The way that these benefits would most likely have to support the company's business would be by helping employees cope with demanding, high-stress jobs. Last option.
What is meant by employee benefits?Employee benefits are any perks or other forms of payment that are given to workers in addition to their regular pay and salaries. Health insurance, life insurance, paid time off (PTO), profit sharing, retirement benefits, and other benefits may all be included in a comprehensive package of employee perks.
Any indirect pay given to employees in addition to their normal salaries or earnings is known as an employee benefit. For instance, this could refer to things like paid time off, retirement benefits, and health insurance.
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modern it enables you to ship product around the world more efficiently and quickly by enabling you to ?
We can increase productivity, time management, and shipment efficiency by enabling you to integrate these elements into the shipping business.
What is a crucial function of a transportation management system?The planning and execution of the process for moving goods are the primary responsibilities of the transportation management system. Cost reduction is a benefit of the TMS that has been adopted.
What part does transportation management play in supply chain management?When referring to a supply chain, the term "transportation" describes the movement of goods from one place to another. This movement starts at the beginning of the chain when materials arrive at the warehouse and continues all the way to the end user when the customer's order is delivered to their door.
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what business software applications are commonly integrated with an enterprise resource planning (erp) system as modules? select all of the correct answer options.
The business application software that are commonly integrated with an enterprise resource planning (ERP) system as modules are
CRMPMBIWhat are business application software?Any software or collection of computer programs used by business users to carry out various business operations is referred to as business software. These business applications are used to boost output, gauge output, and carry out various other company tasks precisely.
A software program or a group of programs that offer business capabilities are known as business applications. They are also employed to raise and keep track of productivity across the entire company. Business apps may be utilized internally, externally, or in conjunction with other business apps.
By automating repetitive operations, the proper business software can help you:
reduce costs.increase the staff's effectiveness.Boost or assess workplace productivity.Accounting and business processes should be streamlined.process replacements for paperRead more on business application software https://brainly.com/question/15836852
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What business software applications are commonly integrated with an enterprise resource planning (ERP) system as modules? Select all of the correct answer options.
CRM
PM
BI
The demand for labor is a derived demand because a. labor is a variable input. b. we demand what labor produces and not labor itself. c. labor is hired based on when the marginal revenue product is equal to the wage rate. d. all products must have some labor embodied in them
The demand for labor is a derived demand because labor is hired based on when the marginal revenue product is equal to the wage rate. So, the correct answer is option C.
Businesses need labour and capital as inputs to their production process in order to produce goods and services. An economics principle called the demand for labour is derived from the demand for a firm's product. In other words, if there is a greater demand for a company's output, the company will need more workers and hire more people.
Additionally, if there is a decline in demand for the firm's output of products and services, it will need less workers, have a lower demand for labor, and retain fewer employees.
Labor supply and demand are influenced by labor market conditions. Those looking for work will provide their labour in exchange for compensation. Employers who demand labour from employees will compensate them for their time and expertise.
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each quarter, a local homeless shelter mails a newsletter to its volunteers to let them know the current needs of the shelter and to give them updates on how the staff at the shelter has helped its residents find permanent housing and jobs. the newsletter is an example of a
Residents of the shelter have received assistance from the staff in locating long-term accommodation and employment. One type of house organ is the newsletter.
An organ at home is what?A residential organ, often referred to as a house organ, box organ, cabinet organ, choir organ, home organ, practice organ, trunk organ, or chamber organ, is a musical instrument that is installed in a private dwelling.
In advertising, what exactly is a house organ?The company's employees are intended to use an inside house organ as a means of management communication. The company's clients are the intended audience for an external house organ, which can either be a free monthly newsletter or a stand-alone, genuine product.
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question content area the liability for a dividend is recorded on the a.last day of the fiscal year b.date of declaration c.date of record d.date of payment
The liability for one dividends is recorded on the date of declaration, so option B is correct.
How do you define liabilities?A liability is a company's future debt to customers, suppliers, or other firms. This implies that the business won't be able to turn a profit in the future. Different from equity, a liability is a mechanism for a firm to obtain funding.
What do business liabilities entail?The legal debts that a company has to other creditors are known as liabilities. Just a few samples include current liabilities, accrued liabilities, and bank debt. For every firm, liabilities are a fundamental part of functioning and growth. Liabilities and equity must be properly balanced for a company to have a solid foundation.
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an employee has proposed adding new equipment that would speed up the loading rate to 5.71 trucks per day. the equipment would cost an additional $100 per day for each dock. what is the lowest daily total cost that can be achieved with the new equipment?
Investing in new equipment will cut overall costs. Managers should do this because it will lower the company's overall costs. 1441.126 is the lowest daily total cost that can be achieved with the new equipment.
What is the total cost?
The total cost represents all the costs incurred by a business to produce a particular level of output. Product managers can assess their overall profit margin by adding together their fixed and variable costs.
What is the total cost formula?
The average total cost formula is created by dividing the total cost of production by the total amount paid in money. The total-cost formula is a simple and user-friendly method that is computed by dividing the total production cost by the quantity of goods produced.
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Attractive locations to transfer to arehonolulu, hawaii; san francisco, california; and seattle, washington.
The consultant recommended that she read an article titled "Opening Your Mind to Change." The consultant recommended that she read an article titled "Opening Your Mind to Change." The consultant recommended that she read an article titled Opening Your Mind to Change.
A consultant's recommendation should outline a particular area of expertise and instill confidence in the candidate's abilities. When writing a consultant recommendation letter, provide all the information a potential employer needs to feel comfortable hiring the candidate.
Good advisors are intuitive and experienced communicators with extensive vocabulary. He knows when and how to bring complementary tones to his client environment and is able to convey his expertise in a variety of ways. As oral communicators, they are effective facilitators and are able to deliver clear and concise points.
Consultants (often called management consultants) help organizations become more efficient. Help your organization work more effectively, solve problems, and make more money. Advisors provide advice and expertise to client organizations to help improve business performance.
It's no exaggeration to say that consultants are like doctors to companies. They are there to help our customers and contribute to their success. Where customers see only problems and obstacles, they see solutions and possibilities. We do our best to connect customers and provide business opportunities.
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a special power tool for plastic products costs $400,000 and has a 4- year useful life, no salvage value, and a 2-year before-tax payback 12-28 period. assume uniform annual end-of-year benefits. a (a) compute the before-tax rate of return. (b) compute the after-tax rate of return, based on macrs depreciation and a 24% combined corporate income tax rate.
Divide 1 plus the after-tax return by 1 plus the rate of inflation to get the real rate of return, then subtract 1. The fact that a dollar in one's hand today is worth more than a dollar in one's hand tomorrow is reflected in the division by inflation.
We will make the assumption that the annual cash inflow or uniform benefit is $200,000 given that the payback period is two years. As a result, the cash flows would look like this:
Cash Flow Year 0 = $400,000,
Cash Flow Year 1 = $200,000,
Cash Flow Year 2 = $200,000,
Cash Flow Year 3 = $200,000,
Cash Flow Year 4 = $200,000
Using the EXCEL IRR function or formula, we can determine the rate of return before taxes. The following table displays the calculation:
Rate of Return Before Taxes = IRR(-400000,200000,200000,200000) = 34.90%
According to MACRS, the asset is property of the three-year class. As a result, the rates of depreciation applicable to that kind of property will be used.
Rate of Return After Tax = IRR(-400000, 177329, 192452, 152142, 142078) = 25.16 percent.
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currently, 3m company pays an annual dividend of $2.50. if the stock is selling for $100, what is the dividend yield?
To calculate dividend yield , all you have to do is divide the annual dividends paid per share by the price per share.
So, the Dividend yield is 2.5%.
what is dividend Yield ?A dividend is a sum of money distributed to shareholders from a company's profits. Dividends are paid to shareholders as compensation for holding the company's stock in addition to any increases in share value. Sector-specific businesses are recognized for paying dividends, and established businesses that can afford to not reinvest every dollar of profit back into the company are more likely to do so. Companies may provide dividends on a regular basis, such as once a quarter or once a year, or they may distribute special, one-time payouts.
what is dividend yield ?The amount of dividends a corporation pays out annually for every dollar invested is known as dividend yield. If a company's dividend yield is 7%, for instance, and you buy $10,000 worth of its stock, you would receive a distribution of $700 year or $175 in quarterly installment
However, companies typically pay dividends based on the quantity of shares you own, not the value of those shares. As a result, dividend yields vary according to current stock prices. You can calculate dividend yield yourself, however many stock research tools will list recent dividend yields for you.
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selling over the internet while maintaining a physical distribution network is an example of . question content area bottom part 1 a. channel of distribution b. channel leadership c. channel captain d. channel conflict e. intermediaries
Selling over the internet and maintaining a physical distribution network is an example of a distribution channel. Option a. is correct.
What is a distribution channel?It corresponds to the method used by companies to ensure that their product or service reaches the final consumer in the right quality, time and quantity. That is, the distribution channel is the way companies use to deliver.
Therefore, the physical distribution network for products sold over the internet corresponds to the distribution channel through which the company will pick up the orders placed and deliver them properly to the consumer.
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samantha puts an initial $500 into a savings account. the account has a 4% annual compound interest rate. what is the equation that best represents samantha's account? hint: use the formula y
Samantha puts an initial $500 into a savings account. the account has a 4% annual compound interest rate. The equation that best represents Samantha's account is y = 500(1.04)x.
Use the formula y=P(1+r)x.
y = 500(1.04)x.
The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate (called the principal sum). For instance, if you borrow $100 at 5% interest, your repayment to the lender will be $105 dollars. The money lender will profit $5. You could experience many interest types during your life. Every loan has a different interest rate, which will affect how much money you actually owe. Subtract the number of payments you'll be making that year from the interest rate. You would divide 0.06 by 12 to get 0.005 if you had a monthly payment schedule and an interest rate of 6%. To calculate the amount of interest you will be required to pay that month, multiply that amount by the outstanding loan balance. Understanding how to calculate interest rates will help you save money while making investment selections and solve many wage concerns. Simple interest rates can be calculated using a simple formula. You can calculate the highest interest rate for yourself if you are aware of your loan and the maximum amount of interest you can pay.
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which of the following statements is true about the effects of product demand for a product on the resource demand market? multiple choice question. an increase in the demand will decrease the demand for a resource used in its production, and vice versa. a decrease in the demand will increase the demand for a resource used in its production, and vice versa. an increase in the demand will not influence the demand for a product used in its production, and vice versa. an increase in the demand will increase the demand for a resource used in its production, and vice versa.
The statement "An increase in the demand will increase the demand for a resource used in its production, and vice versa" is true about the effects of product demand for a product on the resource demand market. Thus, option 'D' is the correct option.
What is Market demand?The amount of individuals looking for your goods, their willingness to pay for them, and the quantity of your product that is offered to customers by both your business and your rivals are some of the elements that affect market demand.
Demand for goods and services overall may change throughout time; often, it does. Prices often rise when there is an increase in market demand for a certain kind of goods because more people want it and are ready to pay more money for it.
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a project leader asks hr for help with managing the team aspects of a challenging project. the team was tasked with prototyping a new consumer electronics product. due to various supplier problems, the team has missed several milestones. to meet the deadline, another team has been diverted from its less critical project and added to the delayed project. the project leader needs things to go as smoothly as possible with this new merged team so that no more time is lost. what should hr focus on?
The project manager expects everything with this newly combined team to go as seamlessly as possible so that no additional time is lost. on what should HR concentrate. defining new roles
What is a project leader's job description?The job of a project leader in managing projects entails a variety of duties, such as thorough planning, oversight of the project description, task organization, project supervision, project supervision, team motivation, and making crucial decisions regarding how to set up the strategy for the proposed project.
What do you call a project manager?It's simple to become confused because there are so many different project manager positions, including project manager, project leader, team leader, and project lead. Some companies hire just one, while others recruit them all.
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a man buys a car for $32,000. if the interest rate on the loan is 12%, compounded monthly, and if he wants to make monthly payments of $700 for 48 months, how much must he put down? (round your answer to the nearest cent.)
The amount that the man must put down, given the monthly payments and the interest rate, would be $ 5, 418
How to find the amount ?To find the amount the man was put down, you need to find the present value of the loan that would give the man $700 monthly payments for 48 months and at a rate of 12 %.
First, find the monthly interest :
= 12 % / 12
= 1 %
The present value of the loan is :
= Monthly payment x Present value interest factor of annuity, 1%, 48 periods
= 700 x 37.97395949348
= $ 26, 582
The amount to be put down is :
= Selling price of car - loan amount
= 32, 000 - 26, 582
= $ 5, 418
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which system supports the capturing, organization, and dissemination of knowledge throughout an organization?
Knowledge Management Systems supports the capturing, organization, and dissemination of knowledge throughout an organization.
Dissemination adopts the sender-and-receiver model of communication, which is the conventional viewpoint. The transmitter sends information, the receiver gathers it, processes it, and then sends information back, much like a telephone line, according to the traditional communication viewpoint.
Only a portion of this communication model theory is utilized with dissemination. Although the material is distributed and received, no response is provided. In a broadcasting system, the message carrier distributes information to several recipients rather than just one. In the areas of advertising, public announcements, and speeches, for instance, information is sent in these ways.
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antiglobalization activists are opposed to increased trade because of three reasons. which reason is not one of the three?
The reason that is not related to the demands of antiglobalization activists, who are opposed to increased trade, is number 3. Developing nations employ workers with low human capital. Why? Because the best talents are employed to achieve the expected objectives in a globalization process.
The antiglobalization movementIt is a social movement of world protest that rejects the neoliberal capitalist model. This movement emerged in the 21st century, and it demands social justice, limitation of the power of multinationals, cancellation of foreign debt, reform or disappearance of the World Bank and the International Monetary Fund (IMF), and protection of the environment.
Your question is incomplete, but most probably your full question was:
Antiglobalization activists are opposed to increased trade because of three reasons. Which reason is not one of the three?
Developing nations use child labor.Developing nations pay low wages.Developing nations employ workers with low human capital.Developing nations degrade the environment.To learn more about antiglobalization, click here:
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a successful business plan should be no more than: a.100 pages. b.2 pages. c.5 paragraphs. d.10 pages. e.50 pages.
A successful business plan should be no more than 2 pages and should include the most important information from each section of the plan.
How many firms are profitable without a plan?50% of newly founded companies fail within five years. It frequently occurs as a result of them ignoring a predetermined company plan. 25% of new businesses that don't have a business plan fail within the first two years.
What will happen without a business plan, is it possible for a company to succeed?According to a second study (2), businesses that plan develop 30% more quickly than those that don't. This study indicated that while many firms can succeed without a plan, those with a plan grew more quickly and were more successful than those without one.
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an outside supplier offers to provide epsilon with all the units it needs at $64.55 per unit. if epsilon buys from the supplier, the company will still incur 30% of its overhead. epsilon should choose to:
If an outside supplier offers to provide epsilon with all the units it needs at $64.55 per unit. if epsilon buys from the supplier, the company will still incur 30% of its overhead. epsilon should choose to:E. Buy since the relevant cost to make it is $60.55.
How to find the relevant cost?Using this formula to find the relevant cost
Relevant Cost = Direct material + Direct labor + Overhead
Where:
Direct material =$ 8.10
Direct labor =$24.10
Overhead =$40.50
Let plug in the formula
Relevant Cost = $8.10 + $24.10 + [$40.50 × (1-.30)]
Relevant Cost= $8.10 + $24.10 + [$40.50 ×.70)]
Relevant Cost=$8.10 + $24.10 +$28.35
Relevant Cost = $60.55
Therefore the correct option is E.
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The complete question is:
Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8.10 Direct labor 24.10 Overhead 40.50 Total costs per unit $ 72.70 An outside supplier offers to provide Epsilon with all the units it needs at $64.55 per unit. If Epsilon buys from the supplier, the company will still incur 30% of its overhead. Epsilon should choose to:
Multiple Choice
Buy since the relevant cost to make it is $72.70.
Make since the relevant cost to make it is $60.55.
Buy since the relevant cost to make it is $44.35.
Make since the relevant cost to make it is $44.35.
Buy since the relevant cost to make it is $60.55.
Munchin Corporation has $200,000 of 6% bonds that were issued in Year 1 at $202,000. When the bonds are repaid at the maturity date, the journal entry will require which of the following entries?
Debit bonds payable $200,000
Credit cash $200,000
When the bonds are repaid at the maturity date, the journal entry will require the following entries Debit bonds payable $200,000 and Credit cash $200,000.
In a bond, the issuer owes the bond holder money and is required under the bond's terms to return the bond's principle and interest within a predetermined time frame until the bond matures. Interest is often required at preset periods, such as every six months, every year, and less frequently at various times.
Therefore, a sort of debt or debt confirmation is an obligation. Despite the fact that both stocks and bonds are regarded as securities, stockholders own shares in the corporation, and bondholders own creditors' shares.
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lei is following the seven pillars of information literacy to work on the report her manager has asked her to prepare. she has no idea where to start. what should she do first?
Lei is following the seven pillars of information literacy to work on the report her manager has asked her to prepare. She has no idea where to start. Lei should do first that she identify what she needs to find out.
The seven "pillars" of information literacy development—identify, scope, plan, gather, evaluate, manage, and present—are defined by the SCONUL Model as well as the attitudes and behaviors (i.e., understandings) and essential skills and competencies (i.e., abilities) associated with each.
An individual's capacity to gather, assess, and apply information is referred to as having "information literacy," which is a set of skills. Identifying, finding, evaluating, applying, and acknowledging sources of information are the five parts of information literacy.
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question 4 consider the following scenario: your company wants to establish good privacy practices in the workplace so that employee and customer data is properly protected. well-established and defined privacy policies are in place, but they also need to be enforced. what are some ways to enforce these privacy policies? select all that apply.
Audit access logs and Lease privileges are some ways to enforce these privacy policies.
Coverage is hard and fast of guidelines or pointers in your company and personnel to comply with in or to reap compliance. policies solution questions on what personnel does and why they do it. A process is a command of how a policy is observed.
Guidelines are the distillation of the whole lot above them within the hierarchy -- undertaking, values, and strategic objectives, together with the regulation. rules articulate dreams which might be narrower than strategic goals and become aware of limits, or obstacles, for conduct and movements which might be necessary to finish those desires.
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The balanced scorecard was developed to help companies take a more ______________ and ______________ approach to measurement.
Group of answer choices
a. Holistic; Strategic
b. Short-term; Tactical
c. Financial; Strategic
d. Functional; Long-term
e. Holistic; Functional
The balanced scorecard was developed to help companies take a more holistic and strategic approach to measurement.
The correct option is a.
In 1992, Robert S. Kaplan and David P. Norton published a study in the Harvard Business Review that introduced the balanced scorecard idea.
By adding other metrics that assess success in areas like customer happiness and product innovation to financial indicators, the balanced scorecard approach tries to provide stakeholders a more complete picture of an organization's performance.
Businesses can use a balanced scorecard (BSC) as a planning tool to assist them work toward reaching specified strategic goals and targets. It is a tool for strategic business planning that may be used to set priorities, track, and report KPIs for goods, projects, and services.
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Buyer-supplier partnerships: a. reflect the trend toward horizontal integration. b. result in significant quality improvements and total cost increases. c. result in early supplier and supply involvement in design and description d. improve buyer-supplier communication at the expense of internal relationships e. are designed to maximize efficiency in buyer-supplier operations.
C. result in early supplier and supply involvement in design and description
Definition of Supplier Involvement.
In order to improve designs and produce higher-quality results, the supplier management strategy involves involving suppliers at the outset of the product design process to draw on their experience and knowledge.
This idea clarifies the benefits of including suppliers in cross-functional teams at the beginning of the product development process. In order to ensure alignment and accountability throughout the product launch and innovation processes, it also examines the procedure for working with suppliers.
Supplier Involvement, a type of vertical collaboration between supply chain partners, involves the manufacturer bringing the supplier on board early in the product development cycle.
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she knows she’ll be making only the minimum monthly payments each month until she can find a job where she’ll earn more income. this means some of her payment every month will go toward paying interest rather than paying down her principal. what other factor(s) might be most important to delara? why?
APR and Penalty fees are be the two main factors that are to be considered important to Delera.
Why are these two factors also very important to consider?APR, as the APR will decide how much interest she accrues each month as she intends to carry a balance. Penalty fees/rates, as she is financially strapped and may, in all likelihood, miss payments. What is Annual Percentage Rate (APR) and Penalty Rates?The phrase annual percentage rate of charge (APR) refers to the interest rate for the entire year (annualized), as opposed to only a monthly fee or rate, as applied on a loan, home loan, credit card, etc.
The penalty rate on a credit card is the rate that the credit card company charges you; it is higher than your standard APR. Not all credit cards carry a penalty APR, but if it does, then you can discover the figure in the small print of your card's terms and conditions. It is typically listed below the standard and cash-advance APRs in the rates table.
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Two kinds of short-term effects of currency movements are transactions risk and _____ risk.
The two types of short-term effects on currency movements are transactions risk and transformational risk.
What is the definition of "currency"?Money is a medium of exchange for goods and services. A government-issued unit of account that is accepted at face value is referred to as currency. Bartering was the practice of exchanging one item or service for another directly.
Why do we work with money?Currency refers to the real paper coins and notes that are now in use. By taking the money, a trader has a convenient option to pay their trading partners for the goods they have sold. The benefits of currency also extend to other important areas. Due to their small size, coins and dollar bills are portable.
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if merchandise inventory is being valued at cost and the price level is steadily rising the mehtod of cositng that will yield the highest net income is
If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is: FIFO.
In order to calculate LIFO (Last-in, First-Out), multiply the cost of your most recent inventory by the quantity of goods sold, as opposed to FIFO (First-In, First-Out), which multiplies the cost of your oldest inventory by the quantity of inventory sold. First in, first out is a straightforward idea that describes how the FIFO technique in industrial storage works and how things are handled. In other words, the first load of goods or units to arrive at the warehouse leaves first. The last in, first out (LIFO) approach of inventory accounting is utilized. According to LIFO, expenses are deducted starting with the expenditures of the most recent goods that were bought (or produced). Only in the United States is LIFO practised, and it is governed by generally accepted accounting rules (GAAP).
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for a firm that uses a single manufacturing overhead account, the journal entry to write off overapplied manufacturing overhead includes a debit to . multiple choice question. cost of goods sold manufacturing overhead
For a firm that uses a single manufacturing overhead account, the journal entry to write off overapplied manufacturing overhead includes a debit to manufacturing overhead because overhead is overapplied, cost of goods sold is credited and manufacturing overhead is debited.
The total of all indirect costs spent during the manufacture of a product is known as the manufacturing overhead cost. Along with the direct expenses for materials and direct labor, it is included in the price of the finished product.
Indirect labor; indirect materials, supplies, and repair parts; rent and utilities; depreciation; and financial expenses are the five main categories of manufacturing overhead.
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An insurer offers a three-year warranty for a certain piece of equipment.• A premium payment for the warranty is made at the start of each year.• All premium payments are the same.• Once the machine breaks, a benefit payment is made at the end of that year and thepolicy is cancelled (no further payments, neither premium nor benefit, are made)
A premium payment is a monthly rate that a man or woman has to pay for medical health insurance coverage. individuals need to maintain paying the top rate for every month they are enrolled in a health plan till they cancel or alternate their plan, otherwise, their coverage may be terminated.
With ordinary mode, the premium payments to your term lifestyles insurance are made on a periodic basis, at a normal frequency. The premiums for the policy can be paid every year, month-to-month, quarterly, or half-yearly based totally on the character choice of the policyholder.
The definition of top class is something or someone of more or superior fine. An instance of premium used as an adjective is the word top class gasoline which means that fuel with a better octane score. A charge that is above marketplace prices.
The premium paying time period is the whole variety of years for the coverage holder to pay the top class. Definition: policy term is usually identical to the premium paying time period. however, some coverage regulations give the insured the autonomy to choose a top rate paying time period lower than the coverage term.
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ron borrows funds from suburban bank secured by ron’s house. ron defaults on the debt. the bank’s options include
The bank has two choices: it can either sell the collateral or keep the security interest.
How do option funds work?An option income fund is a type of closed-end pooled investment that makes money by writing (or selling) options contracts on behalf of investors. A fund that invests in options will often use lower-risk tactics that can produce consistent income streams without being overly dependent on market direction.
What kinds of possibilities are there?Options come in two varieties: calls and puts. Options of the American variety may be exercised at any moment before they expire. Only the expiration date can be used to exercise European-style options.
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GreenCut Lawnmowers makes three models of push mower: the Standard, the Premium, and the Pro. Condensed income statement data related to the three models are as follows: Standard Premium Pro Sales $499,000 $320,000 $450,000 Variable costs 68,000 69,000 72,000 Cont. margin 431,000 251,000 378,000 Fixed costs 245,000 264,000 271,000 Net income $186,000 $(13,000) $107,000 GreenCut is considering discontinuing the Premium mower; if it does so, 35% of premium cost would be eliminated. what would happen if greencut stops manufavturing the premium?
If GreenCut stops manufacturing the Premium mower, its net income will increase and the new net income will be $474,150.
If GreenCut stops manufacturing the Premium mower, its net income will increase. The total fixed costs for the Premium mower will be eliminated, resulting in a savings of $264,000. Since 35% of the variable costs for the Premium mower will also be eliminated, the savings from this source will be $24,150. Total savings will be $288,150.
Net income for the Standard and Pro mowers will remain the same. However, the total net income for GreenCut will increase by $288,150. The new net income will be $474,150 ($186,000 + $107,000 + $288,150).
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