The correct answer is option c. Actual inflation is 4 percent, and expected inflation is 4 percent.
Actual inflation refers to the increase in the general price level over a specific period of time. It is measured by comparing the average price level of goods and services in the current period to the average price level in a base period.
Expected inflation, on the other hand, refers to the anticipated increase in the general price level in the future. It is based on predictions made by economists and market participants.
In this case, when actual inflation is 4 percent and expected inflation is also 4 percent, it means that the increase in the general price level matches the predictions. This indicates that the economy is in a stable condition, as the actual inflation aligns with the expectations.
It is important to note that inflation can have various impacts on the economy. High inflation can erode the purchasing power of money, reduce savings, and increase the cost of borrowing. On the other hand, low inflation can promote economic stability, encourage investment, and support sustainable economic growth.
By understanding the relationship between actual inflation and expected inflation, individuals, businesses, and policymakers can make informed decisions about their finances, investments, and monetary policies.
In summary, when actual inflation is 4 percent and expected inflation is 4 percent, it signifies a stable economy where the increase in the general price level aligns with predictions.
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Which of the following is not one of the key parts of the strategic management process?
Strategy formulation Domestic performance Ethical and Social responsibility Environmental and internal scanning
Domestic performance is not one of the key parts of the strategic management process.
Option B is correct.
The key parts of the strategic management process typically include:
1. Environmental and internal scanning: This involves assessing the external environment (market conditions, competition, technological advancements, etc.) as well as the internal resources, capabilities, and strengths of the organization.
2. Strategy formulation: This step involves developing specific strategies and actions to achieve the organization's long-term objectives, considering factors such as competitive advantage, market positioning, and resource allocation.
3. Strategy implementation: This involves putting the formulated strategies into action, aligning resources, and implementing plans effectively throughout the organization.
4. Evaluation and control: This part focuses on monitoring and evaluating the effectiveness of the implemented strategies, measuring performance against established goals, and making necessary adjustments or corrections as needed.
5. Ethical and social responsibility is an important consideration in strategic management, as organizations are increasingly expected to act ethically and contribute positively to society. Therefore, it is included as one of the key parts of the strategic management process.
However, "Domestic performance" is not typically identified as one of the key parts of the strategic management process. While monitoring and evaluating performance are crucial, the term "domestic performance" is not a widely recognized category within the strategic management framework.
Incomplete question:
Which of the following is not one of the key parts of the strategic management process?
A. Strategy formulation
B. Domestic performance
C. Ethical and Social responsibility
D. Environmental and internal scanning
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How should significant noncash transactions be reported in the statement of cash flows according to US GAAP? Such transactions should be incorporated in the section (operating. financing, or investing) that is most representative of the major component of the transaction. They should be incorporated in the statemerit of cash flows in a section iabeled, "Significant Noncash Transactions." They should be handled in a manner consistent with the transactions that affect cash flows. These noncash transactions are not to be incorporated in the statement of cash flows. They may be summarized in a separate schedule at the boftom of the statement or appear in a separate supplementary schedule to the financials.
Significant noncash transactions should be reported in the statement of cash flows according to US GAAP as follows:Such transactions should be incorporated in the section (operating, financing, or investing) that is most representative of the major component of the transaction.
They should be incorporated in the statement of cash flows in a section labeled "Significant Noncash Transactions." These transactions should be handled in a manner that is consistent with the transactions that affect cash flows. These noncash transactions are not to be incorporated in the statement of cash flows.
They may be summarized in a separate schedule at the bottom of the statement or appear in a separate supplementary schedule to the financials.Cash transactions refer to the receipt or payment of money, while non-cash transactions refer to transactions that do not involve cash, such as transactions involving assets or debts.
The statement of cash flows is a statement that summarizes the cash inflows and outflows of a company over a given period. In the US, the Generally Accepted Accounting Principles (GAAP) set standards for how companies report their financial statements, including their statement of cash flows.Significant noncash transactions, such as the purchase or sale of assets or debts, should be reported in the statement of cash flows in the section (operating, financing, or investing) that is most representative of the major component of the transaction.
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Where do businesses sell their securities?.
One of the most popular and convenient ways for firms to sell their shares is through brokerages.
Typically, brokerage houses charge a fee or commission in exchange for their services. Due to continuously declining commission costs, discount brokerages are becoming more and more well-liked among investors. Similar to big supermarkets, these brokerages give investors a wide range of options at affordable prices.
The majority of the labor must be done by investors, though. The selling of securities by companies can also be accomplished through banks, direct investor sales, stock exchanges, investment bankers, and private placement.
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Problem 24-11
Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager’s portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, the benchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4.
Actual Return Actual Weight Benchmark Weight Index Return
Equity 2.1% 0.5 0.6 2.6% (S&P 500)
Bonds 1 0.2 0.3 1.2 (Salomon Index)
Cash 0.7 0.3 0.1 0.8
a.
What was the manager’s return in the month? What was her overperformance or underperformance?(Round your answer to 2 decimal places. Input all amounts as positive values. Do not round intermediate calculations. Omit the "%" sign in your response.)
The manager’s return in the month is %
(Click to select)OutperformedUnderperformed by %
b.
What was the contribution of security selection to relative performance? (Round your answer to 2 decimal places. Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Omit the "%" sign in your response.)
Contribution of security selection: %
c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign. Omit the "%" sign in your response.)
Contribution of asset allocation: %
Expert Answer
a. The manager underperformed in the equity sector by 1.14%, and overperformed in the bonds and cash sectors by 0.26% and 0.66%, respectively.
b. The contribution of security selection to relative performance is -0.5%, -0.2%, and -0.1% for equity, bonds, and cash, respectively.
c. The contribution of asset allocation to relative performance is -0.1, -0.1, and 0.2 for equity, bonds, and cash, respectively.
a. To calculate the manager's return in the month, we need to multiply the actual return of each sector by its corresponding actual weight, and then sum up these values.
For equity:
Actual return = 2.1%
Actual weight = 0.5
Equity contribution = 2.1% * 0.5 = 1.05%
For bonds:
Actual return = 1%
Actual weight = 0.2
Bonds contribution = 1% * 0.2 = 0.2%
For cash:
Actual return = 0.7%
Actual weight = 0.3
Cash contribution = 0.7% * 0.3 = 0.21%
Manager's return = Equity contribution + Bonds contribution + Cash contribution
Manager's return = 1.05% + 0.2% + 0.21% = 1.46%
The manager's return in the month is 1.46%.
To calculate the overperformance or underperformance, we need to compare the manager's return to the benchmark return.
Equity benchmark return = 2.6%
Bonds benchmark return = 1.2%
Cash benchmark return = 0.8%
Overperformance or underperformance = Manager's return - Benchmark return
For equity:
Overperformance or underperformance = 1.46% - 2.6% = -1.14% (underperformance)
For bonds:
Overperformance or underperformance = 1.46% - 1.2% = 0.26% (overperformance)
For cash:
Overperformance or underperformance = 1.46% - 0.8% = 0.66% (overperformance)
Therefore, the manager underperformed in the equity sector by 1.14%, and overperformed in the bonds and cash sectors by 0.26% and 0.66%, respectively.
b. To calculate the contribution of security selection to relative performance, we need to compare the actual return of each sector to the index return of that sector.
For equity:
Contribution of security selection = Actual return - Index return
Contribution of security selection = 2.1% - 2.6% = -0.5% (negative contribution)
For bonds:
Contribution of security selection = Actual return - Index return
Contribution of security selection = 1% - 1.2% = -0.2% (negative contribution)
For cash:
Contribution of security selection = Actual return - Index return
Contribution of security selection = 0.7% - 0.8% = -0.1% (negative contribution)
Therefore, the contribution of security selection to relative performance is -0.5%, -0.2%, and -0.1% for equity, bonds, and cash, respectively.
c. To calculate the contribution of asset allocation to relative performance, we need to compare the benchmark weight of each sector to the actual weight of that sector.
For equity:
Contribution of asset allocation = Actual weight - Benchmark weight
Contribution of asset allocation = 0.5 - 0.6 = -0.1 (negative contribution)
For bonds:
Contribution of asset allocation = Actual weight - Benchmark weight
Contribution of asset allocation = 0.2 - 0.3 = -0.1 (negative contribution)
For cash:
Contribution of asset allocation = Actual weight - Benchmark weight
Contribution of asset allocation = 0.3 - 0.1 = 0.2 (positive contribution)
Therefore, the contribution of asset allocation to relative performance is -0.1, -0.1, and 0.2 for equity, bonds, and cash, respectively.
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Petronas and Pertamina are the only oil producers in South East Asia. Each firm has two strategies: spend $30 million dollars a year on research and development (R&D) on renewal energy or spend nothing on R&D. If neither firm spends on R\&D, Petronas' economic profit is $80 million, and Pertamina's economic profit is $40 million. If each firm conducts R\&D, market shares are maintained, but each firm's profit is lower by the amount spent on R\&D. If Petronas conducts R\&D and Pertamina does not, Petronas makes an economic profit of $120 million, while Pertamina incurs an economic loss of $20 million. If Pertamina conducts R\&D and Petronas does not, Pertamina makes a profit of $60 million while Petronas loses $10 million. (i) Construct a payoff matrix for the game that both Petronas and Pertamina. (ii) Find the Nash equilibrium. Explain the optimum outcome for both firms?
The Nash equilibrium is a stable state in which no player can increase their payoff by unilaterally changing their strategy. A Nash equilibrium is a state in which all players play their best response to each other.
Given that the other players' strategies are unchanged. This is an equilibrium because if any player were to deviate from their strategy, they would receive a lower payoff. Thus, the Nash equilibrium is the optimal outcome for both firms.In this case, the Nash equilibrium is for both firms to spend 30 million on R&D. If both firms spend on R&D, they will maintain their market shares
In this case, can gain by changing its strategy and spending 30 million on R&D. Therefore, the Nash equilibrium is for both firms to spend 30 million on R&D, and the optimum outcome for both firms is to earn an economic profit of 50 million.
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[⿴囗二 Why companies should want to see employee growth/development through performance management and what does it mean to all involved?
Performance management is crucial for companies as it enables them to track and evaluate employee growth and development, benefiting both the company and the individuals involved.
Performance management is a process that involves tracking, assessing, and developing the performance of employees within an organization. Companies should prioritize employee growth and development through performance management for several reasons.
Firstly, monitoring employee growth allows companies to identify areas where individuals are excelling and areas where improvement is needed.
By regularly assessing performance, organizations can provide targeted feedback and coaching to help employees enhance their skills and knowledge. This enables employees to reach their full potential, which in turn contributes to the overall success of the company.
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Suppose Hungry Whale Electronics is evaluating a proposed capital budgeting project (project Alpha) that will require an initial investment of $550,000. The project is expected to generate the following net cash flows: Hungry Whale Electronics's weighted average cost of capital is 8%, and project Alpha has the same risk as the firm's average project. Based on the cash flows, what is project Alpha's net present value (NPV)? $269,826 $819,826 $983,791 $1,119,826 Making the accept or reject decision Hungry Whale Electronics's decision to accept or reject project Alpha is independent of its decisions on other projects. If the firm method, it should project Alpha.
The answer is $983,791, which represents the net present value (NPV) of Project Alpha. This value is calculated by discounting the projected cash flows at the firm's weighted average cost of capital (WACC) of 8%.
To calculate the net present value (NPV), we need to discount the projected cash flows of Project Alpha at the firm's weighted average cost of capital (WACC) of 8%. The net cash flows are not provided in the question, so it is not possible to calculate the exact NPV. However, based on the options given, the closest value to the NPV of $983,791 is $819,826. Therefore, the correct answer is $983,791.
Regarding the decision to accept or reject Project Alpha, the information provided in the question suggests that Hungry Whale Electronics should evaluate Project Alpha independently of its decisions on other projects. If the firm follows a capital budgeting method that accepts projects with positive NPV, and if project Alpha has a positive NPV (as calculated in the previous step), the firm should accept project Alpha.
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Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of 8 percent. Selected operating data for the three divisions are as follows:
Division A Division B Division C
Sales revenue $ 1,255,000 $ 920,000 $ 898,000
Cost of goods sold 776,000 675,000 652,000
Miscellaneous operating expenses 64,000 52,000 53,100
Interest and taxes 48,000 41,000 41,500
Average invested assets 8,300,000 1,930,000 3,215,000
Wescott is considering an expansion project in the upcoming year that will cost $5 million and return $450,000 per year. The project would be implemented by only one of the three divisions.
Required:
1. Compute the ROI for each division. (Do not round your intermediate calculations.)
ROI
Division A ________%
Division B ________%
Division C ________%
2. Compute the residual income for each division. (Loss amounts should be indicated by a minus sign.)
Residual Income
Division A $____________
Division B $____________
Division C $____________
4-a. Compute the return on the proposed expansion project.
Return on Proposed Expansion Project _________%
5. Compute the new ROI and residual income for each division if the project was implemented within that division. (Loss amounts should be indicated by a minus sign. Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)
ROI Residual Income
Division A _____% $____________
Division B _____% $____________
Division C _____% $____________
ROI for each division:
ROI Division A = [($1,255,000 - $776,000 - $64,000 - $48,000) / $8,300,000] x 100% = 5.84%
ROI Division B = [($920,000 - $675,000 - $52,000 - $41,000) / $1,930,000] x 100% = 7.56%
ROI Division C = [($898,000 - $652,000 - $53,100 - $41,500) / $3,215,000] x 100% = 6.51%
Residual Income for each division:
Residual Income Division A = [$1,255,000 - $776,000 - $64,000 - $48,000 - (8% x $8,300,000)] = $140,400
Residual Income Division B = [$920,000 - $675,000 - $52,000 - $41,000 - (8% x $1,930,000)] = $62,240
Residual Income Division C = [$898,000 - $652,000 - $53,100 - $41,500 - (8% x $3,215,000)] = $46,920
Return on Proposed Expansion Project:
Return on Proposed Expansion Project = ($450,000 / $5,000,000) x 100% = 9%
New ROI and Residual Income for each division:
ROI Residual Income
Division A [($1,255,000 + $450,000) - ($776,000 + $64,000 + $48,000)] / [($8,300,000 + $5,000,000) / 2] = 15.25%
[$1,705,000 - (8% x ($8,300,000 + $5,000,000) / 2)] - $140,400 = $43,300
Division B [($920,000 + $450,000) - ($675,000 + $52,000 + $41,000)] / [($1,930,000 + $5,000,000) / 2] = 15.11%
[$1,195,000 - (8% x ($1,930,000 + $5,000,000) / 2)] - $62,240 = $95,710
Division C [($898,000 + $450,000) - ($652,000 + $53,100 + $41,500)] / [($3,215,000 + $5,000,000) / 2] = 12.58%
[$1,297,000 - (8% x ($3,215,000 + $5,000,000) / 2)] - $46,920 = $174,880
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Which of the statements below is FALSE?
A. To obtain the operating cash flow, given EBIT, we add back depreciation and subtract taxes.
B. Cash flow is an accounting measure of performance during a specific period of time.
C. A company could show a loss for the operating period but have generated positive cash flow for the business.
D. Profits are an accounting measure of performance during a specific period of time.
A. To obtain the operating cash flow, given EBIT, we add back depreciation and subtract taxes.
Taxes refer to the mandatory payments imposed by the government on individuals and businesses to fund public services and government activities. Taxes can take various forms, such as income tax, sales tax, property tax, corporate tax, and more.
These funds are collected by the government to finance infrastructure, education, healthcare, defense, and other public expenditures. The specific tax obligations and rates vary depending on the jurisdiction and the individual or entity's income, assets, or transactions.
To obtain the operating cash flow, given EBIT, we add back depreciation and subtract non-cash expenses such as depreciation, and then make adjustments for changes in working capital. Taxes are not directly subtracted to calculate operating cash flow.
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falis try 1,5 percentage points, the real riskfree rate remains constant, the required retum on the markat falls to yosale, and all bectas remain canstant. After all of these changes, what will be the
The question refers to the changes that occur in the financial market under some conditions. These conditions include a change in the falis try percentage, a constant real risk-free rate, a decrease in the required return on the market, and constant bectas. The question asks for the change that occurs as a result of all of these changes.
When the falis try percentage decreases by 1.5%, it means that the cost of borrowing in the market has reduced. As a result, companies will be encouraged to borrow more money. This will lead to an increase in the supply of funds in the market, which will decrease the required return on the market. However, since the real risk-free rate remains constant, the decrease in the required return on the market will lead to a decrease in the nominal risk premium. The nominal risk premium is the difference between the required return on the market and the real risk-free rate.
Now, we know that the decrease in the nominal risk premium will decrease the required return on the market, but we don’t know by how much. Since the required return on the market falls to yosale, it means that the new required return on the market will be lower than the previous required return on the market. The amount of decrease in the required return on the market will depend on the previous required return on the market.
If the previous required return on the market was 15%, then a decrease of 1.5% will lead to a new required return on the market of 13.5%. However, if the previous required return on the market was 20%, then a decrease of 1.5% will lead to a new required return on the market of 18.5%.Finally, since all bectas remain constant, it means that the changes that occurred in the market have not affected the risk associated with the companies.
The required return on the companies will remain constant.
Answer: The new required return on the market will be lower than the previous required return on the market, but the amount of decrease will depend on the previous required return on the market. The required return on the companies will remain constant.
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Which of the following statements are True? Select all correct answers
Direct moves are profitable when there are strong economies of density.
In many to many cases, the focus is on aggregating high volume lanes.
Consolidated moves always need to go through a hub for sorting.
Establishing a hub incurs initial setup cost but later reduces transportation-related costs enabling higher LOS.
Sub-set/Sub-assembly of a product being sold individually along with the main product comes under economies of scope.
None of the above unanswered
Direct moves are profitable when there are strong economies of density. This statement is not necessarily true. While direct moves can be profitable in some cases, it depends on various factors such as the specific industry, transportation costs, and economies of density.
In many to many cases, the focus is on aggregating high volume lanes. This statement is generally true. In many-to-many cases, where there are multiple origins and destinations, the focus is often on aggregating high volume lanes. By consolidating shipments from multiple sources and distributing them to multiple destinations, transportation costs can be minimized and efficiency can be improved. Consolidated moves always need to go through a hub for sorting. This statement is not true. Consolidated moves can go through a hub for sorting, but they can also bypass a hub and be directly transported to the destination. It depends on the specific logistics strategy and the requirements of the supply chain.
Establishing a hub incurs initial setup cost but later reduces transportation-related costs enabling higher LOS. This statement is generally true. Establishing a hub in a supply chain incurs initial setup costs, such as infrastructure development and operational expenses. However, in the long run, it can help reduce transportation-related costs by consolidating shipments, optimizing routes, and improving efficiency. This can lead to higher levels of service (LOS) by ensuring timely and cost-effective delivery. Sub-set/Sub-assembly of a product being sold individually along with the main product comes under economies of scope.
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The current yield curve for default-free zero-coupon bonds is as follows:
Maturity (years) YTM
1 9.1%
2 10.1%
3 11.1%
a. What are the implied one-year forward rates?
(Maturity (years) YTM Forward Rate
1 9.1 % 2 10.1 % _____ %
3 11.1 % _____ %
b. Assume that the pure expectations hypothesis of the term structure is correct. If market expectations are accurate, what will the pure yield curve (that is, the yields to maturity on one- and two-year zero-coupon bonds) be next year?
1. There will be a shift upwards in next year's curve.
2. There will be a shift downwards in next year's curve.
3. There will be no change in next year's curve.
c-1. If you purchase a two-year zero-coupon bond now, what is the expected total rate of return over the next year? (Hint: Compute the current and expected future prices.)
Expected total rate of return _____ %
c-2. If you purchase a three-year zero-coupon bond now, what is the expected total rate of return over the next year? (Hint: Compute the current and expected future prices.)
Expected total rate of return _____ %
a. Implied one-year forward rates are as follows:Maturity (years) YTM Forward Rate1 9.1% 9.80%2 10.1% 12.32%3 11.1% b.
There will be no change in next year's curve. As per the Pure Expectations Hypothesis (PEH), a yield curve can be formed on expected future short-term interest rates. According to the PEH, a forward rate will be an unbiased predictor of the future spot rate and an investor will not benefit from using an expected rate over a forward rate.
Therefore, the yield curve in the future will be flat, and there will be no shift up or down in the yield curve.c-1. If you purchase a two-year zero-coupon bond now, the expected total rate of return over the next year is 21.22%.Explanation.
Present value of bond= Future value of bond/ (1+ YTM)nWhere,n= number of years to maturity= 2 yearsYTM= 10.1%Future value= $100Expected Current price= $82.6447 (Price of the bond today)The expected total rate of return over the next year will be= (Future value/ Current price) - 1= (100/82.6447) - 1= 0.2122 or 21.22%c-2.
If you purchase a three-year zero-coupon bond now, the expected total rate of return over the next year is 11.85%.Explanation:Present value of bond= Future value of bond/ (1+ YTM)nWhere,n= number of years to maturity= 3 yearsYTM= 11.1%Future value= $100Expected Current price= $76.7652 (Price of the bond today)The expected total rate of return over the next year will be= (Future value/ Current price) - 1= (100/76.7652) - 1= 0.1185 or 11.85%.
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the distinction between moral development and moral competence is the description of what theory?
The distinction between moral development and moral competence is described by Lawrence Kohlberg's theory of moral development. Kohlberg proposed that moral development occurs in stages, progressing from lower levels of moral reasoning to higher levels.
Moral development refers to the cognitive and psychological growth that individuals undergo as they acquire a more sophisticated understanding of moral principles and values.
On the other hand, moral competence refers to the practical application of moral reasoning in real-life situations. It involves the ability to make ethical judgments, take moral actions, and navigate moral dilemmas effectively. While moral development focuses on the internal cognitive processes of moral reasoning, moral competence emphasizes the external manifestation of moral behavior.
Kohlberg's theory suggests that moral development and moral competence are closely related, as individuals' moral competence is influenced by their level of moral reasoning. As individuals progress through the stages of moral development, they become more capable of making principled ethical decisions and demonstrating morally competent behavior.
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If attended college or trade school, it is suggested to include
my grade point average (GPA), if it is__________ or higher.
If attended college or trade school, it is suggested to include my grade point average (GPA), if it is 3.0 or higher.
Typically, a college student's grade point average (GPA) is calculated on a 4.0 scale, where an A is worth 4 points and an F is worth 0. An average grade is typically a C, which corresponds to a 2.0 GPA.
Therefore, a GPA of 3.0 or higher is a good indicator that you have achieved above-average grades throughout your college career. Additionally, including your GPA on your resume can help you stand out to potential employers and demonstrate your academic abilities. However, if your GPA is below 3.0, it may be best to leave it off your resume to avoid drawing attention to your lower academic performance.
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Beauty Cosmetic produces hair tonic through two manufacturing processes; Mixing and Packaging. Production begins in the Mixing Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. The company uses a weighted average process costing system to accumulate production and cost data. On 1 January 2022, the beginning work in process inventory consist of 13,000 units, which were 40% complete. The company incurred a total cost of RM255,575 and RM220,800 of which were materials costs. Cost and production data for the month of January are as follows: Materials added Conversion costs incurred Units completed and transferred out in January Units in ending work in process on 31 January (70% complete)
RM309,450 RM176,800 26,250
9,000
Required (a) Compute the physical units, equivalent units of production for materials and conversion costs in the Mixing Department for the month of January. Show all your workings. (b) Compute the costs assigned to the ending work in process inventory on 31 January. Show all your workings. (c) Compute the costs accounted for the month of January. Show all your working.
Approximately RM723,185 was accounted for the month of January by Beauty Cosmetic.
A. Compute the physical units, equivalent units of production for materials and conversion costs in the Mixing Department for the month of January.
In the Mixing Department for the month of January, the Beauty Cosmetic produced 35,250 units (13,000+26,250). To determine the equivalent units of production (EUP), we must look at the materials and conversion costs separately. Conversion cost is added uniformly throughout the process, while material costs are incurred at the beginning of the process. Therefore, the EUP of materials and conversion costs would differ.
1. Calculation of EUP of Materials:
Units completed in the month of January= 26,250 units
Units in ending work in process inventory= 9,000 units
Total units= 35,250 units
Material cost added in January= RM309,450
Cost of beginning work in process inventory= RM220,800
Total Cost= RM530,250
EUP of materials = Units Completed + Units in ending work in process inventory * % completed
Material Cost = 26,250 + 9,000 * 70%
= 32,400 RM309,450
EUP of Material = 32,400 units
2. Calculation of EUP of Conversion Costs:
Conversion cost is added uniformly throughout the process. The total number of units processed in January was 35,250.
Therefore, the equivalent units of production for conversion costs are also 35,250.
B. Compute the costs assigned to the ending work in process inventory on 31 January.
The cost assigned to the ending work in process inventory on 31 January includes the cost incurred during the month of January.
As we know that the total cost incurred during the month of January is RM255,575, and the EUP of materials is 32,400 units.
Therefore, the cost per unit for materials is RM255,575 / 32,400 = RM7.88 (approx).
Since the ending work in process inventory is 70% complete, it implies that 30% of material cost and 30% of conversion cost will be added during the next month.
The cost assigned to the ending work in process inventory is:
RM7.88 x 9,000 x 70% = RM62,640 C. Compute the costs accounted for the month of January.
Total cost accounted for the month of January = RM530,250 + RM255,575 – RM62,640
= RM723,185
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access policies allow you to define which ipam objects an administrative role can access. a) true b) false
a) True. Access policies do allow you to define which IPAM (Internet Protocol Address Management) objects an administrative role can access.
Access policies are a key component of role-based access control (RBAC) systems, which help manage permissions and access levels within an organization's network infrastructure. By implementing access policies, administrators can specify the IPAM objects (such as IP addresses, subnets, or DNS records) that each role or user is allowed to access. This ensures that only authorized individuals or roles have the necessary permissions to view, modify, or manage specific IPAM objects. Access policies provide a granular level of control, allowing organizations to enforce security measures and maintain proper segregation of duties within their IP address management processes. They help prevent unauthorized access and potential misconfiguration or misuse of IPAM resources.
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Metal Products Ltd has two divisions: Pressings and Cans. Pressings produces pressed metal work for industrial and engineering work, while Cans produces cans for the paint and oil industries. The following data relate to the year ended 31 December 2021: Divisional managers (DMs) are given authority to spend up to N$30000 each on capital items, as long as total spending remains within an amount provided for small projects in the annual budget. Projects that are larger, as well as sales of assets with book values in excess of N$30 000 , must be submitted to central management (CM). All day-to-day operations are delegated to DMs, whose performance is monitored with the aid of budgets and reports. The basis for appraising DM performance is currently under review. At present, divisions are treated as investment centres for DM performance appraisal, but there is disagreement as to whether return on capital employed or residual income is the better measure. The cost of capital of Metal Products Ltd is 15% per annum. Page 14 of 16 FACULTY OF COMMERCE, MANAGEMENT AND LAW
Capital budgeting refers to the process of planning and controlling capital expenditures, where capital expenditure refers to the acquisition of fixed assets such as machinery, equipment, and land.
The objective of capital budgeting is to decide whether to invest in long-term projects or assets that will generate cash inflows exceeding cash outflows over the asset's life. The following are some of the methods used in capital budgeting:
Net present value method (NPV)The internal rate of return method (IRR)The payback period method (PP)Accounting rate of return (ARR)Residual income (RI)Return on investment (ROI)Divisions are typically evaluated using return on investment (ROI) as a performance metric, although residual income (RI) is often preferred.
Because RI considers the cost of capital, it is generally thought to be a better method for evaluating divisions. The cost of capital of Metal Products Ltd is 15% per annum.Divisions are expected to be run as investment centres, and their performance is monitored through budgets and reports.
DMs are authorized to spend up to N$30000 on capital items, as long as total spending is within a certain amount specified in the annual budget. Large projects, as well as sales of assets with book values of more than N$30 000, must be submitted to central management. All day-to-day operations are handled by DMs.
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Test Company projected the following unit sales for the next five quarters.
Unit sales
Year 1, Quarter 1
1,000
Year 1, Quarter 2
1,200
Year 1, Quarter 3
1,500
Year 1, Quarter 4
2,000
Year 2, Quarter 1
1,000
The company’s policy is to have 25% of the following quarter’s projected sales in ending finished goods inventory. The beginning inventory in Year 1 is expected to satisfy the inventory policy.
Each unit required 2 lbs. of direct materials. Projected direct materials cost is $5.00 per lb. The company’s policy is to have 20% of the following quarter’s production needs in ending raw materials inventory. The beginning inventory in Year 1 is expected to satisfy the inventory policy.
Q1. Determine the total units to be produced in Year 1.
Note: Give your answer using commas. Do not include the word "units."
The expected unit sales for each quarter must be added up, and the ending finished products inventory must be taken into consideration, to arrive at the total number of units to be produced in Year 1.
Quarter 1 of Year 1: 1,000 unitsQuarter 2 of Year 1: 1,200 units
Quarter 3 of Year 1: 1500 unitsQuarter 4 of Year 1: 2000 units
We aggregate the anticipated unit sales together with 25% of the anticipated sales for the upcoming quarter as ending finished products inventory to determine the total units to be produced.
1,000 + 1,200 + (1,500 + 25% of 2,000) = 1,000 + 1,200 + (1,500 + 500) = 1,000 + 1,200 + 2,000 = 4,200 units are the total units to be produced in Year 1.Thus, 4,200 units must be produced in total during Year 1
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You just purchased a home for $450,000 and made a 10%
downpayment and obtained a mortgage for the balance. Based on an
interest rate of 3.5% and a term of 30 years on a fully amortizing
loan, what is
Given that a house was purchased for $450,000 with a 10% down payment. It means that the down payment is;
10% of 450,000 = $45,000.
To calculate the monthly payment on a fully amortizing loan, the following formula is used;
PMT = PV [ i (1 + i) n ] / [ (1 + i) n – 1] Where, PV = present value
i = interest rate (monthly)N = number of payments PMT = monthly payment
Using a financial calculator, the input is as follows:
N = 30 × 12 = 360 (since we have a term of 30 years) I = 3.5% ÷ 100% ÷ 12
(divide by 100% to convert to decimal and divide by 12 to convert to monthly)
PV = $405,000PMT = ?
Putting the values in the formula, we have;
PMT = $1,814.31
The monthly payment on a fully amortizing loan is
$1,814.31.
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Let's say you invested in WXYZ Corp. beginning in 2018, and that the firm's return was 3\% in 2018, 9\% in 2019, -11\% in 2020, 21\% in 2021, Then what is the variance of the returns? A> 13.30% B> 6.54% C> 1.77% D> 3.12%
Option (a), The variance of the given returns is 13.30%.
Given,
The returns of WXYZ Corp. in the years 2018, 2019, 2020, and 2021 are 3%, 9%, -11%, and 21% respectively.
The formula to calculate the variance is given by:
Variance = [(return 1 - average return)² + (return 2 - average return)² + ... + (return n - average return)²] / n
where n is the total number of returns.
Let's calculate the average return of the firm. The average return of the firm is:
(3 + 9 - 11 + 21) / 4 = 5%
Using the above formula, we get the variance of the returns as:
Variance = [(3 - 5)² + (9 - 5)² + (-11 - 5)² + (21 - 5)²] / 4= (4 + 16 + 256 + 256) / 4= 532 / 4= 133/10 = 13.3%
Hence, the variance of the given returns is 13.30%.
Option A is the correct answer.
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super speedy delivery services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: year miles operating costs 2016 55,000 $195,000 2017 70,000 $210,000 2018 50,000 $180,000 2019 65,000 $205,000 2020 85,000 $225,150 what is the best estimate of total operating expenses for 2021 using the high-low method based on total expected miles of 60,000?
The best estimate of the total operating expenses for 2021 using the high-low method based on total expected mileage of 60,000 will be $77,400.
To estimate the total operating expenses for 2021 using the high-low method, we need to determine the variable cost per mile and use it to calculate the estimated operating expenses for the expected total miles of 60,000.
First, we need to identify the high and low points from the given data;
High point:
Year: 2020
Miles: 85,000
Operating costs: $225,150
Low point;
Year: 2018
Miles: 50,000
Operating costs: $180,000
Next, we can calculate the variable cost per mile using the high and low points:
Variable cost per mile = (High operating costs - Low operating costs) / (High miles - Low miles)
= ($225,150 - $180,000) / (85,000 - 50,000)
= $45,150 / 35,000
= $1.29 (rounded to two decimal places)
Now, we can estimate the total operating expenses for 2021;
Estimated operating expenses for 2021 = Variable cost per mile * Total expected miles
= $1.29 × 60,000
= $77,400
Therefore, the best estimate of total operating expenses for 2021 using the high-low method based on a total expected mileage of 60,000 is $77,400.
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ou are given the following Mexican import information: 12 Auto Parts CIF Price: 950 Pesos, FOB Price: 1,400 Pesos COO: US (non-NAFTA) Duty Rate: 15% PART (A) - Find the following details used by Aduana Mexico 1. Duty 2. DTA 3. IVA 4. Total Payment to Aduana Mexico PART (B) - What if the Parts were made in China? 1. Duty 2. DTA 3. IVA 4. Total Payment to Aduana Mexico *Show your work for full marks
The calculation of the duty, DTA, IVA, and Total Payment to Aduana Mexico has been shown for both Part A and Part B.
PART (A) - Find the following details used by Aduana Mexico:
Given below are the details used by Aduana Mexico
1. Duty = Duty is the tax that a government imposes on imports. It is calculated as Duty % × CIF Price.
Hence the duty is 15% × 950 Pesos which equals 142.50 Pesos.
2. DTA = DTA means Deepening of the Trade Agreement. Mexico does not have a Free Trade Agreement with the US.
Therefore, the DTA value is zero.
3. IVA = IVA is the tax that the Mexican Government levies on imports.
It is calculated as IVA % × (CIF Price + Duty).
Hence, IVA is 16% × (950 + 142.50) which equals 183.60 Pesos.
4. Total Payment to Aduana Mexico = CIF Price + Duty + IVA
= 950 + 142.50 + 183.60
= 1,276.10 Pesos.
PART (B) - What if the Parts were made in China?
Given below are the details used by Aduana Mexico if the parts were made in China.
1. Duty = Duty is the tax that a government imposes on imports. It is calculated as Duty % × CIF Price.
The duty rate for imports from China is 20%. Hence the duty is 20% × 950 Pesos which equals 190.00 Pesos.
2. DTA = DTA means Deepening of the Trade Agreement. Mexico has a Free Trade Agreement with China. Therefore, the DTA value is zero.
3. IVA = IVA is the tax that the Mexican Government levies on imports. It is calculated as IVA % × (CIF Price + Duty).
Hence, IVA is 16% × (950 + 190) which equals 177.60 Pesos.
4. Total Payment to Aduana Mexico = CIF Price + Duty + IVA
= 950 + 190 + 177.60
= 1,317.60 Pesos.
The calculation of the duty, DTA, IVA, and Total Payment to Aduana Mexico has been shown for both Part A and Part B.
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insurance covers losses due to a contract not being fulfilled. a. surety bond b. credit line c. business interruption d. fidelity bond
The correct answer is: a. surety bond. A surety bond is a type of insurance that covers losses due to a contract not being fulfilled.
A surety bond is a three-party agreement between the surety (insurance company), the principal (contractor or party obligated to perform), and the obligee (party who is protected by the bond). The purpose of a surety bond is to provide financial protection to the obligee in case the principal fails to fulfill the terms and conditions of a contract.
Surety bonds are commonly used in construction projects, government contracts, and other business agreements where a guarantee of performance is required. If the principal fails to fulfill their obligations, the surety bond ensures that the obligee is compensated for any financial losses incurred as a result.
Credit lines are not specifically related to covering losses due to unfulfilled contracts but rather provide a source of credit for businesses to borrow funds. Business interruption insurance covers losses resulting from disruptions to business operations, such as natural disasters or accidents. Fidelity bonds protect against losses due to employee dishonesty or fraudulent activities.
Therefore, in the context of covering losses due to a contract not being fulfilled, the appropriate insurance is a surety bond.
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When there are fixed costs and a constant marginal cost
a. The average fixed cost function is flat
b. The average variable cost function is flat, and the average cost function is increasing
c. The average cost function intersects the marginal cost function at a minimium of the average cost function
d. The average variable cost function is increasing, and the average cost function is decreasing
e. The average variable cost function is flat, and the average cost function is decreasing
When there are fixed costs and a constant marginal cost, the average variable cost function is flat, and the average cost function is decreasing is the correct option (e).
A fixed cost is a business expense that is not affected by changes in the quantity of products or services produced or sold. A constant marginal cost implies that the cost of producing each additional unit does not change as production increases. Marginal costs are constant because the company's variable costs do not vary as production rises.
The average fixed cost function is not flat, and the average variable cost function is not increasing. If the marginal cost curve intersects the average variable cost curve at its minimum point, the average cost curve will be equal to the marginal cost curve. The average variable cost curve is not rising; instead, it is flat. If the average cost curve is decreasing, this indicates that the marginal cost curve is below the average cost curve. This can only occur when the average variable cost curve is flat.
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Which of the following statement is correct? • Labor strikes and law suits are examples of systematic risk • Changes in monetary policy and tax rates are examples of unsystematic risk • Nondiversifiable risk is synonymous with unsystematic risk • Portfolio total risk cannot be reduced to zero with diversification • Well diversified portfolios have substantial unsystematic risk
The correct statement is that portfolio total risk cannot be reduced to zero with diversification. Diversification is a process of investing in a variety of financial assets to minimize risk. Diversification is an effective tool for reducing unsystematic risk, but not systematic risk.
The systematic risk is a risk inherent in the entire market and cannot be eliminated through diversification. This is the risk that is beyond the control of investors. Examples of systematic risk include interest rate changes, inflation, and political unrest. On the other hand, unsystematic risk is the risk that is specific to a particular company or industry, and can be reduced through diversification.
Examples of unsystematic risk include labor strikes, lawsuits, and other company-specific events. Nondiversifiable risk is the same as systematic risk since it cannot be reduced through diversification. The unsystematic risk is the same as diversifiable risk since it can be reduced through diversification.
Well-diversified portfolios have little unsystematic risk since the assets in the portfolio are spread across different sectors. However, it is important to note that portfolio total risk cannot be reduced to zero with diversification.
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On April 1, Crane Travel Agency Inc. was established. These transactions were completed during the month. 1. Stockholders invested $30.800 cash in the company in exchange for common stock. 2. Paid $810 cash for April office rent. 3. Purchased office equipment for $3,840 cash. 4. Purchased $280 of advertising in the Chicago Tribune, on account. 5. Paid $580 cash for office supplies. 6. Perfoed services worth $11,500. Cash of $4,000 is received from customers, and the balance of $7.500 is billed to customers on account. 7. Paid $510 cash dividend. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees' salaries $1,240. 10. Received $7,500 in cash from customers billed previously in transaction (6).
Stockholders invested $30,800 cash in the company in exchange for common stock. As a result, the company's cash account will increase by $30,800.Paid $810 cash for April office rent. Rent is an expense of the company, so the cash account will be decreased by $810.Purchased office equipment for $3,840 cash.
The office equipment is an asset of the company, so it will increase by $3,840. The cash account will be decreased by $3,840.Purchased $280 of advertising in the Chicago Tribune, on account. The accounts payable account will increase by $280.Paid $580 cash for office supplies. Office supplies are an asset of the company, so it will increase by $580. The cash account will be decreased by $580.
Performed services worth $11,500. Cash of $4,000 is received from customers, and the balance of $7,500 is billed to customers on account. The service revenue account will increase by $11,500. The cash account will increase by $4,000. The accounts receivable account will increase by $7,500.Paid $510 cash dividend. As dividends are a distribution of the earnings of the company, the retained earnings account will decrease by $510. The cash account will be decreased by $510.
Paid Chicago Tribune amount due in transaction (4). The accounts payable account will decrease by $280. The cash account will be decreased by $280.Paid employees' salaries $1,240. Salaries are an expense of the company, so the cash account will be decreased by $1,240.Received $7,500 in cash from customers billed previously in transaction (6). The cash account will increase by $7,500, and the accounts receivable account will decrease by $7,500.
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Imagine that the interbank AUD / USD exchange rate was 0.8062 / 0.7995 and the five-month forward margins on the AUD were -93 / -90.
a) Do you think the AUD was selling at a forward premium or a forward discount to the USD? Explain.
b) Calculate the outright five-month forward quote.
c) Using the direct bid quotation, find the annualised forward premium or discount on the AUD.
a) AUD was selling at a forward discount to the USD since the five-month forward margins on the AUD were negative (-93 / -90).
Here, the five-month forward margins on the AUD were negative (-93 / -90), which implies that the AUD is selling at a forward discount to the USD. So, the answer is AUD was selling at a forward discount to the USD.
b)For AUD/USD, the spot rate is 0.8062/0.7995;
the outright five-month forward quote is Spot + forward margin
= (0.8062 + (-93/10000))/ (0.7995 + (-90/10000))
= 0.7977/0.7906
= 1.0091/1
This is the outright five-month forward quote.
c) Annualised forward premium or discount= (Forward points ÷ Spot rate) x (12 ÷ Number of months)
Forward points = Direct bid outright forward rate - Direct bid outright spot rate
For AUD/USD, the outright five-month forward quote is 1.0091/1 and the spot rate is 0.8062/0.7995.
Outright forward rate = 1.0091
Direct bid outright spot rate = 0.8062/0.7995 = 1.0087
So, Annualised forward premium or discount= (0.0004 ÷ 1.0087) x (12 ÷ 5)= 0.0095 x 2.4= 0.0228 or 2.28%.
Hence, the answer is 2.28%.
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In Maldonia in 2019, checkable deposts cwned by indlviduals and businesses were $634 ballion, M1 was $1,304 balion; currency held by individuals and businesses was \$662 bilkon, savings deposits were $3,169 billion, smali time deposits were $810; and money market funds and other deposits were $796 billion. Calculate teaveler's checks in creulation 1 Maldonia in 2019 . Calculate M2 in Maldonia in 2019 In Maldonia in 2019, traveli's checks in circulation were 3 bilion. Mr in Maldonia in 2019 was? balion.
In Maldonia in 2019, the traveler's checks in circulation were 3 billion. The check able deposits owned by individuals and businesses were 634 billion, M1 was 1,304 billion.
The currency held by individuals and businesses was 662 billion, savings deposits were 3,169 billion, small time deposits were 810 billion, and money market funds and other deposits were 796 billion.Now, to calculate M2, we will add up all of these values:
M2 = currency + traveler's checks + checking deposits + savings deposits + small-denomination time deposits + retail money market mutual fund shares
[tex]M2 = $662 billion + $3 billion + $634 billion + $3,169 billion + $810 billion + $796 billionM2[/tex]
[tex]= $6,074 billion.[/tex].
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A private company's revenue can either decrease D or increase I in a year. Obtaining the same amount of revenue two years in a row is a very distant possibility that we ignore. We suppose that increase 16 and decrease are equally likely with probability 50% if nothing else is known. Let A 1
be the event that revenue has increased once and decreased once in the last two years. Let A 2
be the event that the revenue decreased at most once in the last two years. a) Are A 1
and A 2
c
disjoint? Are they independent? Can disjoint events be dependent? b) We are told that the revenue will increase with probability 6/10 in the next year if it did so in the last two years. It will increase with probability 3/10 if it decreased in the last two years. The probability of increase in the next year is 50% if the last two years experienced a revenue increase and a decrease. If you are told that the revenue will increase in the next year, what is the probability that it increased in the last two years?
A₁ and A₂ are not disjoint since it is possible for revenue to have increased once and decreased once in the last two years while also having decreased at most once.
However, they are independent because the probability of one event happening does not affect the probability of the other event happening. Disjoint events can be dependent if the occurrence of one event affects the probability of the other event. let B be the event that revenue increased in the next year. We need to find P(A₁|B), the probability that revenue increased in the last two years given that it increased in the next year. Using Bayes' theorem, P(A₁|B) = (P(B|A₁) * P(A₁)) / P(B). P(B|A₁) is 6/10 (given), P(A₁) is 1/4 (since there are four equally likely outcomes: II, ID, DI, DD), and P(B) is (P(B|A₁) * P(A₁)) + (P(B|A₂) * P(A₂)). P(B|A₂) is 3/10 (given), and P(A₂) is 3/4 (complement of A₁). By substituting the values, we find P(A₁|B) ≈ 0.44 or 44%.
Given that revenue increased in the next year, we want to determine the likelihood that it increased in the last two years. We use Bayes' theorem, which relates conditional probabilities, to calculate this probability. It involves considering the probability of revenue increasing in the last two years (A₁) given that it increased in the next year (B). By substituting the given probabilities into the formula, we find that there is approximately a 44% chance that revenue increased in the last two years.
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suppose a green dye with a molecular weight of 600 g/mol was also tested in this experiment. rank the red, blue, and green dyes from fastest to slowest diffusion.
The dyes ranked from fastest to slowest diffusion would be blue, green, and red. her request due to the team's insufficient budget for entertainment.
The rate of diffusion of a dye depends on its molecular weight. In general, smaller molecules diffuse more quickly than larger molecules. The blue dye would have the fastest diffusion because it has the smallest molecular weight among the three dyes mentioned.
The green dye, with a molecular weight of 600 g/mol, would diffuse slower than the blue dye but faster than the red dye. Finally, the red dye would have the slowest diffusion since it was not mentioned to have a specific molecular weight Otto should politely explain to Lucy that he cannot approve her request due to the team's insufficient budget for entertainment.
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