000 September $1,801,200 x 4/12 = $600,400 December $1,801,200 x 0/12 = $0total = $1,199,400capitalizable interests = $1,199,400 x 10% (interest rate of specific construction loan) = $119,940
you will consider other interest rates only if expenses are higher than the specific construction
Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $180,000, and it had a market value of $288,000 on the date of the transfer. Cecile sold the stock for $252,000 a month after receiving it. In addition Casper is required to pay Cecile $9,000 a month in alimony. He made five payments to her during the year.
Required:
a. What are the tax consequences for Casper and Cecile regarding these transactions?
b. How much gain or loss does Casper recognize on the transfer of the stock?
c. Does Casper receive a deduction for the $7,500 alimony paid?
d. How much income does Cecile have from the $7,500 alimony received?
e. When Cecile sells the stock, how much does she report?
Answer:
a. No gain or loss will be recognized by either party.
b. $0 gain or loss will be recognized by Casper on the transfer.
c. Yes, a deduction will be received by Casper for the $45,000 alimony paid during the year.
d. The amount of income is the $45,000 alimony received from Casper during the year.
e. Cecile will report a capital gains of $72,000.
Explanation:
Note: This question has some errors. The correct question is therefore provided before answering the question as follows:
Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $180,000, and it had a market value of $288,000 on the date of the transfer. Cecile sold the stock for $252,000 a month after receiving it. In addition Casper is required to pay Cecile $9,000 a month in alimony. He made five payments to her during the year.
Required:
a. What are the tax consequences for Casper and Cecile regarding these transactions?
b. How much gain or loss does Casper recognize on the transfer of the stock?
c. Does Casper receive a deduction for the $45,000 alimony paid?
d. How much income does Cecile have from the $45,000 alimony received?
e. When Cecile sells the stock, how much does she report?
The explanation of the answers are now given as folllows:
a. What are the tax consequences for Casper and Cecile regarding these transactions?
Casper who is the party that is making the transfer will enjoy a deduction for the property he transferred as he is nt entitled to the deduction. In addition, no gain or loss will be recognized by Casper o the transfer.
Cecila who us the party that receives the property will also not recognize income. She will include the property received on cost basis equal to basis of the Casper who is the party that the transfer.
b. How much gain or loss does Casper recognize on the transfer of the stock?
$0 gain or loss will be recognized by Casper on the transfer.
The reason for this is that anything that is paid under alimony that is not cash is not taxable. Since what Casper transferred is not cash, $0 will be recognized.
c. Does Casper receive a deduction for the $45,000 alimony paid?
The total alimony made by Casper during the year is calculated as follows:
Total alimony paid = Alimony amount * Number of payments during the year = $9,000 * 5 = $45,000
Therefore, a deduction will be received by Casper for the $45,000 alimony paid during the year.
d. How much income does Cecile have from the $45,000 alimony received?
The amount of income is the $45,000 alimony received from Casper during the year. And this will be included in her gross income.
e. When Cecile sells the stock, how much does she report?
The amount she will report as capital gain can be calculated as follows:
Capital gains = Revenue from the sales of the stock by Cecile - Purchase price paid by Casper = $252,000 - $180,000 = $72,000
Therefore, Cecile will report a capital gains of $72,000.
Select the correct answer.
Delegating means being responsible for all the work.
A True
B. False
Answer:
B. False
Explanation:
Delegating is using one's authority to assign some responsibilities to team members. Usually, delegations stem from a senior officer to a junior officer but can also be between co-workers. It is authorizing and empowering someone else to execute some of your responsibilities on your behalf.
In delegation, the delegating authority must provide clear guidance on how the assigned duties are discharged. Some level of supervision is still required as delegating does not take away the accountability element from the delegating authority.
Why do overhead costs often shift from high-volume products to low-volume products when a company switches from a conventional costing method to activity-based costing
Answer:
When a company is using conventional costing methods, the costs are allocated based on volume so those products with a high volume will get a higher share of the costs.
When Activity-based costing is used however, costs are assigned more accurately which will lead to the actual products that are causing the costs incurring them instead of those high-volume products so it will appear as though overhead costs have shifted from high-volume products to low-volume products.
For each situation, prepare the appropriate journal entry for the redemption of the bonds.
a. Flounder Corp. redeemed $124,000 face value, 10% bonds on April 30, 2022, at 105. The carrying value of the bonds at the redemption date was $111,972. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
b. Shamrock, Inc. redeemed $162,000 face value, 12.5% bonds on June 30, 2022, at 99. The carrying value of the bonds at the redemption date was $174,960. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded.
Answer and Explanation:
The journal entries are given below:
On Apr. 30
Bonds payable $124,000
Loss on redemption of bonds( bal fig) $18,228
Discount on Bonds payable($124,000 - $111,972) $12,028
Cash ($124,000 × 1.05) 1,30,200
(Being redemption of bonds at 105 is recorded)
On Jun. 30
Bonds payable $162,000
Premium on Bonds payable($174,960 - $162,000) $12,960
Gain on redemption of bonds ( bal fig) $14,580
Cash($162,000 × .99) $160,380
(Being redemption of bonds at 98 is recorded)
Tarazzz Company manufactures computers. The following cost information for the manufacture of one computer has been compiled. Direct materials $48 Direct labor 64 Variable manufacturing overhead 40 *Fixed manufacturing overhead 48 Total cost per unit $200 *The $48 amount reflects the amount of indirect cost allocated to each unit. However, as indicated, the total of these indirect costs is fixed. Tarazzz has received a special order for 1,000 computers at a price of $150 per unit. By how much will overall company net income change if the order is accepted
Answer:
Company net income will DECREASE by $2,000 if the order is accepted.
Explanation:
Company net income will DECREASE by $2,000 if the order is accepted.
Additional order will produce additional sales revenue of $150 per unit
The marginal cost for this order = Variable costs (Direct material + Direct labour + variable cost) =$152 per unit
Since the marginal cost ($152) is more than the revenue ($150)per unit, there will be a loss of $2 per unit.
So the net income of the company will DECREASE by $2000 ($2x 1000)
Answer the following question based on your understanding of interest rate risk and reinvestment risk. True or False: Assuming all else is equal, the shorter a bond’s maturity, the more its price will change in response to a given change in interest rates. False True
Answer:
False
Explanation:
In the case when the maturity of the bond is shorter the risk of the rate of interest would be less and on the other hand when the maturity of the bond is longer so the risk of the rate of the interest would be high this creates a negative impact on the bond price
So as per the given situation the given statement is false
How are technology and technical profession related ? use example to write answer
Answer:
Technician and technologist are two different terms. However, these two terms are interrelated. ... A technician has a good knowledge of the general principles of the field he is in, whereas, a technologist is a person who is completely aware of various technologies. A technician works under a technologist.
Answer:
techonology is a term wher technical profession are the jobs in which a person is technically and professionally expert . for eg:an bank network is a techonolgy but the seat for the controller of this network is technical profession.