Answer:
Flexible budget variance= $10,000 unfavorable
Explanation:
Giving the following information:
Standard Variable overhead= $8.00 per unit
During the period, the company produced and sold 25,000 units, incurring $210,000 of variable overhead costs.
First, we need to calculate the standard variable overhead cost:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 8*25,000
Allocated MOH= $200,000
Now, the flexible budget variance:
Flexible budget variance= allocated overhead - actual overhead
Flexible budget variance= 200,000 - 210,000
Flexible budget variance= $10,000 unfavorable
Federal Rent-a-Car is putting together a new fleet. It is considering package offers from three car manufacturers. Fred Motors is offering 5 small cars, 5 medium cars, and 10 large cars for $500,000. Admiral Motors is offering 5 small, 10 medium, and 5 large cars for $400,000. Chrysalis is offering 10 small, 5 medium, and 5 large cars for $300,000. Federal would like to buy at least 550 small cars, at least 500 medium cars, and at least 550 large cars. How many packages should it buy from each car maker to keep the total cost as small as possible
Answer:
a) X ( number of package bought from Fred motors ) = 30
Y ( number of package bought from Admiral ) = 20
Z ( number of package bought from Chrysalis ) = 30
b) The smallest total cost = $32,000,000
Explanation:
Given data :
cars types x y z quantity needed
small 5 5 10 550
medium 5 10 5 500
large 10 5 5 550
cost $500,000 $400,000 $300,000
Note : x = number of package bought from Fred motors , y = Admiral motors , z = Chrysalis motors
The number of packages to be bought from each car manufacturer to keep total cost as small as possible
X ( number of package bought from Fred motors ) = 30
Y ( number of package bought from Admiral ) = 20
Z ( number of package bought from Chrysalis ) = 30
The smallest total cost = ( 30 * 500,000 ) + ( 20*400,000) + (30*300,000 )
= $32,000,000
Attached below is the detailed solution
Question 13 of 19
Which of the following is a benefit of international trade?
A. Citizens can vote in the elections of countries from which they
make purchases.
B. Consumers have access to more products.
C. Producers have international production requirements that they
must follow.
D. Governments can reduce the amount of money they spend on
international defense.
SUBMIT
Answer:
B
Explanation:
International trade is the exchange of goods and services across a countries borders
International trade can be export or import
export is sending a good to a foreign country
import is receiving goods from a foreign country
international trade increases the variety of goods available to consumers
a downside is it increases the competition faced by local producers
The buying and selling of products and services between businesses in several nations is referred to as international trade. On the global market, commodities such as consumer products, raw resources, food, and machinery are all purchased and sold.
The benefit of international trade is that consumers have access to more products. Thus, the correct answer to this question is option (B).
Through commerce, nations may obtain commodities and services that might not otherwise be accessible domestically and grow their markets. Market competition has increased as a result of global commerce.
Global trade offers individuals and nations the chance to experience products and services that are either unavailable or more expensive domestically.Political economists like Adam Smith and David Ricardo were among the first to acknowledge the significance of international commerce.However, some contend that commerce with other countries can really be detrimental to smaller countries, placing them at a disadvantage in the global arena.Therefore, The benefit of international trade is that consumers have access to more products. Thus the correct answer to this question is option (B).
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cuáles son las tres partes de una fracción
what issues should be covered in the negotiations between your organization and the outsourcing organization. You can list the issue, and then follow up with a couple of sentences to explain. Some groups think of this as what goes into the contract, although there are issues to consider that might not be in the contract. Cultural differences between the two organizations would be an example of an issue that is important to consider, but may not be put in the contract.
The correct answer to this open question is the following.
Although there are no options attached we can say the following.
The issues that should be covered in the negotiations between your organization and the outsourcing organization are the following.
As it is written in the question, the corporate culture of the outsourcing company is one of the issues to be discussed because it is important that the outsource company understand your values, mission, and mission, so the relationship could be professional and amicable.
Then, one important aspect of the negotiation must be the lines of communication to be "on the same page."
Another issue is the services to be provided, the price for each service and the way results are going to be measured.
As important as the previous issue, is the quality of the people who are going to be temñporarly hired, so there are no big differences between the quality of work from the employees of your company vs. the employees recommended and hired by the outsourcing company.
The level of expertise at suppliers is a major concern of your company. The outsourcing company has to show ways provable ways that guaranteed the expertise of suppliers.
One final important aspect is the solution of controversies in case there are problems between suppliers and your company, knowing that the outsourcing company is responsible for the hirings and contracts with the outsourced workers.
? Assessment
1/10
Which of the following is NOT a method a doctor would use to examine a patient?
A. Listening to a patient explain their
symptoms
B.Observing the patient through a
telescope
C. Testing reflexes with a reflex
hammer
D. None of the above
Answer:
B
Explanation:
A telescope is used to look at stars and planets, not a patient.
Answer:
The correct answer is B
Explanation:
g Assume you just purchased 100 shares of Apple stocks at $300. You are worrying that the competition from other tablet PC and smart phone producers will have a negative impact on Apple stock prices in 1 month. Generally speaking, you are still quite bullish on Apple stock. In order to hedge against this downside risk, you establish a protective put position by buying a put option contract with around 1-month maturity on Apple stock. However, the premium of the put option with strike price at $300 is $12, which is quite expensive. If you feel purchasing the put option with strike price at $300 and $12 premium is too expensive, what else can we do to reduce the cost of protective put position
Answer:
Buy at a lower strike put option or sell at a higher call option
Explanation:
100 shares of apple stock bought at $300
premium of put option ( cost ) = $12
Put option = $300
What can be done to reduce the cost of protective put position
To reduce the cost we can either buy at a lower strike put option or sell at a higher call option
Buying at a lower strike put option price ( < $300 )
This way premium will be reduced but this will not hedge against small fall in price
Sell at a higher call option
This way the premium charged will be reduced but if the price rises above the entry price on expiration then the gains made above the price will be foregone .
Which of the following stocks had the highest trading price at the end of the day?
the answer is D, I had the same problem
The correct option is D. Search Engine had the highest trading price at the end of the day. Because the low is 470.56 which highest among all of them.
What is stock?A stock is a type of instrument that denotes the holder's ownership stake in the issuing company and is typically traded on stock markets. To raise money to run their businesses, corporations issue stock.
Thus, the highest trading price at the end of the day is because search engine makes a high of 477.65 in the day which is the highest among all of them.
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PLEASE HELP!
How many years would it take to earn $225 on a $750 investment at 5% simple interest?
Answer:
T = 6 years
Explanation:
Given that,
Principal, P = $750
Interest = $225
Rate of interest = 5%
We need to find in how many years it would take to earn $225 on a $750 investment at 5% simple interest. The formula for simple interest is given by :
[tex]I=\dfrac{PRT}{100}\\\\T=\dfrac{100I}{PR}\\\\T=\dfrac{100\times 225}{750\times 5}\\\\T=6\ years[/tex]
So, the required time is 6 years.
1. A family with a gross monthly income of $8,500 is considering a $250,000, 30 year, 6.25% fix rate conventional mortgage to buy a $300,000 house. Move-in costs include the down payment, a $1,600 loan origination fee, 1 discount point, $3,500 in third party fees, 14 months of mortgage insurance premium, 2 months of property taxes, and 14 months of hazard insurance. The family estimates annual real estate taxes as 1.2%, annual hazard insurance as 0.4%, and annual maintenance as 1% of the purchase price. The annual private mortgage insurance premium is estimated as 1% of the loan amount. The household has monthly installment payments of $500 and is in the 35% marginal tax bracket. The lender requires that the housing expense ratio be no higher than 28%, and the monthly payment ratio no higher than 36%.
a) Can this family qualify for the loan?
b) What is the total amount of the move-in costs?
2. A family with a gross monthly income of $11,000 is considering a $357,000, 30 year, 7% mortgage to buy a house priced at $375,800. The annual private mortgage insurance premium is estimated as 0.78% of the loan amount. Move-in costs include the down payment, a 1% loan origination fee, 1 discount point, $5,400 in third party fees, 14 months of mortgage insurance premium, 6 months of property taxes, and 14 months of hazard insurance. The family estimates annual real estate taxes as 1.25%, annual hazard insurance as 0.4%, and annual maintenance as 1% of the purchase price. The household has a monthly installment payment of $1,000 and is in the 28% marginal tax bracket. Maximum housing expense ratio is 28%, while maximum total monthly payment ratio is 36%.
a) Can this family qualify for the loan?
b) What is the total amount of the move-in costs?
Sean just graduated from college and is now in the market for a new car. He has saved up to $4,000 for a down payment. He's deciding between a Super and a Duper. The Super is priced at $23,599 and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes a dealership check for $4,000 and takes out a loan for the remainder of the purchase price.
Identify what role money plays in each of the following parts of the story. (Medium of exchange, unit of account, or store of value)
A. Sean writes a check for $4,000.
B. Sean can easily determine that the price of the Super is more than the price of the Duper.
C. Sean has saved $4,000 in his checking account.
Answer:
Medium of exchange
unit of account
store of value)
Explanation:
Functions of money
1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you buy a car with a check
2. Unit of account : money can be used to value goods and services. SEAN was able to determine which is more valuable between super and duper using the price.
3. Store of value : money can retain its value over the long term, this it can be used as a store of value.
The efficient frontier of risky assets is:_______
A. The portion of the minimum-variance portfolio that represents the highest standard deviations.
B. The portion of the minimum-variance portfolio that includes the portfolios with the lowest standard deviation.
C. The portion of the minimum-variance portfolio that lies above the global minimum variance portfolio.
D. The set of portfolios that have zero standard deviation.
How much did The Home Depot owe for salaries and related expenses at January 29, 2017? Was this an increase or decrease from the previous year? multiple choice 1 $7,000 million (Decrease) $1,484 million (Decrease) $7,000 million (Increase) $1,484 million (Increase) Refer to the Revenues note in the Summary of Significant Accounting Policies that follows The Home Depot’s statements of cash flows. How does the company account for customer payments received in advance of providing services? multiple choice 2 Record the prepayment as revenue. The revenue is deferred until the goods or services are provided to the customer. The funds are not deposited in the bank account and no entry is recorded. The funds are deposited in the bank account and no entry is recorded. What adjusting journal entry must The Home Depot make when it provides services paid by gift card? multiple choice 3 debit Deferred Revenue, credit Net Sales Revenue debit Net Sales Revenue, credit Deferred Revenue debit Deferred Revenue, credit Cash debit Cash, credit Deferred Revenue
Answer:
The data this question is based on is too much to paste here so I will just answer based on it but without attaching it.
1. $1,484 million (Decrease)
They owed $1,484 million in salaries and related expenses at January 29, 2017.
In 2016 the figure was $1,515 million. Difference is:
= 1,484 - 1,515
= -$31 million ⇒ This is a decrease.
2. The revenue is deferred until the goods or services are provided to the customer.
As should be the case when it comes to the Revenue Recognition principle of the Accrual methods, revenue will only be recognized after the relevant goods and services have been provided to the customer. Until then it is classified as deferred revenue.
3. debit Deferred Revenue, credit Net Sales Revenue
Gift cards are to be considered deferred revenue because even though Home Depot have received payment for the cards, they have not supplied any goods for it. When the cards are then used, the deferred revenue should be debited to reduce it and Net Sales revenue should be credited to recognize it as revenue for the period.
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning Balance Ending Balance Raw materials $ 14,850 $ 22,850 Work in process $ 27,850 $ 9,850 Finished Goods $ 62,850 $ 77,850 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,850 machine-hours and incur $294,495 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $315,850. Raw materials were requisitioned for use in production, $307,850 ($280,150 direct and $27,700 indirect). The following employee costs were incurred: direct labor, $377,850; indirect labor, $96,850; and administrative salaries, $172,850. Selling costs, $147,850. Factory utility costs, $10,850. Depreciation for the year was $178,000 of which $171,000 is related to factory operations and $7,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,170 machine-hours. Sales for the year totaled $1,315,000. Required: a. Prepare a schedule of cost of goods manufactured. b. Was the overhead underapplied or overapplied
Answer:
Baab Corporation
a. Schedule of cost of goods manufactured:
Beginning work in process $ 27,850
Direct raw materials 280,150
Direct labor 377,850
Manufacturing overhead 297,279
Ending work in process ($ 9,850)
Cost of goods manufactured $973,279
b. The overhead was underapplied (by $9,121).
Explanation:
a) Data and Calculations:
Beginning Ending
Raw materials $ 14,850 $ 22,850
Work in process $ 27,850 $ 9,850
Finished Goods $ 62,850 $ 77,850
Estimated machine hours = 33,850
Manufacturing overhead cost = $294,495
Predetermined overhead rate = $294,495/33,850 = $8.70 per mh
Raw materials purchase $315,850
Raw materials used for production $307,850
Direct raw materials $280,150
Indirect raw materials $27,700
Direct labor$377,850
Indirect labor, $96,850
Administrative salaries, $172,850
Selling costs, $147,850
Factory utility costs, $10,850
Depreciation:
Factory Depreciation $171,000
Selling, general, and admin. $7,000
Total for the year was $178,000
Actual level of activity for the year = 34,170 machine hours
Sales for the year = $1,315,000
Manufacturing Overhead:
Indirect raw materials $27,700
Indirect labor, 96,850
Factory utility costs, 10,850
Factory Depreciation 171,000
Total overhead incurred $306,400
Overhead applied 297,279
Underapplied overhead $9,121
The manufacturing overhead budget at Levetron Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,700 direct labor-hours will be required in August. The variable overhead rate is $9.20 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $143,990 per month, which includes depreciation of $25,640. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for August should be:
Answer:
$27.9
Explanation:
Labor hours × Variable manufacturing over head rate
= 7,700 × $9.2
= $70,840
We will then add fixed manufacturing overhead to the above
= $143,990 + $70,840
= $214,830
The next step is to divided the above by the direct labor hour
= $214,830 / 7,700
= $27.9
Therefore the predetermined overhead rate for August is $27.9
Question 8 of 19
Which of the following is a benefit of division of labor?
O A. Workers become better at their tasks.
B. Salaries increase.
C. Governments gain control of incentives.
D. Taxes outpace profits.
PLEASE PLEASE PLEASE NO LINKS!!!!!!!!!!!!
Actual sales price is 20% higher than budgeted. Actual sales revenue in dollars is 14% higher than budgeted. Actual sales volume in units is 5% lower than budgeted. Actual input quantity per unit is 2% higher than budgeted. Actual input price is 4% lower than budgeted. Which of the following is true: Group of answer choices Sales volume variance is unfavorable and input efficiency variance is unfavorable Sales volume variance is unfavorable and input efficiency variance is favorable Sales volume variance is favorable and input efficiency variance is unfavorable Not enough information Sales volume variance is favorable and input efficiency variance is favorable
Answer: Sales volume variance is unfavorable and input efficiency variance is unfavorable
Explanation:
The sales volume variance is regarded as the difference in the revenue or the profit which is as a result of the difference between the actual sales and the budgeted sales.
With regards to the question, since the Actual sales volume in units is 5% lower than the budgeted sales, we can infer that the sales volume variance will be unfavourable. On the other hand, since, the actual input quantity per unit is 2% higher than budgeted input quantity per unit, then we can infer that the input efficient variance is unfavourable.
Bridgeport Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2020 are as follows. Employee Future Years of Service Jim 3 Paul 4 Nancy 5 Dave 6 Kathy 6 On January 1, 2020, the company amended its pension plan, increasing its projected benefit obligation by $87,120. Compute the amount of prior service cost amortization for the years 2020 through 2025 using the years-of-service method, setting up appropriate schedules.
Answer:Please see answers in explanation column
Explanation:
Cost per service year = obligation From benefit / Total years of service
Total years of service= 3+4+5+6+6=24
Cost per service year =$87,120/24 =$3,630
Year Jim Paul Nancy Dave Kathy Total × Cost Amortization
2020 1 1 1 1 1 5 × $3,630 $18, 150
2021 1 1 1 1 1 5 × $3,630$ $18, 150
2022 1 1 1 1 1 5 × $3,630 $18, 150
2023 1 1 1 1 4 × $3,630 $14, 520
2024 1 1 1 3 × $3,630 $10,890
2025 1 1 2 × $3,630 $7,260
Total $87,120.
_______involves streamlining the processes and communications between the buyer and supplier using software applications
Answer:supplier relationship management
Explanation:
Supplier relationship management concerns facilitating the operations and communications between the buyer and supplier using software applications.
What is supplier relationship management?Supplier relationship management (SRM) is the method of determining the providers or suppliers that are essential to a business and executing a system of managing connections with those critical suppliers.
The objective of SRM is to increase the importance of supplier connections and to streamline acquisition processes. Without an adequate SRM technique, buyers risk cut off supply chains, etc.
Therefore, Supplier relationship management is concerned with the facilitation of operations and communication between the buyers and the suppliers.
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Many times, margin, instead of retailing price, becomes the firm's decision variable. Suppose we notice Kroger is selling Dove at $0.99 per bar. We also know the manufacturing cost of Dove by its producer, Unilever, is $0.6 per bar, and the manufacturer's margin is 40%. Based on the cost plus pricing formula we discussed in class [ P=C+m%*C], we could figure out Kroger's margin on
Dove is about _______.
a. 18%
b. 25%
c. 38%
d. 65%
Think about people, organizations, agencies, or projects that need help in your neighborhood or city. List them below along with a description of how you can help.
There are several ways to contribute to the development of your neighborhood or city.
You can start researching which social projects and institutions are active in your neighborhood and seek information on ways you can help them.
A simple way to start helping the community with a positive impact is to organize a selective garbage collection and recycling system, so that there is a reduction of polluting waste on the planet and the promotion of good sustainability practices.
You can also help:
work in NGOs, develop tutoring programs for students, create book clubs, support programs for people in needWith small acts and good will, you are able to transform your community into a better place with a better quality of life for everyone who lives in it.
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1. Normally, when buying a business, the seller:
does not sign a restrictive covenant.
notifies creditors 10 days prior to the sale of the business.
cannot assign his credit arrangements with suppliers to the buyer.
has little formal role or obligation in preparing documents and information necessary to the sale.
Answer:
C). cannot assign his credit arrangements with suppliers to the buyer.
Explanation:
As per the question, the 'seller is not able to allocate his credit adjustments associated with the suppliers to the potential buyer.' The seller must pay off and resolve his credit arrangements completely before selling off his property to the buyer. If he/she fails to do so, the buyer can sue him legally because the contract offers the asset or property to the buyer free of any previous credit adjustments with the seller. Thus, any such allocation would be considered illegal and cause damage to the seller and his image. Hence, option C is the correct answer.
Splendid Systems is considering the following three investment opportunities:
Project I would require an immediate cash outlay of $39,000 and would result in cash savings of $8,100 each year for 5 years.
Project II would require cash outlays of $8,000 per year (starting at the end of year 1) and would provide a cash inflow of $41,000 at the end of 5 years.
Project III would require a cash outlay of $35,000 now and would provide a cash inflow of $62,000 at the end of 5 years.
Required:
Use the net present value method to determine which, if any, of the three projects is acceptable.
Answer:
Missing question: Required The discount rate is 14%. Use the net present value method to determine which, if any of the projects is acceptable.
I. Present value of inflows = $8,100*Present value of annuity factor(14%,5) = $8,100 * 3.433 = $27,807.3
NPV = Present value of inflows - Present value of outflow = $27,807.30 - $39,000 = -$11,192.7
II. Present value of inflows = $40,000*Present value of discounting factor(14%,5) = $40,000/1.14^5 = $40,000/1.9254 = $20,774.90
Present value of outflows = $8,000*Present value of annuity factor(14%,5) = $8,000*3.433 = $27,464
NPV = Present value of inflows - Present value of outflow = $20,774.90 - $27,464 = -$6,689.10
III. Present value of inflows = $62,000*Present value of discounting factor(14%,5) = $62,000/1.14^5 = $62,000/1.9254 = $32,201.10
NPV = Present value of inflows-Present value of outflow = $32,201.10 - $35,000 = -$2,798.90
Conclusion: Option 3 is better by having a higher NPV, but all the projects are acceptable if they are independent.
An unconfined aquifer with a head of 120 ft (from the bottom of the aquifer) was evaluated using a pumping test. After the head reached the steady state, A total of 24,000 cubic foot of water was pumped out in a period of 6 hours. At a distance of 1,000 ft from the pumping well, the drawdown was 40 ft; and at a distance of 5,000 ft it was 20 ft. Find the permeability (in ft/sec, and cm/sec) of the aquifer assuming that steady-state conditions prevail. (pay attention to the relation drawdown and head; use the formula I discussed in class).
Here's link[tex]^{}[/tex] to the answer:
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Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated to the two operating departments based on square feet occupied. Listed below are the operating data for the current period:
Department Direct Expenses Square Feet
Maintenance $25,500
Milling 76,500 10,000
Assembly 105,400 15,000
The total cost of operating the Assembly Department for the current period is: _________
Answer:
Total operating expenses for assembly department $120,700
Explanation:
The computation of the total operating cost for the assembly department is given below;
Given that
Maintainance department direct expenses is $25500
Here we have to divided into 2 departments
So the new ratio is 10,000: 15,000
i.e. direct expenses with respect to the maintenance department share per square feet is
= $25500 ÷ (10000 + 15000)
= $1.02 per square feet.
Now total direct expenses for the assembly department :
Direct expenses $105400
Add: Allocation of maintenance department direct expenses ($1.02 × 15000 square feet) $15300
Total operating expenses for assembly department $120,700
Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations:Selling price $ 157Units in beginning inventory 1,250Units produced 9,150Units sold 9,250Units in ending inventory 1,150Variable costs per unit:Direct materials $ 35Direct labor $ 52Variable manufacturing overhead $ 16Variable selling and administrative expense $ 26Fixed costs:Fixed manufacturing overhead $ 73,200Fixed selling and administrative expense $ 166,000The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.What is the net operating income for the month under absorption costing
Answer:
Calculation of Cost of goods sold
Opening Inventory = 1250 units*$111 = $138,750
Production cost = 9150 units*$111 = $1,015,650
Less : Closing Inventory = 1150 units*$111 = $127,650
Cost of Goods sold $1,026,750
Calculation of Unit cost
Direct Materials 35
Direct Labor 52
Variable manufacturing overheads 16
Fixed manufacturing overheads 8
Total Unit Cost 11
Particulars Amount
Sales $1,452,250
Less: Cost of goods sold $1,026,750
Gross Profit $425,500
Less: Selling & admin. exp
Variable -$240,500
Fixed -$166,000 $406,500
Net Operating Income $19,000
Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an invoice with a list price amount of $6,000 and payment terms of 1/10, n/30. Alison uses the net method to record purchases. Alison should record the purchase at: Group of answer choices
Answer:
$5,940
Explanation:
Purchase under Net method:
= Gross profit - Discount
= $6,000 - (1% of $6,000)
= $6,000 - $60
= $5,940
Therefore, Alison should record the purchase at $5,940.
It would compel the government to cut spending to offset lost tax revenues, which decline during recessions. prevent the government from employing an expansionary fiscal policy, since increased government spending would have to be offset by increased taxes. require the government to increase spending to match increased tax revenues, pushing up interest rates and crowding out private spending. force the Fed to pursue an expansionary monetary policy, which would cause inflation, undermining economic growth.
Answer:
It would compel the government to cut spending to offset lost tax revenues, which decline during recessions. Prevent the government from employing an expansionary fiscal policy, since increased government spending would have to be offset by increased taxes.Explanation:
The Federal government balancing its budget every year means that it would need to match its revenue (taxes) to its spending.
Should they be forced to do this, they would have to cut spending so that they would be able to match taxes when they are low during recessions. This would not be helpful because government spending is needed to get out of a recession.
The government would also be unable to pursue an expansionary fiscal policy because any increase in spending would have to match an increase in taxes to fund it. The effect of the spending will not be as felt because the government would be simultaneously pumping money into the economy and taking it out at the same time.
Warshaw Company is preparing the June Budget. The June budget includes the following data: Sales $100,000 Purchases of Merchandise $95,000 Depreciation of office equipment in Accounting Department $2,615 Insurance $11,544 Payroll expenses $5,722 a month plus 2% of sales (for sales and administrative personnel) Administrative office expenses incurred to order purchases are budgeted at 4% of purchases of merchandise only Purchase of equipment $3,537 Research and Development 8% of sales What is total operating expense for June? (hint: not everything listed is an operating expense)
Answer:
$33,681
Explanation:
According to the scenario, computation of the given data are as follows,
Operating Expense for June = Depreciation+ Insurance+Payroll expense+ Admin Expenses +Research and Development expense
Where, Depreciation = $2,615
Insurance expense = $11,544
Payroll expense = $5,722 + ( 2% × $100,000) = $7,722
Admin expense = 4% × $95,000 = $3,800
Research and Development expense = 8% × $100,000 = $8,000
So, Operating Expense for June = $2,615 + $11,544 + $7,722 + $3,800 + $8,000
= $33,681
On January 1 of this year, Houston Company issued a bond with a face value of $18,000 and a coupon rate of 6 percent. The bond matures in 3 years and pays interest every December 31. When the bond was issued, the annual market rate of interest was 5 percent. Houston uses the effective-interest amortization method. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) Required: 1. Complete a bond amortization schedule for all three years of the bond's life. (Enter all values as positive values.)
Answer:
Houston Company
The Bonds Amortization Schedule
Period PV PMT Interest FV
1 $18,490.18 $1,080.00 $924.51 $18,334.69
2 $18,334.69 $1,080.00 $916.73 $18,171.43
3 $18,171.43 $1,080.00 $908.57 $18,000.00
Explanation:
a) Data and Calculations:
Face value of bond = $18,000
Coupon rate = 6%
Annual coupon payment = $1,080 ($18,000 * 6%)
From an online financial calculator, the PV of the bond = $18,490.18:
N (# of periods) 3
I/Y (Interest per year) 5
PMT (Periodic Payment) = $1,080
FV (Future Value) = $18,000
Results
PV = $18,490.18
Sum of all periodic payments = $3,240.00
Total Interest = $2,749.82
A project scope statement provides the first phase the project.
True
False
Answer:
true coz i know the answer