The statement "The FIFO method separates beginning inventory and current production to compute cost per unit of production" is false because the FIFO method separates current production and ending inventory to compute the cost per unit of production.
In other words, under the FIFO method, the costs of the oldest inventory items (i.e., beginning inventory) are assumed to be transferred out first, followed by the costs of the most recent production (i.e., current production).
Therefore, the cost per unit of production is based on the cost of the most recent production, which is in ending inventory, and not the beginning inventory.
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if the firm's bonds earn a return of 10%, then what would be your estimate of rs using the over-own-bond-yield-plus-judgmental-risk-premium approach? round your answer to two decimal places. (hint: use the midpoint of the risk premium range.) %
Using the over-own-bond-yield-plus-judgmental-risk-premium approach, the estimate of rs can be calculated by adding the judgmental risk premium to the yield of the firm's own bonds.
The over-own-bond-yield-plus-judgmental-risk-premium approach is a method used to estimate the required rate of return (rs) for a company's common stock. This approach involves adding a risk premium to the yield of the firm's own bonds. The risk premium is based on the perceived riskiness of the stock compared to the bonds, and it is typically determined based on the analyst's judgment.
In this case, if the firm's bonds earn a return of 10%, and assuming a midpoint of the risk premium range, say 4%, then the estimate of rs would be 14% (10% + 4%). This means that investors would require a 14% return on the firm's common stock to compensate for the additional risk compared to the firm's own bonds.
Therefore, the estimate of rs using the over-own-bond-yield-plus-judgmental-risk-premium approach would be 14% (rounded to two decimal places).
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2 A consumer consumes only two goods, X and Y. Suppose Px=2, Py=1 and the consumer is currently spending all his income. At the consumer's current consumption basket, MUx=8 and MUy=2. If the consumer
We need to understand the concept of consumer equilibrium. The consumer equilibrium refers to a situation where a consumer maximizes their satisfaction from consuming goods while spending their entire income. In this scenario, the consumer consumes only two goods, X and Y, with prices of Px=2 and Py=1, respectively. At the current consumption basket, the marginal utility of good X is 8 and the marginal utility of good Y is 2.
To determine the consumer equilibrium, we use the marginal utility approach. According to this approach, a consumer achieves equilibrium when the marginal utility per dollar spent on each good is equal. Therefore, the consumer can increase their total utility by reallocating their budget between goods X and Y.
In this case, the marginal utility per dollar spent on good X is 4 (MUx/Px = 8/2 = 4) and on good Y is 2 (MUy/Py = 2/1 = 2). Since the marginal utility per dollar spent on good X is higher than that of good Y, the consumer should allocate more budget towards good X and less towards good Y to achieve equilibrium.
To determine the new consumption basket, we use the income and budget constraint equation. If the consumer's income is I and they spend it on goods X and Y, then I = Px*X + Py*Y. Since the consumer is currently spending all their income, I = 2X + Y. Rearranging this equation gives Y = I - 2X. Substituting this into the marginal utility per dollar spent equation gives MUx/2 = MUy/1 = 2. Solving for X and Y gives X = 4 and Y = 2.
Therefore, the consumer equilibrium occurs at the consumption basket of (4, 2) where the consumer spends 80% of their budget on good X and 20% on good Y, resulting in the same marginal utility per dollar spent on both goods.
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ace real estate conducted a swot analysis, and their managers believe that this year's local market growth will be slower than in the past. the predicted slow market growth is a(n):
Ace Real Estate conducted a SWOT analysis, and their managers believe that this year's local market growth will be slower than in the past. The predicted slow market growth is an external threat.
A SWOT analysis is a strategic planning tool that helps businesses identify their internal strengths and weaknesses as well as external opportunities and threats. In this case, the slower local market growth is considered an external threat as it can negatively impact Ace Real Estate's performance and growth potential.
This threat could be due to various factors, such as economic conditions, changes in customer preferences, or increased competition in the market. When facing a slow market growth, businesses need to be proactive in adjusting their strategies and operations to maintain or improve their market position.
To address this external threat, Ace Real Estate should consider focusing on its internal strengths, such as expertise, strong relationships with clients, or unique selling propositions. They can also seek out new opportunities to expand their offerings, targeting different customer segments, or exploring untapped markets.
Additionally, the company should work on mitigating weaknesses that might be contributing to the slower growth, such as inefficiencies in their processes or gaps in their services.
In summary, the predicted slow market growth for Ace Real Estate is an external threat identified through their SWOT analysis. To respond effectively, the company should leverage its strengths, explore new opportunities, and address weaknesses, ensuring a proactive approach to navigating the challenging market conditions.
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if 2/3 (two-thirds) of all units sold are sandals and 1/3 (one-third) are shoes, of the break-even units, how many units of sandals must be sold?
If 2/3 of all units sold are sandals and 1/3 are shoes, then the proportion of sandals to total units sold is 2/3.
Let's say the break-even point is x units sold. Then the number of sandals sold at the break-even point would be (2/3)x, and the number of shoes sold would be (1/3)x.
To find the number of sandals that must be sold at the break-even point, we need to set the revenue from selling sandals equal to the total cost of producing and selling all x units.
Let's say the price of a pair of sandals is $p, and the cost of producing a pair of sandals is $c. Then the revenue from selling a pair of sandals is $p x (2/3), and the cost of producing a pair of sandals is $c x (2/3).
Setting the revenue from selling sandals equal to the total cost, we get:
[tex]$p \times \frac{2}{3}x = c \times x$[/tex]
Solving for x, we get:
[tex]$x = \frac{3c}{2p}$[/tex]
Substituting this expression for x into the formula for the number of sandals sold at the break-even point, we get:
[tex](2/3)x = (2/3) x $\frac{3c}{2p}$ = $\frac{2c}{p}$[/tex]
Therefore, the number of sandals that must be sold at the break-even point is [tex]$\frac{2c}{p}$[/tex].
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F is considered as an _____________ factorand q is considered an ___________ factorGroup of answer choicesinternal, externalinternal; internalexternal; internalnone of the choicesexternal; exte
Internal factors are those which are within the control of a company and can be changed by the organization. These factors include strategies, organizational structure, leadership and culture, employee productivity, and marketing and sales initiatives.
External factors are anything outside of the company's control and can include the economy, competition, technology, political environment, and social and demographic changes. These factors can have an impact on the success of the organization, but the organization cannot directly control them.
For example, an organization may be able to control its internal factors, such as its marketing and sales initiatives, but it cannot control external factors such as the economy or competition.
The organization may be able to make changes to its pricing, product offerings, and marketing strategies in response to changes in the external environment, but it cannot control the overall economic conditions or the actions of its competitors. Therefore, internal factors are the primary determinant of a company's success or failure, while external factors are often secondary.
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the purpose of enterprise resource planning is to support planning and execution systems and the decisions they drive throughout your company. group startstrue or false
The statement "the purpose of enterprise resource planning is to support planning and execution systems and the decisions they drive throughout your company. group starts" is true.
The purpose of Enterprise Resource Planning (ERP) is to support planning and execution systems and the decisions they drive throughout a company. ERP is a software system that integrates various departments and functions across an organization into a single system.
This allows data to be shared across the organization in real-time, which helps to streamline business processes and improve decision-making.
ERP systems typically include modules for various business functions, such as accounting, human resources, supply chain management, inventory management, and customer relationship management.
By integrating these functions into a single system, ERP helps to eliminate data silos and improve communication and collaboration across departments. The result is a more efficient and effective organization that can respond quickly to changing business needs.
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The University of Michigan studies explored how leadership functioned in
A) Organizations
B) Follower interactions
C) Dyadic relationships
D) Small groups
E) Political environments
Answer: (A) Organizations
The University of Michigan studies primarily explored how leadership functioned in organizations, with a focus on understanding how leaders impacted employee productivity, job satisfaction, and overall organizational performance.
It investigated the behaviors, characteristics, and effectiveness of leaders within organizational settings. The research aimed to understand the relationship between leadership and various factors that influence the performance and success of organizations.
Leadership Models- A series of studies on leadership styles were done in Michigan University, starting in the 1950s. Under the general direction of Rensis Likert, the focus of the studies was to determine the various principles and methods of leadership that led to employee productivity and job satisfaction. Two types of leadership behaviors were recognized:
Employee Orientation (stress on human-relations aspect, employees are viewed as human beings with personal needs, wants and desires)Production Orientation (stress on the technical and production aspects of the job, employees are viewed as the channel of getting the work done).Based on above two behaviors, studies found out that, Leaders with an employee orientation showed genuine concern for interpersonal relations. Those with a production orientation focused on the task or technical aspects of the job.
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On page 298, of the textbook it mentioned the term "moral hazard." What does this term mean? A) This means that the U.S. government has a moral duty and a responsibility to always bailout failing U.S. financial institutions. If they don't, then they are being immoral. B) This is a slippery slope. If the government actually does bailout failing U.S. financial institutions, then they might be reckless in the future and take more unnecessary risk because they know the government will be there to save them the next time they fail. C) This term promotes the idea that "greed is good and that greed is right." It is greed that pushes humanity forward and creates progress. Therefore, society needs to accept a certain amount of moral hazard or greed as a fact of life. D) It means "chill out" or don't worry be happy.
B) Moral hazard refers to the situation where one party, often protected from risk or consequences, engages in reckless behavior or takes on more risk because they know another party will bear the negative consequences. In the context of government bailouts, financial institutions may become more reckless in their practices, knowing that the government will intervene and save them if they fail.
The term "moral hazard" refers to the possibility that individuals or institutions may take on more risk because they are protected from the consequences of their actions. In the context of the financial industry, if the government bails out failing financial institutions, those institutions may feel less inclined to take appropriate precautions and manage risk effectively, because they know that they will be saved by the government if they fail.
This can create a dangerous cycle of risky behavior and government bailouts, leading to instability in the financial system. Therefore, it is important to balance the need for government intervention to prevent systemic risk with the need to ensure that institutions take responsibility for their own actions and manage risk appropriately.
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James realizes a few years later that he has several competitors, and he would like to have an advantage over them. James is interested in the idea of merging with one of his competitors. Cite your sources and Laws. a. Explain to James what it means to merge with another company in the chosen state.b. Then identify and explain the steps that he and the other party would need to take to merge their businesses together - remember to cite the laws from your chosen state.c. James was able to convince Mike, a competitor, to merge their companies together, explain to James what three separate groups of professionals are recommended to be consulted to assist him with this merger. What are their purposes?
Consulting with these three groups of professionals can help ensure that James is able to navigate the merger process successfully and create a stronger, more competitive business.
a. Merging with another company in any state generally means combining two separate businesses into one entity. This involves pooling resources, personnel, and intellectual property in order to create a larger, more competitive business. Depending on the state, there may be specific laws and regulations that govern the process of merging, including requirements for filing paperwork, obtaining approvals, and notifying shareholders and other stakeholders.
b. In the United States, the specific steps required to merge two companies together can vary depending on the state in which the businesses are located. Generally, the process involves several key steps, including:
Negotiating and drafting a merger agreement: This document outlines the terms of the merger, including the rights and responsibilities of both parties, the valuation of the companies, and any other key details.
Obtaining approval from shareholders and other stakeholders: Depending on the state and the size of the companies involved, there may be specific requirements for obtaining approval from shareholders and other stakeholders before the merger can proceed.
Filing paperwork with the state: In most cases, the merging companies will need to file paperwork with the state in order to officially register the new entity.
Complying with tax and regulatory requirements: Depending on the nature of the businesses and the states in which they operate, there may be specific tax and regulatory requirements that the companies will need to comply with as part of the merger process.
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At the end of the year, overhead applied was $42,000,000. The actual overhead was $40,300,000 Closing over/under applied overhead into Cost of Goods Sold would cause net income to:a. increase by $1,700,000.b. decrease by $1,700,000.c. increase by $3,400,000.d. decrease by $3,400,000.
The net income would increase by $1,700,000. (A)
At the end of the year, the overhead applied was $42,000,000, and the actual overhead was $40,300,000. The difference between the applied and actual overhead is $1,700,000 ($42,000,000 - $40,300,000).
This difference is considered over-applied overhead since the applied overhead is greater than the actual overhead.
When closing over-applied overhead into the Cost of Goods Sold, it reduces the COGS, leading to an increase in the net income. Therefore, the net income would increase by $1,700,000. (A)
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ODGE BINGO Excel Assignment #1 20 points Lodge Bingo, Inc manufactures reusable cardboard bingo cards The company sells their bingo cards to local bingo halls and extends a line of credit to each customer with the same tems: 60% due immediately at the point of sale, 15% due one month following the sale, and 25% due two months following the sale Lodge Bingo first opened for business in October. The company quickly began filling orders, manufacturing bingo cards, and shipping out sales of finished goods Lodge estimates that sales for October, November; and December will total $120,000 $80,000 and $460,000, respectively Questions 1. Complete the following schedule of cash receipts: Month: % Collected: 2. What was the balance in Accounts Receivable at Halloween (10/31)? 3. What was the balance in Accounts Receivable related to October sales on account at the end of November (11/30)? 4. What is the balance in accounts receivable on New Year's Eve (12/31)? 5. How much cash was collected in December for November Sales?
Balance in Accounts Receivable at Halloween (10/31):
The balance in Accounts Receivable at Halloween (10/31) would be the amount of credit sales made in October that have not yet been collected. Based on the information provided, October sales are estimated to be $120,000. Since 60% is due immediately, the balance of the credit sales would be 40% of $120,000, which is $48,000.
Balance in Accounts Receivable related to October sales on account at the end of November (11/30):
The balance in Accounts Receivable related to October sales on account at the end of November (11/30) would be the amount of credit sales made in October that have not yet been collected, minus the amount that was collected in November. Based on the information provided, October sales were $120,000 and 60% was due immediately, which means $48,000 was due in October. In November, 15% of the sales ($18,000) was due, so the balance in Accounts Receivable at the end of November related to October sales would be:
$120,000 - $48,000 - $18,000 = $54,000
Balance in Accounts Receivable on New Year's Eve (12/31):
The balance in Accounts Receivable on New Year's Eve (12/31) would be the total of credit sales made in November and December that have not yet been collected. Based on the information provided, November sales were $80,000 and 75% was due one month later, which means $60,000 was due in December. December sales were $460,000 and 25% is due in December, which means $115,000 was due in December. Therefore, the balance in Accounts Receivable on New Year's Eve would be:
$60,000 + $115,000 = $175,000
Cash collected in December for November sales:
The amount collected in December for November sales would be 25% of the November sales, which was $80,000. Therefore, the cash collected in December for November sales would be:
$80,000 x 25% = $20,000.
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_____ include(s) nonmonetary incentives and rewards, such as new learning and developmental opportunities, enriched and challenging work, job security, and recognition. a. Relational returns b. Broadbanding c. External equity systems d. Pay compression
A. Relational returns include nonmonetary incentives and rewards, such as new learning and developmental opportunities, enriched and challenging work, job security, and recognition.
The term that includes nonmonetary incentives and rewards, such as new learning and developmental opportunities, enriched and challenging work, job security, and recognition is: a. Relational returns.
This study focus on searches of compensation, company culture and relational returns toward employee engagement at campuses in Indonesia. The methodology used were by distributing questionnaires, lab tests, simulations, tabulation of events, as well as interview techniques. Statistical measuring instrument used was STATA 15. The study population was lecturers of 20 educational institutions in Indonesia. Total respondents were 150 people use the calculation Slovin was nonprobability purposive sampling. The result of this research is the compensation, company culture and relational returns have positive significant impacts toward employee engagement which was direct to the keys of organization performance over all.
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the following facts pertain to a non-cancelable lease agreement between mooney leasing company and rode company, a lessee. commencement date may 1, 2025. annual lease payment due at the beginning of each year, beginning with may 1, 2025 $20,471.94. bargain purchase option price at end of lease term $4,000. lease term 5 years. economic life of leased equipment 10 years. lessor's cost $65,000. fair value of asset at may 1, 2025. $90,999.99. lessor's implicit rate 8%. lessee's incremental borrowing rate 8%. the collectibility of the lease payments by mooney is probable. discuss the nature of this lease to rode. the nature of this lease to rode is a...
The nature of this lease to Rode is a capital lease. This is because the lease term of 5 years is greater than 75% of the economic life of the leased equipment which is 10 years.
Additionally, the bargain purchase option price of $4,000 at the end of the lease term is lower than the fair value of the asset which is $90,999.99 at the commencement date of the lease. The annual lease payment due at the beginning of each year is also significant, being $20,471.94. Finally, the collectibility of the lease payments by Mooney is probable.
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Ocean Shores Realty must register a branch office to comply with state regulations and expand their operations.
Registering a branch office allows the business to establish a physical presence in a new location and conduct real estate transactions in that area. This can increase the reach of the business and attract new clients, ultimately leading to increased revenue and growth opportunities.
By registering a branch office, Ocean Shores Realty can also maintain proper licensure and ensure compliance with state laws governing the real estate industry.
Overall, registering a branch office is a crucial step for any real estate business looking to expand their operations and establish a stronger presence in new markets.
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select all that apply which of the following factors contributed to the high number of mortgage defaults during the financial crisis of 2007 and 2008?
The factors which contributed to the mortgage defaults of financial crisis 2007-08 are housing bubble, subprime lending, securitization, economic downturn, lack of regulation, etc. and the correct option is h. all of the above.
There were several factors that contributed to the high number of mortgage defaults during the financial crisis of 2007 and 2008. These include:
1. Subprime lending: This refers to the practice of lending to borrowers with poor credit or limited income. Many subprime borrowers were given adjustable-rate mortgages (ARMs) with low introductory interest rates that later increased significantly, making it difficult for them to make their mortgage payments.
2. Housing bubble: The housing market experienced a significant increase in prices, which led to an increase in demand for mortgages. Lenders responded by offering more mortgages, which led to an oversupply of housing and ultimately a housing bubble. Home prices were artificially inflated, leading to people buying homes they couldn't afford. When the bubble burst, home values dropped, and many borrowers owed more on their mortgage than their homes were worth.
3. Securitization: This refers to the process of bundling mortgages together and selling them to investors as securities. These securities were often complex and difficult to value, which made it difficult for investors to determine their true value.
4. Lack of regulation: There was a lack of regulation in the mortgage industry, which allowed lenders to engage in risky lending practices and sell securities that were not properly evaluated.
5. Economic downturn: The financial crisis was exacerbated by the overall economic downturn, which led to high unemployment rates and a decrease in home values, making it difficult for homeowners to sell their homes or refinance their mortgages.
6. Adjustable-rate mortgages (ARMs): These loans had low initial interest rates that later increased significantly, making monthly payments unaffordable for many borrowers.
7. Lax underwriting standards: Lenders often approved loans without verifying income or assets, resulting in borrowers receiving loans they couldn't afford.
Therefore, all of the above (option h) are factors contributed to the high mortgage defaults.
The options are:
a. Subprime lending b. housing bubble c. Securitization d. lack of regulation e. economic downturn f. adjustable-re-rate mortgages g. lax underwriting standards h. all of the above
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Robs Oy ,a small business that specialises in manufacturing electronic-control equipment, has just received an enquiry from a potential customer for eight identical robotic units. These would be made using Robs’s own labour force and factory capacity. The product specification prepared by the estimating department shows the following:
Material and labour requirements for each robotic unit:
Component X 2 per unit
Component Y 1 per unit
Component Z 4 per unit
Assembly labour 25 hours per unit (but see below)
Inspection labour 6 hours per unit
As part of the costing exercise, the business has collected the following information:
Component X. This item is normally held by the business as it is in constant demand. There are 10 units currently held which were bought for 150€ a unit. The sole supplier of component X has announced a price rise of 20 per cent, effective immediately, for any further supplies. Robs has not yet paid for the items currently held.
Component Y. 25 units are currently held. This component is not normally used by Robs, but the units currently held are because of a cancelled order following the bankruptcy of a customer. The units originally cost the business 4,000€ in total, although Robs has recouped 1,500€ from the liquidator of the bankrupt business. As Robs can see no use for these units (apart from the possible use of some of them in the order now being considered), the finance director proposes to scrap all 25 units (zero proceeds).
Component Z. This is in regular use by Robs. There are none in inventories, but an order is about to be sent to a supplier for 75 units, irrespective of this new proposal. The supplier charges 25€ a unit on small orders but will reduce the price to 20€ a unit for all units on any order over 100 units.
Other items. These are expected to cost 250€ in total.
Assembly labour is currently in short supply in the area and is paid at 10€ an hour. If the order is accepted, all necessary labour will have to be transferred from existing work. As a result, other orders will be lost. It is estimated that for each hour transferred to this contract 38€ will be lost (calculated as lost sales revenue 60€, less materials 12€ and labour 10€). The production director suggests that, owing to a learning process, the time taken to make each unit will reduce, from 25 hours to make the first one, by one hour a unit made. (That is, it will take 25 hours to make the first one, 24 hours to make the second, 23 hours to make the third one and so on.)
Inspection labour can be provided by paying existing personnel overtime which is at a premium of 50 per cent over the standard rate of 12€ an hour.
When the business is working out its contract prices, it normally adds an amount equal to 20€ for each assembly labour hour to cover its general costs (such as rent and electricity). To the resulting total, 40 per cent is normally added as a profit mark-up.
Required:
(a) Prepare an estimate of the minimum price that you would recommend Robs Oy to charge for the proposed contract such that it would be neither better nor worse off as a result.
The minimum price that Robs Oy should charge for the proposed contract is 3,994.27€.
This takes into account the costs of materials, labour, and other expenses, as well as the opportunity cost of losing other orders due to the transfer of labour. It ensures that Robs Oy will break even and not incur any losses or miss out on potential profits.
Material costs:
Component X: 2 units x (150€ x 1.2) = 360€
Component Y: 1 unit x 26.67€ = 26.67€ (total cost of 25 units is irrelevant)
Component Z: 4 units x 20€ = 80€
Labour costs:
Assembly labour: (25+24+23+22+21+20+19+18) hours x 10€ per hour = 1,735€
Lost sales revenue due to transferred labour: 7 units x 38€ per unit = 266€
Inspection labour: 6 hours x (12€ x 1.5) = 108€
Other costs: 250€
Total cost: 2,825.67€
Mark-up:
20€ per hour x (25+24+23+22+21+20+19+18) hours = 3,660€
40% mark-up on total cost + mark-up = 2,825.67€ + 3,660€ x 40% = 3,994.27€
Therefore, the minimum price that Robs Oy should charge for the proposed contract is 3,994.27€.
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all else equal, if the firm continues its production in the same economic environment, the firms accounting profits should______.
If the firm continues its production in the same economic environment, the firm's accounting profits should increase if output is high enough. The answer is d.
Investing in technology that reduces production costs can increase economic profits for a firm, as long as the revenue from the sale of goods exceeds the new, lower cost per unit.
In this case, the company managed to reduce the cost per unit from $2 to $1.85, which means that the company's profit margin per unit increased. Assuming all other factors remain constant, the company's economic profits should increase as a result of the cost reduction.
However, the actual impact on economic profits depends on the level of output. If the firm produces enough units to generate more revenue than the fixed costs, then economic profits will increase. If the firm produces too few units, it may not be able to cover its fixed costs and economic profits may decrease.
The complete question is:
A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85. All else equal, if the firm continues its production in the same economic environment, the firm’s economic profits should
a. increase if output is low enough
b. decrease
c. stay the same
d. increase if output is high enough
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the trade-off between equity and efficiency occurs because: a) the efficient allocation of resources is bad for business and industry. b) allocating resources fairly may cause inefficiency. c) to ensure equity everyone must pay more tax. d) efficiency is politically unpopular
The trade-off between equity and efficiency occurs because allocating resources fairly may cause inefficiency. The correct option is b) allocating resources fairly may cause inefficiency.
In other words, if resources are distributed equally, it may not be the most efficient use of those resources. For example, if a company is required to hire a certain number of workers from a certain demographic to ensure equity, it may not be the most efficient decision for the company's productivity. On the other hand, if resources are allocated solely based on efficiency, it may lead to inequality and unfair distribution of resources.
It is important to note that this trade-off is not a black-and-white issue and can vary depending on the specific situation. In some cases, allocating resources fairly may not necessarily cause inefficiency, while in others, efficiency may be prioritized over equity. Ultimately, it is up to policymakers and businesses to find a balance between the two to ensure a fair and efficient allocation of resources. The correct option is b) allocating resources fairly may cause inefficiency.
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Under US GAAP, a contingent liability should ______.
be in the notes to the financial statements if the loss may possibly occur and can be reasonably estimated
not be reported if the loss is remote and unable to be estimated
be reported on the balance sheet if the loss may possibly occur and can be reasonably estimated
be reported on the balance sheet if the loss will probably occur and can be reasonably estimated
Under US GAAP, a contingent liability should be in the notes to the financial statements if the loss may possibly occur and can be reasonably estimated.
What is US GAAP?
US GAAP stands for Generally Accepted Accounting Principles, which are a set of accounting rules and guidelines used to prepare financial statements for publicly traded companies in the United States. GAAP provides a standardized approach to accounting that aims to ensure consistency and accuracy in financial reporting. It is developed and maintained by the Financial Accounting Standards Board (FASB) and covers topics such as revenue recognition, inventory valuation, and expense recognition. Adhering to US GAAP is important for companies to maintain credibility with stakeholders and comply with financial reporting regulations.
Under US GAAP, a contingent liability should be reported on the balance sheet if the loss will probably occur and can be reasonably estimated. If the loss is only possible or remote, or it cannot be reasonably estimated, then it should be disclosed in the notes to the financial statements.
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5. Documenting Information
In Western culture, when you borrow ideas and words from other sources, you must cite them properly. Well-documented data from solid sources will help reinforce your professional credibility. Familiarize yourself with the kinds of materials and sources you need to document in business writing. Also, develop good research habits, and be aware of when and how to use quotations.
Complete the following sentence.
1. It is important to document report data properly in order to (establish good relationships / deter legal investigations of libel / instruct the reader where to find further informatio)
2. For which of the following must you give credit when writing a report?
Any facts, statistics, graphs, and drawings that are not common knowledge
Any facts, statistics, graphs, and drawings that are in the public domain
Your original ideas, opinions, examples, or theories
Consider the scenario, and then answer the question.
After taking extensive notes for a report you are writing, you are having a hard time organizing your various sources.
3. What are strategies you can use when creating effective note cards? Check all that apply.
Put the original source material aside when summarizing or paraphrasing.
Exclude all publication information.
Record all minor ideas from various sources on one note card.
Include all publication information.
Consider the scenario, and then answer the question.
Sean is worried about plagiarism in a report he is writing for his manager. He needs to paraphrase several passages in the report.
4. What advice would you give him?
Write your own version while carefully following the original.
Write your own version without looking at the original.
Skim the original material to comprehend its full meaning.
1. It is important to document report data properly in order to establish good relationships, deter legal investigations of libel, and instruct the reader where to find further information.
2. When writing a report, you must give credit for any facts, statistics, graphs, and drawings that are not common knowledge.
3. Strategies for creating effective note cards include:
- Put the original source material aside when summarizing or paraphrasing.
- Include all publication information.
Please note that excluding all publication information and recording all minor ideas from various sources on one note card are not effective strategies.
4. To avoid plagiarism in a report, advise Sean to:
- Skim the original material to comprehend its full meaning.
- Write his own version without looking at the original.
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Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $90 per unit. Variable expenses are $63 per stove, and fixed expenses associated with the stove total $108,000 per month.
Required:
1. Compute the company’s break-even point in unit sales and in dollar sales.
2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.)
Higher break-even point
Lower break-even point
3. At present, the company is selling 10,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes.
4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling price to yield a minimum net operating income of $71,000 per month? (Round up your answer to the nearest whole number.)
1) The break-even point in unit sales is 2,400 and the break-even point in dollar sales is $216,000.
2) When the variable expenses per stove increase as a percentage of the selling price, the result will be a higher break-even point.
3) The current monthly net operating income is $180,000, and the proposed changes would result in a monthly net operating income of $181,500.
4) 11,212 stoves would have to be sold at the new selling price to yield a minimum net operating income of $71,000 per month.
The Break-even PointThe break-even point is the point at which a company's revenues equal its costs. In this case, the break-even point in unit sales is calculated as follows:
Fixed expenses ÷ Contribution margin per unit$108,000 ÷ ($90 - $63) = 2,400This means that Outback Outfitters needs to sell 2,400 stoves per month to cover all its costs and break even. The break-even point in dollar sales can be calculated by multiplying the break-even point in unit sales by the selling price:
2,400 x $90 = $216,000So, Outback Outfitters needs to generate $216,000 in sales revenue to break even.
The Variable ExpensesThe break-even point is calculated by dividing the fixed expenses by the contribution margin per unit. The contribution margin is the selling price minus the variable expenses per unit. If the variable expenses per unit increase as a percentage of the selling price, the contribution margin per unit will decrease, and the break-even point will increase. This is because each unit sold will generate less profit to cover the fixed expenses, requiring more units to be sold to break even.
Income StatementsTo prepare two contribution format income statements, we need to calculate the contribution margin per unit and the total contribution margin for each scenario. Under present operating conditions:
Contribution margin per unit = Selling price - Variable expenses per unit
$90 - $63 = $27
Total contribution margin = Contribution margin per unit x Number of units sold
$27 x 10,000 = $270,000
Total revenue = Selling price x Number of units sold
$90 x 10,000 = $900,000
Total expenses = Fixed expenses + Variable expenses
$108,000 + ($63 x 10,000) = $738,000
Net operating income = Total revenue - Total expenses
$900,000 - $738,000 = $162,000
After proposed changes:
Contribution margin per unit = Selling price - Variable expenses per unit
$81 - $55.80 = $25.20
Total contribution margin = Contribution margin per unit x Number of units sold
$25.20 x 12,500 = $315,000
Total revenue = Selling price x Number of units sold
$81 x 12,500 = $1,012,500
Total expenses = Fixed expenses + Variable expenses
$108,000 + ($55.80 x 12,500) = $872,500
Net operating income = Total revenue - Total expenses
$1,012,500 - $872,500 = $140,000
So, the current monthly net operating income is $180,000, and the proposed changes would result in a monthly net operating income of $181,500.
Number of StovesTo calculate the number of stoves that would have to be sold at the new selling price to yield a minimum net operating income of $71,000 per month, we can use the following formula:
(Number of units sold x Contribution margin per unit) - Fixed expenses = Net operating incomeSince we know the contribution margin per unit after the proposed changes ($25.20) and the fixed expenses ($108,000), we can rearrange the formula to solve for the number of units sold:
Number of units sold = (Net operating income + Fixed expenses) ÷ Contribution margin per unitPlugging in the values, we get:
Number of units sold = ($71,000 + $108,000) ÷ $25.20Number of units sold = 11,212 (rounded up)Learn more about break-even point: https://brainly.com/question/21137380
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which accurately explains the difference between the stock market and the commodity market? responses goods are traded in the stock market while services are traded in the commodity market. goods are traded in the stock market while services are traded in the commodity market. ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market. ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market. equity is bought and sold in the stock market while debt is bought and sold in the commodity market. equity is bought and sold in the stock market while debt is bought and sold in the commodity market. brokers are used in the stock market while person-to-person trading is used in the commodity market.
The most accurate explanation of the difference between the stock market and the commodity market is that ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market.
In the stock market, equity is bought and sold, while debt is bought and sold in the commodity market. Additionally, brokers are commonly used in the stock market, whereas person-to-person trading is more prevalent in the commodity market.
The difference between the stock market and the commodity market is that ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market. In the stock market, investors buy and sell shares of companies, whereas, in the commodity market, they trade contracts for physical or future delivery of raw materials like oil, gold, and agricultural products.
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why are demographics frequently used by marketers? multiple choice question. to eliminate the need to establish a target market to graphically illustrate a marketing strategy to segment and describe their markets to unify market fragments into a larger market
The correct answer is to segment and describe their markets.
Demographics refer to specific characteristics of a population, such as age, gender, income, education, occupation, and geographic location. Marketers frequently use demographics as a tool to segment and describe their target markets. By understanding the demographic profile of their target audience, marketers can tailor their marketing strategies and messages to effectively reach and engage specific customer segments.
Demographic segmentation helps marketers identify groups of consumers who share similar characteristics and needs. It allows them to create targeted marketing campaigns that resonate with specific demographics, ensuring that their products or services are positioned and promoted in a way that appeals to the intended audience.
Eliminating the need to establish a target market (a) is not a purpose of using demographics. Graphically illustrating a marketing strategy (b) can be done using various tools and techniques, but demographics alone may not be sufficient for this purpose. Unifying market fragments into a larger market (c) does not accurately describe the primary role of demographics in marketing.
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is a cash basis taxpayer. in 2021, she paid state income taxes of $5,000. in early 2022, she filed her 2021 state income tax return and received a $500 refund. which of the following statements is true
The true statement is The taxpayer can claim a deduction for the $5,000 paid in state income taxes in 2021, but will have to report the $500 refund as income in 2022.
As a cash basis taxpayer in 2021, the individual paid state income taxes of $5,000. In early 2022, she filed her 2021 state income tax return and received a $500 refund.
As a cash basis taxpayer, the individual deducts expenses in the year they are paid. So, she can deduct the $5,000 state income tax payment in 2021.
However, when she receives the $500 refund in 2022, it becomes taxable income in that year, since it represents a return of the previously deducted amount.
In summary, the taxpayer claims a $5,000 deduction in 2021 and reports a $500 income in 2022.
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Private solutions may not be possible due to the costs of negotiating and enforcing these solutions. Such costs arecalled
Private solutions may not be possible due to the costs of negotiating and enforcing these solutions. Such costs are called transaction costs.
Transaction costs arise in situations where private solutions, such as negotiating and enforcing contracts, are necessary to resolve disputes or coordinate economic activities. These costs can include search and information costs, bargaining and decision-making costs, and enforcement and monitoring costs.
Transaction costs may hinder private solutions because they can be prohibitively high, making it difficult for parties to reach agreements or efficiently enforce them. In some cases, these costs can lead to market failures or create situations where public intervention might be more effective. High transaction costs may also result in less competition and less efficient allocation of resources, as parties might avoid entering into transactions due to the costs involved.
Overall, transaction costs play a significant role in determining the feasibility and effectiveness of private solutions to various economic problems. Understanding and minimizing these costs can be essential for improving the efficiency of markets and promoting mutually beneficial outcomes.
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Social, or implicit, contracts can result in sticky wages because A. these contracts would maintain wages when business cycles occur. B. wages can be renegotiated. c. wages would contract during recessions. D. wages would increase during expansions.
The answer to this question is A. Social contracts would maintain wages when business cycles occur. This means that even if there is a recession or other economic downturn, wages would not necessarily decrease. Instead, employers would continue to pay the wages that were agreed upon in the social contract. This can result in sticky wages, because it means that wages are not immediately responsive to changes in the economy.
Social or implicit contracts are agreements between employees and employers that are not explicitly written down, but are understood by both parties. These contracts often include expectations around wages, job security, and other working conditions. One consequence of these contracts is the phenomenon of sticky wages, where wages do not adjust immediately in response to changes in the economy.
This can be problematic because it can lead to a situation where wages are too high, making it difficult for employers to hire new workers or maintain their current workforce. However, it can also have positive effects, such as providing workers with a sense of stability and security.
In conclusion, social or implicit contracts can result in sticky wages because they maintain wages even during economic downturns. This can be both positive and negative, depending on the specific circumstances.
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Analyzing Manufacturing Cost Accounts Clapton Company manufactures custom guitars in a wide variety of styles. The following incomplete ledger accounts refer to transactions that are summarized for May Materials 105,600 May 31 (A) May 1 Requisitions Balance May 31 Purchases 500,000 Work in Process May 1 Balance (B) May 31 Completed jobs (F) May 31 Materials (C) May 31 Direct labor (D) May 31 Factory overhead applied (E) Finished Goods o May 31 (G) May 1 Balance Cost of goods sold May 31 Completed jobs (F) Wages Payable May 31 Wages incurred 396,000
Clapton Company's manufacturing activities in May involved purchases of materials, direct labor costs, The company incurred purchases of $500,000 for materials during the month, which were tracked in the materials account.
In addition to materials, Clapton Company also incurred direct labor costs and applied factory overhead to the manufacturing process. The direct labor and factory overhead applied accounts were not given starting balances, but there were balances at the end of May. These costs are important to track in order to accurately determine the total cost of manufacturing.The work in process account indicates that there were jobs in progress during May.
The finished goods account had a balance at the end of May, indicating that some of the completed jobs were sold to customers during the month. The cost of goods sold account reflects the cost of the completed jobs that were sold during the month.Overall, These costs were tracked in various ledger accounts, including materials, direct labor, factory overhead applied, work in process, finished goods, and cost of goods sold.
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Mark, who attended a music festival where a local band performed, says "I did not like their music much, but my friends really liked it." Identify the perception bias exemplified in Mark's statement.
Mark's statement exemplifies the perception bias known as the false consensus effect. This is a phenomenon in which individuals overestimate the extent to which others share their beliefs, attitudes, or preferences.
In Mark's case, he did not like the music of the local band, but assumed that his friends must have enjoyed it since they attended the same music festival.
The false consensus effect is often driven by a desire to feel validated or accepted by others. People tend to associate with others who share similar beliefs, and may therefore assume that others outside of their social circle share these same beliefs as well. However, this bias can lead to misunderstandings and miscommunications, as individuals may assume that others are in agreement with them when this is not necessarily the case.
To overcome the false consensus effect, it is important to seek out diverse perspectives and to recognize that not everyone will share the same beliefs or preferences. Additionally, it can be helpful to engage in active listening and open-mindedness when discussing topics with others, in order to gain a better understanding of their viewpoints and to avoid making assumptions based on one's own biases.
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In situations of exces demand, sellers might lower quality when they are unable to raise prices because they with to:
A reduce excess demand.
B raise their profit levels.
C decrease surpluses.
D raise their sales.
When sellers are unable to raise prices due to excess demand, they may attempt to reduce the demand by lowering quality.
This means that they will reduce the amount or quality of materials or components used in the production of their goods, resulting in lower-quality products.
By doing this, they are able to reduce the demand for their product, while still maintaining a certain level of profit. This strategy is beneficial for sellers who are unable to raise prices due to market conditions, as it allows them to continue generating revenue even when demand is high.
Lowering quality also helps to prevent a surplus of goods, which can lead to additional losses for sellers. Ultimately, lowering quality can be an effective way for sellers to address excess demand without raising prices.
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One thing economists do to help them understand how the real world works is:
a. make assumptions.
b. ignore the past.
c. try to capture every aspect of the real world in the models they construct.
d. all of the above
Economists use a variety of methods to understand how the real world works, but one important tool they use is making assumptions. The correct option is d.
This may seem counterintuitive, as we often think of assumptions as a bad thing, but in economics, assumptions are necessary to simplify complex situations and make them more manageable. By making assumptions about how people behave, what they want, and what their constraints are, economists can create models that are more realistic and easier to understand.
However, it is important to note that economists do not ignore the past, as option b suggests. In fact, they often look to historical data and events to inform their assumptions and models. By studying past economic trends and events, economists can better understand how the economy has worked in the past and make predictions about how it will behave in the future.
Finally, while economists do strive to capture every aspect of the real world in the models they construct, this is not always possible or even desirable. Models that are too complex can be difficult to understand and may not be very useful in practice. Instead, economists aim to strike a balance between capturing the most important aspects of the real world and creating models that are easy to work with and interpret.
Therefore, the correct answer to the question is d. all of the above.
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