a)When the discount rate is 0 percent, the discounted payback period can be calculated by dividing the initial cost by the annual cash flows. Here, initial cost is $18,100 and annual cash flows is $3,700.DPP = Initial Cost / Annual Cash Flows= $18,100 / $3,700= 4.89 years).
When the discount rate is 5 percent, the discounted cash flows for each year and cumulative discounted cash flows at the end of each year can be calculated as follows: Discounted Cash Flows:|Year| Cash Flows| PVF (5%, year)|Discounted Cash Flows[tex]|1|$3,700|0.9524|$3,525.08|2|$3,700|0.907|[/tex] [tex]$3,352.9|3|$3,700|0.8638|$3,184.06|4|$3,700|0.8227|$3,018.19|5|$3,700|0.7835|$2,855.38|6|[/tex]|Cumulative Discounted Cash Flows:|Year| Cumulative Cash Flows Cumulative Discounted Cash.
Flows[tex]|1|$3,700|$3,525.08|2|$7,400|$6,877.98|3|$11,100|$10,062.05|4|$14,800|$1[/tex] |The discounted payback period is the year before the cumulative discounted cash flows exceed the initial cost. In this case, that happens during year 5. So the discounted payback period when the discount rate is 5% is: DPP = Year 4 + (Initial Cost - Cumulative Discounted Cash Flows in Year 4) / Discounted Cash Flows in Year [tex]5= 4 + ($18,100 - $13,080.24) / $2,855.38= 4.63 years).[/tex]
Flows|1[tex]|$3,700|$3,137.25|2|$7,400|$5,795.66|3|$11,100|$8,048.17|[/tex]The discounted payback period is the year before the cumulative discounted cash flows exceed the initial cost. In this case, that happens during year 6. So the discounted payback period when the discount rate is 18% is: DPP = Year 5 + (Initial Cost - Cumulative Discounted Cash Flows in Year 5) / Discounted Cash Flows in Year [tex]6= 5 + ($18,100 - $11,575.63) / $1,372.63= 5.08[/tex] years.
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EXPLAIN EASY WAY TO GET A CONSOLIDATED STATEMNET OF FINACIAL
POSITION
Consulting professional accountants or financial experts can be helpful, especially for complex consolidation scenarios or regulatory requirements.
Obtaining a consolidated statement of financial position involves combining the financial information of multiple entities within a group or company to present a comprehensive view of their overall financial position. Here's an easy way to understand the process: Identify the entities: Determine which entities or subsidiaries need to be included in the consolidated statement. These entities are usually under the control of a parent company, either through majority ownership or significant influence.
Gather financial statements: Collect the individual financial statements of each entity, including their balance sheets. These statements should provide details of their assets, liabilities, and equity.
Adjust for intercompany transactions: Review and eliminate any intercompany transactions between the entities to avoid double-counting. Examples of intercompany transactions include sales, purchases, loans, and transfers of assets. Adjustments are made to eliminate these transactions and reflect only external transactions.
Convert to a common currency: If the entities operate in different currencies, convert their financial statements to a common currency for consistency. Use appropriate exchange rates to convert the values accurately.
Summarize the financial data: Combine the adjusted financial statements of each entity into a single consolidated statement. Add up the corresponding values from each entity's balance sheet categories, such as assets, liabilities, and equity.
Include non-controlling interests: If the parent company doesn't own 100% of the subsidiary, account for the portion of equity attributable to non-controlling interests. This represents the ownership stake held by external shareholders in the subsidiary.
Prepare the consolidated statement: Present the summarized financial information in a consolidated statement of financial position. It should include the total assets, liabilities, equity, and any additional disclosures required by accounting standards.
Review and analyze: Finally, review the consolidated statement to assess the financial position of the entire group. Analyze key financial ratios and indicators to gain insights into the group's overall performance, liquidity, and solvency.
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Doctor’s Office
Records are kept about Patients. Details include the name, address, contact details, insurance information, and visit records. Patients can be registered before actually coming for a visit. Details about prescribed treatments are recorded, including the date prescribed, the doctor involved, which appointment, and any additional notes. Diagnosis can include... An appointment does not necessarily result in any treatments.
Part 1: Identify the Data Requirements (10 points)
What data needs to be stored?
What entities (tables) will you include?
What information about each entity will be included?
What are the unique identifiers for each entity?
What will be the relationships between those entities?
Part 2: Create the ERD Diagram (For this assignment, you will use Lucidchart to create an E-R diagram based on the given scenario)
Create an ERD diagram to model the system for Happy Pet Veterinary Clinic. For this diagram, you will use the information in Part 1. Remember, here we are only focused on what data will be stored in the database and not the whole system to be designed. This diagram must include: (1) entities, (2) attributes for the entities, (3) relationships between the entities, and (4) identified primary and foreign keys.
Part 1: Identify the Data Requirements:
The data that needs to be stored includes: patient information (name, address, contact details, insurance information), visit records, details about prescribed treatments (date prescribed, the doctor involved, which appointment, and any additional notes), and diagnosis.
Entities (Tables):
The entities that will be included are Patients, Visits, and Treatments.
Information about each entity:
Patients: name, address, contact details, and insurance information.
Visits: visit records and diagnosis.
Treatments: prescribed treatments, date prescribed, doctor involved, appointment, and additional notes.
Unique identifiers for each entity:
Patients: Patient ID (primary key).Visits: Visit ID (primary key).
Treatments: Treatment ID (primary key).
Relationships between entities: Each patient can have many visits, but a visit can only be assigned to one patient.
Each visit can have multiple treatments, and treatment can be assigned to multiple visits.
Part 2:
ERD Diagram:
In the ERD diagram, the entities are represented by boxes, attributes for each entity are represented by ovals, relationships between entities are represented by diamonds and primary and foreign keys are represented by underlined attributes. Please see the attached image for the ERD diagram.
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on january 1, 2024, wendall company purchases new equipment for $649,000. wendall is required to make a down payment of $135,000 and issue an installment note for the remaining balance of $514,000. the note requires payments of $70,166.04 every three months, beginning march 31, 2024, over the next two years. the interest rate on the note is 8% annually (or 2% every three months). required: 1. record the purchase of equipment with down payment of $135,000 and the installment note of $514,000 on january 1, 2024. 2. record the first payment of $70,166.04 on march 31, 2024.
1. To record the purchase of equipment with a down payment of $135,000 and an installment note of $514,000 on January 1, 2024, you would follow these steps:
Step 1: Debit the Equipment account for $649,000. This reflects the cost of the equipment.
Step 2: Credit the Cash account for $135,000. This represents the down payment made by Wendall Company.
Step 3: Credit the Notes Payable account for $514,000. This represents the remaining balance of the equipment cost that will be paid through the installment note.
The journal entry would look like this:
Equipment $649,000
Cash $135,000
Notes Payable $514,000
2. To record the first payment of $70,166.04 on March 31, 2024, you would follow these steps:
Step 1: Debit the Notes Payable account for $65,166.04. This represents the principal portion of the payment.
Step 2: Debit the Interest Expense account for $5,000. This represents the interest portion of the payment.
Step 3: Credit the Cash account for $70,166.04. This reflects the actual payment made by Wendall Company.
The journal entry would look like this:
Notes Payable $65,166.04
Interest Expense $5,000
Cash $70,166.04
Please note that the interest expense is calculated by multiplying the outstanding balance of the note by the interest rate of 2% (or 0.02) for the three-month period. In this case, it is $514,000 * 0.02 = $10,280. Dividing this by four (since it's a quarterly payment) gives $5,000.
By following these steps, you can accurately record the purchase of equipment and the first payment on the installment note.
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a constant-cost industry is one where ______ will not affect resource prices and production costs.
A constant-cost industry is one where changes in industry output or the quantity of resources used will not affect resource prices and production costs.
In a constant-cost industry, the prices of resources and production costs remain unaffected regardless of changes in industry output or resource quantities. This means that as the industry expands or contracts its production, the prices of resources such as labor, raw materials, and capital remain constant. The industry can adjust its output without causing any shifts in resource prices or production costs, resulting in a stable cost structure. This typically occurs when the industry has access to ample resources and there is no significant impact on their availability or prices due to changes in industry demand or supply.
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A constant-cost industry refers to an industry where output levels do not affect resource prices and production costs. These sectors maintain constant production costs despite fluctuations in demand. They differ from increasing cost industries, which see increased costs with demand rises, and decreasing cost industries, which enjoy low marginal costs due to technological advances.
Explanation:A constant-cost industry is one where changes in output levels will not affect resource prices and production costs. In such an industry, costs of production for firms remain constant as demand increases. The constant-cost industry is also distinct from other industry types such as, increasing cost industry and decreasing cost industry.
Increasing cost industries deal with limited resources, such as skilled labor, which leads to increased costs as demand for these workers rises. On the other hand, decreasing cost industries benefit from growth in productivity stemming from technological advances, allowing companies to adopt new production methods at very low marginal costs.
With short-run perspective, a company has to consider fixed costs, incurred without output, and variable costs, incurred during production. Variable costs often show diminishing marginal returns, meaning the cost of producing higher levels of output rises. However, in the long run, all costs become variable and companies strive to replace expensive inputs with cheaper alternatives, aiming for the lowest possible long-run average cost.
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The managers of Movies Plus, a large movie theater, want to practice third-degree price discrimination. The managers have learned that college students have an own price elasticity of demand of 4.0 for tickets at Movies Plus and adults have an own price elasticity of 2.0. If the managers have correctly determined the third-degree profit-maximizing price for adults is $10, what is the third-degree profit-maximizing price to charge students? Select one: A. $5.50 B. $12.00 C. $6.67 D. $15.00
Movies Plus, a big movie theatre, aims to practice third-degree price discrimination. The managers have studied that the college students have a price elasticity.
If the managers have accurately defined the third-degree profit-maximizing price for adults at this suggests that they have calculated the price that would enable them to sales by comparing the marginal costs of producing the additional ticket with the marginal revenue that each ticket sold can generate.
It implies that students are more responsive to a change in the price of tickets than the adult. Thus, a small change in the price of a ticket would have a more significant effect on the quantity demanded of the students than the adult.
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MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the past, it allocated overhead to products using machine-hours. Last year, the company produced 9,000 units of M3100, 16,000 units of M4100, and 8,000 units of M6100 and had the following revenues and costs: MTI Income Statement M3100 M4100 M6100 Total $ 9,100,000 $ 15,900,000 $ 13,900,000 $ 38,900,000 2,500,000 570,000 4,200,000 890,000 3,500,000 1,790,000 10,200,000 3,250,000 Sales revenue Direct costs Direct materials Direct labor Variable overhead Setting up machines Processing sales orders Warehousing Operating machines Shipping Contribution margin Plant administration Gross profit 2,304,000 1,936,000 2,604,000 1,250,000 858,000 $ 16,498,000 6,000,000 $ 10,498,000 MTI's controller has heard about activity-based costing and puts together an employee team to recommend cost allocation bases. The employee team recommends the following:
Activity-based costing (ABC) is a costing method that involves identifying, analyzing, and assigning expenses to activities based on their usage by products, services, or other items.
What is the objective?The objective of ABC is to provide more accurate costs, especially for low-volume and high-complexity products.
ABC involves identifying all of the costs associated with each activity that contributes to the production of a product and then assigning those costs to the product in proportion to the amount of activity required to make it.
Each activity has its own cost driver, which is a measure of the activity's consumption. The employee team recommends the following:
Activity Cost Pool Activity Cost Driver Total Cost Setting up machines Setup hours $ 890,000 .
Processing sales orders Number of orders 3,500,000 Warehousing Square feet occupied 1,790,000 Operating machines Machine-hours 16,498,000 Shipping Number of shipments 6,000,000
The costs associated with the activity cost pool are allocated to products based on their usage of the activity cost driver.
For example, the cost of setting up machines would be allocated to products based on the number of setup hours each product requires. The new cost of each product is calculated using the activity-based costing system.
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A contract created by a minor: A. is voidable. B. can not be enforced by either party. C. may not be completely disaffirmed if it involves necessities. D. (All of the above) E. A and C only.
A minor is an individual who has not yet attained the age of majority, which is generally 18 years old in most jurisdictions. The majority of countries prohibit minors from entering into contractual agreements because they are unable to give informed consent. In general, a contract formed by a minor is voidable.
Voidable refers to a contract that is not completely void but can be avoided or canceled if a party to the contract wishes to do so. The answer is A, which states that a contract formed by a minor is voidable. This implies that the contract may be avoided by the minor at any time, either during or after the minor has reached the age of majority, if they so choose.
C is only partially true, because a minor may disaffirm a contract involving necessities, but it is not the only scenario in which a minor may avoid the contract. D is incorrect because the question is seeking the most accurate answer to the situation. A and C are two responses that make the most sense, however, D is incorrect because it implies that all of the options given are equally true.
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Which of the following is classified in the most persuasive evidence of government control?
A. Government has the power to establish or amend the policies that the organization uses to manage, such as those relating to accounting, personnel, compensation, collective bargaining or deployment of resources.
B. Government has the power to approve the business plans or budgets for the organization and require amendments, either on a net or line-by-line basis.
C. Government has the power to provide significant input into the appointment of members of the governing body of the organization by appointing a majority of those members from a list of nominees provided by others or being otherwise involved in the appointment or removal of a significant number of members.
D. Government has the unilateral power to dissolve the organization and thereby access its assets and become responsible for its obligations
The claim that option D, which reads, "Government has the unilateral power to dissolve the organisation and thereby access its assets and become responsible for its obligations.
The one that is deemed to be the most convincing proof of government control among the possibilities is, "Government has the unilateral power to dissolve the organisation and thus access its assets and become responsible for its obligations."This claim underlines the degree to which the government has major control over the organisation. The ability to dissolve an organisation indicates that the government has the capacity to do so, as well as to take over its assets and obligations and put an end to the organization's existence. Given that they have the power to decide the organization's future, this shows a significant amount of influence and control on the part of the government.
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Wright 800 words about Canadian Employee Perspectives on
Disability Management
Canadian Employee Perspectives on Disability Management. It is very important for an employer to properly manage an employee with a disability.
The disabled employee is entitled to the same opportunities as any other employee. If you manage a disabled employee in the same way as you would any other employee, you will gain the loyalty and trust of the disabled employee.
In this article, we will discuss the perspectives of Canadian employees on disability management. Canada has a very diverse population and the disabled is also very diverse. However, there are some common perspectives that Canadian employees have on disability management.
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Henry lost his job on September 3rd 2022 here we say 13,000 of Unemployment Commission during the last few months of the year his 2022 AGI does not exceed 150,000 under certain laws how much of his unemployment benefits may be excluded from his 2022 income
Henry may exclude $10,200 of his unemployment benefits from his 2022 income. The remaining $2,800 of his unemployment benefits will be taxable.
Henry lost his job on September 3rd, 2022. Here, we say $13,000 of Unemployment Commission during the last few months of the year. His 2022 AGI does not exceed $150,000. Under certain laws, $10,200 of his unemployment benefits may be excluded from his 2022 income.What is an AGI?The AGI stands for adjusted gross income. It is calculated by taking the gross income and subtracting all allowable deductions. The AGI is generally considered a more accurate reflection of your income than your gross income, as it takes into account deductions and other factors that can reduce your taxable income.How much of his unemployment benefits may be excluded from his 2022 income?Henry lost his job on September 3rd, 2022.
He received $13,000 of Unemployment Commission during the last few months of the year. His 2022 AGI does not exceed $150,000.Under the American Rescue Plan Act (ARPA), the first $10,200 of unemployment benefits received in 2022 are tax-free for taxpayers with an AGI less than $150,000.
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The major assumption in the top-down strategic planning process is that ___.
The top-down strategic planning process operates under the major assumption that it enables management to exert control over organizational objectives and provides guidance towards their achievement.
This approach involves senior management developing a long-term vision and delegating the task of creating tactical plans to subordinates.
While the top-down approach is often seen as efficient and productive, it does have inherent drawbacks. Its one-size-fits-all decision-making approach and rigid framework limit its effectiveness. Strategic vision and decision-making control are centralized in the hands of a few, and implementation becomes a matter of following guidelines rather than fostering innovation and learning from diverse perspectives. Although the approach facilitates quick decision-making, it can hinder creativity and adaptability to market changes.
Additionally, the top-down approach tends to overlook the insights and expertise of lower-level employees who possess valuable knowledge about organizational processes. This lack of diversity in the decision-making process can impede organizational progress. Moreover, the approach is inflexible and resistant to change, which can hinder the attainment of organizational objectives.
In the current dynamic business environment, the top-down approach to strategic planning lacks the flexibility and adaptability required. It should be used as a guide rather than an absolute mandate, and strategic decisions should consider the insights and knowledge of all stakeholders. By incorporating a more inclusive approach, organizations can better navigate the complexities of today's business landscape.
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Project Part 1B: Gap Analysis Plan and Risk Assessment Methodology: Students will create a gap analysis plan. They will also review two risk assessment methodologies and recommend one the company should use to perform a risk assessment
Scenario
After the productive team meeting, Fullsoft’s chief technology officer (CTO) wants further analysis performed and a high-level plan created to mitigate future risks, threats, and vulnerabilities. As part of this request, you and your team members will create a plan for performing a gap analysis, and then research and select an appropriate risk assessment methodology to be used for future reviews of the Fullsoft IT environment.
An IT gap analysis may be a formal investigation or an informal survey of an organization's overall IT security. The first step of a gap analysis is to compose clear objectives and goals concerning an organization's IT security. For each objective or goal, the person performing the analysis must gather information about the environment, determine the present status, and identify what must be changed to achieve goals. The analysis most often reveals gaps in security between "where you are" and "where you want to be."
Two popular risk assessment methodologies are NIST SP 800-30 revision 1, Guide for Conducting Risk Assessments, and Operationally Critical Threat, Asset, and Vulnerability Evaluation (OCTAVE). Your focus will be on the OCTAVE Allegro version, which is a more concise version of OCTAVE. When reviewing the methodologies, consider the following:
Which features or factors of each methodology are most important and relevant to Fullsoft?
Which methodology is easier to follow?
Which methodology appears to require fewer resources, such as time and staff, but still provides for a thorough assessment?
Tasks:
Create a high-level plan to perform a gap analysis.
Review the following two risk assessment methodologies:
NIST SP 800-30 rev. 1, Guide for Conducting Risk Assessments (formerly titled " Risk Management Guide for Information Technology Systems")
Operationally Critical Threat, Asset, and Vulnerability Evaluation (OCTAVE), Allegro version
Create a report that includes the gap analysis plan, a brief description of each risk assessment methodology, a recommendation for which methodology Fullsoft should follow, and a justification for your choice
A gap analysis plan is the formal process of evaluating the differences in performance or functionality between existing systems and desired systems or results. Based on the analysis, we recommend that Fullsoft use the OCTAVE Allegro methodology for its risk assessment.
Gap analysis plan:
A gap analysis plan is the formal process of evaluating the differences in performance or functionality between existing systems and desired systems or results. In order to conduct a gap analysis, clear objectives and goals must be established to identify what needs to be changed to achieve these goals. By performing a gap analysis, Fullsoft can identify gaps in security between "where you are" and "where you want to be" and develop strategies to mitigate these risks.
Risk assessment methodologies:
Two risk assessment methodologies that Fullsoft can use to evaluate its IT environment are NIST SP 800-30 revision 1, Guide for Conducting Risk Assessments, and Operationally Critical Threat, Asset, and Vulnerability Evaluation (OCTAVE) Allegro version. While both methodologies are designed to help organizations identify potential risks, they have different strengths and weaknesses.
NIST SP 800-30 rev. 1:
This methodology focuses on identifying and analyzing threats, vulnerabilities, and potential impacts to an organization's information and information systems. This methodology is more complex, requiring a longer assessment period and more resources to complete. However, it provides a comprehensive overview of potential risks.
OCTAVE Allegro:
This methodology is designed to help organizations identify potential risks to their information and information systems. It is a more concise version of the original OCTAVE methodology, requiring fewer resources to complete. This methodology is more straightforward and easier to follow than NIST SP 800-30 revision 1.
Recommendation:
Based on the analysis, we recommend that Fullsoft use the OCTAVE Allegro methodology for its risk assessment. This methodology is more straightforward and easier to follow, requiring fewer resources to complete. While it may not provide as comprehensive an assessment as the NIST SP 800-30 revision 1 methodology, it is still thorough enough to identify potential risks to Fullsoft's IT environment.
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Can an impairment loss in one year be reversed in the following
year? Under what conditions can this reversal occur and which
accounts are affected in this reversal?
An impairment loss can be reversed in the following year if there is a change in circumstances, subject to certain limitations and accounting treatments.
The reversal is allowed if there is a change in circumstances that caused the impairment loss to occur. The reversal amount should not exceed the amount of impairment loss that was initially recorded, and the carrying amount of the asset after the reversal should not exceed the asset's recoverable amount.
The accounts affected by the reversal are the same as those affected by the impairment loss initially recorded. If the impairment loss was recorded in the income statement, the reversal is also recorded in the income statement. If the impairment loss was recorded in the revaluation reserve, the reversal is recorded in the revaluation reserve.
However, the reversal of an impairment loss should be recognized immediately in profit or loss except when the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase.
Also, any reversal of an impairment loss of goodwill should be recognized in profit or loss as it is not possible to track the change in recoverable amount of goodwill.
The reversal of the impairment loss should be recorded in the income statement as a gain and should be disclosed separately in the financial statements. The disclosure should include the amount of the reversal, the reasons for the reversal, and the affected assets or cash-generating units.
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which of the following taxpayers should expect to receive a form 1099k for Gig employee economic activity in 2022 Peter earned $225 and had seven transactions as shared ride driver in 2022 Alex earned $383 and had 10 transactions as food delivery driver for an online app mellow earn 575 and had 20 transactions is a shared ride driver for the last 6 months or 2022 Robin earned 625 with 45 transaction delivery groceries through a popular online app in 2022
Gig economy workers are classified as self-employed independent contractors. Independent contractors are not employees; therefore, they are not given a W-2 from their employer.
However, independent contractors or self-employed individuals may receive a Form 1099-MISC, depending on the amount of income they earned from a particular source. Form 1099-MISC is the income tax form used to report income earned by independent contractors, which includes gig workers.Peter earned $225 with seven transactions as a shared ride driver in 2022.
He will not receive a Form 1099-K because he did not exceed the minimum threshold requirement. Alex earned $383 with ten transactions as a food delivery driver for an online app. He will not receive a Form 1099-K because he did not exceed the minimum threshold requirement.Mellow earned $575 with 20 transactions as a shared ride driver for the last 6 months of 2022. Mellow will not receive a Form 1099-K because they did not exceed the minimum threshold requirement.Robin earned $625 with 45 transaction delivering groceries through a popular online app in 2022.
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Harrison is retiring from a local bakery that has been in his family for four generations. Because he does not have an heir to whom he can pass the bakery, he is selling it to a young couple. When they meet to discuss the transfer of the business, what are some things that Harrison should share with the new owners about the success of his business?Multiple ChoiceHarrison should share the organizational chart, as well as a list of local businesses not to partner with.Harrison should share his list of interview questions for hiring new employees.Harrison should share the culture of the company through stories, rites, and rituals.Harrison should share which community events he has already agreed to take part in over the next three years.If a food co-packer utilized a product structure, which of the following divisions would most likely appear in its organizational chart?Multiple Choicefrozen foods, processed foods, beverages, bulk quantities, producegrocery chains, small businesses, restaurants, residential facilitiesnorthern, southern, eastern, western, centralmarketing, finance, operations, distribution, human resourcesWhen managers need to solve problems, horizontal design can bring together employees of various divisions without sacrificing their primary functional responsibilities.True or False
Harrison should share the culture of the company through stories, rites, and rituals to help the new owners understand the essence of the business and its path to success.
What aspects of the company's culture should Harrison share?Harrison should take the opportunity to share the rich history and traditions of the bakery with the new owners. By recounting stories of how the business was established and the values that have been upheld over the years, he will provide valuable insights into the foundation of its success.
He should share any unique rites and rituals that have become a part of the bakery's culture which could include special practices followed during important events or traditions that have been passed down through the generations.
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Sharkey's Fun Centre contains a number of electronic games, as well as a miniature golf course and various rides located outside the building. Paul Sharkey, the owner, would like to construct a water slide on one portion of his property. Sharkey has gathered the following information about the slide: a. Water slide equipment could be purchased and installed at a cost of $180,000. According to the manufacturer, the slide would be usable for 12 years, after which it would have no salvage value. b. Sharkey would use straight-line depreciation on the slide equipment. c. To make room for the water slide, several rides would be dismantled and sold. These rides are fully depreciated, but they could be sold for $38,000 to an amusement park in a nearby city. d. Sharkey has concluded that about 24,000 more people would use the water slide each year than have been using the rides. The admission price would be $3.20 per person (the same price that the Fun Centre has been charging for the rides). e. On the basis of experience at other water slides, Sharkey estimates that incremental operating expenses each year for the slide would be as follows: salaries, $30,000; insurance, $1,400; utilities, $4,600; maintenance, $3,435. Required: 2-a. Compute the SRR expected from the water slide. 2-b. On the basis of this computation, would the water slide be constructed if Sharkey requires an SRR of at least 14% on all investments? Yes No 3-a. Compute the payback period for the water slide. (Round your answer to 2 decimal places.) 3-b. If Sharkey requires a payback period of five years or less, should the water slide be constructed? Yes No
If the SRR expected from the water slide is higher than the required SRR, the water slide should be constructed.
- If the payback period of the water slide is within Sharkey's required timeframe, the water slide should be constructed.
Sharkey's Fun Centre is considering the construction of a water slide on a portion of its property. Let's calculate the expected SRR (Simple Rate of Return) and payback period for the water slide based on the given information.
2-a. Calculation of SRR expected from the water slide:
First, we need to calculate the annual cash flows associated with the water slide.
Next, we calculate the present value of each cash flow using an appropriate discount rate.
Then, we sum up the present values of all cash flows to get the total present value.
Finally, we calculate the SRR by dividing the total present value by the initial investment and expressing it as a percentage.
2-b. On the basis of this computation, we determine whether the water slide should be constructed based on Sharkey's required SRR of at least 14% on all investments.
3-a. Calculation of payback period for the water slide:
To calculate the payback period, we need to determine the annual net cash inflows from the water slide.
Then, we compute the cumulative net cash inflows by summing up the annual net cash inflows until they equal or exceed the initial investment.
Finally, we divide the payback period by the initial investment to find the payback period in years.
3-b. Based on Sharkey's requirement of a payback period of five years or less, we determine whether the water slide should be constructed.
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Which of the following statements on firms in monopolistic competition does not hold? Select one: a. The market demand and firm demand differ, unlike monopolies b. Over the long run, firms have the same profit as firms in perfect competition c. Over the long run, firms maximize profit using the same approach as firms in monopolies d. The price elasticity of demand influences price and markup but not marginal cost
The statement that does not hold regarding firms in monopolistic competition is option c. Over the long run, firms maximize profit using the same approach as firms in monopolies.
In monopolistic competition, firms have some degree of market power, allowing them to differentiate their products and face a downward-sloping demand curve. Unlike firms in perfect competition, monopolistic competitors can exert some control over price and have the ability to earn positive economic profits in the short run.
However, in the long run, new firms can enter the market and offer similar products, leading to increased competition. This entry of new firms erodes the market power of existing firms and reduces their ability to earn economic profits. As a result, in the long run, firms in monopolistic competition do not maximize profit using the same approach as firms in monopolies.
Firms in monopolies, by definition, operate in markets with no or limited competition. They have significant market power and can restrict output to maximize profit. Monopolistic firms can set prices above marginal cost and earn positive economic profits in the long run.
On the other hand, in monopolistic competition, firms face competitive pressures and cannot sustain long-term economic profits. As new firms enter the market or existing firms expand their product offerings, the demand for any individual firm's product becomes more elastic. Firms in monopolistic competition must continuously differentiate their products and engage in non-price competition to maintain a competitive advantage.
In summary, while firms in monopolistic competition share some characteristics with firms in monopolies, such as the ability to set prices above marginal cost in the short run, they do not maximize profit using the same approach in the long run. The entry of new firms and the competition they introduce distinguishes monopolistic competition from monopoly markets. Therefore, the correct option is C.
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Reflection and Discussion Forum Week 6 A!
Assigned Readings:
Chapter 15. Sustainability and the Natural Environment
Chapter 16. Business and Community Stakeholders
Initial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you understanding in each assigned textbook chapter. Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference sectic body of the text. Other sources are not required but feel free to use them if they aid in your discussion.
Also, provide a graduate-level response to each of the following questions:
1. What are several of the most important environmental issues now receiving worldwide attention?
2. In your opinion, why does a business have a responsibility to employees and community stakeholders in a business- or plant-closing decision?
In the first assigned chapter, "Sustainability and the Natural Environment," the most important concept is the meaning of sustainability and the ways of incorporating it into the business operations. The term "sustainability" is explained as a significant business objective of safeguarding the natural environment for future generations.
Sustainability is essential in corporate strategy as it helps in creating long-term competitive value. Therefore, the three main components of sustainability; economic, social, and environmental, should be fully incorporated into corporate strategy to realize long-term competitive value. Economic sustainability refers to the efficient use of resources to maximize profits. Social sustainability is the responsibility of business entities to take care of the communities in which they operate. Lastly, environmental sustainability entails taking care of the natural environment, which the business relies on for resources.
In the second assigned chapter, "Business and Community Stakeholders," the most important concept is stakeholder management and the methods of involving stakeholders in decision-making processes. The term "stakeholder" refers to any person or entity that has a stake in the business operations or decisions. Stakeholder management refers to managing the diverse interests and expectations of various stakeholders involved in business operations to maximize their value.
In my opinion, a business has a responsibility to employees and community stakeholders in a business- or plant-closing decision because it affects the lives of various stakeholders, including employees, customers, suppliers, and local communities. Therefore, businesses should involve stakeholders in decision-making processes to reduce the adverse effects of closing decisions.
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Refer to Instruction. What is the cost of a put option hedge for Plains States' euro receivable contract? (Note: Calculate the cost in future value dollars and assume the firm's cost of capital as the appropriate interest rate for calculating future values.)
a) $27,694
b) $26,250
c) €27,694
d)€26,250
Instruction: Plains States Manufacturing has just signed a contract to sell agricultural equipment to Boschin, a German firm, for euro 1,500,000. The sale was made in June with payment due six months later in December. Because this is a sizable contract for the firm and because the contract is in euros rather than dollars, Plains States is considering several hedging alternatives to reduce the exchange rate risk arising from the sale. To help the firm make a hedging decision you have gathered the following information. • The spot exchange rate is $1.40/euro • The six month forward rate is $1.38/euro • Plains States' cost of capital is 11% • The Euro zone borrowing rate is 9% (or 4.5% for 6 months) • The Euro zone lending rate is 7% (or 3.5% for 6 months) • The U.S. borrowing rate is 8% (or 4% for 6 months) • The U.S. lending rate is 6% (or 3% for 6 months) • December put options for euro 1,500,000; strike price $1.42, premium price is 1.5% • Plains States' forecast for 6-month spot rates is $1.43/euro • The budget rate, or the lowest acceptable sales price for this project, is $1,075,000 or $1.35/euro
Plains States' contract for euro receivables includes a put option hedge that will cost $32,193 in future value dollars. None of the available response choices correspond to this outcome.
Determine the premium payment:
Premium is equal to 1.5% of €1,500,000.
Premium equals 0.015% of 1,500,000.
Premium = 22,500 euros.
The premium amount should be converted to future value dollars using the borrowing rate for six months:
Future Value of Premium = Premium * (1 + Euro zone borrowing rate)^(6/12)
= euro 22,500 * (1 + 4.5%)^(6/12)
= euro 22,500 * (1.045)^(0.5)
= euro 22,500 * 1.022
= euro 22,995
Using the current exchange rate, convert the future value of the premium to dollars:
Future Value of Premium * Spot Exchange Rate is the price of the put option hedge.
Put Option Hedge Cost = EUR 22,995 * EUR 1.40
Put Option Hedge Cost: $32,193
Because of this, the put option hedge for Plains States' contract for euro receivables costs $32,193 in future value dollars. None of the available response options match this outcome.
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a) Market fails to allocate resources optimally due to certain number of constraints in the working of perfect market. Several reasons have been responsible for the failure of the market. Account for those reasons and proffer necessary solutions. b) Government can borrow in order to cater for the execution of not only capital projects in the country but also to take care of recurrent expenditure. In your own opinion, do you support government borrowing? Elucidate how public debt can be managed.
a) The market is often unable to allocate resources efficiently due to a number of constraints in the functioning of the perfect market. The market's failure has been attributed to a variety of factors. One explanation for the market's failure is that the market may have too little or too much competition.
When competition is limited, firms have a greater ability to manipulate prices and create monopolies or oligopolies. Furthermore, market failures may be caused by a lack of information. Consumers may not have access to all of the information they require to make informed decisions. Inadequate government regulation may also contribute to market failure.
There are several possible solutions to the market's failure. One is government intervention. The government may regulate or interfere with market transactions in order to ensure that the market operates effectively. Furthermore, in order to alleviate market failures, the government may provide public goods. Additionally, the government may subsidize those industries that are critical to economic development.
b) Government borrowing is necessary for the smooth operation of the economy. Government borrowing is necessary in order to finance capital expenditures that the country requires to expand or modernize its infrastructure. Government borrowing also allows the government to bridge the deficit that arises as a result of a discrepancy between revenue and expenditure.
The management of public debt is critical in order to avoid an resources crisis. The government must ensure that the debt's interest payments are manageable. Furthermore, the government should ensure that the debt's maturity is sufficient to allow for the government to repay its debt.
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ou hold 300 shares of boeing, which last traded for $20/share. you also own 1 share of amazon, which last traded for $3,450/share. you own 20 shares of starbucks which last traded for $117/share what is the beta of your portfolio (to two places)? company beta us steel 1.77 ford mo co 1.31 general electric 1.20 gamestop 1.45 boeing 0.94 amazon 0.90 starbucks 0.79 mcdonalds 0.51 walmart 0.26
The beta of your portfolio is 26.8128
To calculate the beta of a portfolio, we need to consider the individual weights of each stock and their respective betas. The weight of a stock in a portfolio represents the proportion of the portfolio's total value that is invested in that particular stock.
Let's calculate the weight of each stock in your portfolio:
For Boeing: You hold 300 shares, and the last traded price is $20/share.
The value of your investment in Boeing = 300 shares * $20/share = $6,000.
Weight of Boeing in the portfolio = ($6,000 / Total Portfolio Value).
For Amazon: You own 1 share, and the last traded price is $3,450/share.
The value of your investment in Amazon = 1 share * $3,450/share = $3,450.
Weight of Amazon in the portfolio = ($3,450 / Total Portfolio Value).
For Starbucks: You own 20 shares, and the last traded price is $117/share.
The value of your investment in Starbucks = 20 shares * $117/share = $2,340.
Weight of Starbucks in the portfolio = ($2,340 / Total Portfolio Value).
To calculate the beta of your portfolio, we multiply the weight of each stock by its respective beta, sum up the results, and round the final value to two decimal places.
Beta of the portfolio = (Weight of Boeing * Beta of Boeing) + (Weight of Amazon * Beta of Amazon) + (Weight of Starbucks * Beta of Starbucks)
Beta of the portfolio = (2.0 * 6000) + (3450 * 3.5) + (1.17 *2340) = 26.8128
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On July 1, 2022, Sunland Company pays $20,500 to Ivanhoe Company for a 2-year insurance contract. Both companies have fiscal years ending December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Ivanhoe Company. Ivanhoe uses the accounts Unearned Service Revenue and Service Revenue.
Journalizing is the process of recording financial transactions in a journal in chronological order. In this problem, on July 1, 2022, Sunland Company pays $20,500 to Ivanhoe Company for a 2-year insurance contract. Both companies have fiscal years ending on December 31. The journal entries for Ivanhoe Company are as follows:
1. On July 1, 2022:
Date Particulars Debit Credit
July 1, 2022 Cash $20,500 -
Unearned Service Revenue - $20,500
Explanation: This entry records the payment received for the 2-year insurance contract.
2. On December 31, 2022:
Date Particulars Debit Credit
Dec 31, 2022 Unearned Service Revenue $5,125 -
Service Revenue - $5,125
Explanation: This adjusting entry recognizes the insurance revenue earned for 6 months of 2022. Since the insurance contract is for 2 years, the revenue for one year is $20,500/2 = $10,250. As 6 months have passed since July 1, 2022, half of the annual revenue is recognized, which is $10,250/2 = $5,125.
Hence, the journal entry for the payment on July 1 and the adjusting entry on December 31 for Ivanhoe Company are presented above.
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Assume you borrow $25,000 student loan from Keystone Bank with 7 years to maturity. To pay back to the loan, you decide to payback Keystone Bank $2500 after 1 year (i.e., at the end of year 1), payback $5000 after 2 year, and payback $7500 after 3 year. After that, you plan to pay back an amount, \$W, each year at the end of years 4-7. Assume that the interest rate is 8 percent. How much is the annual payment amount $W that will allow you to pay back student loan throughout the 7-year period?
Here's how you can find the annual payment amount W that will allow you to pay back a student loan throughout the 7-year period.
Based on the given question,The amount you borrowed = $25,000The maturity of the loan = 7 yearsThe interest rate = 8 percentYear 1 payment = $2,500Year 2 payment = $5,000Year 3 payment = $7,500We have to find the payment amount $W for years 4 to 7.The payment schedule looks like this:Year 1 payment = $2,500Year 2 payment = $5,000Year 3 payment = $7,500Year 4 payment = $WYear 5 payment = $WYear 6 payment = $WYear 7 payment = $WThe present value (PV) of this payment schedule is equal to the amount you borrowed, which is $25,000.We can write the equation as:Solve for $W:Simplifying,So, the annual payment amount W that will allow you to pay back the student loan throughout the 7-year period is $4,821.95 (rounded to the nearest cent).Therefore, this is the required solution.
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if
the interest rate is 3% and the future value of your one year
investment is $1000. its present value is
Plugging these values in the formula above, we have;
[tex]PV = FV / (1+r)^n= 1000 / (1+0.03)^1= 1000 / 1.03= $970.87[/tex]
Therefore, the present value of the investment is $970.87.
The present value of an investment can be calculated using the formula; PV = FV / (1+r)^n where;
PV = Present Value
FV = Future Value
n = Number of Periods
r = Rate of Interest
Let us use the given information to solve the problem.
Present value of an investment with a 3% interest rate with a future value of $1000 after one year can be calculated using the formula above.
We have; [tex]FV = $1000r = 3% = 0.03n = 1 yea[/tex]r
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Isabel was the Secretary-Treasurer of Premier Gambling Inc. She contacted Peter, a competitor in online gaming, to determine if he might be interested in the purchase of Premier Gambling. Peter expressed an interest in the purchase, and Isabel advised Peter that she would arrange to have the sale of the business approved by the shareholders, as required by the corporation's bylaws. Isabel eventually produced a shareholders' resolution authorizing the sale. Later, it was discovered that proper notice of the shareholders' meeting had not been given, and no quorum of shareholders was present at the meeting. The agreement to sell the business was void, because proper shareholder approval had not been given for the sale.
She contacted Peter, a competitor in online gaming, to determine if he might be interested in the purchase of Premier Gambling.
Isabel was the Secretary-Treasurer of Premier Gambling Inc.
Peter expressed an interest in the purchase, and Isabel advised Peter that she would arrange to have the sale of the business approved by the shareholders, as required by the corporation's bylaws.
Isabel, who is the Secretary-Treasurer of Premier Gambling Inc., contacted Peter,
a competitor in online gaming, to explore the possibility of him purchasing Premier Gambling.
Peter expressed interest in purchasing the company, so Isabel stated that she would obtain shareholder approval for the sale, as required by the corporation's bylaws.
Later, Isabel produced a shareholders' resolution authorizing the sale.
The sale agreement was eventually found to be void because proper notice of the shareholders' meeting had not been given and no quorum of shareholders was present at the meeting.
Proper shareholder authorization was not given for the sale.
A quorum is a specified number of shareholders whose presence is required to hold a valid meeting that can take action.
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The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains should have been higher. The Secretary's statement is an) ___ economic statement, and the labor head's statement is a(n) ___ economic statement. O normative; normative O normative; positive O positive; normative O positive; positive O proper, improper A cold snap hits Gainesville and increases people's desire to own space heaters. At the same time, the government removes a tax from the production and sale of space heaters. Given these two events, what do you expect to happen to the equilibrium price and quantity of space heaters in Gainesville? Equilibrium quantity will increase, equilibrium price will decrease. O Equilibrium price will decrease, the effect on quantity is ambiguous. O Equilibrium price will increase, the effect on quantity is ambiguous. Equilibrium quantity will increase the effect on price is ambiguous.
The correct option is positive; normative. The Secretary of Labor's statement is a positive economic statement, The labor head's statement is a normative economic statement. Equilibrium price will decrease, the effect on quantity is ambiguous of space heaters in Gainesville.
A positive economic statement is an objective statement that can be tested or proven true or false based on facts and data. In this case, the Secretary of Labor's statement about the rise in wage rates is a positive economic statement because it is based on actual data and can be verified. On the other hand, a normative economic statement is a subjective statement that involves value judgments and opinions. The labor head's statement about what the wage gains should have been is a normative economic statement because it expresses a personal opinion or belief about what is desirable or ideal.
Regarding the effect of the cold snap and the removal of the tax on space heaters in Gainesville, you are correct that the expected outcome would be a decrease in the equilibrium price of space heaters. When the tax on space heaters is removed, it lowers the cost of production for sellers, leading to a decrease in the price.
However, the effect on the equilibrium quantity is ambiguous because it depends on other factors such as consumer demand and availability of substitutes. It is possible that the decrease in price may lead to an increase in demand and therefore an increase in the quantity sold, but it could also depend on how consumers respond to the cold snap and their willingness to buy space heaters.
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Suppose GDP last year in a closed economy was $3000, taxes were $200, government spending was $500, and consumption was $1400. What was privat saving? $1,400 −$300 none of the listed answers are correct 51,100
The private saving in the closed economy is $900.
To find private savings in a closed economy, we can use the equation:
Private Saving = GDP - Taxes - Government Spending - Consumption
Given:
GDP = $3000
Taxes = $200
Government Spending = $500
Consumption = $1400
Substituting these values into the equation:
Private Saving = $3000 - $200 - $500 - $1400
= $900
Therefore, the private saving in the closed economy is $900.
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Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Will County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations:
Month Miles Mowed Labor
and Cleaned Costs
April ...................................................... 350 $8,000
May ...................................................... 300 7,500
June ...................................................... 400 9,000
July....................................................... 250 5,500
August .................................................... 375 8,500
September ................................................. 200 5,000
October ................................................... 100 4,800
Required
a. Use the information from the high- and low-volume months to develop a cost-estimating
equation for monthly labor costs.
b. Plot the data on a scatter diagram. Using the information from representative high- and low-
volume months, use the high-low method to develop a cost-estimating equation for monthly
labor costs.
c. What factors might have caused the difference in the equations developed for requirements (a)
and (b)?
d. Adjust the equation developed in requirement (b) to incorporate the effect of an anticipated 7
percent increase in wages
New variable cost per mile = $20 * (1 + 0.07) = $21.40
a. To develop a cost-estimating equation for monthly labor costs, we can use the high- and low-volume months, which are September (low) and June (high) in this case.
1. Calculate the variable cost per mile:
Variable cost per mile = (Labor cost in June - Labor cost in September) / (Miles mowed in June - Miles mowed in September)
= (9,000 - 5,000) / (400 - 200)
= 4,000 / 200
= $20
2. Calculate the fixed cost:
Fixed cost = Labor cost in June - (Variable cost per mile * Miles mowed in June)
= 9,000 - (20 * 400)
= 9,000 - 8,000
= $1,000
The cost-estimating equation for monthly labor costs is:
Labor cost = Fixed cost + (Variable cost per mile * Miles mowed)
b. To use the high-low method, we'll consider June (high) and September (low) as the representative high- and low-volume months.
1. Calculate the variable cost per mile:
Variable cost per mile = (Labor cost in June - Labor cost in September) / (Miles mowed in June - Miles mowed in September)
= (9,000 - 5,000) / (400 - 200)
= 4,000 / 200
= $20
2. Calculate the fixed cost:
Fixed cost = Labor cost in June - (Variable cost per mile * Miles mowed in June)
= 9,000 - (20 * 400)
= 9,000 - 8,000
= $1,000
The cost-estimating equation for monthly labor costs is the same as in part (a):
Labor cost = Fixed cost + (Variable cost per mile * Miles mowed)
c. The difference in the equations developed in parts (a) and (b) may be due to variations in other factors that affect labor costs. These factors could include changes in the wage rates, different crew sizes or efficiency levels, equipment availability, or changes in the scope of work performed. The high-low method only considers the high and low data points, ignoring the potential influence of other factors. In part (a), a more comprehensive analysis is conducted by considering the entire data set.
d. To adjust the equation developed in requirement (b) to incorporate the effect of a 7 percent increase in wages, we need to modify the variable cost per mile. Assuming the wages are the only factor affecting labor costs, the new variable cost per mile would be:
New variable cost per mile = Old variable cost per mile * (1 + Wage increase percentage)
= $20 *
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how can an organization prevent decisions made by a decentralized manager from being inconsistent with the firm's objectives?
Overall, by implementing these strategies, an organization can minimize the risk of inconsistent decisions made by decentralized managers and ensure that their actions are in line with the firm's objectives.
To prevent decisions made by a decentralized manager from being inconsistent with the firm's objectives, an organization can implement several strategies:
1. Clearly communicate objectives: The organization should ensure that the firm's objectives are clearly defined and communicated to all managers, including decentralized managers. This helps managers understand the overall goals and align their decision-making accordingly.
2. Establish performance metrics: Implementing performance metrics that align with the organization's objectives can help evaluate and measure the effectiveness of decentralized managers' decisions. These metrics could include financial indicators, customer satisfaction ratings, or key performance indicators (KPIs) specific to the organization's industry.
3. Regular monitoring and feedback: The organization should regularly monitor the decisions and actions of decentralized managers. This can be done through periodic meetings, performance reviews, or even automated tracking systems. Providing feedback and guidance helps ensure that the managers are making decisions that align with the firm's objectives.
4. Collaboration and coordination: Encouraging collaboration and coordination among decentralized managers can help prevent inconsistent decision-making. This can be achieved through regular communication channels, such as team meetings, online platforms, or even cross-functional projects. By working together, managers can share insights, align strategies, and ensure consistency.
5. Training and development: Providing training and development opportunities to decentralized managers can enhance their decision-making skills and increase their understanding of the firm's objectives. Training programs can focus on areas such as strategic planning, problem-solving, and critical thinking, enabling managers to make informed decisions that align with the organization's goals.
6. Review and adjustment: Periodically reviewing the decisions and outcomes of decentralized managers is crucial. If inconsistencies are identified, the organization should take corrective action by providing additional guidance, realigning objectives, or reevaluating the decision-making process.
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Nunavut Industrial Products Corporation makes two products: product H and product L. Product H is expected to sell 30,000 units and product L50,000 units next year. A unit of either product requires 0.2 direct labour-hours. The company's total manufacturing overhead for the year is expected to be $8,760,000 a. The company currently applies manufacturing overhead to products using direct labour-hours as the allocation base. If this method is followed, how much overhead cost will be applied to each product? Compute both the overhead cost per unit and the total amount of overhead cost that will be applied to each product. [2 Marks] b. Management is considering an activity-based costing system and would like to know what impact this change might have on product costs. The total manufacturing overhead would be divided in half between the two products, with $4,380,000 assigned to product H and $4,380,000 assigned to product L. If this suggestion is followed, how much overhead cost per unit will be applied to each product? Explain the impact on unit product costs of the switch in costing systems.
Under the current method, product H will have $2.92 overhead cost per unit, and product L will have $1.46 overhead cost per unit.
The current method of allocating overhead cost based on direct labor-hours is used. Since each unit of both products requires 0.2 direct labor-hours, the total overhead cost of $8,760,000 is divided by the total labor-hours (30,000 units for H and 50,000 units for L) to determine the overhead cost per unit. For product H, the overhead cost per unit is $8,760,000 / (30,000 units × 0.2 labor-hours) = $2.92. Similarly, for product L, the overhead cost per unit is $8,760,000 / (50,000 units × 0.2 labor-hours) = $1.46.
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