Answer:
$100,000
Explanation:
Accounting profit = Revenue - Explicit Cost
$4,100,000 - $4,000,000 = $100,000
Accounting profit does not taken into account opportunity cost or implicit cost. The implicit cost here is the amount of interest forgone by starting the store
This interest rate would have been earned if he left the money in his account
Using the midpoint method, calculate the price elasticity of demand for Gondwanaland gosum berries. Explain what this price elasticity of demand means
Answer:
The data of the question is this:
YEAR Gosum Berries Price Per
Demand Barrel
107 700 $70
108 600 $84
Explanation:
The Mid-Point Formula to calculate the Price Elasticity of Demand is:
[ (Q2 - Q1) / (Q2 + Q1) / 2 ] this divided by [ (P2 - P1) / (P2 + P1) / 2 ]
where Q is demand, and P is price
Now, we plug the amounts into the formulas:
[ (600 - 700) / (600 + 700) / 2 ] = -0.038
[ (84 - 70) / (84 + 70) / 2 ] = 0.045
-0.038 / 0.045 = -0.844
Thus, the elasticity of demand for gosum berries, using the midpoint method, is -0.844, however, economists use absolute values for elasticities, so -0.844 becomes 0.844
An elasticity of demand of 0.844, which is less than one, indicates inelastic demand. This means that the quantity demanded for gosum berries falls less in proportion to raises in price.
In order worlds, the coefficient of elasticity of demand measures the price sensitivity of consumer demand for a particular good or service.
Match the different activities to the responsibilities of relevant banks
Answer:
Federal bank:
•provides financial services to the government
•regulates safe and lawful operations
Conducts nation’s monetary policies
Other commercial banks:
•accepts deposits from people
•lends money through to consumers and businesses
Explanation:
I just took the test and got this one right
(Plato/edmentum)
The different activities are matched as per responsibilities :
Federal bank
Gives all financial services to the governmentregulates safe and the lawful operationsMaintains nation’s monetary policiesOther banks :
Accepts the deposits from the people.They lend the money to consumers and businessesWaht is a federla bank ?A federal bank is one that acts as the central bank and is commonly found in the US.
These banks are responsible for conducting activities like giving all financial services to the govt and maintaining the nation's monetary policy. While the other banks are responsible for accepting the deposit from people and lending the money to consumers and businesses.
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This year, Johnson Mills has annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. The firm paid $700 in dividends, $280 in interest, and has a total tax rate of 21 percent. The firm will add $2,810 to retained earnings. What is the depreciation expense?
Answer:
$3,857
Explanation:
From the above, we do know that;
Revenue - Expenses = Net income
But
Expenses = Revenue - Cost of goods sold - Admin expenses - Depreciation expenses
Also,
Net income tax = Income before taxes × ( 1 - tax rate)
Since we do not know Net income taxes,
Net income - Dividends = Change in retain earnings
Net income = $2,810 + $700
= $3,510
Income before taxes = $3,510 / 0.79
= $4,443
$37,800 - $23,200 - $6,300 - Depreciation expenses = $4,443
Therefore,
Depreciation expenses = $3,857
The stage which relates to
development of decision making
abilities, interpersonal and technical
competencies is known as:
Select one:
a. Facilitating the improvement
of quality and employee
productivity
b. Norming
c. Storming
d. Forming
= Storming
Explanation:
The stage which relates to
development of decision making
abilities, interpersonal and technical
competencies is known as storming
'Team development' consists of five distinct stages with each having its own significance in ensuring smooth and effective performance by every member for attaining the desired goals.
The stage of team development that is associated with making a decision by ruling out internal conflicts or competencies would be:
c). Storming
'Storming' is described as the stage at which the various members of the team come up with a variety of ideas. Each member attempts to make sure that his/her idea stands out and this leads to arguments, competition, and conflicts among the team members. As a result, the original goal of the team is often sidelined. Therefore, the leader plays a key role in managing these conflicts and strike focus back to the goal. The leader of the team communicates with the team and makes a decision that helps in gathering the team as a unit for setting out the norms in the next stage.
Thus, option C is the correct answer.
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Job 101 was completed and sold for $60,000. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $45,000. Required: 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101. 3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold.
Answer:
Required 1
Debit : Finished Goods $53,600
Credit : Work In Process $53,600
Required 2
Debit : Cash $60,000
Debit : Cost of Goods Sold $55,000
Credit : Sales $60,000
Credit : Finished Goods $55,000
Required 3
Debit : Overheads $4,000
Credit : Cost of Sales $4,000
Explanation :
Hi, I have attached the full question as a pdf below
Manufacturing Costs Calculations :
Job 101 = $19,200 + $28,800 + ($420,000/60,000 x1,000) = $55,000
Job 102 = $14,400 + $11,200 + ($420,000/60,000 x4,000) = $53,600
Closing Overheads :
Actual Overheads = $45,000
Applied Overheads = $420,000/60,000 x 7,000 hours = $49,000
Therefore,
Overheads are over-applied ( by $4,000) and must be deducted from cost of sales
International macroeconomics focuses on: isolated nations. market-specific variables such as the price of orange juice. city-level economic problems.
Answer:
Isolated nations
Explanation:
Macroeconomics is a branch of economics that studies the economy as a whole. Macroeconomics studies economic aggregates such as inflation, unemployment, GDP and growth rate.
International macroeconomics focuses on economic activities of various countries and how its consequences
By using resources in an efficient and effective manner to reach organizational goals, managers may reach their ultimate responsibility of achieving high __________.
Answer:
Performance
Explanation:
The ultimate responsibility of the manager is to accomplish the high performance that represent the attainment of the organization goals via using the resources in a best way i.e. efficient and effective manner
So the responsibility of the manager is to accomplish the high performance so that the company could attain its goals and objectives
Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $180,000, and it had a market value of $288,000 on the date of the transfer. Cecile sold the stock for $252,000 a month after receiving it. In addition Casper is required to pay Cecile $9,000 a month in alimony. He made five payments to her during the year.
Required:
a. What are the tax consequences for Casper and Cecile regarding these transactions?
b. How much gain or loss does Casper recognize on the transfer of the stock?
c. Does Casper receive a deduction for the $7,500 alimony paid?
d. How much income does Cecile have from the $7,500 alimony received?
e. When Cecile sells the stock, how much does she report?
Answer:
a. No gain or loss will be recognized by either party.
b. $0 gain or loss will be recognized by Casper on the transfer.
c. Yes, a deduction will be received by Casper for the $45,000 alimony paid during the year.
d. The amount of income is the $45,000 alimony received from Casper during the year.
e. Cecile will report a capital gains of $72,000.
Explanation:
Note: This question has some errors. The correct question is therefore provided before answering the question as follows:
Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $180,000, and it had a market value of $288,000 on the date of the transfer. Cecile sold the stock for $252,000 a month after receiving it. In addition Casper is required to pay Cecile $9,000 a month in alimony. He made five payments to her during the year.
Required:
a. What are the tax consequences for Casper and Cecile regarding these transactions?
b. How much gain or loss does Casper recognize on the transfer of the stock?
c. Does Casper receive a deduction for the $45,000 alimony paid?
d. How much income does Cecile have from the $45,000 alimony received?
e. When Cecile sells the stock, how much does she report?
The explanation of the answers are now given as folllows:
a. What are the tax consequences for Casper and Cecile regarding these transactions?
Casper who is the party that is making the transfer will enjoy a deduction for the property he transferred as he is nt entitled to the deduction. In addition, no gain or loss will be recognized by Casper o the transfer.
Cecila who us the party that receives the property will also not recognize income. She will include the property received on cost basis equal to basis of the Casper who is the party that the transfer.
b. How much gain or loss does Casper recognize on the transfer of the stock?
$0 gain or loss will be recognized by Casper on the transfer.
The reason for this is that anything that is paid under alimony that is not cash is not taxable. Since what Casper transferred is not cash, $0 will be recognized.
c. Does Casper receive a deduction for the $45,000 alimony paid?
The total alimony made by Casper during the year is calculated as follows:
Total alimony paid = Alimony amount * Number of payments during the year = $9,000 * 5 = $45,000
Therefore, a deduction will be received by Casper for the $45,000 alimony paid during the year.
d. How much income does Cecile have from the $45,000 alimony received?
The amount of income is the $45,000 alimony received from Casper during the year. And this will be included in her gross income.
e. When Cecile sells the stock, how much does she report?
The amount she will report as capital gain can be calculated as follows:
Capital gains = Revenue from the sales of the stock by Cecile - Purchase price paid by Casper = $252,000 - $180,000 = $72,000
Therefore, Cecile will report a capital gains of $72,000.
ABC Company listed the following data for the current year:
Budgeted factory overhead $1,044,000
Budgeted direct labor hours 69,600
Budgeted machine hours 24,000
Actual factory overhead 1,037,400
Actual labor hours 72,600
Actual machine hours 23,600
If overhead is applied based on machine hours, the overapplied/underapplied overhead is:
a. $15,300 overapplied.
b. $15,300 overapplied.
c. $10,800 underapplied.
d. $10,800 overapplied.
e. $-0-.
Answer:
$10,800 underapplied
Explanation:
Calculation for If overhead is applied based on machine hours, the overapplied/underapplied overhead is:
Overhead machine hours=[($1,044,000/24,000)×23,600]-1,037,400
Overhead machine hours=($43.50 x 23,600) - 1,037,400
Overhead machine hours=$1,026,600- 1,037,400
Overhead machine hours= $10,800 underapplied
Therefore If overhead is applied based on machine hours, the overapplied/underapplied overhead is:$10,800 underapplied
A rise in the price of Pepsi that causes a household to shift its purchasing pattern toward Coke and away from Pepsi is the ________ effect of a price change. A) income B) substitution C) complementary D) diminishing marginal utility
Answer:
B
Explanation:
Substitution effect is the change in demand as a result of the change in the price of a good relative to the price of another good.
As a result of the increase in price of Pepsi, the demand for coke increases. This is an example of substitution effect
The United States imports a lot of cars, despite having its own auto industry. Each of the following statements are arguments some people could make for restricting imports of cars into the United States. For each statement, identify the threat to the U.S. industry that the argument is trying to counter, and identify the opportunities that would be given up if the argument wins.
Choose the correct answer:
a. "Foreign manufacturers are offloading their cheap cars onto the U.S. market. We should stop this so that consumers have access to higher-quality U.S. cars."
-National security requires that strategically important goods be produced domestically.
-Protection can help infant industries develop.
-Foreign competition may lead to job losses.
-Anti-dumping laws prevent unfair competition.
-Trade should not enable foreign firms to skirt U.S. regulations.
b. "We must foster the innovation of small car companies, like Tesla. Allowing foreign electric vehicle manufacturers to sell cars in the U.S. will eliminate any chance of creating those cars domestically."
-Foreign competition may lead to job losses.
-Anti-dumping laws prevent unfair competition.
-National security requires that strategically important goods be produced domestically.
-Trade should not enable foreign firms to skirt U.S. regulations.
-Protection can help infant industries develop.
c. "You should not buy a car from Nissan or BMW! You are putting people here out of a job."
-Foreign competition may lead to job losses.
-Anti-dumping laws prevent unfair competition.
-National security requires that strategically important goods be produced domestically.
-Trade should not enable foreign firms to skirt U.S. regulations.
-Protection can help infant industries develop.
Answer:
a. "Foreign manufacturers are offloading their cheap cars onto the U.S. market. We should stop this so that consumers have access to higher-quality U.S. cars."
-Anti-dumping laws prevent unfair competition.
DUMPING REFERS TO GOVERNMENTS SUBSIDIZING EXPORTS IN ORDER TO LOWER THEIR PRICES. THIS IS AN ILLEGAL PRACTICE NOT ACCEPTED BY THE WORLD TRADE ORGANIZATION.
b. "We must foster the innovation of small car companies, like Tesla. Allowing foreign electric vehicle manufacturers to sell cars in the U.S. will eliminate any chance of creating those cars domestically."
-Protection can help infant industries develop.
EVEN THOUGH CAR ARE MANUFACTURED IN THE US SINCE MANY YEARS AGO, TESLA AND OTHER ELECTRIC CAR MANUFACTURERS ARE STILL AN INFANT INDUSTRY.
c. "You should not buy a car from Nissan or BMW! You are putting people here out of a job."
-Foreign competition may lead to job losses.
JOBS MAY BE AT RISK WHEN A DOMESTICALLY PRODUCED GOOD IS REPLACED BY AN IMPORTED GOOD
How does a business survive and maintain a profit?
Answer:
Make sure you don't copy and paste. Have a good day!!!
Explanation:
1. Customers
Find and keep your own customers – you have to be able to solve their real problems & sell yourself effectively.
Too many businesses rely on ‘being in the supply chain’, have too few major customers and do not invest personal time and effort in developing and maintaining customer relations – remember, ‘people buy people’.
Check their credit rating and monitor their speed of payment.
You have not made a sale until they’ve paid the bill. Some customers have bad habits over slow payment; some are big enough to know better. Some will go under before they pay – avoid them.
2. Risks
Assess risks & their potential impact – e.g. customer or supplier closure
Develop contingency plans to mitigate risks
We live in a risky business environment. Don’t assume everything will be OK – look at the potential risks, pitfalls and liabilities for your business and at how you can reduce the biggest risks or anticipate how you will respond if the worst happens.
3. Opportunities
Look for ways to create new value – e.g. new pricing, products & offers to stimulate demand
It often takes longer and costs more than you think to innovate or do anything new.
Use the technology – social media, tablet computing and smartphones are constantly changing the ways we can do business
There are always new opportunities and growing confidence in the economy accelerates these. Many of the most attractive are not in the UK but are international.
Innovation and new approaches can open up promising opportunities but experience tells us that when doing anything new often costs more and takes longer to implement than you first expect, so be prepared to increase your investment of time and money for those new ideas. That means doing your research to find out just how attractive an opportunity it is in the first place.
4. Money in – manage cash and break even
Forecast and monitor your cash flow very closely
Aim to maintain/increase profit margins rather than just increasing sales turnover (bottom line not top line)
Monitor breakeven on the business, customers, products, staff.
Beware of ‘buying’ work at cut-throat margins. Profitable businesses can fail because they run out of money, often suffering from slow payment and lack of credit. Aim to be cash-positive and you will sleep better at night. Break-even is the point at which the business, a person or a contract starts making a profit and is always an important measure.
5. Money out – manage costs and debt
Keep your fixed costs down: avoid costs which are not essential.
Aim to grow sales on a variable cost basis – borrow, rent or lease assets but don’t buy things or hire people you don’t need.
Keep in contact with creditors & lenders to avoid nasty surprises.
Businesses can be wasteful; you don’t need to be. Invest your money only in assets and projects which will provide a strong return. The worst time to ask a lender for more money is when you really need it. Up to date management accounts are essential and you must read them to monitor the health of the business.
6. People
Optimism – positive, realistic leadership with open communications
Set & monitor clear & realistic targets – sales, costs, project completion, debt etc.
Move unproductive people & customers out of the business.
At the end of the day it’s all about how you manage relationships with people. You can tell a lot about a business from the quality of interactions between its managers, employees, customers and suppliers.
Answer:
Explanation:
No business can survive for a significant amount of time without making a profit, though measuring a company's profitability, both current and future. Without sufficient capital or the financial resources used to sustain and run a company, business failure is imminent.
Matthew purchased a new piece of equipment to be used in its new facility. The $400,000 piece of equipment was purchased with a $40,000 down payment and with cash received through the issuance of a $360,000, 9%, 5-year mortgage payable issued on January 1, 2022. The terms provide for annual installment payments of $92,553 on December 31.
Required:
Prepare an installment payments schedule for the first five payments of the notes payable.
Answer:
The ending balance after the first five payments of the notes payable is $1.70.
Explanation:
Note: See the attached excel file for the installment payments schedule for the first five payments of the notes payable.
In the attached excel file, the following are calculated as follows:
Beginning balance for the year 2022 = Value of the note payable
For other years, Beginning balance for a particular year = Previous year's ending balance
Interest expense for each year = Beginning balance for each year * Interest rate
Principal paid for each year = Annual installment - Interest expense for each year
Ending balance for each year = Beginning balance for each year - Principal paid for each year
From the attached excel file, the ending balance after the first five payments of the notes payable is $1.70.
what are the points for?? :^)
Answer:
The brainly point allow you to ask questions
Which function of money describes its ability to help people compare what
different goods and services are worth?
A. Standard of deferred payment
B. Store of value
C. Measure of value
D. Medium of exchange
Answer: D. Medium of exchange
Explanation:
The function of money describes its ability to help people compare what different goods and services are worth as a measure of value. Thus the correct option is C.
What is Service?Services are referred to as a type of goods that is offered to someone in terms of facilities like the one received in a restaurant or shopping mall. It is a type of commodity or product that is intangible in nature, one can only feel it.
Money is referred to as currency which is considered a medium of exchange that is used to buy and sell products and services by measuring their value in comparison to each object.
This is referred to as a standard payment system that is applicable in each country that has a different value of its currency based on the economy.
Therefore, option C is appropriate.
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There is a goose that lays golden eggs, one each year, arriving at the end of the year. Each egg weighs one pound. The price of gold is currently $1,247 per ounce (16 ounces in a pound), and this is your best guess for the price going forward. You expect the goose to live 10 years (thus laying 10 eggs). How much is this goose worth today if the discount rate is 8%
Answer:
$133,880
Explanation:
Missing word "How much is this goose worth today?"
Each year 1 golden egg, we get which weighed at 1 pond
1 pound = 16 ounce
Therefore 1 golden egg = 16 ounce
Therefore 1 golden egg = 16 ounce * $1,246/ounce
Therefore 1 golden egg = $19,952
Therefore for 10 years discounted at 8%, the worth of the goose shall be
= Yearly cash flow * Sum of D.F.8%, 10 years
= $19,952 * 6.7101
= $133,880
So, the worth of the goose today is $133,880
Select the correct answer.
Delegating means being responsible for all the work.
A True
B. False
Answer:
B. False
Explanation:
Delegating is using one's authority to assign some responsibilities to team members. Usually, delegations stem from a senior officer to a junior officer but can also be between co-workers. It is authorizing and empowering someone else to execute some of your responsibilities on your behalf.
In delegation, the delegating authority must provide clear guidance on how the assigned duties are discharged. Some level of supervision is still required as delegating does not take away the accountability element from the delegating authority.
You know that one of your shortcomings is that you have no real job experience to speak of. You are considering beefing up your resume by exaggerating the extent of the class project you worked on for a few weeks at your brother-in-law’s small consulting firm. You could reword the resume to make it sound as if you were actually employed there and that your responsibilities were greater than they actually were. What would you do?
Answer:
Obviously, I will not reword the resume in order make it sound as if I was employed.
Explanation:
Solution:
Obviously, I will not reword the resume in order make it sound as if I was employed.
Because:
1. It is ethically wrong.
2. If I reword the resume, then obviously, I would present fake certificates to the company in order to prove the rewording or exaggerating presenting in the resume.
3. Fake documents and certificates can not be hidden for long.
4. It is really dangerous and illegal to present fake data and certificates. You can get a job on those fake profiles but after some time, chances are very high that you will be caught red handed. And consequently, you can face severe legal proceedings as well.
Hence, I will definitely not exaggerate or reword the resume. Better way is to get an internship experience for free and then provide real certificates to secure a job.
You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: penguin patties, frizzles, and mookies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin patties decreases by 5%, the quantity of frizzles sold increases by 4% and the quantity of mookies sold decreases by 5%. Your job is to use the cross-price elasticity between penguin patties and the other goods to determine which goods your marketing firm should advertise together.
Complete the first column of the following table by computing the cross-price elasticity between penguin patties and raskels, and then between penguin patties and kipples. In the second column, determine if penguin patties are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with penguin patties.
Relative to Splishy Splashies
Cross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Splishy Splashies
Flopsicles
Kipples
Answer:
Explanation:
a) Data and Calculations:
Decrease in the price of penguin patties = 5%
Quantity of frizzles sold increase by 4%
Quantity of mookies sold decrease by 5%
Cross-price elasticity of frizzles relative to penguin patties = 4%/-5% = -0.8
Cross-price elasticity of mookies relative to penguin patties = -5%/-5% = 1
Relative to Frizzles Cross-Price Complement Recommend
and Mookie's Elasticity of Demand or Substitute Marketing
Frizzles -0.8 (4%/-5%) Complement with patties
Mookie's 1 (-5%/-5%) Substitute without patties
b) The cross-price elasticity measurements for penguin patties and frizzles and Mookie’s are calculated by taking the percentage changes in the quantity demanded of frizzles and Mookie’s and dividing them by the percentage change in the price of the penguin patties. Complementary goods have a negative cross- price elasticity because as the price of penguin patties decreases by 5%, the demand for the frizzles increases by 4%. Substitute goods have a positive cross-price elasticity because as the price of penguin patties decreases by 5%, the demand for the other good decreases by 5%.
102M in preferred stock, $85M in book value of common stock, and $120M in debt selling at 96.7%. The common stock has a market to book ratio of 1.75, a yield to maturity on its debt of 5.4%, and a return on its preferred stock of 9.45%. The company is sitting in the 18% tax bracket, has a beta of 1.25 on its common stock, the market return is 15% and the risk free rate is 3.24%. What is the Cost of Preferred Stock
Answer:
9.45%
Explanation:
the cost of preferred stock is given by the question.
the formula that we can use to calculate the cost of preferred stock = preferred dividends / market price per preferred stock
remember that preferred dividends are paid with after tax earnings, so they do not reduce taxes
On January 2, 2020, Vaughn Manufacturing began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows:
January 2, 2020 $ 599000
September 1, 2020 1801200
December 31, 2020 1801200
March 31, 2021 1801200
September 30, 2021 1220000
Vaughn Manufacturing borrowed $3230000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $13680000 in 7% bonds outstanding in 2020 and 2021.
The interest capitalized for 2020 was:
a. $159600
b. $479060
c. $478800
d. $119940
Answer:
d. $119,940
Explanation:
We must first calculate the weighted accumulated expenditures 2020:
January $599,000 x 12/12 = $599,000 September $1,801,200 x 4/12 = $600,400 December $1,801,200 x 0/12 = $0total = $1,199,400capitalizable interests = $1,199,400 x 10% (interest rate of specific construction loan) = $119,940
you will consider other interest rates only if expenses are higher than the specific construction
Megan and Susan are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Megan takes 5 hours to brew a gallon of root beer and 3 hours to make a pizza. Susan takes 8 hours to brew a gallon of root beer and 4 hours to make a pizza.
Megan's opportunity cost of making a pizza is ______________ of root beer, and Susan's opportunity cost of making a pizza is ______________ of root beer. __________has an absolute advantage in making pizza, and ___________ has a comparative advantage in making pizza. If Megan and Susan trade foods with each other, ___________ will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is ____________ of root beer, and the lowest price that makes both roommates better off is _________ of root beer per pizza.
Answer and Explanation:
The cost of pizza production for Megan is 3 ÷ 5 root beer gallons.
And, Susan's pizza production potential cost is 1 ÷ 2 root beer gallons
Megan also gained an edge in pizza making as she only takes three hours, whereas Susan takes four hours on the other side.
And, susan's opportunity cost is lower than megan, which means that susan has the comparative advantage.
3 ÷ 5 root beer gallon may be better off.
And the cheaper price of 1 ÷ 2gallons of root beer could be better.
Cost Reductions and Local Responsiveness
Choosing the most appropriate strategy for a firm in international business involves two essential dimensions. The firm must examine ways to reduce costs, which can be done in a number of ways. Standardization of products and components plays a very important part. Customers, however, don't always want standardized products, even if it means they will pay more.
The balance a firm seeks between the pressures for cost reduction and local responsiveness is one of the most essential determinants of the firm's strategy.
Pressures for local responsiveness imply that it may not be possible for a firm to realize the full benefits from economies of scale, learning effects, and location economies. The need to customize a product offering may work against a strategy of producing a standardized product made in a single, low-cost location. Customization may bring benefits but it limits the ability of a firm to realize significant scale and location economies. In addition, pressures for local responsiveness imply that it may not be possible to leverage skills and products associated with a firm's core competencies from country to country without additional changes.
The appropriateness of the four main strategic postures-global standardization, localization, translational with the extent of the pressures for cost reductions and local responsiveness .
As the balance between cost reduction and local responsiveness affects strategy you must know each thoroughly.
Read the points below and determine if it represents a pressure for cost reductions or local responsiveness
1. Differences in Infrastructure
2. Differences in Preferences
3. Outsourcing
4. Universal Needs
5. Distribution Channels
6. Optimal Location
7. Host Government Demands
8. Experience Curve
Pressure for cost reductions Pressure for local responsiveness
Answer:
Determination of points that represent pressure for cost reduction and those that represent pressure for local responsiveness:
A. Pressure for cost reductions:
3. Outsourcing
4. Universal Needs
6. Optimal Location
8. Experience Curve
B. Pressure for local responsiveness:
1. Differences in Infrastructure
2. Differences in Preferences
5. Distribution Channels
7. Host Government Demands
Explanation:
Local responsiveness to international strategies arises from differences in customer preferences, differences in traditional practices and infrastructure, differences in distribution channels, and from host government demands. The rest, including the need for outsourcing, meeting universal needs, finding optimal locations, and gaining from experience curves, originate from the entity's efforts to reduce costs of products and services for market competitiveness.
On December 18, Intel receives $260,000 from a customer toward a cash sale of $2.6 million for computer chips to be completed on January 23. The computer chips had a total production cost of $1.6 million. What journal entries should Intel record on December 18 and January 23
Answer:
December 18
Debit : Cash $260,000
Credit : Deferred Revenue $260,000
January 23
Debit : Cost of Sales $1.6 million
Debit : Deferred Revenue $260,000
Debit : Trade Receivable $2,340,000
Credit : Inventory $1.6 million
Credit : Sales Revenue $2.6 million
Explanation:
During December 18, the firm receives cash and must recognize this asset. On the other hand it should recognize the Liability, Deferred Revenue for the sale not yet completed.
During January 23, reverse the Deferred Revenue and recognize the Sales Revenue for that amount. Also recognize the cost of sales and decrease in inventory. the remainder not yet paid is a Trade Receivable and must be recognized.
Tarazzz Company manufactures computers. The following cost information for the manufacture of one computer has been compiled. Direct materials $48 Direct labor 64 Variable manufacturing overhead 40 *Fixed manufacturing overhead 48 Total cost per unit $200 *The $48 amount reflects the amount of indirect cost allocated to each unit. However, as indicated, the total of these indirect costs is fixed. Tarazzz has received a special order for 1,000 computers at a price of $150 per unit. By how much will overall company net income change if the order is accepted
Answer:
Company net income will DECREASE by $2,000 if the order is accepted.
Explanation:
Company net income will DECREASE by $2,000 if the order is accepted.
Additional order will produce additional sales revenue of $150 per unit
The marginal cost for this order = Variable costs (Direct material + Direct labour + variable cost) =$152 per unit
Since the marginal cost ($152) is more than the revenue ($150)per unit, there will be a loss of $2 per unit.
So the net income of the company will DECREASE by $2000 ($2x 1000)
Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: What are the equivalent units for conversion costs for the month in the first processing department
Answer:
Equivalent units for conversion costs are 6,925 units
Explanation:
Note : I have attached the full question as an image below
Equivalent units are physical units expressed as a percentage of total work completed on them
Equivalent units for conversion costs
Units Completed and Transferred (6,100 × 100%) 6,100
Units in Closing Work in Process (1,100 × 75%) 825
Equivalent units for conversion costs 6,925
Equivalent units for material costs
Units Completed and Transferred (6,100 × 100%) 6,100
Units in Closing Work in Process (1,100 × 85%) 935
Equivalent units for material costs 7,035
Many sources include both factual and analytical information. The factual information allows you to judge how credible the analysis in the source is.
a. True
b. False
Answer:
true
Explanation:
include both factual and analytical information, given statement is true because The factual information source allows you to determine how reliable the analysis is, depending on whether another source has the same content or equivalent. so correct answer is a. TrueRaw materials inventory was $5,000 at the beginning of the year and $12,000 at the end of the year. During the year, a total of $27,000 in raw materials were purchased, including $4,000 of indirect materials that were put into manufacturing overhead during the period. Calculate the cost of direct materials used during the period.
Answer:
Direct material used= $16,000
Explanation:
Giving the following information:
Beginning inventory= $5,000
Ending inventory= $12,000
Direct material purchased= 27,000 - 4,000= $23,000
To calculate the direct material used, we need to use the following formula:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 5,000 + 23,000 - 12,000
Direct material used= $16,000
If the price of imports rose, caused by a change in the value
of the pound then the AS would shift to the:
Select one:
a. None of the above
b. right
C. left
d. vertically
= left
For each situation, prepare the appropriate journal entry for the redemption of the bonds.
a. Flounder Corp. redeemed $124,000 face value, 10% bonds on April 30, 2022, at 105. The carrying value of the bonds at the redemption date was $111,972. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
b. Shamrock, Inc. redeemed $162,000 face value, 12.5% bonds on June 30, 2022, at 99. The carrying value of the bonds at the redemption date was $174,960. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded.
Answer and Explanation:
The journal entries are given below:
On Apr. 30
Bonds payable $124,000
Loss on redemption of bonds( bal fig) $18,228
Discount on Bonds payable($124,000 - $111,972) $12,028
Cash ($124,000 × 1.05) 1,30,200
(Being redemption of bonds at 105 is recorded)
On Jun. 30
Bonds payable $162,000
Premium on Bonds payable($174,960 - $162,000) $12,960
Gain on redemption of bonds ( bal fig) $14,580
Cash($162,000 × .99) $160,380
(Being redemption of bonds at 98 is recorded)