Answer:
Debit to Employee Benefits Expense $21,300
Explanation:
Based on the information given the Journal entry to record the accrued benefits for the month would include a Debit to Employee Benefits Expense for the amount of $21,300 calculated as:
5% × $142,000 gross salary
=$7,100
Hence employee health insurance costs $14,200 per month +$7,100
=$21,300
Therefore The entry to record the accrued benefits for the month would include a:
Debit to Employee Benefits Expense $21,300
g The process whereby the government acquires the ownership of private property for a public use is called
Answer: c. Condemnation
Explanation:
The Government is allowed by statute to take over the ownership of a private property for public use and this right is called a Condemnation or Eminent Domain.
Should the Government do this however, you will not go empty handed as you are entitled to a compensation worthy of the value of the property possessed.
The managerial task of ______ involves establishing task and authority relationships.
Answer:
Organizing
Explanation:
Organizing is the most important role in any organization as it defines that the work is distributed among employees so that the target can be achieved timely. Also during the organizing process the supervisor coordinates with their employees.
Therefore the correct answer is organizing as it includes the task which has been created and authority relationship.
Q 7.40: Bank customers should reconcile their records frequently with ________ to prevent their checks from ________.
Complete Question:
Bank customers should reconcile their records frequently with ________ to prevent their checks from ________.
Group of answer choices
A. Bank deposit slips; clearing.
B. Cash receipts; being returned.
C. Bank statements; bouncing.
Answer:
C. Bank statements; bouncing.
Explanation:
Bank customers should reconcile their records frequently with bank statements to prevent their checks from bouncing.
A bank statement can be defined as an official summary or list of financial transactions, which typically comprises of the amount of money that has been paid into or withdrawn from account by an individual or business entity over a specific period of time.
Generally, a bank statement usually has the following information charges, deposits, withdrawals, including the opening and closing balance for each account held at a given the period.
Hence, it is very important and necessary to reconcile records frequently with bank statements in order to prevent checks from bouncing or becoming void.
If he earns 5 percent on his money, how much must he deposit at the start of his studies to be able to withdraw $9,000 a year for three years?
Answer:
He must deposit $24,509.23 at the start of his studies.
Explanation:
The amount to be deposited, PV is calculated as follows :
r = 5
Pmt = $9,000
P/yr = 1
n = 3
Fv = $ 0
Pv = ?
Using a Financial Calculator, the amount to be deposited, PV is $24,509.23.
Jones Corp. reported current assets of $196,000 and current liabilities of $138,500 on its most recent balance sheet. The current assets consisted of $61,000 Cash; $42,100 Accounts Receivable; and $92,900 of Inventory. The acid-test (quick) ratio is
Answer:
0.74
Explanation:
Jones corporation reported a current assets of $196,000
The current liabilities is $138,500
The current assets consists of $61,000 cash , account receivable= $42,100, inventory= $92,900
Therefore the quick ratio can be calculated as follows
= cash + account receivables
= $61,000 + $42,100
= $103,100
$103,100/$138,500
= 0.74
Hence the acid test(quick ) ratio is 0.74
Tanek Corp.'s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 500,00 units of product: sales $2,500,000, total cost and expenses $2,600,000, and net loss $100,000. Costs and expenses consisted of the amounts shown below.
Total Variable Fixed
Cost of goods sold $2,140,000 $1,590,000 $550,000
Selling expenses 250,000 92,000 158,000
Administrative expenses 210,000 68,000 142,000
$2,600,000 $1,750,000 $850,000
Management is considering the following independent alternatives for 2018.
1. Increase unit selling price 20% with no change in costs, expenses, and sales volume.
2. Change the compensation of salespersons from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales.
(a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places.)
(b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places.)
(c) Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places and other calculations to 0 decimal places.)
Break-even point for alternative 1 $
Break-even point for alternative 2 $
Which course of action do you recommend?
Answer:
(a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places.)
total variable costs per unit = $1,750,000 / 500,000 = $3.50
sales price per unit = $2,500,000 / 500,000 = $5
contribution margin per unit = $5 - $3.50 = $1.50
total fixed costs = $850,000
break even point in units = $850,000 / $1.50 = 566,667 units
break even point in $ = 566,667 units x $5 = $2,833,335
(b) Compute the contribution margin under each of the alternative courses of action.
alternative 1) $6 - $3.50 = $2.50
alternative 2) $5 - $3.75 = $1.25
(c) Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places and other calculations to 0 decimal places.)
alternative 1:
break even point in units = $850,000 / $2.50 = 340,000 units
break even point in $ = 340,000 units x $6 = $2,040,000
alternative 2:
break even point in units = $760,000 / $1.25 = 608,000 units
break even point in $ = 608,000 units x $5 = $3,040,000
Which course of action do you recommend?
If I had to choose between alternative 1 or 2, I would choose alternative 1.
Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment.
The loan would be repaid over a 4-year period.
The terms of the loan provide for equal semi-annual installment payments of $2,500 on May 1 and November 1 of each year plus interest of 5% on the outstanding balance.
Dividends on preferred stock were $1,250.
Since this is the first year of operations and the beginning balances are zero, use the ending balance as the average balance, where appropriate.
Required:
(a) Calculate the following ratios:
1. Current ratio
2. Receivables turnover
3. Inventory turnover
4. Debt to total assets
5. Times interest earned
6. Gross profit rate
7. Profit margin
8. Asset turnover
9. Return on assets
10. Return on common stockholders' equity
(b) Comment on your findings from part (a).
(c) Based on your analysis in parts (a) and (b), do you think a bank would lend Cookie & Coffee Creations Inc. $20,000 to buy the additional equipment?
Explain your reasoning.
(d) What alternatives could Cookie & Coffee Creations consider instead of bank financing?
Answer:
(a) Ratios:
1. Current ratio
= Current Assets/Current Liabilities
= $113,666/ $ 32,676
= 3.48
2. Receivables turnover
= Net Sales/Average Accounts Receivable
= $462,500/3,250
= 142.31
3. Inventory turnover
= Cost of goods sold/Average Inventory
= $231,250/17,897
= 12.92
4. Debt to total assets Ratio
= Total Debts/Total Assets * 100
= $38,676/$155,466 * 100
= 25%
5. Times interest earned
= EBIT/Interest Expense
= $98,863/413
= 239.38
6. Gross profit rate
= Gross profit/Sales * 100
= $231,250/462,500 * 100
= 0.5
= 50%
7. Profit margin
= Net Income/Sales * 100
= $78760/462,500 * 100
= 0.17
= 17%
8. Asset turnover
= Sales/Average Assets
= $462,500/155,466
= 2.97
9. Return on assets
= Net Income/Assets * 100
= $78,760/155,466 * 100
= 50.66%
10. Return on common stockholders' equity
= Net Income/Stockholders' Equity * 100
= $78,760/116,790 * 100
= 67.44%
(b) Comment on your findings from part (a).
1. Current ratio : This ratio shows CCC INC.'s ability to settle its current liabilities or financial obligations from its current assets. The company can comfortably settle its current financial obligations 3.48 times without borrowing. It only needs to manage its working capital well so that it does not run out of cash.
2. Receivables turnover : This ratio shows CCC INC.'s ability to collect its accounts receivable. It does not take long for CCC INC. to receive cash from credit customers. When the receivables turnover of 142.31 is divided into 365 days, we find that it takes only 2.6 days to collect from customers. This is very good.
3. Inventory turnover : This ratio shows how many times the company turns over its inventories. Its inventory is turned 12.92 times in a year.
4. Debt to total assets Ratio: This ratio shows the company's debts are only 25% of the total assets. The remaining 75% of the assets are contributed by equity. The company can still take on more debts when necessary.
5. Times interest earned : The interest expense is covered 239 times by the EBIT. This shows the company can settle its interest expense from current earnings.
6. Gross profit rate : This ratio shows the ability of the management to manage the cost of goods sold relative to the net sales. The gross profit represents 50% of the sales.
7. Profit margin : The profit ratio or margin ratio shows the ability of the managers to ensure that operating expenses do not consume the sales revenue. They could only preserve 17% of the sales revenue for the owners after expenses and income taxes.
8. Asset turnover : The company generated 2.97 times of the assets it used for operations. This looks good and sound.
9. Return on assets : What is the return made from the assets? This ratio shows that CCC INC. generates 50.66% net income on each of the assets it has deployed in operations.
10. Return on common stockholders' equity : The company generates 67.44% returns for the stockholders.
(c) The company does not need to borrow $20,000 from any bank with so much in cash.
(d) Alternatives to bank financing:
The company can self-finance equipment worth $20,000 and even invest its idle cash into some marketable securities.
Explanation:
a) Data:
Balance Sheet October 31, 2017
Assets
Current assets
Cash $86,219
Accounts receivable 3,250
Inventory 17,897
Prepaid expenses 6,300 $113,666
Property, plant, and equipment
Furniture and fixtures $12,500
Accumulated depreciation—
Furniture and fixtures (1,250) 11,250
Computer equipment 4,200
Accumulated depreciation—
computer equipment (600) 3,600
Kitchen equipment 29,000
Accumulated depreciation—
kitchen equipment (2,050) 26,950 41,800
Total assets $155,466
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 5,848
Income tax payable 19,690
Dividends payable 700
Salaries and wages payable 2,250
Interest payable 188
Note payable—current portion 4,000 $ 32,676
Long-term liabilities Note payable—
long-term portion 6,000
Total liabilities $38,676
Stockholders’ equity :
Paid-in capital
Preferred stock, 2,800 shares issued and
outstanding $ 14,000
Common stock, 25,930 shares issued,
25,180 outstanding 25,930 $39,930
Retained earnings 77,360
Total paid-in capital and retained earnings 117,290
Less: Treasury stock (750 common shares) (500)
Total stockholders’ equity 116,790
Total liabilities and stockholders’ equity $155,466
Income Statement
Year Ended October 31, 2017
Sales revenue $462,500
Cost of goods sold 231,250
Gross profit 231,250
Operating expenses
Salaries and wages expense $92,500
Depreciation expense 3,900
Other operating expenses 35,987 $132,387
Income from operations 98,863
Other expenses Interest expense 413
Income before income tax 98,450
Income tax expense 19,690
Net income $ 78,760
Dividends for preferred stock 1,250
Dividends for common stock 150
Retained earnings $ 77,360
Two investment centers at Marshman Corporation have the following current-year income and asset data:
Investment Investment
Center A Center B
Investment center income $415,000 $525,000
Investment center average invested assets $2,400,000 $1,950,000
The return on investment (ROI) for Investment Center B is:__________
a) 371.4%
b) 26.9%
c) 24.1%
d) 39.2%
Answer:
b) 26.9%
Explanation:
Computation of the return on investment (ROI) for Investment Center B
Using this formula
Return on investment (ROI) =Investment center income/Investment center average invested assets
Let plug in the formula
Return on investment (ROI) =$525,000/$1,950,000
Return on investment (ROI) = 0.269×100
Return on investment (ROI) = 26.9%
Therefore the return on investment (ROI) for Investment Center B is 26.9%
Two different products are obtained by refining one ore. The refining process would be considered as:
Answer: Joint process
Explanation:
Joint products result when the same raw resource is processed so Joint process refers to the process by which two (or even more) products are obtained by refining one ore.
The processing of oil for instance results in the production of kerosene, gasoline, bitumen, airplane fuel and even petroleum jelly so all those products are joint products.
Joint products result when the same raw material is processed, so Joint Process refers to the process by which two (or more) products are obtained by refining one ore.
What do you mean by Joint Product?A joint product can be the result of a process with fixed or variable dimensions. A joint product is a product that results in collaboration with other products in the processing of the same input; this common process is also called joint production.
The processing of oil for example results in the production of kerosene, gasoline, bitumen, airplane fuel, and even petroleum jelly so all of these products are joint products.
Hence, Joint Process is the correct choice.
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Determine the depreciation base of Marigold’s new machine. Marigold uses straight-line depreciation.
Answer:
$35,464
Explanation:
Calculation for the depreciation base of Marigold's new machine
Purchased machine $29,120
Add:Title fees $200
County property tax $130
Shipping charges for delivery $520
Local contractor $5,494
Depreciation base $35,464
Therefore the Depreciation base of Marigold's new machine
will be $35,464
Grant sold his home for $275,000.00. What is the total transfer tax due on the sale?a. $2,062.50.
b. $302.50.
c. $2,365.00.
d. $1,760.00.
Answer:
b. $302.50.
Explanation:
The computation of the total transfer due on the sale is shown below:
As we know that the transfer tax is $0.55 for $500
So for the amount i.e. equivalent to the sale value of the home i.e. $275,000
In this, the total transfer tax due is
= $275,000 ÷ $500 × 0.55
= $302.50
Therefore the option b is correct
And the other options are wrong
A company found that they had lost $30,000 in scrap and rework. They had spent $35,000 in prevention-related activities. The ratio of prevention cost to failure cost is ______________.
Answer:
7:6
Explanation:
A company lost $30,000 in scrap and rework
They spent $35,000 in prevention related activities
Therefore the ratio of prevention cost to failure cost can be calculated as follows
= 35,000/30,000
= 7:6
Hence the ratio of the prevention cost to failure cost is 7:6
A Multilevel Approach to the Study of Motor Control and Learning (2nd Edition)
The average reader will spend 7 hours and 44 minutes reading this book at 250 WPM (words per minute).
How quickly can you read this book?
Answer:
7 hours and 44 minutes
Explanation:
According to the question, the data provided is as follows
Time taken by average reader = 7 hours and 44 minutes
Number of words per minute = 250
Based on the above information, the number of hours to read this book in quickly is 7 hours and 44 minutes as this is equivalent to the time taken by the average reader
So the same is to be considered for reading the book at 250 WPM
Under a municipal revenue bond rate covenant, rates must be set to cover all :_________
Answer:
D. optional sinking fund deposits
Explanation:
The revenue bond rate convenants needed that the rate should be set for the level that could be enough for covering a facility operation and maintenance also the debt service cost is considered
But there is no requirement to cover the option sinking fund or the deposit with respect to the reserve fund
Therefore according to the given case, the option D should be chosen
Which of the following interactions with vendors would potentially lead to inventory reductions?
a. reduced lead times
b. increased safety stock
c. less frequent purchases
d. larger batch quantities
e. longer order intervals
Answer: a. reduced lead times
Explanation:
Lead time in a process refers to the amount of time it takes from the process's initiation to its conclusion. In general in Business, the shorter the lead time of a process, the better for the business as it usually leads to higher productivity, output and revenue levels.
Same goes for the reduction of lead times in transaction with vendors. With a shorter lead time, the process of making goods available for sale would be less and thus the goods can be sold in the market quicker therefore reducing inventory levels.
Total quality management (tqm) emphasizes all but which one of the following?a. Team-based work design and the creation of a total quality culture b. Six Sigma accuracy in performing tasks c. Involvement and empowerment of employees at all levels d. Continuously improving the performance of every task and value chain activity e. Benchmarking and total customer satisfaction
Answer:
c. Involvement and empowerment of employees at all levels
Explanation:
Total quality management refers to managing the organization in order to develop a success in the long run by considering the low level workers to the high level executive, and at the same time focused on quality improvement and the customer satisfaction
Here are the following points to become important for an organization
1. Quality improvement, management leads to long term success for organization and customers
2. The deficiencies could be determined by performing the work and can be corrected through providing the training, education, etc
3. If the product contains high quality that meet the needs of the customers than it would lead to high customer satifaction
4. And, in case if there is few defective product so the company is in a position to save the cost
On February 1, 2018, Bell Co. decides to invest excess cash of $16,800 by purchasing a Grant, Inc. bond at face value. Art year-end, December 31, 2018, the fair value of the Grant bond was $19,600. The investment is categorized as a trading debt investment. Required: a. Journalize the transactions for Bell's investment in Grant, Inc. for 2018. b. In what category and at what value would Bell report the asset on the December 31, 2018, balance sheet? In what account would the market price change in Grant's bond be reported, if at all? c. What was the net effect of the investment on Bell's net income for the year ended December 31, 2018?
Answer:
Explained below
Explanation:
1. Journal Entry
DEBIT CREDIT
Debt Investment $16,800
Cash $16,800
2.
It will be categorized as available for sale trading debt investment
Face value = $16,800
Market value = $19,600
Unrealized gain(19,600-16,800) = $2,800
Debit investment are reported at market value in the balance sheet
The Unrealized gain will be shown in other comprehensive income and as a component of accumulated other comprehensive income in the equity section of the balance sheet.
3.
The net effect of the investment on Bell's on net income is $2800 and unrealized holding gain in other comprehensive income
On November 7, Mura Company borrows $360,000 cash by signing a 90-day 9% 5360.000 note payable 1 Compute the accrued interest payable on December 31 2. & 3. Prepare the journal entry to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Complete this question by entering your answers in the tabs below Reg 1 Reg 2 and 3 Compute the accrued interest payable on December 31. 100 days a year. Do not round your intermediate codations Principal X Rate (%) X Time = interest Total through matunty %Year and interest acces %Interest recognized February 5 %
Answer:
November 7, 202x, cash loan obtained at 9%
Dr Cash 360,000
Cr Notes payable 360,000
December 31, 202x, accrued interest
Dr Interest expense 4,770
Cr Interest payable 4,770
I's using a 360 day year for calculating interest payable. When you use a 360 day year, all months have only 30 days (including December). Interest expense = $360,000 x 9% x 53/360 days = $4,770
February 5, 202y, cash loan repaid
Dr Notes payable 360,000
Dr Interest expense 3,330
Dr Interest payable 4,770
Cr Cash 368,100
Interest expense = $360,000 x 9% x 37/360 days = $3,330
Which of the following are considered in determining a fair and reasonable price in a municipal agency transaction?
A. Availability of the security
B. Expenses associated with affecting the transaction
C. Value of services rendered by the municipal broker
D. Value of any other compensation received in connection with this transaction
Answer: All of the above
Explanation:
To determine a fair and reasonable price in a municipal agency transaction, the things to be considered are:
• Availability of the security
• Expenses associated with affecting the transaction
• Value of services rendered by the municipal broker
• Value of any other compensation received in connection with this transaction.
These are the four main factors that'll have to be considered before a fair price is determined.
Therefore, all the options are correct.
Which of the following statements about steering needed resources to execution-critical value chain activities is false?
A) Good execution of a new or revised strategy often requires devoting more resources to some value chain activities and perhaps downsizing the operating budgets and resources devoted to activities/organizational units with a lesser role in the new strategy.
B) Both strategy changes and efforts to improve execution of an existing strategy typically entail budget reallocation and resource shifting.
C) A company's operating budget must be both strategy-driven (in order to amply fund competent performance of strategy-critical value chain activities) and lean (in order to operate as cost-efficiently as possible).
D) Strategy changes and new execution initiatives should normally be made without adding to total expenses.
E) Underfunding organizational units and execution-critical value chain activities slows down the whole process of implementing and executing strategy and impedes the efforts of organizational units to execute their pieces of the strategic plan proficiently.
Answer:
A) Good execution of a new or revised strategy often requires devoting more resources to some value chain activities and perhaps downsizing the operating budgets and resources devoted to activities/organizational units with a lesser role in the new strategy.
Explanation:
Businesses have limited resources that needs to be allocated to critical activities that will make it meet its objectives. So it is important for proper prioritisation to be done to maximise use of these resources.
There is need to focus activities on the company's objectives and to use a lean budgeting approach to ensure cost efficiency.
It is important to note that underfunding execution critical activities may result in slowdown of the whole process.
Reallocating resources to critical activities is also necessary.
So the statement - Good execution of a new or revised strategy often requires devoting more resources to some value chain activities. Is false
All effort must be on activities that fit into the company's strategy.
When nations increase production in their area of _________________ and trade with each other, both sides can benefit.
Answer:
comparative advantage
Explanation:
Comparative advantage in finance is crucial for production because it helps nation to manufacture their goods with low opportunity cost compare to their co- partner in that production line.
Production which is an essential aspect in economics is a process of turning raw materials into finished goods are very crucial in each nation of the world and for economic process to be completed.
It should be noted that When nations increase production in their area of comparative advantage and trade with each other, both sides can benefit from it.
Which of the following is NOT an individual characteristic influencing consumer behavior? A) culture. B) attitudes. C) task definition. D) social class. E) motivation.
Answer:
D
Explanation:
The individual characteristic which doesn't influence the behavior of a consumer is the task definition which is considered to be part of a consumer's ability.
Option C is the correct answer.
What is consumer behavior?Consumer behavior is a method of studying the activities of individuals, firms, or other groups. The activities can be related to the purchase or disposal of any product or service.
All the provided characteristics of an individual influence the consumer behavior but a task is not a characteristic rather it's an assignment of any work or job which is allowed to be done by the consumer. The task can be of anything whether to buy or to consume the goods or services by a consumer.
Therefore, the task definition is the ability of an individual and not its characteristic.
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A company's December 31 work sheet for the current period appears below. Based on the information provided, what is net income for the current period?Unadjusted Trial Balance AdjustmentsDebit Credit Debit CreditCash 1,975Accounts Receivable 1,000 875Prepaid insurance 1,600 650Supplies 330 115Equipment 8,320Accumulated depreciation—equipment 720 190Accounts payable 1,140Owner, Capital 9,110Owner, Withdrawals 1,050Fees earned 7,250 875Rent expense 1,300Salaries expense 2,300Utilities expense 345Insurance expense 650Supplies expense 115Depreciation expense—equipment 190Totals 18,220 18,220 1,830 1,830
Answer:
Net income for the current period is $2,350.
Explanation:
Calculation of Net Income for the Current Period.
$ $
Fees earned 7,250
Less Expenses :
Rent expense 1,300
Salaries expense 2,300
Utilities expense 345
Insurance expense 650
Supplies expense 115
Depreciation expense—equipment 190 (4,900)
Net Income / (Loss) 2,350
1. Why do firms choose to make large increases in their dividends or start a stock repurchase program?2. Why do firms choose to cut or eliminate their dividends? What usually happens to the stock price of a company that does this?
Answer with Explanation:
Requirement 1:
The companies whose products are in growth phase or the company is cash cow which has a well diversified products does not have to invest in adding a new product line because their earnings are already stable enough or that they don't have to invest much because sufficient profits are left after extracting for investments. Increase in dividends has two meanings that either the management is confident enough that they think that the company will be able to earn more in the future and they will achieve better position in future which is a good news in the stock exchange and for investors as well and investor invest more in the company's ordinary stock.
Company start Stock repurchase program which is to buyback its previously issued ordinary shares which is because the management thinks that the stock is undervalued and thus they repurchase their ordinary shares so that the stock will go up in near future and this will benefit the company and the existing shareholders as well. This also helps in increasing earnings per share, return on equity, etc because the equity is reduced by share repurchase program.
Stock repurchase program is also run by the organization because they don't find any attractive opportunities. This means that the company does not have any large investment opportunities which means growth in revenue and profit can not be expected in the future years. Thus when the company starts repurchasing of stock the investor starts selling their stocks.
Requirement 2:
If the company thinks that they can increase the worth of shareholders beyond their shareholder's expectation then they don't pay dividend and invest in projects to increase the sales growth, profits and market share significantly in the coming future.
Some long term shareholders think this is a great news whereas short term investors who are looking for dividends will sell the stock which means that the stock value may fall in near future but in long run the company stock value increase when the investment will start showing its results.
g What should the government do in order to ensure the market produces optimal (efficient) quantity
Answer:
For government to ensure that the market produces optimal efficient quantity, it should impose corrective subsidies that will help reduce the producers' marginal costs so that they can equal their marginal revenue.
Explanation:
At the output point where marginal social benefit (MSB) equals marginal social cost (MSC), the socially optimal level of output is achieved, because at any other level of output, a market failure exists. But, for firms, when the marginal cost equals the marginal revenue, optimal efficiency is achieved. So, for the government to achieve optimal efficient quantity that benefits the society, it must intervene to help producers equate their marginal costs to the marginal revenue. The government can do this through correct subsidies given to producers.
Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: Original Budget Actual Costs Variable overhead costs: Supplies $ 8,300 $ 8,490 Indirect labor 10,770 10,120 Fixed overhead costs: Supervision 16,110 14,540 Utilities 15,400 15,450 Factory depreciation 58,130 59,650 Total overhead cost $ 108,710 $ 108,250 The company based its original budget on 8,300 machine-hours. The company actually worked 8,260 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 8,190 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?
Answer:
$1,188 unfavorable
Explanation:
Volume variance = Budgeted fixed overhead cost - Fixed overhead applied to work in process.
$89,640 ÷ 8,300 machine hours
= $10.8 per machine hours
= $89,640 - ( 8,190 machine hours * $10.8 per machine hours )
= $89,640 - $88,452
= $1,188 unfavorable
Fama and French (1992) found that the stocks of firms within the highest decile of book-to-market ratios had an average annual return of _______, while the stocks of firms within the lowest decile of book-to-market ratios had an average annual return of ________. Group of answer choices 13.2%; 16.4% 11.1%; 17.2% 15.6%; 13.1% 17.2%; 11.1%
Answer:
1. 17.2%
2. 11.1%
Explanation:
From Fama and French (1992) research study, titled "The Cross‐Section of Expected Stock Returns," it was concluded that the stocks of firms within the highest decile of book-to-market ratios had an average annual return of 17.2%, while the stocks of firms within the lowest decile of book-to-market ratios had an average annual return of 11.1%
Hence, the correct answer is 17.2% and 11.1% respectively.
"Which stage of the product life cycle has (1) establishing a strong, defensible market position, and (2) achieving financial objectives that repay investment as its main priorities?"
Answer:
The growth stage
Explanation: The growth stage is the stage in the product life cycle that signifies when the product continues to achieve its full potential, more sales, more revenue and profits are earned by the organisation. During this stage Organisations achieve their financial objectives that helps to repay investors and gives investors confidence and good value for their money, during this stage of the product life cycle a strong market position and competitive advantage is achieved by the product.
"A customer places an order to sell 100 shares of ABC at the market. The initial execution report shows the trade occurring at $75.50. The firm later discovers that the trade occurred at $75.13. Which statement is TRUE?"
Answer: The customer will receive $7,513 less any applicable commissions
Explanation;
This points to an error in confirmation not an error in execution. As such, the firm will not be held liable for the error and will simply have to send the correct confirmation. The customer will therefore get the correct trade price of $75.13 which will result in them receiving $7,53 less any applicable commissions.
Had it been an error of execution in that the firm made a mistake and sold at a price they were not to, they would incur the cost.
A client interested in the returns offered by CMOs asks you which type has the lowest prepayment risk. What should you say
Answer: Planned amortization class (PAC) tranches
Explanation:
The planned amortization class (PAC) is a form of CMO which is typically put I place for that risk-averse investors. It gives a principal repayment schedule that have been predetermined in as much as there are certain range for the mortgage prepayment.
It should also be noted that it has top priority and also gets principal payments which can be up to certain amount.