Answer:
b. a transaction cost.
Explanation:
Transaction costs can be regarded as expenses which is been incurred during the buying or selling of a good/ service.Transaction costs gives representation of the labor which is required in bringing a particular good/ service to the market,. They are cost required to make any economic trade in regards to participation in a market.
example of transaction cost is
Employing a lawyer to draft and enforce a private contract between parties wishing to solve an externality problem.
The following information relates to Osceola Corporation for the past accounting period. Direct costs Service Department A$80,000 Service Department B 60,000 Producing Department C 15,000 Producing Department D 20,000 Proportion of service by A to: B10% C60% D30% Proportion of service by B to: A30% C20% D50% Using the reciprocal (simultaneous solution) method, Department B's cost allocated to Department C (rounded to the nearest whole dollar) is: Multiple Choice
Answer:
Department B's cost allocated to Department C = $14,021
Explanation:
Let A and B represents the total costs of Departments A and B repectively. We therefore have:
A = 80,000 + 0.3B ……………………. (1)
B = 60,000 + 0.1A ………………...... (2)
Substituting equation (1) into (2) and solve for B, we have:
B = 60,000 + 0.1(80,000 + B0.3)
B = 60,000 + 8,000 + 0.03B
B - 0.03B = 68,000
0.97B = 68,000
B = 68,000 / 0.97
B = 70,103
This implies that the total cost of B is $70,103.
Therefore, we have:
Department B's cost allocated to Department C = B * Proportion of service by B to C = $70,103 * 20% = $14,021
Julie is purchasing a home for $169,000.00. Her loan has been approved for a 30-year fixed-
rate loan at 5 percent annual interest. She will pay 20 percent of the purchase price as a down
payment. What is the total interest she will pay on her loan?
$135,200.87
$142,613.78
$126,168.64
$122,877.92
Answer:
Julie
The total interest she will pay on her loan is nearly:
= $126,168.64
Explanation:
a) Data and Calculations:
Cost of purchasing a home = $169,000
Downpayment (20% * $169,000) = $33,800
Amount of loan = $135,200 ($169,000 - $33,800)
Interest rate per annum = 5%
From an online financial calculator:
Loan Amount 135200
Loan Term 30 years
0 months
Interest Rate 5
Compound
Annually (APY)
Pay Back Every Year
Results:
House Price $169,000.00
Loan Amount $135,200.00
Down Payment $33,800.00
Total of 360 Mortgage Payments $261,281.82
Total Interest $126,081.82 on a monthly basis
Mortgage Payoff Date Jun. 2051
Payment Every Year $8,794.95
Total of 30 Payments $263,848.62
Total Interest $128,648.62 on a yearly basis
A trial balance before adjustment included the following:
Debit Credit
Accounts receivable $133,000
Allowance for doubtful accounts $1,080
Sales 471,000
Sales returns and allowances 5,200
Required:
Prepare journal entries assuming that the estimate of uncollectible is determined by taking (1) 4% of gross accounts receivable.
Green Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $43 to buy from farmers and $14 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $19 or processed further for $18 to make the end product industrial fiber that is sold for $51. The beet juice can be sold as is for $34 or processed further for $22 to make the end product refined sugar that is sold for $51.
Required:
What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar?
Answer:
Financial advantage $5
Explanation:
The computation of the financial advantage (disadvantage) for the company is shown below:
Combined sales value ($51 + $51) $102
Less: further processing ($18 + $22) -$40
Sugar beets cost -$43
Cost to crush -$14
Financial advantage $5
We simply deduct all cost from the revenue so that the financial advantage or disadvantage could come
ABC issues 1,000 shares of 6%, $100 par value preferred stock at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $18,000 in 2018. Assuming the preferred stock is noncumulative, how much of the $18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018
Answer and Explanation:
The computation of the dividend paid to preferred stockholder and common stockholder is given below;
Since the preference dividend would be
= 1,000 shares × $100 × 6%
= $6,000
For 2 years, it would be $12,000
Now the remaining shares left is
= $18,000 - $12,000
= $6,000
hence, the dividend paid to preferred stockholder and common stockholder is $12,000 and $6,000 respectively
Wainwright Corporation had the following activities in 2020. Sale of land for $120,000. Purchase of inventory for $645,000. Purchase of treasury stock for $52,000. Purchase of equipment for $315,000. Issuance of common stock for $620,000. Sale of available-for-sale debt securities for $85,000. Compute the amount Wainwright should report as net cash provided (used) by investing activities in its 2020 statement of cash flows.
Answer:
net cash used by investing activities = $280,000
Explanation:
Cash flow from Investing Activities :
Proceeds from Sale of Land $120,000
Purchase of Equipment ($315,000)
Proceeds from Sale of debt securities ($85,000)
Net Cash used by Investing activities ($280,000)
therefore,
Wainwright should report as net cash used by investing activities in its 2020 statement of cash flows of $280,000
any waste material on the floor should be
Answer:
Cleaned...it's waste
Which of the following is not an advantage of delegating authority at Red Frog Events?
a
Delegation helps develop subordinates
b
Subordinates learn how to make decisions
c
Some managers are too disorganized to delegate appropriately
d
An event manager can get more work done
Answer:
c. Some managers are too disorganized to delegate appropriately
Explanation:
Generally, the advantage of delegating authority in a firm can be numerous. Hence, considering the question, the benefit of delegating authority at Red Frog Events is no different.
Therefore, considering the available options, the statement that is NOT an advantage of delegating authority at Red Frog Events is "Some managers are too disorganized to delegate appropriately."
In contrast, some of the advantages of delegating authority are:
1. Delegation helps develop subordinates: as subordinates take more authority in some cases, they grow in decision-making and overall growth.
2. Subordinates learn how to make decisions: as subordinates are allowed to make decisions, they learn to understand how to make proper decisions
3. An event manager can get more work done: when subordinates are delegated with authority, it helps the manager focus more on other areas that need his attention, thereby getting more work done.
Pharmicon, Inc., a pharmaceutical firm, discovered a complete cure for the common cold. The medicine could be put into a pill that would be taken once a day for a week. Knowing these results, directors of Pharmicon decided to delay the press release and bought thousands of shares of Pharmicon stock. After the purchases, Pharmicon issued a press release about the pill. The price of the stock skyrocketed. When the SEC found out about the purchases and the delay in the press release, it sued Pharmicon for violating Rule 10b-5. The court in this case would most likely rule in favor of Group of answer choices
Question Completion:
a. the SEC, because the information about the cure was material and was not disclosed to the public prior to the directors' purchase of the stock.
b.Pharmicon, because the information was not material.
c.the SEC, because owning company stock is a conflict of interest for the directors.
d.Pharmicon, because they issued a press release to the public
Answer:
Pharmicon, Inc.
The court in this case would most likely rule in favor of:
a. the SEC, because the information about the cure was material and was not disclosed to the public prior to the directors' purchase of the stock.
Explanation:
SEC's Rule 10b-5 forbids insider trading and, therefore, enables the SEC to sue individuals who use the privileged information they acquire about an entity's security to buy or sell the entity's securities. The information may be acquired illegally or legally, provided it is not publicly available. Insider trading exists when a professional breaches a fiduciary duty or betrays the trust and confidence reposed in him by trading on a security based on material, nonpublic information about the security.
Stunning Motors, Ltd. makes economy autos for the world market. Stunning has decided to branch out and produce economical, fuel efficient motor bikes. They are exploring a joint venture With Bay Bikes, a Chinese motorbike company active in the Chinese market. In the meantime, before any formal agreement on a joint venture is reached, Bay Bikes is working with Stunning's R&D engineers to create a feasibility study on the Chinese market potential. This is an example of ___________
a. product differentiation
b. non-equity-based strategic alliance
c. sole proprietorship
d. entrepreneurial orientation
Answer:
b. non-equity-based strategic alliance
Explanation:
In the case of the non-equity strategic alliance, the organizations develop the agreement for sharing the resources without developing the distinct entity or equity i.e. shared.
Non-equity alliances are considered to be loose and not formal as compared to the partnership involving equity.
So as per the given situation, the option b is correct
An aircraft manufacturer with a strong presence in the United States, is looking to expand its market overseas. The firm currently sells its aircraft to several airlines in the United Kingdom but now wants to establish manufacturing units there as well in order to acquire a bigger share in the European market. Hence, it plans to merge with QueenAir, a British aircraft manufacturer.
Requied:
What would weaken the company's decision to merge with QueenAir?
Consider the market for seedless green grapes. The current price of a pound of seedless green grapes is $3. Two consumers, Leyla and Margaret, are willing to pay $4 and $5, respectively, for a pound of seedless green grapes. Two farmers are willing to sell seedless green grapes for as little as $2 and $3 per pound. How much is the consumer surplus in this market assuming each consumer purchases one pound of grapes and each farmer sells one pound of grapes
Answer:
$3
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Consumer surplus of Leyla = $4 - $3 = $1
Consumer surplus of Margaret = $5 - $3 = $2
total surplus = $1 + $2 = $3
On April 1, Dallow, Inc. factored $160,000 of its accounts receivable without recourse. The factor retained 10% of the accounts receivable as an allowance for sales returns and charged a 5% commission on the gross amount of the factored receivables. What amount of cash did Dallow receive from the factored receivables
Answer:
$136,000
Explanation:
According to the scenario, computation of the given data are as follows,
Amount receivable = $160,000
Allowance for sales return = 10% × $160,000 = $16,000
Commission = 5% × $160,000 = $8,000
So, amount of cash from factored receivables can be calculated by using following formula,
Cash from factored receivables = Amount receivable - Allowance for sales return - Commission
= $160,000 - $16,000 - $8,000
= $136,000
1. Define business. Explain the functions of business.
[tex] \large{ \tt{☄ \: ANSWER}} : [/tex]
↦ Business is an economic activity that is directed towards acquiring and earning profit and wealth through customer's satisfaction. It plays an important role for the economic development of the country and uplift living standard of the people. Some of the functions of business are described below :
Creation of utilities : For the fulfillment of needs of customers , business creates various types of utilities. A business has many components and each component is involved in the creation of the certain utility. For instance : manufacturers create from utility , transportation system created place utility , warehousing time utility and insurance companies risk utility.Generation of employment : Business is a source of employment. Various types of employees are required to a business. In industries , both skilled and unskilled manpower are required for production , distribution and auxiliaries functions. Hence , the development of industry and commerce helps to solve the unemployment problem of a nation.Earning Foreign Currency : Business is the main source of earning Foreign Currency. Foreign currency can be earned by exporting surplus products and services to foreign countries. The development of export trade brings favourable balance in payment.Provides investment opportunities : Business provides investment opportunities to the investors in production and distribution activities. Depending on the nature of investment ; investors receive dividend , interest or other financial benefits. The persons of organizations having sufficient capital can invest their money in production and commercial activities according to their interest , capability and knowledge.[tex] \large{ \tt{✺ \: STUDY \: TIP}} : [/tex]
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What are competinves prionties, and how do
they help supply chain organizations gain
Competitive advantage?
Explanation:
Competitive priorities can be understood as the central objectives that organizations seek to remain competitive and positioned in the market, through the management of quality, cost, flexibility and delivery.
An organization's supply chain is responsible for the entire operational process of a product, from the purchase of the raw material to the delivery of the product to the end customer.
Therefore, supply chain management is essential so that all interconnected production systems for a good are aligned with the best practices that guarantee the continuous improvement of the entire supply chain, and this is where competitive priorities must be considered, because staying competitive in the market requires quality assurance at each stage of the process, with the greatest flexibility and lowest costs, in addition to delivery in the right quantity, at the right time to the right customer.
A firm has to choose between two technologies; both produce same output with one being labor intensive and other being capital intensive. The firm will use labor intensive technology when _________________. Select the correct answer below: wages are less than the interest rate total cost of labor is less than total cost of capital average variable cost is less than average fixed cost labor is more productive than capital
Answer:
total cost of labor is less than total cost
Explanation:
In the case when the firm would use the labor intensive technology at the time when the marginal product from labor intensive would be more than the marginal product of capital intensive this is due to the rise in the firm benefit as the firm would produce and sell more
The other thing is that the cost of labor intensive would be less than the capital intensive cost. This cost would benefit the organization with respect to the decision making
During 2020, Desert Company introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 2% within 12 months following the sale and 4% in the second 12 months following the sale. Sales and actual warranty expenditures for the years ended December 31, 2020 and 2021 are as follows: Sales Actual Warranty Expenditures 2020 $800,000 $12,000 2021 $1,000,000 $35,000 TOTAL $1,800,000 $47,000 What is the amount of estimated warranty liability Desert should report at December 31, 2021?
Answer:
Estimated Warranty Liability December 31, 2020
Debit Credit
Beginning balance $0
Actual Warranty Expenditure $12,000 Estimated total cost of $48,000
Warranty $800,000*6%
Ending Balance $36,000
$48,000 $48,000
Estimated Warranty Liability December 31, 2020
Debit Credit
2021 Servicing Expense $35,000 Beginning balance $36,000
Ending Balance $61,000 Estimated total cost of $60,000
Warranty $1,000,000*6%
$96,000 $96,000
So, the company should report an estimated warranty liability of $61,000 at Dec 31, 2021
Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October are available: Quantity of direct labor used 5,000 hrs. Actual rate for direct labor $22.75 per hr. Bicycles completed in October 800 bicycles Standard direct labor per bicycle 6.0 hrs. Standard rate for direct labor $24.00 per hr. a. Determine for October the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance $fill in the blank 1 113,750 Direct Labor Time Variance $fill in the blank 3 4,800 Total Direct Labor Cost Variance $fill in the blank 5 b. How much direct labor should be debited to Work in Process
Answer:
A. Direct Labor Rate variance -$6250 Favorable
Direct labor time variance $4800 Unfavorable
Total Direct Labor Cost Variance $-1450 Favorable
B. Dr Work In Process $116,650
Explanation:
A.
Calculation to determine Direct Labor Rate variance using this formula
Direct Labor Rate variance= (actual hours* actual rate)- (actual hours * standard rate)
Let plug in the formula
Direct Labor Rate variance=( 5000 *22.75) - (5000*24)
Direct Labor Rate variance= $113750- 120,000= Direct Labor Rate variance-6250 Favorable
Calculation to determine Direct labor time variance using this formula
Direct labor time variance= (Actual hours* Standard rate)- (Standard hours * Standard rate)
Let plug in the formula
Direct labor time variance= (5000 * 24) -(4800 * 24)
Direct labor time variance= 120,000-115200
Direct labor time variance= 4800 Unfavorable
Calculation to determine Total Direct Labor Cost Variance using this formula
Total Direct Labor Cost Variance= Direct Labor Rate variance + Direct labor time variance
Let plug in the formula
Total Direct Labor Cost Variance= -6250 Favorable + 4800 Unfavorable
Total Direct Labor Cost Variance= -1450 Favorable
b. Preparation of the journal entry to determine How much direct labor should be debited to Work in Process
Dr Work In Process $116,650
Cr Direct Labor Cost Variance $ 1,450
Cr Payroll $ 115,200
Therefore the amount of Direct Labor to be Debited to Work In Process is $116,650
Which of the following are normally recorded on a registration card?
23. Maria, a new employee, noticed that her supervisor, Jasmine, approved an expense report submitted by a co-worker that resulted in the company for which they both worked paying for the co-worker's car repairs that were needed due to an accident that happened when co-worker was on a personal errand instead of company business. Jasmine's actions could encourage Maria to
Answer:
She failed to cover up the co-worker's improper claim of a personal expense on a company expense report.
Explanation:
Analyzing the above case, it is correct to say that the supervisor Jasmine failed to cover up the undue complaint of the co-worker, as the accident occurred when he was on a personal mission and unrelated to the company's business, which makes the company not has legal obligations to pay for repairs to his car and these are broken down in a company expense report like the one approved by Jasmine.
Therefore, the supervisor acted unethically and did not follow the company's legal regulations.
The Heating Division of Kobe International produces a heating element that it sells to its customers for $39 per unit. Its variable cost per unit is $21, and its fixed cost per unit is $7. Top management of Kobe International would like the Heating Division to transfer 14,900 heating units to another division within the company at a price of $32. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept
Answer:
$21
Explanation:
The computation of the minimum transfer price is shown below
Here the minimum transfer price should be equivalent to the marginal price i.e. variable cost and the fixed cost would not considered as it remains fixed
So according to the given situation, the minimum transfer price that the heating division should accept is $21
The same would be considered and relevant
Jessica is responsible for two departments that continually set conflicting goals. Jessica must get involved in ____ to achieve some sort of balance between those goals.
optimization
maximization
planning
controlling
organizing
Answer:
Jessica is responsible for two departments that continually set conflicting goals. Jessica must get involved in OPTIMIZATION to achieve some sort of balance between those goals
Jessica is responsible for two departments that continually set conflicting goals. Jessica must get involved in planning to achieve some sort of balance between those goals. The correct option is C.
What is the planning function also called?Planning is referred to as a ubiquitous function of management because it takes place at all levels of management in a business organization, guiding all managers in various business units to cooperate in order to achieve the organizational goals and objectives. Offer to make changes.
The management task of planning includes deciding on a course of action for achieving goals and creating objectives. Managers must foresee future conditions and understand the current environmental issues their organization is facing in order to effectively plan.
Thus, the ideal selection is option C.
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A railroad company is required to pay 79,860, which is due three years from now. The company invests 15,000 in a bond with modified duration 1.80, and 45,000 in a bond with modified duration Dmod, to Redington immunize its position against small changes in the yield rate. The annual effective yield rate for each of the bonds is 10%. Calculate Dmod.
Answer:
3.04
Explanation:
Calculation to determine Dmod.
First step is to calculate the present value of the assets which also represent the present value of the liability
Present value of the assets =$15,000+$45,000
Present value of the assets = $60,000
Second step is to calculate the modified duration of the assets which is the weighted average
Modified duration of the assets=($15,000/$60,000)/1.80+$45,000/$60,000Dmod
Modified duration of the assets=0.25(1.80) + 0.75Dmod
Third step is to calculate the Modified duration of the liability
Modified duration of the liability =3/(1+0.1)
Modified duration of the liability =3/1.1
Now let calculate Dmod
Dmod = (3/1.1 – 0.45)/0.75
Dmod=(2.7272-0.45)/0.75
Dmod=2.2772/0.75
Dmod=3.036
Dmod=3.04 (Approximately)
Therefore Dmod is 3.04
Which of the following types of promotion is usually the least expensive for a company?
A.
Personal selling
B.
Publicity
C.
Direct marketing
D.
Advertising
Answer:
B. Publicity.
Explanation:
A company can publicize its names, products, and services by organizing an event or by organizing a seminar. The aim of publicity is to make consumbers aware about the products and services that a company deals in.
Luker Corporation uses a process costing system. The company had $174,500 of beginning Finished Goods Inventory on October 1. It transferred in $851,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $172,200. The entry to account for the cost of goods manufactured during October is:
Answer:
See below
Explanation:
Given:
Beginning finished goods inventory
$174,500
Add: transfer units completed during the period
$851,000
Less: Ending finished goods inventory
($172,200)
Cost of goods sold
$853,300
Journal entry
Cost of goods sold Dr $853,300
-------------- Finished goods Cr $853,300
Cost of goods sold is only recorded when sales of products are made.
You are considering attending college for one term. Your costs for one term include: tuition: $21,000 food and apartment rent: $6,000 books and college supplies: $2,000. Also, college attendance implies that when you switch work hours to study hours your income will fall from $10,000 to $3,000 (for the full term). What is the opportunity cost of going to college for this term, assuming that your food and apartment rent are the same with college as without it
Answer:
Opportunity cost of going to college $7,000
Explanation:
Opportunity cost is the value of the next best alternative forgone in favour of a decision. In this scenario, opportunity cost would mean any income sacrificed by the college students because he wanted to take a college education.
$
Before the college he could make 10,000
Switching work hours for study, he will now make 3,000
Opportunity cost 7,000
Opportunity cost of going to college $7,000
The opportunity cost of going to college for this term, assuming that my food and apartment rent are the same with college as without it is $7,000
Opportunity cost is an economic term for expressing cost in terms of foregone alternative. It is what has to be given up in order to have an alternative.
With regards to the above, opportunity cost would mean any income sacrificed by the college students because he wanted to take a college education.
Opportunity cost
= Before the college, he could make - Switching work hours for study, he will now make
= $10,000 - $3,000
= $7,000
Hence, the opportunity cost of going to college would be $7,000
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Define corporate culture. What are the components of a good corporate culture? Why do you think that corporate culture has such a huge impact on the success of a company? Please share your thoughts.
Answer:
Corporate culture, also known as company culture, refers to a set of beliefs and behaviors that guide how a company’s management and employees interact and handle external business transactions.
For 2020, X Company's production budget was 3,500 units of finished product, and the budget for direct material costs was $24,080. Actual production in 2020 was 2,500 units of finished product, and actual direct material costs were $17,230. What was the static budget for direct material costs in 2020
Answer: $24,080
Explanation:
The Static budget is based on a particular level of production and once it is prepared, it does not change even if the assumptions used in the calculation of the budget changes.
In this case, the budgeted direct material cost is $24,080 for a production level of 3,500 units of finished goods. This material cost is therefore based on a certain production level which makes it the static budgeted amount for materials.
Cash Flows from Investing Activities would involve all of the following except:
A. The purchase of buildings.
B. The receipt of interest income on short-term investments.
C. The purchase of marketable securities.
D. The proceeds from the sale of equipment.
Answer:
B
Explanation:
there are three types of cash flows:
1. Investing cash flow - It involves the use of long term cash. it is the cash flow generated from the purchase and sale of fixed asset e.g. Sale of plant assets.
2. operating cash flow - it shows the net amount of cash generated from a company's normal business operation
3. financing cash flow - it shows the net amount of funding a company receives over a given period e.g. issuance of common stock
Riley has worked for Centrum Springs, Inc., for many years and has now been given the opportunity to advance in the company. His manager is retiring and hopes that Riley will take over for him. However, even though Riley is an experienced employee, there are many things that he still needs to learn. Riley has trained many new employees, but he has never held a management position. Riley needs to have a general understanding of what it takes to be a manager. There are many problems in Riley's department. There are no plans to fall back on in case the initial plan fails. Riley also will need to learn how to direct people in such a way that makes them want to do more than they absolutely have to. Riley feels that this is a great opportunity, and he is anxious to learn everything to be a great manager. He knows that if he performs well in this position, he will have the opportunity to move up the corporate ladder.
Refer to Centrum Springs, Inc. Riley's usual duties represent which of these areas?
a. Financial management
b. Operations management
c. Marketing management
d. Human resources management
e. Administrative management
Answer:
B. I hope i helped!
Explanation: