The market basket approach is intended to isolate changes in consumption level by holding constant the cost of goods and services purchased in two or more periods of interest.

Answers

Answer 1

Answer:

The market basket approach is intended to isolate changes in price level by holding constant the quantity of goods and services purchased in two or more periods of interest.

The Market Basket Approach is a method of measuring price changes in the Economy and is usually used to track changes in an individual market segment. It works by constantly buying a certain amount of goods and services overtime. The changes in price for those exact same goods will give an indication of just how much price is changing by in the Economy.

The Consumer Price Index (CPI) is a type of CPI.


Related Questions

Which one of the following is not a factor that influences a business's control environment? Group of answer choices management's philosophy and operating style organizational structure proofs and security measures personnel policies

Answers

Answer:

proofs and security measures

Explanation:

According to the Sarbanes-Oxley, there are three factors that affect the Company's Control Environment which is as follows

1. Personnel Policies      

2. Management's Philosophy and their operating styles    

3. And, the last one is Organizational Structure

Therefore the third option is not a influencing factor for a business control environment

g For this question, ignore inflation. Suppose Jenny earns $60,000 per year working as a tax analyst. After ten years, she quits her job and pursues a PhD in Art History. For the 5 years she is in school, she gets a teaching stipend of $12,000 per year. For the next 35 years, she is an art director and earns $95,000. If she expects to live for 20 years in retirement. If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year? What might prevent her from perfectly smoothing consumption?

Answers

Answer:

If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year?

Jenny's total income during her life = income as tax analyst ($60,000 x 10) + income as PhD student ($12,000 x 5) + income as Art Director (35 x $95,000) = $3,985,000

she generated income during 50 years and expects to live 20 more, so in order to perfectly smooth consumption across her life, she must divide her total life income by 70 years = $3,985,000 / 70 years = $56,928.57 per year

What might prevent her from perfectly smoothing consumption?

First of all, besides inflation, you also earn interest on your savings. That is why 401k and other retirement accounts work so well (the magic of compound interest). Even if inflation and interests didn't exist, you cannot know exactly what you are going to earn in the future and for how many years. In this case, she earned $60,000 for 10 years, but then earned only $12,000 during 5 years. If she really wanted to smooth her consumption, she would have needed to get a loan because her savings during the first 10 years wouldn't be enough.

Webby Inc. is a web development company. Webby’s monthly production function for developing websites is given in the table below. Webby pays $4,000 a month in rent for office space and equipment. It pays each programmer $3,000 a month. There are no other production costs. Fill in the table of production costs.

Answers

Answer and Explanation:

The computation of the filling of the given table for the production cost is shown in the attachment below:

As we know that

Total cost = Fixed cost + variable cost

Average fixed cost = fixed cost ÷ websites

Average Variable cost = Variable cost  ÷ websites

Therefore the average total cost is

= Average fixed cost + average variable cost

The marginal cost is

= Change in total cost ÷ change in quantity

These formulas are used to complete the table as given below.

Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of peanut butter each quarter. The following data are available for the third quarter of 2017. Total fixed manufacturing overhead $120,000 Fixed selling and administrative 20,000 Sales price per case 34 Direct materials per case 16 Direct labor per case 7 Variable manufacturing overhead per case 3 Required a. Compute the cost per case under both absorption costing and variable costing. Absorption $Answer Variable $Answer b. Compute net income under both absorption costing and variable costing. Do not use a negative sign with your answers. SMUCKERS Absorption Costing Income Statement For the Third Quarter of 2017 Sales Answer Answer Answer Answer Answer Answer Answer Net income Answer SMUCKERS Variable Costing Income Statement For the Third Quarter of 2017 Sales Answer Answer Answer Answer Answer Fixed expenses: Answer Answer Selling and administrative Answer Answer Net income Answer

Answers

Answer:

a:Total Variable Costs        $26    

a:Total Manufacturing Costs = $ 30  

b:Net Income Variable Costing  $100,000  

b: Net Income  Absorption Costing  $ 100,000

Explanation:

Smuckers Manufacturers

Costs per case under  Variable Costing

Direct materials per case 16

Direct labor per case 7

Variable manufacturing overhead per case 3

Total Variable Costs        $26        

Costs per case under  Absorption Costing

Direct materials (30,000*16)              480,000

Direct labor (30,000*7)                    210,000

Variable manufacturing overhead  (30,000*3)   90,000

Total Variable Costs                                                       780,000

Total fixed manufacturing overhead                           $120,000

Total Manufacturing Costs                                         $ 900,000

Total Manufacturing Costs per Case= $ 900,000/ 30,000= $ 30

The difference between the variable and absorption costing is that the product costs include variable and fixed costs in absorption costing. But in variable costing the product costs include only variable costs.

SMUCKERS

Variable Costing Income Statement

For the Third Quarter of 2017

Sales (30,000*34)                                                       1020,000  

Direct materials (30,000*16)              480,000

Direct labor (30,000*7)                    210,000

Variable manufacturing overhead  (30,000*3)   90,000

Total Variable Costs                                                       780,000

Contribution Margin                                                        240,000

Fixed Expenses                                                               140,000

Total fixed manufacturing overhead      $120,000

Fixed selling and administrative 20,000

Net Income                                                                   100,000

In this case the net income under both variable and absorption costing does not change because the units produced are units sold. No cost is charged to ending inventory under absorption costing.

SMUCKERS

Absorption Costing Income Statement

For the Third Quarter of 2017

Sales (30,000*34)                                                       1020,000  

Direct materials (30,000*16)              480,000

Direct labor (30,000*7)                    210,000

Variable manufacturing overhead  (30,000*3)   90,000

Total fixed manufacturing overhead      $120,000

Total Manufacturing Costs                                              900,000

Gross Profit                                                                   120,000

Fixed Expenses                                                               20,000

Fixed selling and administrative 20,000

Net Income                                                                   100,000

The bid-ask spread exists because of _______________. A. market inefficiencies B. discontinuities in the markets C. the need for dealers to cover expenses and make a profit D. lack of trading in thin markets

Answers

Answer:

C. the need for dealers to cover expenses and make a profit

Explanation:

In the market for securities there are two pricing of securities.

The ask price is the price at which the buyer is willing to purchase a security.

The ask price or the offer price is price at which the seller of a security is willing to sell it. Ask price can be firm or negotiable.

Bid ask spread is the difference between the highest amount a buyer is willing to buy a security and the lowest price at which a seller is willing to sell it.

This spread exists because dealers need to cover expenses and make a profit

You are offered the right to receive $1000 per year forever, starting in one year. If your discount rate is 5%, what is this offer worth to you

Answers

Answer:

Worth of the offer =$20,000

Explanation:

The worth of this offer is the present value of the annual cash inflow receivable forever discounted at the given interest rate. The cash inflow receivable forever is known as a perpetuity

The present of a cash inflow receivable forever is given below:

PV = A× 1/r

A- annual cash inflow, r- discount rate, PV - Present value of a perpetuity

A- 1,000, r- 5%

PV = 1,000 × 1/0.05

PV = $20,000

Worth of the offer =$20,000

Cindy's current year adjusted gross income (AGI) is $300,000 and her current year total tax liability is $60,000. Her immediate prior year AGI is $200,000 with a total tax liability of $40,000. To avoid an underpayment interest penalty, what is Cindy's minimum required total tax payment amount for the current year

Answers

Answer:

The answer is $44,000

Explanation:

Solution

Given that

Now

Present/current year AGI = $300000

Present /current year tax liability = $60000

Prior year AGI = $200000

Prior year tax liability = $40000

Thus

As per Tax rule or applying the Tax rule

If Adjusted gross income(AGI) of prior year is below $250000 then the minimum required tax payment in the current year in order to avoid interest penalty is lower of

(1) 90% of present /current year tax (liability) or

(2) 110% of prior year tax liability

So

Because the prior year AGI is $200000 which is lower than $250000, in order to avoid interest penalty, the minimum required payment amount of tax liability in current/present year is lower of

(1) 90% of current year tax liability of $60000

Then

$60000 *90% = $54000

Or

(2)110% of prior year tax liability of $40000

$40000 ×110% = $44000

Hence, minimum required total tax payment amount for the current year is $44,000

Item 11Item 11 You are going to deposit $24,500 today. You will earn an annual rate of 5.5 percent for 8 years, and then earn an annual rate of 4.9 percent for 11 years. How much will you have in your account in 19 years

Answers

Answer:

$63,637.94

Explanation:

$24,500 is deposited in the bank

5.5% annual rate will be earned in 8 years

= 5.5/100

= 0.055

4.9% annual rate will be earned in 11 years

= 4.9/100

= 0.049

The first step is to calculate the future value of the amount after 8 years

= amount deposited×(1+r)^n

r is the annual rate, n is the number of years

= $24,500×(1+0.055)^8

= $24,500×1.055^8

= $24,500×1.534686515

= $37,599.8196

Therefore, the amount that would be present in the account in 19 years can be calculated as follows

= amount at the end of year 8×(1+r)^n

where r = 0.049, n= 11

= $37,599.8196×(1+0.049)^11

= $37,599.8196×1.049^11

= $37,599.8196×1.692506597

= $63,637.94

Hence the amount present in the account in 19 years is $63,637.94

On December 31, 2014, Flint Corporation sold for $100,000 an old machine having an original cost of $180,000 and a book value of $80,000. The terms of the sale were as follows:
$20,000 down payment
$40,000 payable on December 31 each of the next two years
The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2012 rounded to the nearest dollar? (The present value of an ordinary annuity of 1 at 9% for 2 years is 1.75911.)
a. $70,364
b. $90,364.
c. $80,000.
d. $140,728.

Answers

Answer:

a. $70,364

Explanation:

We must determine the present value of the notes receivable using the 9% discount rate.

PV of accounts receivable = $40,000 / 1.09 + $40,000 / 1.09² = $36,697.25 + $33,667.20 = $70,364.45

When a notes receivable is issued and carries no interests, you have to record the present value of the notes receivable in order to determine the amount that should be recorded as interest income in the future. In this case, interest income = $80,000 - $70,364 = $9,636

Several years after reengineering its production process, King Corporation hired a new controller, Christine Erickson. She developed an ABC system very similar to the one used by King's chief rival. Part of the reason Erickson developed the ABC system was because King's profits had been declining, even though the company had shifted its product mix toward the product that had appeared most profitable under the old system. Before „ adopting the new ABC system, the company had used a plantwide overhead rate, based on direct labor hours developed years ago. For the upcoming year, King's budgeted ABC manufacturing overhead allocation rates are as follows:


Activity Allocation Base Activity Cost allocation rate
Materials handling Number of parts $4.00 per part
Machine setup Number of setups $375.00 per setup
Insertion of parts Number of parts $28.00 per part
Finishing Finishing direct labor hours $54.00 per hour

The number of parts is now a feasible allocation base because King recently purchased bar-coding technology. King produces two wheel models: Standard and Deluxe Budgeted data for the upcoming year are as follows:


Standard Delux
Parts per wheel 8 10
Setups per 1,000 wheels 20 20
Finishing direct labor hours per wheel 2 3.5
Total direct labor hours per wheel 2.6 3.4

The company's managers expect to produce 1,000 units of each model during the year.


Required:
a. Compute the total budgeted manufacturing overhead cost for the upcoming year.
b. Compute the manufacturing overhead cost per wheel of each model using ABC.
c. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system.

Answers

Answer:

King Corporation

a. Computation of total budgeted manufacturing overhead cost:

 Activities                                   Standard      Deluxe      Total

Materials handling (number of parts):

Standard = 8 x $4 x 1,000         $32,000

Deluxe = 10 x $4 x 1,000                               $40,000      $72,000

Machine setup (number of parts):

                = 20 x $375                $7,500        $7,500       $15,000

Insertion of parts (number of parts):

Standard = 8 x $28 x 1,000  $224,000

Deluxe = 10 x $28 x 1,000                         $280,000   $504,000

Finishing (direct labor hours):

Standard = 2 x $54 x 1,000  $108,000

Deluxe = 3.5 x $54 x 1,000                      $189,000     $297,000

Total                                      $371,500    $516,500     $888,000

b. Computation of the manufacturing overhead cost per wheel of each model using ABC:

Standards = $371,500/1,000 = $371.50

Deluxe =     $516,500/1,000 = $516.50

c. Computation of the company's traditional plantwide overhead rate to determine manufacturing overhead cost per wheel:

Overhead rate = $888,000/6,000 = $148

Manufacturing overhead cost per wheel:

Standard = $148 x 2.6 = $384.80

Deluxe = $148 x 3.4   = $503.20

Explanation:

a) Calculations:

Total overhead cost = $888,000

Allocation based on total direct labor hours per wheel

Plantwide overhead rate:

Total labor hours:

Standard  2.6 x 1,000 = 2,600 hours

Deluxe  3.4 x 1,000 = 3,400 hours

Total labor hours = 6,000 (2,600 + 3,400)

= $888,000/6,000 = $148 per direct hour

b) According to wikipedia.com, "Activity-based costing is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. This model assigns more indirect costs into direct costs compared to conventional costing."

Ford Motor Company has issued 8% convertible debentures, convertible at a 10:1 ratio. Currently the debenture is trading at 94. The stock is trading at $80. What is the conversion price of the stock

Answers

Answer: $100

Explanation:

Sometimes Debt instruments like Debentures and Bonds are convertible to shares in the company.

To calculate the Conversion Price, the following formula is used;

= Par Value / Conversion Ratio

= 1,000/10

= $100

Par value is usually $1,000 for such instruments.

Exercise 7-3A Allocate costs in a basket purchase (LO7-1) Red Rock Bakery purchases land, building, and equipment for a single purchase price of $360,000. However, the estimated fair values of the land, building, and equipment are $115,000, $253,000, and $92,000, respectively, for a total estimated fair value of $460,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment

Answers

Answer:

Land =  $90,000

Building = $198,000

Land =  $72,000

Explanation:

The Fair Values of Land, Building and Equipment are used to apportion the single purchase price to the respective asset accounts as follows :

Land =  $115,000/ $460,000 × $360,000

        =  $90,000

Building =  $253,000/ $460,000 × $360,000

        =  $198,000

Land =  $92,000/ $460,000 × $360,000

        =  $72,000

A customer buys 100 shares of ABC stock at $44 and sells 1 ABC Jan 45 Call at $5. Subsequently, the market price of ABC goes to $59 and the call contract is exercised. The customer has a:

Answers

Answer:

loss = $1,000

Explanation:

the customer will receive $5 (call price) + $44 (call price) = $49 for every share  that he/she owns.

since the market price was $59, then the customer lost $59 - $49 = $10 for every share that he/she owned, resulting in a total loss = $10 per share x 100 shares = $1,000

A call option gives the buyer the option to purchase a stock at a set price during a specific time frame.

New lithographic equipment, acquired at a cost of $800,000 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. In the first week of the fifth year, on March 4, the equipment was sold for $135,000.

Required:
a. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method.
b. Journalize the entry to record the sale assuming the manager chose the double-declining-balance method.
c. On January 1, journalize the entry to record the sale in (b), assuming that the equipment was sold for $88,750 instead of $135,000.

Answers

Answer:

a. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by:

(a) the straight-line method

depreciation expense per year = ($800,000 - $90,000) / 5 years = $142,000

End of year            depreciation expense          book value

1                                  $142,000                           $658,000

2                                 $142,000                           $516,000

3                                 $142,000                           $374,000

4                                 $142,000                           $232,000

and (b) the double-declining-balance method.

depreciation expense year 1 = 2 x 1/5 x $800,000 = $320,000

depreciation expense year 1 = 2 x 1/5 x $480,000 = $192,000

depreciation expense year 1 = 2 x 1/5 x $288,000 = $115,200

depreciation expense year 1 = 2 x 1/5 x $172,800 = $69,120

End of year            depreciation expense          book value

1                                  $320,000                           $480,000

2                                 $192,000                            $288,000

3                                 $115,200                              $172,800

4                                 $69,120                               $103,680

b. Journalize the entry to record the sale assuming the manager chose the double-declining-balance method.

Dr Cash 135,000

Dr Accumulated depreciation - lithographic equipment 696,320

    Cr Lithographic equipment 800,000

    Cr Gain on sale 31,320

c. Journalize the entry to record the sale in (b), assuming that the equipment was sold for $88,750 instead of $135,000.

Dr Cash 88,750

Dr Accumulated depreciation - lithographic equipment 696,320

Dr Loss on sale 14,930

    Cr Lithographic equipment 800,000

 

Select the appropriate reporting method for each of the items listed below.

Item Reporting Method

1. Accounts payable.

2. Current portion of long-term debt.

3. Sales tax collected from customers.

4. Notes payable due next year.

5. Notes payable due in two years.

6. Advance payments from customers.

7. Commercial paper.

8. Unused line of credit.

9. A contingent liability with a probable likelihood of

occurring within the next year and can be estimated.

10. A contingent liability with a reasonably possible likelihood

of occurring within the next year and can be estimated.

Answers

Answer:

        Items                   ---             Reporting Method

1 . Accounts payable - Current liability

2 . Current portion of long-term debt - Current liability

3 . Sales tax collected from customers - Current liability

4 . Notes payable due next year - Current liability

5 . Notes payable due in two years - Long-­term liability

6 . Advance payments from customers - Current liability

7 . Commercial paper - Current liability

8 . Unused line of credit - Disclosure note only

9 . A contingent liability that is probable likelihood of occurring within the next year and can be estimated - Current liability  

10 . A contingent liability that is reasonably possible likelihood of occurring within the next year and can be estimated - Disclosure note only

A bond is issued at par value when: Multiple Choice The bond is callable. Straight line amortization is used by the company. The market rate of interest is the same as the contract rate of interest. The bond pays no interest. The bond is not between interest payment dates.

Answers

Answer:

The market rate of interest is the same as the contract rate of interest.

Explanation:

A bond can be defined as a fixed income instrument that firms use as a source of longer-term funding or loans.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid.

A bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium.

Hence, a bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance. Also, a bond that is being issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.

Generally, bond price is inversely proportional to its interest rate, thus, when interest rates are high, bond prices would be low and when interest rates are low, bond prices are high.

If the fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50, what are the old and new break-even sales (units) if the unit selling price increases by $10

Answers

Answer:

Old break even points= 18,000 units

New break even points= 12,857 units

Explanation:

The fixed costs are $450,000

The unit selling price is $75

The unit variable costs are $50

The unit selling price have an increase of 10 units

The first step is to calculate the contribution margin per unit

Contribution margin per unit= Selling price per unit-Variable cost per unit

= $75-$50

= $25 per unit

The old break even point can be calculated as follows

= Fixed costs/Contribution margin per unit

= $450,000/$25

= 18,000 units

Since there is an increase in the unit selling price by $10 per unit then, the contribution matgin per unit can be calculated as follows

= $25+$10

= $35

Therefore, the new break even point can be calculated as follows

= $450,000/$35

= 12,857 units

Hence the old break even point and new break even point are 18,000 units and 12,857 units respectively

Specter Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 820 2 1,130 3 1,390 4 1,525 a. If the discount rate is 10 percent, what is the present value of these cash flows

Answers

Answer:

$3,765.26

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash Flow in year 1 = $ 820

Cash Flow in year 2 = 1,130

Cash Flow in year 3 = 1,390

Cash Flow in year 4 = 1,525

I = 10

PV = $3,765.26

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when an excessive amount of time or money must be spent for parties to reach an agreement. This describes the problem of .

Answers

In the case when an excessive amount should be spending so this represents the problem of the Transaction cost.

What does a transaction cost?

Transaction cost is the cost that is typically in money or time format. It is the cost involved in the context of time or money when a decision is made or an agreement has been reached.

So according to the given situation, there is an excessive amount of time or money spent on parties so that it could be reached to an agreement

Therefore it represents the transaction cost.

Learn more about cost here: https://brainly.com/question/24468619

Question 3
When a court hears a breach of contract dispute, its job is to:​

Answers

their job is to find a verdict

If James and Kamanda had reached a void agreement that included conditions, then Kamanda would have had to give James the toaster if the conditions were satisfied.

a. True
b. False

Answers

There is a problem with the question, the word void should not be there. A void agreement is simply not enforceable since it is not valid. So I will assume that they both reached a valid agreement and it was a typing mistake.

Answer:

a. True

Explanation:

If two (or more) parties engage in a valid contract that includes certain specific conditions that are necessary in order to complete performance, and these conditions are met by one of the parties, then the other party must perform their part. In other words, if James performed all the conditions that were included in their contract, then Kamanda should hand over the toaster to James.

Raven Corporation owns three machines that it uses in its business. It no longer needs two of these machines and is considering distributing them to its two shareholders as a property dividend. All three machines have a fair market value of $20,000 each. Their basis is as follows: Machine A, $27,000; Machine B, $20,000; and Machine C, $12,000. The corporation has asked you for advice.
A. If Raven distributes Machine A, the result will be a_______loss of $_______.
B. If Raven distributes Machine B, the result will be_______of $______.
C. If Raven distributes Machine C, the result will be a______of $______.
D. Therefore, to________on Machine A, Raven should consider______Machine A. Raven should consider distributing Machine B because there will be______on the distribution. To______on Machine C, Raven should consider_______Machine C.

Answers

Answer:

A.If Raven distributes Machine A, the result will be a NONDEDUCTIBLE LOSS of $7,000

B. If Raven distributes Machine B, the result will be NO GAIN OR LOSS OF $0

C. If Raven distributes Machine C, the result will be a TAXABLE GAIN of $8,000

D.Therefore to PRESERVE THE LOSS on Machine A, Raven should consider SELLING Machine A. Raven should consider distributing Machine B because there will be NO RECOGNIZED GAIN OR LOSS on the distribution. To AVOID RECOGNIZING THE GAIN on Machine C, Raven should consider NEITHER SELLING NOR DISTRIBUTING Machine C

Explanation:

A. If Raven distributes Machine A, the result will be a NONDEDUCTIBLE LOSS of $7,000

Calculation as

(20,000 – 27,000) =-$7,000

B. If Raven distributes Machine B, the result will be NO GAIN OR LOSS OF $0

Calculated as :

(20,000-20,000)=$0

C. If Raven distributes Machine C, the result will be a TAXABLE GAIN of $8,000

Calculated as:

(20,000-12,000)=$8,000

D.Therefore to PRESERVE THE LOSS on Machine A, Raven should consider SELLING Machine A. Raven should consider distributing Machine B because there will be NO RECOGNIZED GAIN OR LOSS on the distribution. To AVOID RECOGNIZING THE GAIN on Machine C, Raven should consider NEITHER SELLING NOR DISTRIBUTING Machine C

If merchandise inventory is being valued at cost and the purchase price is steadily falling, which method of costing will yield the largest net income?

Answers

Answer:

The answer is LIFO

Explanation:

LIFO is Last in First out. It means the Inventory that was purchased last goes out first.

In periods LIFO, cost of sales reflects the cost of goods purchased recently and the ending Inventory reflects the older goods.

In periods of falling prices, the costs of ending inventory are high, cost of sales are low and the gross profit are high.

Tom and Suri decide to take a worldwide cruise. To do so, they need to save $15,000. They plan to invest $2,500 at the end of each year for the next six years to earn 9% compounded annually. Calculate the future value of the investment. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)

Answers

Answer: $18,808.25

Explanation:

There is a constant cashflow of $2,500 making this an annuity.

The future value of the $2,500 paid every year for 6 years at 9% will be;

Future value of Annuity = 2,500 * Future Value of Annuity factor, 6 periods, 9%) (refer to attached table)

= 2,500 * 7.5233

= $18,808.25

The future value of the amount is more than the amount they would require.

In the MBTI personality model, Disney "imagineers" are more likely to have high _____ scores, while Disney accountants who determine currency transfer equivalencies are more likely to have high _____ scores.

Answers

Answer:

In the MBTI personality model, Disney "imagineers" are more likely to have high __INTJ___ scores, while Disney accountants who determine currency transfer equivalencies are more likely to have high __ISTJ___ scores.

Explanation:

1. MBTI personality model is the Myers-Briggs Theory.  It was developed by the mother-daughter partnership of Katharine Briggs and Isabel Briggs Myers.  At the heart of Myers Briggs theory are four preferences, depicting personality preferences as follows:

1. People and things (Extraversion or "E"), or ideas and information (Introversion or "I").

2. Facts and reality (Sensing or "S"), or possibilities and potential (Intuition or "N").

3. Logic and truth (Thinking or "T"), or values and relationships (Feeling or "F").

4. A lifestyle that is well-structured (Judgment or "J"), or one that goes with the flow (Perception or "P").

These four major classifications mean that one tends to have more of each than the other.  This means that there are 16 traits or combinations of traits for a given personality.

2. INTJ personality type: Disney "imagineers" are likely to direct their energies to deal with (Introversion) ideas, information, explanations, and beliefs, as people in research and development at Disney.  The information they deal with will be based on ideas, new possibilities, and not obvious things (Intuition) instead of facts and what they know and see.  Their decision making will be based on objective logic, using analytic and detailed approaches.  Their work will be planned and well-structured to reflect their lifestyle as opposed to flowing with the trend and maintaining flexibility.

3. ISTJ personality class: Disney accountants will bear similar traits like the "imagineers" except that instead of dealing with unknown and not obvious ideas and possibilities like the imagineers, they would prefer their information for processing to be based on clear facts and what they see and know.

Answer:

In the MBTI personality model, Disney "imagineers" are more likely to have high __INTJ___ scores, while Disney accountants who determine currency transfer equivalencies are more likely to have high __ISTJ___ scores.

Explanation:

Costs that remain constant in total dollar amount as the level of activity changes are called Group of answer choices

Answers

Answer: Fixed Costs

Explanation:

Operating Cash Flow The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $25 million Operating costs (not including depreciation) $7 million Depreciation $6 million Interest expense $5 million The company faces a 35% tax rate. What is the project's operating cash flow for the first year (t = 1)? Write out your answer completely. For example, 2 million should be entered as 2,000,000.

Answers

Answer: $13,800,000

Explanation:

Operating Cashflow for the year = EBIT * (1 - tax rate) + Depreciation.

Earnings before Interest and Tax (EBIT) = Revenue - Operating Costs - Depreciation

= 25 - 7 - 6

= $12 million

Operating Cashflow = 12 * ( 1 - 35%) + 6

= 12 * 65% + 6

= $13.8 million

= $13,800,000

Problem-solving is an interpersonal ability to take corrective action in a problem situation in order to meet desired objectives.
A. True
B. False

Answers

Answer:

True.

Explanation:

Problem-solving is an interpersonal ability to take corrective action in a problem situation in order to meet desired objectives.

The problem-solving skills is an essential and very important attribute that is meant to be possessed by each and every leader. A problem-solving skill is one of the most important part of conceptual skills and it involves the use of an individual's interpersonal or cognitive ability to take corrective action when faced with a problematic situation in order to meet the desired or set objectives in an organization or team. There are basically four (4) essential steps to solving a problem and these are;

1. You should identify the problem.

2. Design an alternative solution to the problem.

3. Evaluate the solutions and choose the best among the solutions.

4. Execute the solution deemed to be best and most effective.

How much would you need to deposit in an account now in order to have $4000 in the account in 5 years? Assume the account earns 3% interest compounded monthly.

Answers

Answer:

PV= $3,443.48

Explanation:

Giving the following information:

Future value= $4,000

Interest rate= 0.03/12= 0.0025

Number of months= 5*12= 60

To calculate the initial investment required, we need to use the following formula:

PV= FV/(1+i)^n

PV= 4,000/(1.0025^60)

PV= $3,443.48

Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,398,250 65,800 machine-hours Processing orders $ 69,451 2,520 orders Inspection $ 184,800 2,400 inspection-hours The company makes 920 units of product W26B a year, requiring a total of 1,290 machine-hours, 61 orders, and 40 inspection-hours per year. The product's direct materials cost is $57.55 per unit and its direct labor cost is $13.56 per unit. The product sells for $123.50 per unit. According to the activity-based costing system, the product margin for product W26B is:

Answers

Answer:

$16,125.15

Explanation:

DATA:

Activity Cost Pool       Total Cost           Total Activity

Assembly                   $1,398,250           65,800 machine hours

Processing orders      $ 69,451              2,520 orders

Inspection                   $ 184,800             2,400 inspection-hours

Units produced = 920

Machine hours required = 1290

Processing orders required= 61

Inspection hours required = 40

Direct material cost = 57.55

Direct labor cost = 13.56 per unit

Selling price = 123.50

Solution

Sales Revenue (920 ×$123.5)                                   $113,620

LESS: Costs  

Direct Materials (920 × $57.55)                                $52,946

Direct labor (920 ×$13.56)                                        $12,375.2  

Assembly (1,398,250/65,800) = 21.25 × 1290=       $27412.5  

Processing (69,451/2,520) = 27.55 × 61 =               $1681.15

Inspection (184,800/2,400) = 77 x 40 =                   $3080        

Total Cost                                                               ($97494.65)      

Product margin                                                         $16,125.15

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