Identify and explain the components of management compensation and the tradeoffs that compensation designers make.

Answers

Answer 1

Incorrect/Incomplete question: Complete question read;

Which of the following statements correctly describes management compensation options?

A) Managers do not receive fixed salaries; instead their compensation is based on bonuses and incentives.

B) Perks (perquisites) were eliminated as part of the Sarbanes-Oxley Act.

C) Bonuses are typically awarded for meeting or achieving specific goals.

D) Stock options and awards are part of fixed salary compensation.

Answer:

C) Bonuses are typically awarded for meeting or achieving specific goals.

Explanation:

All the options above with the exception of option C rightly describes management compensation plans. Remember, the term compensation includes both cash and non-cash payments an employee may receive for performing their duties well.

Hence, managers may award certain bonuses (eg 5% salary bonuses, etc)  to their employees for working diligently to meet specific goals (like meeting a sales target, new customer acquisition targets, etc).


Related Questions

Good faith in collective bargaining between a union and an employer does not include:_____.
a. being willing to compromise.
b. negotiating with the belief that an agreement is possible.
c. bargaining with the authority to enter into an agreement.
d. rejecting a proposal without offering a counterproposal.

Answers

Answer:

Good faith in collective bargaining between a union and an employer does not include:_____.

d. rejecting a proposal without offering a counterproposal.

Explanation:

Good faith bargaining involves a negotiation in which the employer and the union work amicably to achieve a reasonable agreement because they both have positive attitudes for positive outcomes.  Therefore, for employers and workers’ unions to bargain in good faith always, they need to meet at reasonable intervals to reach agreements with respect to wages, hours, and others employment terms and conditions.  Whenever a stalemate occurs, because unions and employers cannot agree without rancor, the unions may file unfair labor practice charges, wherein they allege that employers are not bargaining in good faith.

For the period from 2019 to​ 2020, a company reports the​ following: Percentage change in sales 30​% increase Percentage change in cost of goods sold 20​% increase Percentage change in gross profit 25​% increase If sales are $5,000,000 in​ 2019, what are sales in​ 2020?

Answers

Answer:

If sales are $5,000,000 in​ 2019, the sales in 2020 will be

$6,500,000

Explanation:

a) Data and Calculations:

                                                 2019     2020      Change

Percentage change in sales    100%     130%     30​% increase

Percentage change in cost of

  goods sold                             100%    120%     20​% increase

Percentage change in

 gross profit                             100%    125%     25​% increase

Sales are in​ 2019 =       $5,000,000   $6,500,000 ($5 million * 130/100)

Alternatively, the 30% increase can be computed, to get $1,500,000 ($5,000,000 * 30%).  This change in sales is then added to the 2019 sales figure to get $6,500,000, which is the sales in 2020.

If Xiu Li organized focus groups to discuss the idea of flavored additives with Hope Springs customers, this would be an example of

Answers

Answer: concept testing

Explanation:

Concept testing is simply used by a company or organization to determine whether customers will accept a product or not. In this case, a survey can be used to know if they'll except such product before it's introduction to the market.

Since Xiu Li organized focus groups to discuss the idea of flavored additives with Hope Springs customers, this would be an example of concept testing.

When Auto-Manufacturing Company designed a 6-month e-mail campaign, it included several customer offers that increased in value over time. This is an example of:_________.
A. Content marketing
B. The bounce rate
C. Content optimization
D. Exclusive deals
E. A drip campaign

Answers

Answer: a drip campaign

Explanation:

The example used by Auto-Manufacturing Company in the above scenario is a drip campaign.

Drip marketing is refered to as an email marketing strategy whereby several mails are sent out to customers at a particular time period. It is used to keep in touch with the customers and also nurture leads.

Webster Corporation's monthly projected general and administrative expenses include $4,100 administrative salaries, $1,500 of other cash administrative expenses, $2,300 of depreciation expense on the administrative equipment, and .5% monthly interest on an outstanding bank loan of $29,000. Compute the total budgeted general and administrative expenses budget per month.

Answers

Answer:

$7,900

Explanation:

Computation for the total budgeted general and administrative expenses budget per month.

Monthly projected general and administrative expenses :

Arministrative salaries $4,100

Other cash administrative expenses $1,500

Depreciation expense on the administrative Equipment $2,300

Total budgeted general and administrative expenses budget per month $7,900

($4,100+$1,500+$2,300)

Therefore the total budgeted general and administrative expenses budget per month will be $7,900

If the government sets a quota of 300 pounds of fish caught per day, then fish will sell for ________ more per pound than the cost of catching the fish.

Answers

Answer:

$20 per pound

Explanation:

According to the attached diagram as we can see that the government sets a quota of 300 pounds for caughting a fish per day due to which the selling price is rised from $30 to $50

Also more than 300 pounds of fish would not be caught per day

Therefore the difference of $20 would be considered

hence, the fish would sell for $20 per pound more

At the most recent staff meeting of Hyperactive Media Sales, the general manager gave you instructions to make the laptops used by the salespeople as secure as possible. You have decided to implement a new advanced sign-in process for the users. How will you explain to the general manager how using new authentication methods makes the laptops more secure

Answers

Answer:

New authentication methods such as the picture password, 2 factor authentication method, biometric identification, etc ensure that authentication credentials are safe and cannot be stolen and used from another laptop.

New authentication methods gives tougher walls of security which cannot be easily broken into thereby leaving the system protected and secure.

Due to increasing activities of cyber criminals, new and more sophisticated authentication processes are being developed giving laptops and computer systems better security as attackers are unable to exploit passwords.

List three pieces of information listed in a credit card agreement that you believe are important to review before

Answers

Explanation:

Annual Percentage Rate (APR). This is the cost of borrowing on the card, if you don’t pay the whole balance off each month. You can compare the APR for different cards which will help you to choose the cheapest. You should also compare other things about the cards, for example, fees, charges and incentives

Minimum repayment. If you don’t pay off the balance each month, you will be asked to repay a minimum amount. This is typically around 3% of the balance due.

Annual fee. Some cards charge a fee each year for use of the card. The fee is added to the amount due and you will have to pay interest on the fee as well as on your spending, unless you pay it in full.

What are the arithmetic and geometric average returns for a stock with annual returns of:__________.
a) 4%,
b) 9%,
c) -6%,
d) 18%

Answers

Answer:

Arithmetic average return = 6.25%

Geometric average return = 5.89%

Explanation:

Annual returns of 4%,  9%,  -6% and  18%

Arithmetic average return of the stock = ∑ 4%,9%,-6%,and 18% / n

= 25%/4

= 6.25%

Geometric average return formula = x1,*x2*x3 .....^1/n  - 1

Geometric average return = 1.04*1.09*(1-0.06)*1.18^1/4 -1

Geometric average return = 1.04*1.09*0.94*1.18^1/4 - 1

Geometric average return  = 1.25789^1/4-1

Geometric average return = 1.0589 - 1

Geometric average return = 0.0589

Geometric average return = 5.89%

10. How is net profit computed?
Net profit is computed by adding all sales income.
Net profit is computed by producing goods.
Net profit is computed by subtracting expenses from sales income.
Net profit is computed by adding all expenses.

Answers

Answer:

2 doe sure have a good day

A company buys a machine for $68,000 that has an expected life of 8 years and no salvage value. The company uses straight-line depreciation. The company anticipates a yearly net income of $3,250 after taxes of 36%, with the cash flows to be received evenly throughout each year. What is the accounting rate of return?
a. 3.44%.
b. 4.78%.
c. 9.56%.
d. 6.12%.
e. 38.24%.

Answers

Answer:

c. 9.56%

Explanation:

Accounting Rate of Return = Average Profit / Average Investment × 100

where,

Average Profit = $3,250

Average Investment = $68,000 ÷ 2 = $34,000

Therefore,

Accounting Rate of Return = $3,250 ÷ $34,000

                                             = 9.56 %

Sinclair is considering the acquisition of new machinery that will produce uniform benefits over the next five years. The following information is available: Annual savings in cash operating costs:$460,000 Annual depreciation expense:$360,000 If the company is subject to a 20% tax rate, what denominator should be used to compute the machinery's payback period

Answers

Answer:

The denominator (net annual cash flow) = $440,000

Explanation:

The denominator (net annual cash flow)

Particular                                 Amount

Saving in operating cost        $460,000

Less: Depreciation                 $360,000

Net additional income   $100,000

Income tax on above (20%)   $20,000

Savings after tax                   $80,000

Add: Depreciation                  $360,000

Net annual cash benefit   $440,000

The denominator (net annual cash flow) = $440,000

Is standardizing physical distribution function true or false

Answers

Answer:

Ture

Explanation:

.....................

You purchased a share of stock for $53. One year later you received $3.00 as dividend and sold the share for $52. Your holding-period return was

Answers

Answer:

the holding period return is 3.77%

Explanation:

The computation of the holding period return is shown below:

Holding period return is

= (Income + (Selling price - Purchase price)) ÷ Purchase price

= ($3 + ($52 - $53)) ÷ 53

= 3.77%

Hence, the holding period return is 3.77%

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

Through self-guided internet research, the intellectually curious mind can find many examples of potential rewards in business. Add two (2) or more examples of Business Rewards to this list.

Answers

Through self-guided internet research, the intellectually curious mind can find many examples of potential rewards in business. Add two (2) or more examples of Business Rewards to this list:

Business Rewards

A deep sense of satisfaction

Being the one in control

Providing sustainable jobs and income for others

The opportunity to give back / community responsibility

The satisfaction of excellent customer feedback

Financial Rewards

After conducting additional research, what other business rewards can you add here?

Answer:

1. Independence and Flexibility

2. Learning opportunities

Explanation:

The rewards of having a business are tremendous and cannot be overemphasized. Hence, asides from the listed business rewards, here are two additional business rewards

1. Independence and Flexibility: One of the rewards of doing business is the independence that comes with it. As the business grows, a business owner gets to have the independence to work whenever he wishes, and have the flexibility of time to be active in business life and other events outside the business.

2. Learning Opportunities: business activities allows business owners to see and learn how certain aspects of the business is getting done. Even when there are employees to perform those functions, business owners still have the opportunity to see, learn, and understand how those activities are being carried out.

At Bell’s Furniture, assemblers are paid according to the following differential piece rate scale: 1−20 dressers in a week, $7 each; 21−30 dressers, $9.50 each; and $14 each for every dresser over 30. Liz Henderson assembled 47 dressers in one week. Find her gross pay

Answers

Answer:

$658

Explanation:

Henderson assembled 47 dressers in the week.  

Her applicable pay rate is $14 per piece since she assembled over  30 dressers in one week.

her gross pay for the week

=$14 x 47

=$658

True or False:
The US tax system subsidizes married couples compared to single individ-uals. Explain.

Answers

Answer:

False

Explanation:

Some married couples pay higher taxes because they file their taxes together. This is called a marriage penalty, and generally occurs when both spouses earn similar amounts of money. If each spouse was to file separately, their income taxes would generally be lower. But if one spouse earns significantly more than the other, then filing their taxes together lowers their total income taxes.

Due to Christian values, American laws generally favor established families. That rule applies to almost all countries with similar values since Western cultures consider the family as the foundation of society (husband, wife and children). But even single parents benefit from differential tax rates, since they can file as head of households. Same sex marriages are legal, so they can also file as married even if they are not conventional families.

If the covariance of returns between a stock and the market equals zero, then what does the beta of the stock equal

Answers

Answer:

a) Zero

Explanation:

As we know that

beta = Covariance (Stock return , Market return) ÷ market return variance

Now in the case when the covariance of return that lies between the stock and the market equivalent to zero so the beta of the stock would be zero

As if you divide by zero so the result would be zero

Therefore as per the given option, the option A is correct

Assume the supply of bananas decreases due to rising costs of
production, while demand increases due to consumer preferences. What
will happen to the new equilibrium price and quantity?
A) price increases; quantity increases
B) price increases; quantity is unknown
C)price decreases; quantity decreases
D)price decreases; quantity increases
E)price is unknown; quantity increases

Answers

Answer:c option price decreases;quantity decreases

True or False: Under the average-cost pricing policy, the cable company has no incentive to cut costs.

Answers

Answer:

True.

Explanation:

The cable company will not have any incentive to cut costs.  This is because it knows that its costs will be averaged to determine the average cost to which a certain percentage is then added to arrive at the selling price.  Having the cost averaged in this way will not motivate the cable company to seek cost minimization strategies that it could use to increase its income.

On January 1, a store had inventory of $48,000. January purchases were $46,000 and January sales were $90,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 25% of cost. Merchandise with a selling price of $7,500 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage. Label all figures.

Answers

Answer:

the amount of the fire loss is $16,000

Explanation:

The computation of the amount of the fire loss is shown below

January 1 inventory $48,000

Add purchases $46,000

Goods Available $94,000

Less Cost of Goods Sold ($90,000 × 100 ÷ 125) $72,000

Less Cost of undamaged goods ($7,500 × 100 ÷ 125) $6,000

Goods Lost by Fire $16,000

hence, the amount of the fire loss is $16,000

Cromwell's Interiors is considering a project that is equally as risky as the firm's current operations.The firm has a cost of equity of 15.4 percent and a pretax cost of debt of 8.9 percent.The debt-equity ratio is .46 and the tax rate is 34 percent.What is the cost of capital for this project?A) 11.97 percentB) 12.40 percentC) 11.02 percentD) 11.62 percentE) 12.38 percent

Answers

Answer:

Cost of capital = 12.40% (Approx)

Explanation:

Given:

Cost of equity =  15.4%

Pretax cost of debt = 8.9%

Debt-equity ratio = 0.46

Tax rate = 34%

Computation:

Equity multiplier = 1 + Debt-equity ratio

Equity multiplier = 1 + 0.46

Equity multiplier = 1.46

Weight of equity = 1 / Equity multiplier

Weight of equity = 1 / 1.46

Weight of equity = 0.685

Weight of Debt = 1 - Weight of equity

Weight of Debt = 1 - 0.685

Weight of Debt = 0.315

Cost of capital = [Weight of Debt x Pretax cost of debt] x (1-tax rate) + [Cost of equity x Weight of Debt ]

Cost of capital = [0.315 x 8.9% x (1-0.34)] + [15.4% x 0.6849]

Cost of capital = 12.40% (Approx)

Zhang Industries budgets production of 220 units in June and 230 units in July. Each unit requires 1.5 hours of direct labor. The direct labor rate is $12.40 per hour. The indirect labor rate is $19.40 per hour. Compute the budgeted direct labor cost for July.

Answers

Answer:

Budgeted direct labor cost for July = $4,278

Explanation:

Given:

Production in July = 230 units

Hours of direct labor  = 1.5 hours per unit

Direct Labor rate = $12.40 per hour

Indirect labor rate = $19.40 per hour.

Find:

Budgeted direct labor cost for July

Computation:

Budgeted direct labor cost for July = (Production in July)( Hours of direct labor)( Direct Labor rate)

Budgeted direct labor cost for July = (230)(1.5)(12.4)

Budgeted direct labor cost for July = $4,278

What is the percentage change in the PV of $100 due in 1 year when the interest rate changes from 5% to 10%?
a. Decreases by 60.6%
b. Decreases by 4.33%
c. Decreases by 4.5%
d. Does not change
e. Increases by 4.5%
f. Increases by 60.6%

Answers

Answer:

c. Decreases by 4.5%

Explanation:

Calculation for What is the percentage change in the PV

First step is to calculate the present value when r is 5%

PV = 100 / (1 + 5%)^1

PV = $95.24

Second step is to calculate present value when r is 10%

PV = 100 / (1 + 10%)^1

PV = $ 90.91

Last step is to calculate the percentage change in the PV

Percentage change in the PV = (90.91 - 95.24) * 100 / 95.24

Percentage change in the PV = - 4.55% (Decrease)

Therefore the Percentage change in the PV Decreases by 4.5%

Waterway Industries factors $3000000 of its accounts receivables without recourse for a finance charge of 3%. The finance company retains an amount equal to 7% of the accounts receivable for possible adjustments. Waterway estimates the fair value of the recourse liability at $310000. What would be the debit to Cash in the journal entry to record this transaction?

Answers

Answer: $2,700,000

Explanation:

The debit to Cash in the journal entry to record this transaction will be calculated as:

= $3,000,000 - [($3,000,000 × 3%) + ($3000000 ×7%)]

= $3,000,000 - ($3,000,000 × 0.03) + ($3000000 × 0.07)

= $3,000,000 - [$90,000 + $210,000]

= $3,000,000 - $300,000

= $2,700,000

Therefore, the debit to cash will be $2,700,000.

Costello Corporation reported pretax book income of $502,000. During the current year, the reserve for bad debts increased by $9,000. In addition, tax depreciation exceeded book depreciation by $42,000. Finally, Costello received $4,000 of tax-exempt life insurance proceeds from the death of one of its officers. Costello's deferred income tax expense or benefit would be:________.

Answers

Answer: $11220

Explanation:

Based on the scenario in the question, first, we.have to calculate the difference in net tax which will be:

= $42000 - $9000

= $33,000

Using a tax rate of let's say 34%, Costello's deferred income tax expense would be:

= $33,000 × 34%

= $33000 × 0.34

= $11220

It is a baked staple food made from flour,liquid and other ingredients

a. cakes
b.biscuit
c.cookies
d.muffins

Answers

D. Muffins

(I'm only in 7th grade, sorry if it is wrong.)

It can't be biscuits or cookies, since they require way more items. It is reasonable to choose muffins, since it doesn't need as much ingredients as cake.

You are a junior in college. You sent your resume to a half-dozen companies hoping to get a summer internship. Two weeks ago XYZ Corporation contacted you and offered you a paid summer internship. One week ago you accepted their offer, agreeing to start work a week after your last final exam. Today you received a much better internship offer from ABC Corporation. What should you do

Answers

Answer:

I would politely reach out to XYZ organization and let them know I won't be taking them on their offer

Explanation:

In this particular situation, there is no legal binding in this agreement to start work. There is no responsibility from me to XYZ corporation.

If this new offer excited me more than what XYZ corporation has offered, then I have to decide which company i would decide to do my internship with. So I would have to politely decline the offer from XYZ.

You purchased 240 shares of stock at a price of $37.92 per share. Over the last year, you have received total dividend income of $255. What is the dividend yield

Answers

Answer: 2.8%

Explanation:

Dividend yield is calculated as dividend per share divided by the price per share.

Dividend per share = 255/240 = $‭1.0625‬

Dividend yield = ‭1.0625‬/ 37.92

= 2.8%

Which of the following are different types of low risk bonds discussed in the presentations? (Select all that are correct.)
Group of answer choices

High Yield Bonds

Callable, Speculative Grade, and Municipal Bonds

Corporate bonds--form of borrowing by a corporation, interest is subject to taxes.

Government bonds--issued by US Treasury, low risk, and no state or local taxes on the income.

Answers

Government and Municipal
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