Answer:
The answer is 7.37%
Explanation:
Solution
Given that
Bond per value = future value =$1000
The current price = $1,066.57
Time = 22 years * 2
=44 semi-annual periods
The year of maturity = 6.78%/2 = 3.39%
Thus
The coupon rate is computed by first calculating the amount of coupon payment.
So
By using a financial calculator, the coupon payment is calculated below:
FV= 1,000
PV= -1,066.57
n= 44
I/Y= 3.39
Now we press the PMT and CPT keys (function) to compute the payment (coupon)
What was obtained is 36.83 (value)
Thus
The annual coupon rate is: given as:
= $36.83*2/ $1,000
= $73.66/ $1,000
= 0.0737*1,00
=7.366% or 7.37%
Therefore 7.37% is the bond's coupon rate.
Inventory items received should be compared against: Multiple Choice Sales receipt Purchase order Sales order Supplies inventory
Answer:
Purchase order
Explanation:
To verify existence and accuracy of inventory items received, the receiving division must compare the quantities, amounts and descriptions of the items received against the Purchase order.
TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2.1 million and there are 130,000 shares outstanding. a. If the benchmark price-sales ratio is 4.3, what is your estimate of an appropriate stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if the price-sales ratio were 3.6? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
a. $69.46
b. 58.15
Explanation:
a. Price = Benchmark PS ratio × Sales per share
Sales per Share
= Sales / Shares outstanding
= 2,100,000/130,000
= $16.15
Price = 4.3 * 16.15
Price = $69.46
b. PS Ratio is 3.6
Price = Benchmark PS ratio × Sales per share
Price = 3.6 * 16.15
Price = $58.15
Arco Corporation declared a cash dividend on June 2 of $6 per common share. The company has 2,000 shares of common stock authorized, 1,000 shares issued, and 200 in the treasury. The entry to record the declaration of the cash dividend increases a(n)
Answer:
The journal entry to record the dividend declaration is:
June 2, 202x, cash dividends are declared
Dr Retained earnings 4,800
Cr Dividends payable 4,800
The journal entry to record the payment of the dividend would be:
Dr Dividends payable 4,800
Cr Cash 4,800
When we calculate dividends, only outstanding stocks are included in the distribution: total outstanding stocks = issued stocks - treasury stocks = 1,000 - 200 = 800
Continuing with the company selected in Unit 2, think about the types of financial data that would be included and excluded in differential analysis. Propose which specific revenues and costs should be considered in an evaluation to drop or keep a: Customer Product line In addition, explain sunk and opportunity costs as they relate to your selected company. Should these costs be considered in differential analysis? Why or why not?
Answer:
Sorts of monetary information that would be incorporated and avoided in differential analysis
Differential cost investigation is the expansion or decline in complete expense pf the adjustment in explicit components of cost that outcome from any variety in tasks. It speaks to an expansion or abatement in all out expense coming about out of -
1. Creating or disseminating a couple of more or barely any less of the items
2. Change in the strategy for creation or of conveyance
3. An Addition or cancellation of item
4. Choice of extra deals channel
In Differential examination increment in incomes, variable expenses and opportunity costs are thought of. Fixed expenses and fixed segment of semi-variable expenses are disregarded.
differential analysis is utilized:
1. Dropping or including a product offering
2. Settle on or purchase choices
3. Proceed or shutdown item or client and so on.
Explicit incomes and expenses ought to be considered in an assessment to drop or keep a:
1. Commitment structure unbeneficial item ought to be thought of
2. Explicit fixed expenses of the unfruitful item will be thought of
3. Commitment from other non beneficial items which is proposed to be delivered with the extra limit will be thought of.
Avoidable fixed expenses are thought of, as these can be stayed away from when item or client is closed down. Avoidable fixed costs partitioned by the pv proportion will give level of deals beneath which it is smarter to close down.
Unavoidable fixed expenses are overlooked in considering in an assessment to drop or keep. Since these costs will be acquired despite the fact that the item or client is ceased.
shut down point = avoidable fixed expenses/PV proportion
Sunk Costs: A sunk expense is a cost that an element has brought about, and which it can not recoup anymore. Sunk expenses ought not be viewed as when settling on the choice to keep putting resources into a progressing venture, since these expenses can't be recouped. As sunk expenses are authentic expenses these are brought about before and notrelavent for dynamic reason. for instance, R&D costs, Feasibility report costs and so on.
Opportunity Costs: Opportunity costs emerge from inability to unused assets effectively. These are considered in dynamic investigation. in straightforward terms opportunity cost implies the loss of different options when one option is picked.
Misfortune emerging from picking one option rather than other option will be considered in assessing the task.
On December 2, Coley Corp. acquired 1,000 shares of its $2 par value common stock for $27 each On December 20, Coley Corp. resold 400 shares for $30 each. Which of the following is correct regarding the effect of the reselling of shares on the accounting equation?
A. Assets decrease
B. Liabilities decrease
C. Expenses increase
D. Stockholders' Equity increases
Answer:
D. Stockholders' Equity increases
Explanation:
Cost of the share being resale = 400 shares x $27 = $10,800
Proceeds on the resale of shares = 400 shares x $30 = $12,000
Profit / Gain on resale = $12,000 - $10,800 = $1,200
As there is a profit of $1,200 the stockholders equity will be increased on the reselling of share.
As the assets section is increased because more cash is received against the cost of those shares.
In the MBTI personality model, Disney "imagineers" are more likely to have high _____ scores, while Disney accountants who determine currency transfer equivalencies are more likely to have high _____ scores.
Answer:
In the MBTI personality model, Disney "imagineers" are more likely to have high __INTJ___ scores, while Disney accountants who determine currency transfer equivalencies are more likely to have high __ISTJ___ scores.
Explanation:
1. MBTI personality model is the Myers-Briggs Theory. It was developed by the mother-daughter partnership of Katharine Briggs and Isabel Briggs Myers. At the heart of Myers Briggs theory are four preferences, depicting personality preferences as follows:
1. People and things (Extraversion or "E"), or ideas and information (Introversion or "I").
2. Facts and reality (Sensing or "S"), or possibilities and potential (Intuition or "N").
3. Logic and truth (Thinking or "T"), or values and relationships (Feeling or "F").
4. A lifestyle that is well-structured (Judgment or "J"), or one that goes with the flow (Perception or "P").
These four major classifications mean that one tends to have more of each than the other. This means that there are 16 traits or combinations of traits for a given personality.
2. INTJ personality type: Disney "imagineers" are likely to direct their energies to deal with (Introversion) ideas, information, explanations, and beliefs, as people in research and development at Disney. The information they deal with will be based on ideas, new possibilities, and not obvious things (Intuition) instead of facts and what they know and see. Their decision making will be based on objective logic, using analytic and detailed approaches. Their work will be planned and well-structured to reflect their lifestyle as opposed to flowing with the trend and maintaining flexibility.
3. ISTJ personality class: Disney accountants will bear similar traits like the "imagineers" except that instead of dealing with unknown and not obvious ideas and possibilities like the imagineers, they would prefer their information for processing to be based on clear facts and what they see and know.
Answer:
In the MBTI personality model, Disney "imagineers" are more likely to have high __INTJ___ scores, while Disney accountants who determine currency transfer equivalencies are more likely to have high __ISTJ___ scores.
Explanation:
Which one of the following is not a factor that influences a business's control environment? Group of answer choices management's philosophy and operating style organizational structure proofs and security measures personnel policies
Answer:
proofs and security measures
Explanation:
According to the Sarbanes-Oxley, there are three factors that affect the Company's Control Environment which is as follows
1. Personnel Policies
2. Management's Philosophy and their operating styles
3. And, the last one is Organizational Structure
Therefore the third option is not a influencing factor for a business control environment
Identify each person below as structurally, frictionally, or cyclically unemployed.
a. Jake recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.
b. Rosa is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job.
c. Latasha just graduated from college and is looking for a full-time position with an investment banking firm.
Answer and Explanation:
Structurally unemployed: It refers to mismatch between both the available jobs and the unemployed skills
Frictionally unemployed: This condition occurs when the workers or labors are not employed and looking for the work
Cyclically unemployed: It arise when where the aggregate demand for goods and services can not encourage full employment in an economy. This takes place during times of sluggish economic growth or times of economic contraction
Based on the explanation, the classification is as follows
a. Structurally unemployed
b. Cyclic unemployed
c. Frictionally unemployed
An important element of just-in-time processing is Group of answer choices dependable suppliers who are willing to deliver on short notice. all of the above. a specialized workforce. less emphasis on a quality control system.
Answer:
dependable suppliers who are willing to deliver on short notice
Explanation:
I will first try to explain what the concept means. just in time processing is an inventory strategy that has to do with the ordering of materials at short notice and receiving these items just in time for the production process. It decreases inventory costs and waste and also raises efficiency since goods are only going to be received as they are needed for production.
Therefore the correct answer is: dependable suppliers who are willing to deliver on short notice.
The following totals for the month of April were taken from the payroll register of Magnum Company. Use this information to answer the question that follow. Salaries $12,000 FICA taxes withheld 900 Income taxes withheld 2,500 Medical insurance deductions 450 Federal unemployment taxes 32 State unemployment taxes 216 The journal entry to record the monthly payroll on April 30 would include a:_______. a. debit to Salaries Payable for $7,902 b. debit to Salaries Expense for $7,902 c. debit to Salaries Payable for $8,150 d. credit to Salaries Payable for $8,150
Answer:
The journal entry to record the monthly payroll on April 30 would include a credit to Salaries Payable for $8,150. The right answer is d.
Explanation:
In order to prepare The journal entry to record the monthly payroll on April 30 we would have to calculate the Salaries Payable as follows:
Salaries Payable=Salaries-FICA taxes withheld+Income taxes withheld+Medical insurance deductions
Salaries Payable=$12,000-$900+$2,500+$450
Salaries Payable=$8,150
Therefore, journal entry to record the monthly payroll on April 30 would be as follows:
Debit Credit
Salaries $12,000
FICA withheld $900
Income taxes withheld $2,500
Medical insurance deductions $450
salaries payable $8,150
So, The journal entry to record the monthly payroll on April 30 would include a credit to Salaries Payable for $8,150
Watson Company purchased assets of Holmes Ltd. at auction for $1,390,000. An independent appraisal of the fair value of the assets acquired is listed below:
Land $ 304,000
Building 380,000
Equipment 608,000
Inventories 228,000
Prepare the journal entry to record the purchase of the assets.
Answer:
Dr land $278,000
Dr building $347,500
Dr equipment $556,000
Dr inventories $208,500
Cr cash $1,390,000
Explanation:
The total amount spent in acquiring the assets is $1,390,000 which needs to be shared between the assets acquired on the basis of individual values of the assets
Total of individual assets' values=$304000+$380000+ $608000+$228000=$ 1,520,000.00
Cost attributable to land:$304000/$1520000*$1,390,000=$ 278,000.00
Cost attributable to Building:$380000/$1520000*$1390000=$ 347,500.00
cost attributable to equipment=$608000/$1520000*$1390000=$556,000.00
cost attributable to inventories=$228000/$1520000*$1390000 =$208,500.00
Accounts Receivable has a balance of $ 5 comma 000, and the Allowance for Bad Debts has a credit balance of $ 420. The allowance method is used. What is the net realizable value of Accounts Receivable after a $ 140 account receivable is written off?
Answer:
$4,580
Explanation:
since we are using the allowance method, the journal entry to record the write off is:
Dr Allowance for bad debts 140
Cr Accounts receivable 140
So the accounts receivable balance = $5,000 - $140 = $4,860
the allowance for bad debts balance = $280
accounts receivable net balance = $4,860 - $280 = $4,580
Allowance for bad debts accounts is a contra asset account that reduces the balance of accounts receivable.
It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when an excessive amount of time or money must be spent for parties to reach an agreement. This describes the problem of .
In the case when an excessive amount should be spending so this represents the problem of the Transaction cost.
What does a transaction cost?
Transaction cost is the cost that is typically in money or time format. It is the cost involved in the context of time or money when a decision is made or an agreement has been reached.
So according to the given situation, there is an excessive amount of time or money spent on parties so that it could be reached to an agreement
Therefore it represents the transaction cost.
Learn more about cost here: https://brainly.com/question/24468619
If merchandise inventory is being valued at cost and the purchase price is steadily falling, which method of costing will yield the largest net income?
Answer:
The answer is LIFO
Explanation:
LIFO is Last in First out. It means the Inventory that was purchased last goes out first.
In periods LIFO, cost of sales reflects the cost of goods purchased recently and the ending Inventory reflects the older goods.
In periods of falling prices, the costs of ending inventory are high, cost of sales are low and the gross profit are high.
Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,398,250 65,800 machine-hours Processing orders $ 69,451 2,520 orders Inspection $ 184,800 2,400 inspection-hours The company makes 920 units of product W26B a year, requiring a total of 1,290 machine-hours, 61 orders, and 40 inspection-hours per year. The product's direct materials cost is $57.55 per unit and its direct labor cost is $13.56 per unit. The product sells for $123.50 per unit. According to the activity-based costing system, the product margin for product W26B is:
Answer:
$16,125.15
Explanation:
DATA:
Activity Cost Pool Total Cost Total Activity
Assembly $1,398,250 65,800 machine hours
Processing orders $ 69,451 2,520 orders
Inspection $ 184,800 2,400 inspection-hours
Units produced = 920
Machine hours required = 1290
Processing orders required= 61
Inspection hours required = 40
Direct material cost = 57.55
Direct labor cost = 13.56 per unit
Selling price = 123.50
Solution
Sales Revenue (920 ×$123.5) $113,620
LESS: Costs
Direct Materials (920 × $57.55) $52,946
Direct labor (920 ×$13.56) $12,375.2
Assembly (1,398,250/65,800) = 21.25 × 1290= $27412.5
Processing (69,451/2,520) = 27.55 × 61 = $1681.15
Inspection (184,800/2,400) = 77 x 40 = $3080
Total Cost ($97494.65)
Product margin $16,125.15
A factor favoring the success of disruptive innovation is that:________.
A) incumbent firms are slow to change.
B) new entrants have highly formal organizational structures and processes.
C) the low end of the market is highly guarded.
D) incumbent firms focus on radical innovation rather than incremental innovation.
Answer:
A) incumbent firms are slow to change.
Explanation:
This business model type is said to be low cost and also can be seen and tested to be highly accessible to buyers and others goods in the market. Disruptive innovation is a business model that deals with the introduction of a new product or service into a market, at a lower cost and affordable that other products or its competitors, hereby luring prospective or buyers to buying the new product; displacing the leaders or top performers in the market. Disruptive innovation is highly favoured because the incumbent firms are slow to change.
You are offered the right to receive $1000 per year forever, starting in one year. If your discount rate is 5%, what is this offer worth to you
Answer:
Worth of the offer =$20,000
Explanation:
The worth of this offer is the present value of the annual cash inflow receivable forever discounted at the given interest rate. The cash inflow receivable forever is known as a perpetuity
The present of a cash inflow receivable forever is given below:
PV = A× 1/r
A- annual cash inflow, r- discount rate, PV - Present value of a perpetuity
A- 1,000, r- 5%
PV = 1,000 × 1/0.05
PV = $20,000
Worth of the offer =$20,000
A chart of accounts is a list of all ledger accounts and an identification number for each. Identify the following accounts as either an asset (A), liability (L), equity (EQ), revenue (R), or expense (E) account.a. Advertising Expense b. Rent Revenue c. Rent Receivable d. Machinery e. Accounts Payable f. Furniture g. Common Stock h. Utilities Expense
Answer is given below
Explanation:
Asset is The property means and controls the business owner and its use will generate future financial benefits. Liability is the current liability of an organization arising from past events, which is the flow of financial benefit from settlement. Equity is the remaining interest in a company because its liabilities are deducted from the assets.Revenue means income derived from the normal activities of the business.Expense arises at time in the morning activitiesS.no Particulars Answer
a Advertisement expense expense
b rent expense expense
c rent receivable Asset
d Machinery Asset
e Account payable Liability
f Furniture Asset
g common stock Equity
h Utility Expense expense
An associate professor of physics gets a $200 a month raise. She figures that with her new monthly salary she can buy more goods and services than she could buy last year.
a. Her real and nominal salary have risen.
b. Her real and nominal salary have fallen.
c. Her real salary has risen and her nominal salary has fallen.
d. Her real salary has fallen and her nominal salary has risen.
Answer:
a. Her real and nominal salary have risen
Explanation:
Her nominal salary is the amount she earns. the $200 increase is an increase in her nominal salary.
Her real salary is calculated in the amount of goods and service she can purchase given her income. Since with the $200, she can buy more goods and services, her real salary has also increased.
When vertical analysis is performed: a. ratios are used to detect fraud b. changes in significant balance totals are examined c. financial statement balances are
Answer: Financial statement balances are converted to percentages.
Explanation:
Vertical analysis is a method of financial statement analysis whereby each line item will have to be listed as a percentage of the base figure that is within the financial statement. In vertical analysis, the balances in a single period are being converted to percentages.
Vertical analysis helps in comparing the financial information of a small firm to that of a big firm
Ryan, age 57, is single with no dependents. In 2019, Ryan's principal residence was sold for the net amount of $400,000 after all selling expenses. Ryan bought the house in 2002 and occupied it until it was sold. On the date of sale, the house had a basis of $180,000. Ryan does not intend to buy another residence. What is the maximum exclusion of gain on sale of the residence that may be claimed on Ryan's 2019 income tax return
Answer:
$220,000
Explanation:
The maximum exclusion of the gain on sale of the residence which may be claimed on Ryan's 2019 income tax return will be $220,000($400,000-$180,000) because the principal residence was been sold for the net amount of $400,000 after all selling expenses in which the house was bought in 2002 and on the date of sale, the house had a basis of $180,000 given us the amount of the $220,000 as the maximum exclusion of gain on sale of the residence which may be claimed on Ryan's 2019 income tax return.
New lithographic equipment, acquired at a cost of $800,000 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. In the first week of the fifth year, on March 4, the equipment was sold for $135,000.
Required:
a. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method.
b. Journalize the entry to record the sale assuming the manager chose the double-declining-balance method.
c. On January 1, journalize the entry to record the sale in (b), assuming that the equipment was sold for $88,750 instead of $135,000.
Answer:
a. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by:
(a) the straight-line method
depreciation expense per year = ($800,000 - $90,000) / 5 years = $142,000
End of year depreciation expense book value
1 $142,000 $658,000
2 $142,000 $516,000
3 $142,000 $374,000
4 $142,000 $232,000
and (b) the double-declining-balance method.
depreciation expense year 1 = 2 x 1/5 x $800,000 = $320,000
depreciation expense year 1 = 2 x 1/5 x $480,000 = $192,000
depreciation expense year 1 = 2 x 1/5 x $288,000 = $115,200
depreciation expense year 1 = 2 x 1/5 x $172,800 = $69,120
End of year depreciation expense book value
1 $320,000 $480,000
2 $192,000 $288,000
3 $115,200 $172,800
4 $69,120 $103,680
b. Journalize the entry to record the sale assuming the manager chose the double-declining-balance method.
Dr Cash 135,000
Dr Accumulated depreciation - lithographic equipment 696,320
Cr Lithographic equipment 800,000
Cr Gain on sale 31,320
c. Journalize the entry to record the sale in (b), assuming that the equipment was sold for $88,750 instead of $135,000.
Dr Cash 88,750
Dr Accumulated depreciation - lithographic equipment 696,320
Dr Loss on sale 14,930
Cr Lithographic equipment 800,000
g For this question, ignore inflation. Suppose Jenny earns $60,000 per year working as a tax analyst. After ten years, she quits her job and pursues a PhD in Art History. For the 5 years she is in school, she gets a teaching stipend of $12,000 per year. For the next 35 years, she is an art director and earns $95,000. If she expects to live for 20 years in retirement. If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year? What might prevent her from perfectly smoothing consumption?
Answer:
If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year?
Jenny's total income during her life = income as tax analyst ($60,000 x 10) + income as PhD student ($12,000 x 5) + income as Art Director (35 x $95,000) = $3,985,000
she generated income during 50 years and expects to live 20 more, so in order to perfectly smooth consumption across her life, she must divide her total life income by 70 years = $3,985,000 / 70 years = $56,928.57 per year
What might prevent her from perfectly smoothing consumption?
First of all, besides inflation, you also earn interest on your savings. That is why 401k and other retirement accounts work so well (the magic of compound interest). Even if inflation and interests didn't exist, you cannot know exactly what you are going to earn in the future and for how many years. In this case, she earned $60,000 for 10 years, but then earned only $12,000 during 5 years. If she really wanted to smooth her consumption, she would have needed to get a loan because her savings during the first 10 years wouldn't be enough.
Identify the phase (Phillips, stagflation, or recovery) the economy is in, and suggest what change in aggregate demand or aggregate supply might have caused it.
a. "President Nixon expressed satisfaction with last yearâs economic performance. He said that with inflation and unemployment heading down, the nation âis on the right course."
b. "The nationâs inflation rate rose to a record high last month, the government reported yesterday. The consumer price index jumped 0.3% in January. Coupled with the announcement earlier this month that unemployment had risen by 0.5 percentage points, the reports suggested that the first month of President Nixonâs second term had gotten off to a rocky start."
c. "President Carter expressed concern about reports of rising inflation but insisted the economy is on the right course. He pointed to recent reductions in unemployment as evidence that his economic policies are working."
Answer:
a. "President Nixon expressed satisfaction with last year's economic performance. He said that with inflation and unemployment heading down, the nation is on the right course."
⇒ RECOVERY. Economic recovery refers to the economy starting to grow again after a period of recession. A rightward shift in the aggregate supply curve should decrease unemployment and reduce inflation.
b. "The nation's inflation rate rose to a record high last month, the government reported yesterday. The consumer price index jumped 0.3% in January. Coupled with the announcement earlier this month that unemployment had risen by 0.5 percentage points, the reports suggested that the first month of President Nixon's second term had gotten off to a rocky start."
⇒ STAGFLATION. Stagflation refers to a combination of high inflation and high unemployment. A leftward shift in the aggregate supply curve can result in stagflation.
c. "President Carter expressed concern about reports of rising inflation but insisted the economy is on the right course. He pointed to recent reductions in unemployment as evidence that his economic policies are working."
⇒ PHILLIPS. According to the Phillips curve, inflation and unemployment are inversely correlated. if inflation goes up, unemployment should go down. Phillips theory was discredited due to stagflation occurring during Nixon's presidency. Nixon created stagflation for the first time in the US since it isn't normal that inflation rises as unemployment increases. That shows you how good a president he was, he even invented new things for Americans to enjoy.
Waterway, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and overhead costs of $87,550 were estimated. An analysis of estimated overhead costs reveals the following activities.
Activities Cost Drivers Total Cost
1. Materials handling Number of requisitions $40,800
2. Machine setups Number of setups 25,750
3. Quality inspections Number of inspections 21,000
$87,550
The cost driver volume for each product was as follows.
Cost Drivers Instruments Gauges Total
Number of requisitions 420 630 1,050
Number of setups 225 260 485
Number of inspections 265 225 490
Air United, Inc. manufactures two products: missil
Air United, Inc. manufactures two products: missil
Determine the overhead rate for each activity.
Overhead Rate
Materials handling $
Machine setups $
Quality inspections $
Answer:
Results are below.
Explanation:
Giving the following information:
Activities Cost Drivers Total Cost
Materials handling Number of requisitions $40,800
Machine setups Number of setups 25,750
Quality inspections Number of inspections 21,000
Cost Drivers Instruments Gauges Total
Number of requisitions= 1,050
Number of setups= 485
Number of inspections= 490
We need to use the following formula for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Materials handling= 40,800/1,050= $38.86 per requisition
Machine setups= 25,750/485= $53.1 per setup
Quality inspections= 21,000/490= $42.86 per inspection
Ideally, you should develop a risk management plan for a specific project because _________
A. Engaging in planning activities demonstrates professionalism
B. Your boss is committed to using project management techniques in every project
C. The scale of a particular project â the size and complexity â require it
D. The Project Management Institute recommends it
Answer: Option B
Explanation:
A risk management plan is a document which is prepared by the project manager to eliminate the risks and chances of any loss or issues related to the project.
Every project has to follow the risk management plan to ensure the safety of the people and capital invested in the project.
It is also contained in the documents of the risk assessment plan which has to be followed by project manager and people.
It is decided during the baseline, the risks and the cures related to the project. As the boss and the project manger is committed to follow the risk management techniques it should be considered on a priority basis.
The bid-ask spread exists because of _______________. A. market inefficiencies B. discontinuities in the markets C. the need for dealers to cover expenses and make a profit D. lack of trading in thin markets
Answer:
C. the need for dealers to cover expenses and make a profit
Explanation:
In the market for securities there are two pricing of securities.
The ask price is the price at which the buyer is willing to purchase a security.
The ask price or the offer price is price at which the seller of a security is willing to sell it. Ask price can be firm or negotiable.
Bid ask spread is the difference between the highest amount a buyer is willing to buy a security and the lowest price at which a seller is willing to sell it.
This spread exists because dealers need to cover expenses and make a profit
Ford Motor Company has issued 8% convertible debentures, convertible at a 10:1 ratio. Currently the debenture is trading at 94. The stock is trading at $80. What is the conversion price of the stock
Answer: $100
Explanation:
Sometimes Debt instruments like Debentures and Bonds are convertible to shares in the company.
To calculate the Conversion Price, the following formula is used;
= Par Value / Conversion Ratio
= 1,000/10
= $100
Par value is usually $1,000 for such instruments.
which of the following choices is an example of an intangible item??
-a book
-an apple
-an online editing service
-a car
Answer:
an online editing service
Explanation:
An example of an intangible item is an online editing service. An intangible item is something that does not have an actual physical presence. Take a look at the following lists to get a better understand of an intangible vs. tangible item.
intangible items:
- insurance
- software
- data
tangible items:
- food
- computers
- phones
Since an online editing service is the only item that you cannot physical touch, this is the intangible item.
Selected transactions from the journal of Giambi Inc. during its first month of operations, August 2022, are presented here.
Date Account Titles and Explanation Debit Credit
Aug. 1 Cash 10,000
Common Stock 10,000
10 Cash 1,700
Service Revenue 1,700
12 Equipment 12,200
Cash 1,200
Notes Payable 11,000
25 Accounts Receivable 2,500
Service Revenue 2,500
31 Cash 600
Accounts Receivable 600
Required:
Post the transactions to T-accounts.
Answer:
Giambi Inc.
T-Accounts for August 2022:
Cash Account
Aug. 1 Common Stock 10,000 Aug. 12 Equipment 1,200
Aug. 10 Service Revenue 1,700
Aug. 31 Accounts Receivable 600
Common Stock
Aug. 1 Cash Account 10,000
Service Revenue
Aug. 10 Cash Account 1,700
Aug. 25 Accounts Receivable 2,500
Equipment
Aug. 12 Cash 1,200
Aug. 12 Notes Payable 11,000
Notes Payable
Aug. 12 Equipment 11,000
Accounts Receivable
Aug. 25 Service Revenue 2,500 Aug. 31 Cash 600
Explanation:
T-accounts are general ledger accounts in T-form. They are mainly used for accounts adjustments at the end of the accounting period. The debit side is on the left hand side while the credit side is on the right hand side. At the end of the period, the accounts are balanced by making the two sides to agree in total with the difference being called the balancing figure.