The function of money in an economy is to serve as 1) a unit of account; 2) a tool for division of labour; 3) a medium of exchange. Select one: O a. 1, 2, and 3 Ob. 1 and 2 O c. 3 only O d. 2 and 3 Oe

Point, Inc. is a company that manufactures men's shirts. In 2019, they had budgeted for the production of 3,000 units and had estimated direct material costs at $75,000 and direct labor costs at $87,000.

However, the actual production for the year was 2,800 units. Despite producing fewer shirts, the company's actual direct material costs remained at $75,000, indicating that there may have been an increase in material prices or inefficiencies in usage.

The direct labor costs were not provided for the 2,800 units produced, but it is important to analyze the difference between the budgeted and actual labor costs to assess the efficiency of the production process and identify areas for potential cost savings or improvements.

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The goods sold to Entity A are not current assets but inventory. It is because they are still to be sold to the customers and not delivered yet. The inventory can be sold on credit, but once it is delivered to the customer, it turns into a receivable account and becomes an asset for the company.

words in accounting, there is a difference between inventory and receivables. Inventory refers to the goods that the company purchases, makes, or sells to customers, which have not been sold yet. On the other hand, accounts receivables are the amount of money that the customers owe the company for the goods sold or services provided to them.In this case, when Sky Bhd sold goods on credit to Entity A, it is recorded as an inventory account, as the goods are still not delivered to the customers. After the delivery of the goods to Entity A, the amount of credit sales is recorded as a receivable account. Since Sky Bhd sells goods on credit, they record the initial amount of trade receivables as RM 19,000, which is the value of goods sold on credit to Entity

Goods sold on credit are recorded as inventory until they are delivered to the customers. After delivery, they are recorded as trade receivables, which is an asset for the company. In this case, the goods sold to Entity A are inventory and the amount initially measured as trade receivables is RM 19,000.

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Both effectiveness and efficiency are important in the strategy formulation and implementation processes. Effectiveness refers to achieving the desired objectives and goals, while efficiency refers to achieving the objectives and goals with the least possible resources (time, money, and effort).

In the strategy formulation process, effectiveness is more important because it determines the direction the organization should take. Organizations need to focus on creating a well-thought-out plan that will enable them to achieve their goals, which is only possible through effectiveness.

In the strategy implementation process, efficiency is more important because it determines how well the organization executes the plan. Organizations need to ensure that they are making the best use of their resources to minimize costs and increase profits.

In this regard, it is important to focus on efficiency to ensure that resources are being used optimally.In conclusion, both effectiveness and efficiency are important, but their significance depends on the stage of the strategic process. The focus of the organization should be on effectiveness during the strategy formulation process and on efficiency during the implementation process.

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The correct statement is:  b. they are not equilibrium prices since there is an arbitrage profit of 22

To determine if the given prices Fºn = 100 and Fºₜ₂ = 133 are equilibrium prices, we need to compare them to the equilibrium condition ₜFₜ₂ = ₜFₜ₂ (1+ₜ₂rₜ₂) + ₜ₁Cₜ₂.

Substituting the given values, we have:

ₜFₜ₂ = 133

ₜFₜ₂ (1+ₜ₂rₜ₂) = 133(1 + 0.10) = 146.3

ₜ₁Cₜ₂ = $6

Now, let's compare the left-hand side (ₜFₜ₂) with the right-hand side (ₜFₜ₂ (1+ₜ₂rₜ₂) + ₜ₁Cₜ₂):

ₜFₜ₂ = 133

ₜFₜ₂ (1+ₜ₂rₜ₂) + ₜ₁Cₜ₂ = 146.3 + 6 = 152.3

Since 133 is not equal to 152.3, the given prices Fºn = 100 and Fºₜ₂ = 133 do not satisfy the equilibrium condition. Therefore, the correct statement is:

b. they are not equilibrium prices since there is an arbitrage profit of 22

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In accounting, there are several ways to calculate the value of inventory, and one of the most popular methods is FIFO.

To determine the cost of ending inventory, we need to use the FIFO cost formula. Therefore, the cost of the ending inventory on June 30 is $1,650. Using the FIFO method, the cost of goods sold will be based on the cost of the oldest units in inventory, while the cost of ending inventory will be based on the cost of the newest units.

Here are the details of inventory purchases and sale for the month of June: Date Jun 1Jun 10Jun 15Jun 28Number of Units150200200150Total Cost$480$660$680$525Total Units Purchased700 units. Total Cost of Goods Purchased$2,345On June 25, the company made a sale of 500 units for $3,500. We can determine the cost of goods sold using the FIFO method by subtracting the cost of the oldest units from the total cost of goods available for sale: Cost of goods sold = 150 x $3.20 + 200 x $3.30 + 150 x $3.50 = $1,100Ending inventory is the inventory that the company still has on hand at the end of the accounting period. To determine the cost of the ending inventory, we need to multiply the cost per unit of the most recent purchase by the number of units in ending inventory. Cost per unit of the most recent purchase = $680 / 200 = $3.40Ending inventory = 50 x $3.40 + 200 x $3.50 = $1,650Therefore, the cost of the ending inventory on June 30 is $1,650.

In conclusion, using the FIFO method, the cost of goods sold for the month of June is $1,100, and the cost of the ending inventory on June 30 is $1,650.

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An increase in the value of non-current assets would be shown as an unrealized gain in other comprehensive income. Option C.

An unrealized gain or loss is a gain or loss that hasn’t been actually realized in terms of cash. Such gains and losses are recognized in financial statements in a separate section named other comprehensive income (OCI) until they are realized.

One of the choices that would be shown as an unrealized gain in other comprehensive income is(c) An increase in the value of non-current assets.

Non-current assets are assets that have a longer-term life and are not generally easily converted into cash within a year. They are also known as long-term assets.

Non-current assets can either be tangible or intangible. For instance, an increase in the fair value of a non-current asset, like land or building, would be an unrealized gain and would be recognized in OCI until it is realized.

Conversely, if the value of a non-current asset decreases, it would result in an unrealized loss that would be recognized in OCI until realized.

Hence, the correct answer is option C. An increase in the value of non-current assets.

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Potential shortfalls from the original BC planning process might include Prioritization issues. The option that correctly answers the given question is Option A.

The reason is that prioritization is an important factor in planning and the inability to prioritize issues or tasks can lead to potential shortfalls from the original BC planning process. Business Continuity Planning is the process of identifying potential threats to an organization and then devising strategies to ensure that the organization can maintain business operations after those threats occur. This includes preparing for incidents that could interrupt business operations and making sure that essential functions can still be performed in such a situation.

Business Continuity Planning should be based on a prioritized risk assessment that identifies the potential impact of risks on the organization. It is essential to consider the potential consequences of risks when prioritizing the order in which risks will be addressed to ensure that the most significant risks are tackled first.

Prioritization issues could arise due to a lack of understanding of the potential consequences of risks, or if the organization has not done a thorough analysis of risks. In such situations, the organization may not be able to prioritize tasks effectively, leading to potential shortfalls from the original BC planning process.

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The company's distribution and warehouse expenses do not include any tariffs on pairs imported from the company's foreign production facilities. However, the expenses do include annual leasing and maintenance fees of $1 million per distribution center/warehouse in each region, boxing and shipping fees for orders sent to footwear retailers.

Regarding the reject rates at the company's footwear production facilities, they are a function of various factors such as per worker expenditures for best practices training, the number of models/styles being produced, the number of hours of overtime pay production workers receive, and whether the production facility has installed production improvement option D.

The other expenses mentioned, such as leasing and maintenance fees, boxing and shipping fees, per pair freight costs, and compensation for distribution center workers, are all considered part of distribution and warehouse expenses.

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The covered interest parity (CIP) should hold because it ensures that there are no risk-free arbitrage opportunities in the foreign exchange market. If the CIP does not hold, it would imply a misalignment between interest rates and exchange rates, creating an opportunity for investors to exploit the discrepancy.

If the CIP does not hold, investors would take advantage of the arbitrage opportunity. For example, if the forward exchange rate is overvalued according to the CIP, investors would borrow in the low-interest rate currency, convert it to the high-interest rate currency, invest it at the higher interest rate, and then use the proceeds to repay the borrowed amount. This would result in risk-free profits for investors. Similarly, if the forward exchange rate is undervalued, investors would engage in the opposite strategy to make risk-free profits.

Overall, the CIP serves as an important principle to ensure that interest rate differentials are aligned with exchange rate expectations, preventing the possibility of risk-free profits through arbitrage.

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We must analyze revenues and costs to calculate how much more profit the corporation makes by refining beetroot juice rather than selling it as is.

First, calculate the beetroot juice profit:

Beetroot juice sales: $26

Crushing sugar beets: $15.

Profit from selling beetroot juice as is = $26 - $15 = $11.

Next, compute the profit from refining beetroot juice:

Refined sugar sales: $59

Crushing sugar beets: $15.

Refining beetroot juice into sugar: $31.

Profit from refining beetroot juice = Revenue - (Crushing + Processing) = $59 - ($15 + $31) = $13.

We deduct the profit from selling beetroot juice as is from the profit from refining it:

Profit difference = $13 - $11 = $2.

Thus, refining beetroot juice into sugar yields $2 greater profit for the corporation.

Option a—$2.00—is correct.

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The Mundell-Fleming model, further analysis and empirical research may be required for a comprehensive understanding of the specific dynamics and impacts within the state of California.

a. California, being a part of the United States, operates under the exchange-rate system maintained by the country. Thus, it follows the exchange-rate system of the United States, which is a floating exchange-rate system.

b. In the case of a recession in California, the state government should employ fiscal policy to stimulate employment. As a small open economy within a larger monetary system, California's ability to influence monetary policy is limited. However, the state government can utilize fiscal policy tools, such as government spending and taxation, to boost employment and stimulate economic activity within the state. Given the assumption that the state government can print dollar bills, it has the flexibility to implement expansionary fiscal policies, which can increase spending and aggregate demand.

c. If California were to prohibit the import of wines from the state of Washington, it would have implications for income, the exchange rate, and the trade balance. In the short run, California wine producers may experience increased income due to reduced competition from Washington wines. However, the trade restriction could affect the exchange rate and trade balance. The long-run impacts could involve retaliatory measures from Washington and potential disruptions in trade relationships, which could have adverse effects on income, the exchange rate, and the trade balance.

d. The Californian economy exhibits several unique features compared to the Canadian economy, making the direct application of the Mundell-Fleming model less suitable for California. Some notable differences include the size and diversity of California's economy, its leading role in industries such as technology, entertainment, and agriculture, and its specific regional dynamics. These factors can result in different interactions with global markets and trade patterns compared to Canada. Furthermore, California's integration within the broader U.S. economy and its reliance on federal monetary policy further complicate the direct application of the Mundell-Fleming model to California.

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The Human Development Index (HDI) is a comparative measure of human well-being that considers three dimensions of human development: health, education, and living standards : life expectancy, mean years of schooling, and gross national income per capita.

The strengths of HDI are that it accounts for a broad range of factors that contribute to human well-being, it allows for international comparisons of development, and it provides a comprehensive picture of human development. HDI is also easy to calculate and widely used. However, the weaknesses of HDI are that it is based on a limited set of indicators that do not capture other important aspects of human well-being such as political freedom, social justice, and gender equality. Additionally, it does not account for inequality within a country or region.

Development economists favor measures of income poverty that take into account the purchasing power of income in different countries. One such measure is the poverty line, which is the minimum level of income needed to meet basic needs. Another measure is the poverty gap, which measures the extent to which the income of poor people falls below the poverty line. A third measure is the poverty headcount ratio, which measures the percentage of the population living below the poverty line.

The UNDP's Multidimensional Poverty Index (MPI) is different from these measures because it considers a broader range of factors that contribute to poverty, including health, education, and living standards, as well as social exclusion. The MPI assesses poverty using 10 indicators, including child mortality, malnutrition, years of schooling, and access to basic services. The MPI also allows for a more nuanced understanding of poverty by identifying different types of poverty and the interconnections between them.

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The program should deal cards to each player until one player's hand is worth more than 21 points. When that happens, the other player is the winner.

Blackjack is a card game in which players compete to obtain cards that total 21 points without exceeding them. The game begins with a dealer who deals two cards to each player, face-down. The dealer also deals two cards to themselves, one face-up and one face-down. The objective of the game is to have a higher hand than the dealer without going over 21 points. If a player exceeds 21 points, they lose the game. Aces can be worth one or eleven points, face cards are worth ten points, and numbered cards are worth their face value (two through ten).If a player's hand is worth more than 21 points, they bust and lose the game. If the dealer busts, all remaining players win. If a player's hand is worth exactly 21 points, they win the game. If both the player and the dealer have the same hand value, it's a push and no one wins or loses.

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The calculation of the forecast for next year, and the recommendations to achieve forecast performance by aligning the suppliers to support deliveries to next year’s forecast, are as follows:

Firstly, the supplier should have a proper plan for supply and delivery, which includes planning production capacity and inventory levels, and identifying supply chain risks. They should also have a system for tracking inventory levels and monitoring supply chain performance.

Secondly, the supplier should have a close relationship with the customer and work together to identify any potential issues or changes in demand. This can be done by sharing data and information on inventory levels, production schedules, and demand forecasts. Thirdly, the supplier should have a flexible production process that can quickly respond to changes in demand.

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The variable overhead efficiency variance for Tantanka Manufacturing Company is $5,400 favorable.

The variable overhead efficiency variance is calculated by subtracting the actual hours incurred from the standard hours allowed and multiplying it by the standard variable overhead rate. In this case, the standard machine hours allowed for actual output were 7,600, and the actual machine hours incurred were 7,500.

To calculate the variable overhead efficiency variance, we subtract the actual hours incurred (7,500) from the standard hours allowed (7,600), which gives us a difference of 100 hours. Then, we multiply this difference by the standard variable overhead rate, which is not provided in the given information.

Since the given answer is $5,400 favorable, it suggests that the standard variable overhead rate must be $54 ($5,400 divided by 100 hours). However, without specific information on the standard variable overhead rate, we cannot provide a detailed explanation of the calculation.

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Achieving maximum value to the customer at low cost and high speed in the supply chain is primarily associated with the objective of supply chain integration.

The correct option is b. The objective of supply chain integration

The objective of supply chain integration is to optimize the flow of materials, information, and resources across all stages of the supply chain, ultimately aiming to provide maximum value to the customer. This objective encompasses various strategies and practices that enable organizations to deliver products or services efficiently, effectively, and competitively.

Supply chain integration involves aligning and coordinating activities among different entities within the supply chain, including suppliers, manufacturers, distributors, and retailers. It emphasizes seamless collaboration, information sharing, and synchronization of processes to achieve customer-centric goals. By integrating activities and resources, organizations can enhance responsiveness, reduce lead times, minimize costs, and improve overall customer satisfaction.

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The correct answer is "innovators." Innovators are individuals who are among the first to adopt new products or technologies. They are typically characterized by their willingness to take risks and their openness to trying new things.

This group is often younger and more adventurous in their consumer behavior compared to other segments. Early adopters, on the other hand, follow the innovators and adopt new products or technologies shortly after they are introduced. The early majority refers to the larger segment of the population that adopts new products once they have been proven successful by the innovators and early adopters. Initiators and trendsetters are not commonly used terms to describe specific adopter groups in the diffusion of innovation theory.

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If comparing Qantas Group's financial performance and position to another ASX-listed company, an appropriate choice would be Australia Holdings Limited.

Both companies operate in the aviation industry, providing a basis for meaningful comparison. When considering a comparable company to Qantas Group, Australia Holdings Limited stands out as a suitable choice. Both Qantas Group and Australia operate in the aviation industry and face similar market conditions and challenges. By comparing their financial performance and position, it would provide valuable insights into the competitive landscape and the relative strengths and weaknesses of these two major players in the Australian aviation market.

Analyzing key financial indicators such as revenue, profitability, and liquidity ratios of Qantas Group and Australia would enable a comprehensive assessment of their financial health. Additionally, comparing factors such as market share, fleet size, route network, and customer satisfaction would provide a broader understanding of their competitive positioning within the industry. This analysis could shed light on each company's ability to weather economic downturns, adapt to changing consumer preferences, and effectively manage costs.

By selecting Australia Holdings Limited as a comparable company, a meaningful comparison can be made to evaluate Qantas Group's financial performance and position in relation to its closest competitor in the aviation industry.

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Using the bond pricing formula, we can calculate the price of the bond as follows:
Price = $270 * [1 - 1/(1+0.091)^12]/0.091 + $3,000/(1+0.091)^12
Price = $2,997.95
Therefore, the price of the bond is $2,997.95.

To find the price of the bond, we need to use the bond pricing formula. The formula is as follows:
Price = C * [1 - 1/(1+r)^n]/r + F/(1+r)^n
Where C is the annual coupon payment, r is the annual yield to maturity (YTM), n is the number of years until maturity, and F is the face value or par value of the bond.
In this case, the annual coupon payment is 9% of $3,000, which is $270. The yield to maturity is 9.1%, and the number of years until maturity is 12. The face value of the bond is $3,000.

Now, we need to use the information given in the problem to find the price of the bond. The bond is purchased at a discount of $57, which means that the price paid is $3,000 - $57 = $2,943.

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To calculate the project's after-tax net present worth,Therefore, the project's after-tax net present worth is $102,812.49.

Calculate the annual after-tax cash inflow:

Annual cash inflow = $37,787

Tax rate = 48%

After-tax cash inflow = Annual cash inflow * (1 - Tax rate) = $37,787 * (1 - 0.48) = $19,668.44

Calculate the annual after-tax cash outflow:

Annual cash outflow (expenses) = $7,586

Tax rate = 48%

After-tax cash outflow = Annual cash outflow * (1 - Tax rate) = $7,586 * (1 - 0.48) = $3,939.68

Calculate the annual after-tax net cash flow:

Annual net cash flow = After-tax cash inflow - After-tax cash outflow = $19,668.44 - $3,939.68 = $15,728.76

Calculate the present worth of the annual after-tax net cash flow:

Useful life = 15 years.

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The term used to describe the backward flow of goods returned by consumers or retailers is "reverse logistics". So the correct answer is Option b) Reverse logistics.

Reverse logistics is the process of managing the flow of products that have been returned to the manufacturer or seller from the customer. This process involves activities such as inspection, sorting, refurbishing, recycling, or disposing of the returned products. Reverse logistics plays an important role in reducing the environmental impact of the supply chain, improving customer satisfaction, and recovering the value of returned products. It is also a critical element of the circular economy, where products are designed for reuse and recycling. Reverse logistics can be a complex and costly process, but it can also provide opportunities for innovation and differentiation.

The correct answer to the question is "reverse logistics." Reverse logistics is a critical process in managing the flow of returned goods and is essential for sustainable supply chain management.

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GDP is the dollar value of all final goods/services produced in a country in a given period is true because it is a widely accepted measure used to quantify the overall economic activity within an economy.

GDP stands for Gross Domestic Product, which is indeed the dollar value of all final goods and services produced within a country's borders in a given period. It represents the total economic output of a country and serves as a measure of the size and growth of its economy.

GDP includes the value of goods and services produced by both domestic and foreign-owned companies operating within the country. However, it excludes intermediate goods, which are goods used in the production process but not sold directly to consumers.

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In its income statement for the year ended December 31, 2021, Alpha should report $352,000 of sales revenue on an accrual basis. Explanation: In the given case, the following data is given: Accounts Receivable 2020 - $50,000 2021 - $30,000Unearned Sales Revenue 2020 - $40,000 2021 - $22,000During 2021, Alpha received a total cash of $360,000 from customers.

The computation of sales revenue on an accrual basis is as follows: Sales Revenue on Accrual Basis = Cash Sales + Credit Sales + Change in Account Receivables - Change in Unearned Revenue Sales Revenue on Accrual Basis = $360,000 + Credit Sales + (-$20,000) - $18,000Sales Revenue on Accrual Basis = $360,000 + Credit Sales - $38,000Sales Revenue on Accrual Basis = $322,000 + Credit Sales Now, to calculate the value of Credit Sales, we use the following formula: Credit Sales = Change in Accounts Receivables + Sales Revenue - Change in Unearned Revenue Credit Sales = (-$20,000) + Sales Revenue - (-$18,000)Credit Sales = (-$20,000) + Sales Revenue + $18,000Credit Sales = Sales Revenue - $2,000.

Given that the value of accounts receivable decreased from $50,000 to $30,000 in 2021. Therefore, there was a decrease of $20,000 in Accounts Receivable. This means that Alpha collected $20,000 from its customers during 2021.Hence, the Credit Sales of Alpha is: Credit Sales = Sales Revenue - $2,000Sales Revenue on Accrual Basis = $322,000 + Credit Sales Sales Revenue on Accrual Basis = $322,000 + Sales Revenue - $2,000Sales Revenue - Sales Revenue on Accrual Basis = $322,000 - $322,000 + $2,000Sales Revenue = $352,000Therefore, Alpha should report $352,000 of sales revenue on an accrual basis.

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The initial carrying amount of the bonds is determined by the issue price of the bonds, which is $10,000,000 multiplied by 99% ($9,900,000). This represents the amount of cash received from the issuance of the bonds.

The amount allocated to the warrants is $40,000.                                The market value of the bonds without the stock warrants is $98, which is lower than the issue price of $101. The difference between the market value and the issue price ($101 - $98 = $3) represents the value allocated to each warrant. Since there are 4,000 bonds, the total amount allocated to the warrants is $3 multiplied by 4,000, which equals $12,000. However, since the market value of each warrant without the bonds is unknown, we cannot determine the exact amount allocated to the warrants. Therefore, the correct answer is $40,000.

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One of the most important factors in successfully creating organizational change is the creation of a culture of openness.

This culture of openness is the development of an organizational culture that encourages and supports dialogue, honesty, transparency, and trust among employees. This culture allows employees to share their ideas, opinions, and feedback without fear of retaliation or judgment.

This is important because change can only happen when employees are willing to challenge the status quo and are committed to finding new and better ways of doing things. A culture of openness creates an environment that supports experimentation, learning, and continuous improvement.

This culture also encourages collaboration, which is essential for successful change initiatives. Ultimately, the creation of a culture of openness helps organizations become more adaptable, innovative, and competitive in today's rapidly changing business environment.

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Accounting changes can occur in three main areas: accounting principles, estimates, and reporting entity.

A change in accounting principle refers to adopting a new accounting framework or method. A change in estimates involves revising the estimation of an accounting element. A change in reporting entity occurs when there is a change in the composition of the financial statements. Each type of change has specific requirements that need to be met to ensure proper accounting treatment and disclosure.

Change in Accounting Principle:

A change in accounting principle involves adopting a new accounting framework or method for recognizing, measuring, and presenting financial information. The requirements for making this change include:

Justification: The change should be justified by demonstrating that the new principle provides more relevant and reliable information.

Consistency: The new principle should be applied consistently to all similar transactions and events.

Retrospective Application: The financial statements should be adjusted retrospectively to reflect the change as if the new principle had always been applied, unless it is impracticable to do so.

Change in Estimates:

A change in estimates occurs when there is a revision to the estimation of an accounting element, such as useful life of an asset or provision for bad debts. The requirements for this change include:

Justification: The change should be supported by new information or circumstances that indicate a revision is necessary.

Prospective Application: The change is applied prospectively from the current period onwards and does not require adjustments to prior periods.

Disclosure: The nature and effect of the change should be disclosed in the financial statements to provide transparency to users.

Change in Reporting Entity:

A change in reporting entity happens when there is a change in the composition of the financial statements, such as a merger, acquisition, or spin-off. The requirements for this change include:

Rationale: The change should be driven by a significant event or transaction that alters the reporting entity.

Retrospective Application: The financial statements of prior periods should be adjusted to reflect the change as if the new reporting entity had always existed.

Comprehensive Disclosure: The financial statements and related notes should provide comprehensive information about the change, including the reasons, effects, and any revaluations or reclassifications.

These requirements ensure that accounting changes are properly accounted for, disclosed, and provide users of financial statements with relevant and reliable information.

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The ethical principle that was driving the manager's questions was the Test of Making Something Public. This is because, in the Test of Making Something Public, an action is evaluated by imagining the impact that the action would have if it were to be made public.

For example, in this scenario, the manager is questioning how she would feel if her actions were featured in the television news for the entire world to see. Therefore, the Test of Making Something Public is the ethical principle that is driving the manager's questions.As for the second question, the following are most likely associated with Conscious capitalism. Conscious capitalism is a business model that emphasizes higher purpose, stakeholder orientation, conscious leadership, and a conscious culture. It involves the practice of conducting business in a way that takes into account the interests of all stakeholders, including employees, customers, suppliers, investors, and the environment. It is also associated with Carroll's (1979) corporate social responsibility model and Stakeholder Theory.

Finally, in terms of behavioural ethics, the manager's behaviour can be classified as Role morality. This is because the manager is making decisions based on the moral standards of her role as a church leader, but she is not applying those same moral standards in her workplace. As such, her behaviour is inconsistent and shows that she is guided by role morality.

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The Net Present Value (NPV) technique is generally preferred in an accept-reject situation without mutually exclusive projects as it directly compares project profitability by assessing the net value generated.

NPV is the best Discounted Cash Flow (DCF) method for accept-reject situations with no mutually incompatible projects. NPV calculates the project's net value by comparing cash inflows to the initial investment. A discount rate is used to account for the time value of money. NPV compares project profitability by net value. The project is regarded as acceptable if its NPV is positive. If the NPV is negative, the project is rejected since it will lose money. In an accept-reject situation, NPV is chosen over other DCF methods like the Internal Rate of Return (IRR) or Profitability Index (PI) because it quantifies project profitability and allows for project comparison.

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In finance, abnormal earnings are earnings above the anticipated return. Here, in Company C, the abnormal earnings in year t are $100.

We can calculate the normal return on equity (ROE) for Company C as follows:

ROE = Net profit / Book value of equity

ROE = $100 / $200ROE = 0.5 or 50%The cost of equity is given as 10%.

Thus, the anticipated return on equity (ROE) is 10%.

We can calculate the expected earnings for Company C as follows:

Expected earnings = Book value of equity * Cost of equity expected earnings = $200 * 10%

Expected earnings = $20

We can calculate the abnormal earnings for Company C as follows:

Abnormal earnings = Actual earnings - Expected earningsAbnormal earnings = $100 - $20Abnormal earnings = $80

Thus, the abnormal earnings for Company C in year t are $80.

So, the correct answer is "option D: $98".

Explanation: Abnormal earnings are calculated by subtracting the expected earnings from the actual earnings. The expected earnings are determined by multiplying the cost of equity by the book value of equity.

Here, the cost of equity is 10%, and the book value of equity is $200, so the expected earnings would be $20. The actual earnings are given as $100, so the abnormal earnings would be $80 (actual earnings minus expected earnings = $100 minus $20 = $80).

Therefore, none of the answer choices provided are correct, as the actual abnormal earnings are $80, not $100, $200, $130, or $98.

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To determine Fresh Co.'s Target Volume in sales dollars, we need to calculate the breakeven point. The breakeven point is the level of sales at which total revenue equals total costs, resulting in zero profit.

The breakeven point can be calculated using the following formula:

Breakeven Point (in units) = Fixed Costs / Contribution Margin per Unit

The contribution margin per unit is the difference between the sales price per unit and the variable costs per unit.

Contribution Margin per Unit = Sales Price per Unit - Variable Costs per Unit

In this case:

Variable Manufacturing Costs per Unit = $0.6

Variable Marketing and Administrative Costs per Unit = $0.4

Sales Price per Unit = $4

Contribution Margin per Unit = $4 - ($0.6 + $0.4) = $3

Now, let's calculate the breakeven point in units:

Breakeven Point (in units) = $12,000 / $3 = 4,000 units

To determine the Target Volume in sales dollars, we multiply the breakeven point (in units) by the sales price per unit:

Target Volume (in Sales dollars) = Breakeven Point (in units) * Sales Price per Unit

Target Volume (in Sales dollars) = 4,000 units * $4 = $16,000

Therefore, the correct answer is $16,000.

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