Answer:
Direct cost
Explanation:
Since in the question it is mentioned that the Adventure holiday sells thousand number of tour packages each month with the help of various branches.
So here the salary of a branch manager should be considered as a direct cost as it is related to the tour package sale and hence the same is to be considered
It is directly attributed to the object of cost
Which of the following would cause a "Prior Period Adjustment" to be reported on the 2025 Statement of Retained Earnings?
A. Failure to Accrue Revenue at 12/31/24, but not 12/31/21 Depreciation Overstatement.
B. 12/31/21 Depreciation Overstatement, but not Failure to Accrue Revenue at 12/31/24.
C. Both Failure to Accrue Revenue at 12/31/24 and 12/31/21 Depreciation Overstatement.
D. Neither Failure to Accrue Revenue at 12/31/24 nor 12/31/21.
Answer:
Cause of a "Prior Period Adjustment in 2025 Statement of Retained Earnings:"
A. Failure to Accrue Revenue at 12/31/24, but not 12/31/21 Depreciation Overstatement.
Explanation:
A company's failure to accrue revenue in accordance with the accrual concept and revenue recognition principle means that there is a "Prior Period Error" which must be corrected retrospectively in the financial statements (Retained Earnings). Retrospective restatement involves the correction of the error arising from the recognition, measurement, and disclosure of amounts of elements of financial statements. The restatement is done as if a prior period error had never occurred.
Assume Intervale Railway is considering investing in Pale Co. stock for three months. The investment will represent 5% of the voting stock of Pale Co. How would the investment be classified?a. Significant interest investmentb. Trading investmentc. Held-to-maturity investmentd. Controlling interest investment
Answer:
Option b (trading investment) is the correct choice.
Explanation:
Usually, the word 'trade investment' becomes interpreted as another expenditure undertaken by a corporation in certain company's securities or debentures towards supporting the initial company's transaction either business.Trading securities involve commodities or assets which are already intended by the administrators to start buying to generate money initially.Which of these are good ways to find a buyer’s agent?
a. Ask an attorney
b. Referrals
c. Ask a broker
d. Search online
e. Interview agents
it's e interview agents
How is your opportunity cost of taking this course online different than taking it on-campus?
Answer:
Online classes is new trend now these days. Both ways have their own advantage and disadvantages.
Explanation:
Now these days the trend of online classes are on top. This is not a longer novelty. This mode of learning changes the structure and experience of the class.
It is not necessary that the changes could be right for all. There are some advantage of online classes.
Flexible scheduleFaster completionTo study anytimeTo login from anywhereTo access the more collegesNo commuteIt has potentially lower cost
But in traditional classroom in campus, you have to attend the classes at campus. You will meet new people. Students get socialize with another students and new people
Both way of taking course have advantage and disadvantage.
Would a macroeconomist be interested in how individual consumers respond to an increase in taxes on gasoline?
what role do individuals play in a capitalist system?
Answer:
Explanation:
INCAPITALIST SYSTEM ,INDIVIDUALS ARE KEY BECAUSE THE GOVERMENT DOES NOT CONTROL ECONOMY .ALL ECONOMIC DECISIONS AND ACTIONS ARE CONTROLLED.......
If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to:
Answer:
If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to rise and the equilibrium quantity to stay the same.
Explanation:
Perfectly inelastic demand curve indicates the quantity demanded for the life-saving medicine remains the same or does not change in response to a change in price.
Since a part of the law of supply states that the lower the quantity supplied, the higher the price; a reduction in the supply of the life-saving medicine will increase its price.
The combining effect of the two above will lead to an increase in the equilibrium price while the equilibrium quantity will remain the same as it will not respond to the change in price.
The attached graph explains this more clearly. In the graph, the demand curve DD is used to represent the perfectly inelastic demand curve for the life-saving medicine. Therefore, the quantity remains at q no matter the changes, either increase or decrease, in price. Movement from the supply curve S1 to S2 indicates a reduction in supply of the life-saving medicine which causes an increase in the equilibrium price from Po to P1 while the equilibrium quantity stays at q.
This therefore shows that if the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to rise and the equilibrium quantity to stay the same.
You bought one of Great White Shark Repellant Co.’s 8 percent coupon bonds one year ago for $1,044. These bonds make annual payments and mature 13 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 6 percent. The bonds have a par value of $1,000.Required:If the inflation rate was 3.4 percent over the past year, what was your total real return on investment?
Answer:
17.4%
Explanation:
original purchase price 1 year ago = $1,044
current market price:
0.06 = {80 + [(1,000 - MV)/13]} / [(1,000 + MV)/2]
0.06 x [(1,000 + MV)/2] = 80 + [(1,000 - MV)/13]
0.06 x (500 + 0.5MV) = 80 + 76.92 - 0.0769MV
30 + 0.03MV = 156.92 - 0.0769MV
0.1069MV = 126.92
MV = 126.92 / 0.1069 = $1,187.28
total returns during the year = $80 (coupon) + ($1,187.28 - $1,044) = $223.28
nominal return on investment = $223.28 / $1,044 = 21.387%
real return on investment = [(1 + i) / (1 + inflation)] - 1 = [(1 + 0.21387) / (1 + 0.034)] - 1 = 1.174 - 1 = 0.174 = 17.4%
Terrell and hi parents live in a home near San Francisco. Terrell has a Visa card, which he is using to pay for car insurance today. Write a short paragraph telling ways Terrell and his family are making use of the U.S. monetary systems and policies.
Answer:
Terrell is using credit, which is a US regulated monetary system.
Explanation:
When you use credit (I also study finance along with investing) your borrowing money and paying it back later. This is a system that banks and government agencies make lots of money from, and they make money long term, while Terrell gets to pay his insurance in the short term. (I would advise against putting more than 10% of your credit limit of your credit card. Yes I know about credit cards lml) *edit- Credit is a form of small loans unless its secured or prepaid*
You will receive $225 a month for the next eight years from an insurance settlement. The interest rate is 7% compounded monthly for the first three years and 9% compounded semi-annually (quarterly) for the final five years. What is this settlement worth to you today?
Answer:
$16,014.64
Explanation:
first we have to determine the present value of the last five years:
effective interest for last 5 years = (1 + 9%/4)⁴ - 1 = 1.093 - 1 = 9.31%
9.31% / 12 = 0.7757%
present value = $225 x 47.82377 (PV annuity factor, 0.7757%, 60 periods) = $10,760.35
now, present value = $10,760.35 / (1 + effective interest)³
effective interest first 3 years = (1 + 7%/12)¹² - 1 = 1.0723 - 1 = 7.23%
present value = $10,760.35 / (1 + 7.23%)³ = $8,727.25
now we need to determine the present value of the first 3 years:
present value = $225 x 32.38838 (PV annuity factor, 2.25%, 36 periods) = $7,287.39
total value of the annuity = $16,014.64
A company is considering an iron ore extraction project that requires an initial investment of and will yield annual cash inflows of for years. The company's discount rate is 9%. Calculate IRR.
Answer: D. 15%
Explanation:
The IRR is the discount rate that will make the Net Present Value to be 0.
In other words, the IRR is the discount rate that will make the cash inflow from the investment to be equal to the investment amount.
As the cashflow is constant, it is an annuity and so can be calculated by the Present Value Interest Factor.
Investment cost = $1,100,000
Using the options given;
Discount rate - 14%
Present Value of Cash inflow = 676,507 * Present Value of Annuity factor, 14%, 2 years
= 676,507 * 1.647
= $1,114,207.029
1,114,207.029 ≠ 1,100,000
Discount rate - 15%
Present Value of Cash inflow = 676,507 * Present Value of Annuity factor, 15%, 2 years
= 676,507 * 1.626
= $1,100,000.382
= $1,100,000
IRR is 15% as Present value of Cash inflow is equal to Investment cost at a discount rate of 15%.
Business incubators support fledgling start-ups and are often used to pursue specific entrepreneurial ventures developed by
Answer: new venture groups
Explanation:
Business incubators support fledgling start-ups and are often used to pursue specific entrepreneurial ventures that are developed by the new venture groups.
It should be noted that incubators provide functions such as businesses services, funding, mentoring, physical space, and networking.
A venture capital firm are investors who gain income by engaging in risky projects after taking funds from wealthy people.
Controls that prevent, detect, and correct transaction errors and fraud in application programs are called: A. Application controls B. General controls C. Preventive controls D. Detective controls
Answer:
A. Application controls
Explanation:
Application control refers to the practice that looks in the security issues that lingers over the data. It helps in restricting or blocking the applications that are unauthorized to become a threat to data security. When the data is transferred or shared among different applications, the application control helps in performing the function of a safeguard.
In order to sell restricted stock under the provisions of Rule 144, the stock must be:________
I think Options were omitted, which are
I. fully paid
II. either properly margined or fully paid
III. held for at least 6 months
IV. held for at least 1 year
Answer:I. fully paid
, III. held for at least 6 months
Explanation: Rule 144 enforced by the U.S. Securities and Exchange Commission (SEC) regulates the conditions securities (stock ) whether restricted, unregistered or controlled can be allowed for sale or resale
The conditions include
--That adequate public information about a company should be made known to investors
--That 1% of outstanding shares can be sold every thee months by an seller especially as an affiliate of a company
--The firm is cannot solicit buy orders or permitted to receive commissions in excess of their normal rates.
----A seller must file the 144 "Notice of Sale" with the SEC at or before the placement of the sell order
Above all the holding period of 6 months which starts from when the holder or buyer has fully paid for securities and this applies mainly to restricted securities.
Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.
Stock Price/Share ($) Number of Shares Outstanding (millions)
Golden Seas 14 1.43
Jacobs and Jacobs 24 1.44
MAG 43 29.52
PDJB 9 11.48
Required:
Write down the the portfolio weight.
Answer:
Given $100,000 to invest using a value-weighted method, the weights will be decided based on market share. The individual stocks will be weighted based on their proportion of the total market value.
Total Market value for all the shares
= ($14 * 1,430,000) + ( 24 * 1,440,000) + (43 * 29,520,000) + ( 9 * 11,480,000)
= 20,020,000 + 34,560,000 + 1,269,360,000 + 103,320,000
= $1,427,260,000
Golden Seas Weight
= (14 * 1,430,000) / 1,427,260,000
= 1.40%
Jacobs and Jacobs
= ( 24 * 1,440,000) / 1,427,260,000
= 2.42%
MAG
= (43 * 29,520,000) / 1,427,260,000
= 88.9%
PDJB
= ( 9 * 11,480,000) / 1,427,260,000
= 7.24%
Ford and General Motors are considering expanding into the Vietnamese automobile market. Devise a simple prisoners' dilemma game to demonstrate the strategic considerations that are relevant to this decision.
Explanation:
To look at it from a prisoner's escape dilemma, let's look at Ford and General motors as been about out of their status quo and to break into a new market–the Venezuelan market.
They should should see themselves as been worse off if they did not make the move. Also, they need weigh the benefits of expanding. After such considerations, both car companies should work towards expanding regardless of whether or not the other is expanding.
How much can a Municipal Finance Professional (MFP) contribute to the "clean up" campaign to pay off campaign debt of an ex-issuer official that is now out of office because she lost the general election
Answer:
An unlimited amount
Explanation:
According to the Political contribution rule, Municipal Finance Professionals cannot make contribution of more than $250 to an elected official's campaign.
However in this case the ex-issuer official lost the general election and is not able to influence municipal securities of the MFP.
So they can contribute any amount to the clean up campaign since the official is out of office.
The Political contribution rule was instituted to prevent office holder from manipulating MFP securities in exchange for large contributions.
Suppose during 2020due to relief in Taxation Marginal Propensity to Consume (MPC) will increase from 0.65 to 0.75then calculate Tax multiplier (KT).
Answer:
[tex]K_T = -3[/tex]
Explanation:
Given
[tex]MPC_1 = 0.65[/tex]
[tex]MPC_2 = 0.75[/tex]
Required
Determine the Tax Multiplier (KT)
KT is calculated as follows;
[tex]K_T = \frac{-MPC}{1 - MPC}[/tex]
Substitute 0.75 for MPC because MPC has changed from 0.65 to 0.75
[tex]K_T = -\frac{0.75}{1 - 0.75}[/tex]
Evaluate the denominator
[tex]K_T = -\frac{0.75}{0.25}[/tex]
Divide fractions
[tex]K_T = -3[/tex]
Hence, the tax multiplier is -3
(Consider This) According to economist Abba Lerner (1903-1982), fiscal and monetary policy is analogous to
Answer:
a steering wheel in an automobile.
Explanation:
Abba Lerner a twentieth-century economist, is widely known for his suggestion of the utilization of fiscal policy and monetary policy as a form of Keynesian economics. In his analysis, he declared that fiscal and monetary policy is analogous to a steering wheel in an automobile.
Hence, the correct answer to the question is "a steering wheel in an automobile."
A bond that pays interest annually yields a rate of return of 9.25 percent. The inflation rate for the same period is 4 percent. What is the real rate of return on this bond?
Answer: 5%
Explanation:
From the question, we are informed that a bond that pays interest annually yields a rate of return of 9.25 percent and that the inflation rate for the same period is 4 percent.
The real rate of return on this bond will be calculated as:
= (1+nominal rate)/(1+inflation rate) - 1
= (1 + 9.25%)/(1 + 4%) - 1
= (1 + 0.0925)/(1 + 0.04) - 1
= (1.0925/1.04) - 1
= 1.05 - 1
= 0.05
= 5%
Greg and Joyce have an adjustable rate mortgage on their home. What is the key feature of this type of loan?
Answer: Interest rate can vary
Explanation: Based on the description of Greg's and Joyce's mortgage loan, the key term is the adjustable nature of the loan used to finance the mortgage. Being adjustable simply means not fixated. Hence, the interest on the loan is bound to change throughout the entire period of the loan. This type of mortgage loans are called ADJUSTABLE RATE MORTGAGE or FLOATING mortgage. The change in the interest rate applied on the outstanding balance of is usually at intervals which could be annually, semianually or monthly basis as the case may be.
The structure that organizations most commonly adopt to solve the control problems that result from producing many different kinds of products in many different locations for many different types of customers is the divisional structure.
a. True
b. False
Answer:
a. True
Explanation:
There are two commonly used organization structures by firms. The first one is known as the Functional Organization Structure. The other one is known as the Divisionalized Organisation Structure.
Functional Organization Structure - Activities of a similar type within the company are placed under the control of the appropriate department head. Examples of Functions are Production, Marketing and Finance.
Divisionalized Organisation Structure - Organisations are split up into divisions in accordance with products that are made. These divisions are separate Investment and Cost Centers and decision making is decentralized.
You and your firm need to develop policies that avoid acquisitions and restructuring. Select one: True False
Answer:
True
Explanation:
If polices are not developed that avoid acquisitions and restructuring, this results in hostile takeover of the company by other investors or decline of earning per share of the investors. So its important to develop such polices.
What does the income statement reflect?
A) The cash that has flowed in and out of the company over an accounting period.
B) Revenues minus expenses over an accounting period.
C) Both of the above.
D) None of the above.
Answer: B) Revenues minus expenses over an accounting period.
Explanation:
The Income statement lets the business know how much profit it made from its operations during the year.
It lists the revenue that was earned and then deducts all expenses that were incurred from that revenue including taxes and interest payment and then presents the net income/loss.
The first option refers to the Cashflow statement.
Determine the formula, then enter the amounts to calculate the equivalent units of production for direct materials and conversion costs
Answer:
Direct materials cost per equivalent unit=$0.75
Conversion cost per equivalent unit=$0.55
Explanation:
Computation of the cost per equivalent unit of production for direct materials.
Using this formula
Direct materials cost per equivalent unit = Direct materials costs /Equivalent units of materials
Let plug in the formula
Direct materials cost per equivalent unit = $48,750/65,000
Direct materials cost per equivalent uni=$0.75
Computation of the cost per equivalent unit of production for conversion costs.
Using this formula
Conversion cost per equivalent unit =Conversion costs/Equivalent units of conversion costs
Let plug in the formula
Conversion cost per equivalent unit = $24,750/45,000
Conversion cost per equivalent unit=$0.55
Therefore the Direct materials cost per equivalent unit will be $0.75 while
Conversion cost per equivalent unit will be $0.55
Turrubiates Corporation makes a product that uses a material with the following standards:________. Standard quantity 6.5 liters per unit Standard price $1.00 per liter Standard cost $6.50 per unit The company budgeted for production of 2,300 units in April, but actual production was 2,400 units. The company used 16,410 liters of direct material to produce this output. The company purchased 18,600 liters of the direct material at $1.10 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is:________. a. $891 U b. $810 U c. $891 F d. $810 F
Answer:
Direct material quantity variance= $810 unfavorable
Explanation:
Giving the following information:
Standard quantity 6.5 liters per unit Standard price $1.00 per liter
Actual production was 2,400 units.
The company used 16,410 liters of direct material to produce this output.
To calculate the direct material quantity variance, we need to use the following formula:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 6.5*2,400= 15,600
Direct material quantity variance= (15,600 - 16,410)*1
Direct material quantity variance= $810 unfavorable
When Deer Valley Resort Co. (DVRC) was developing its ski resort in the Wasatch Mountains near Park City, Utah, it sold parcels of land in the resort village to third parties. Each sales contract reserved the right of approval over the conduct of certain businesses on the property including ski rentals. For fifteen years, DVRC permitted Christy Sports, LLC, to rent skis in competition with DVRC's ski rental outlet. When DVRC opened a new mid-mountain ski-rental outlet, it revoked Christy's permission to rent skis. This meant that most skiers who flew into Salt Lake City and shuttled to Deer Valley had few choices: they could carry their ski equipment with them on their flights, take a shuttle into Park City and look for cheaper ski rentals there, or rent from DVRC. Christy filed a suit in a federal district court against DVRC. Was DVRC's action an attempt to monopolize in violation of Section 2 of the Sherman Act
Answer:
No it wasn't a violation of Section 2 of the Sherman Act.
Explanation:
This is an actual court case which was ruled in favor of DVRC. The court used an analogy to compare DVRC with Disneyland, where the theme park owners would not allow competition within their premises. Even though DVRC sold the land parcel to Christy Sports, a restrictive covenant was imposed at the time of the sale where DVRC could decide freely which third party businesses could operate there. Since the covenant is legal, there is no reason why DVRC will not enforce it.
g As the economy moves toward equilibrium expenditure, an unplanned ______ in inventories leads firms to ______ production.
Answer:
1. decrease
2. increase
Explanation:
Economy equilibrium is a term often used in economics to describe a situation in a given economy, in which the total sum of expenditures is the same or equals to the total sum of supplies or production level in that particular economy.
Hence, as the economy moves toward equilibrium expenditure, an unplanned DECREASE in inventories leads firms to INCREASE production.
"A customer has an existing short margin account with credits of $16,000 and a short position in ABC stock worth $12,000. The SMA in the account is $1,000. If the market value of ABC falls to $8,000, the equity is:"
Answer:
$8,000
Explanation:
Short sale is a transaction involving an investor who borrows shares to sell in the market in anticipation of buying back the shares in the future when the market prices decreases. Where there is a proceed in short sale transaction, such will be deposited in a short margin account.
With regards to the above, if the market value of ABC shares falls to , then the equity would be;
Equity = Short margin account credits -Short market value
Equity = $16,000 - $8,000
Equity = $8,000
A(n) ____ focuses on the need for service providers to build strong bonds with customers.
Answer:
Interpersonal relationship
Explanation:
Took business
Answer:
interpersonal relationship