Answer: D
Explanation:
Why do managers suggest that ignoring all cash flows following the assigned payback period is not a major flaw of the payback method of capital budgeting analysis? Payback is never used in real practice so it makes no difference how academics apply the method in their studies If the cash flows after the required payback period are significant, managers will use their discretion to override the payback rule. All cash flows after the first two years are highly inaccurate so including them lessens the reliability of the resulting decision. All cash flows after the assigned payback period are relatively worthless in today’s dollars so ignoring them has no consequence. The results of including the cash flows after the required payback period rarely have any effect on the accept/reject decision.v
Answer:
The answer is "choice B".
Explanation:
Please find the numbering of the question in the attachment file.
Whenever the cash flows become substantial after the required period, managers would use their option to surpass the pay-back rule, as well as the managers, recommend that ignoring all investment returns after a period of pay-back would not be an important component in the capital-budget evaluation repayment process, that's why the choice "B" is correct.
A firm has $3,600,000 in its common stock account and $36,000,000 in its paid in capital accountThe firm issued 450,000 shares of common stock. What was the issue price (market value) if only one stock issuance has occurred?
Answer:
the issue price is $88 per share
Explanation:
The computation of the issue price is shown below:
= (Common stock + paid in capital) ÷ (Number of common shares issued)
= ($3,600,000 + $36,000,000) ÷ 450,000 shares
= $39,600,000 ÷ 450,000 shares
= $88 per share
Hence, the issue price is $88 per share
Item9 Time Remaining 34 minutes 55 seconds00:34:55 Item 9 Time Remaining 34 minutes 55 seconds00:34:55 Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume 13,900 units 15,000 units Direct materials $ 813,150 $ 877,500 Direct labor $ 215,450 $ 232,500 Manufacturing overhead $ 1,011,500 $ 1,024,150 The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice
Answer:
$85.50
Explanation:
Particulars Amount Amount Difference
Direct materials $813,150 $877,500 $74,350
Direct labor $215,450 $232,500 $17,050
Manufacturing OH $1,011,500 $1,024,150 $12,650
T.V. Overheads 2040100 2134150 $94,050
Production Volume 13,900 15,000 1,100
Variable Cost per unit $85.50
If cash is received from customers in payment for services that have not yet been performed, the business would record the cash receipt as: Multiple Choice A debit to an unearned revenue account. A debit to a prepaid expense account. A credit to an unearned revenue account. A credit to a prepaid expense account. A credit to accounts payable.
Answer:
A credit to an unearned revenue account
Explanation:
Ordinarily, when cash is received from a person whereas service has not been performed, the accounting entry is to debit cash account and credit the unearned revenue account.
Here, the receipt of cash means that revenue was realized however, the service expected have not been performed hence necessitated crediting the unearned revenue account and a debit to the asset cash for the amount received.
1. What is the purpose of a bank statement?
Answer:
to hold money on a account
Explanation:
Bank statements are a great tool to help account holders keep track of their money. They can help account holders track their finances, identify errors, and recognize spending habits.
explain the 5 methods used to measures national income
Answer:
National income can be measured through three different methods. The methods are as follows:
1. Product method
In this method National income is determined by the market value of all the final goods and services produced within a nation during a fixed time period.( The goods and Services does not include intermediate goods.)
2. Expenditure method
Under this method the national Income is determined by the total spending on final goods and services which are produced within a nation in a fixed time period.
3. Income method
As the name suggests , national Income under this method is calculated by adding the incomes received by producers.
Explanation:
:)
Who is the Father of accounting
Answer:
Luca Pacioli
Luca Pacioli, was a Franciscan friar born in Borgo San Sepolcro in what is now Northern Italy in 1446 or 1447.
Jennifer has recently found a new job at a local architectural firm. They have offered her a chance to invest money for her retirement. For every 6 percent Jennifer invests from her salary, her company will fund 3 percent. What type of investment does this describe?
A.
money market mutual fund
B.
certificate of deposit
C.
bond
D.
401k
The answer is D.) 401k
Don't worry about the picture it tells you the correct answer
Hope this helps
401k is the investment option offered by Jenifer’s employer to her.
What is a 401K plan?Popularly known as an employer-sponsored retirement plan, a 401(K) plan allows certain eligible employees to make tax-deferred contributions from their pay or compensation, based on pre-established criteria. A 401(k) match is money put into your account by your employer. Up to a predetermined percentage of your pay, your company will match all or a portion of every dollar you put into your 401(k). Employer matching is a crucial perk of your employment that, over time, can greatly increase your 401(k) retirement savings. The employer contribution is pre-tax, whereas the employee contribution is post-tax.
Employers who offer 401(K) plans are also allowed to include a profit-sharing component in the plan as well as make matching or non-elective payments to the plan on behalf of eligible employees.
The typical 401(k) plan is very versatile and provides close to 25 distinct investment possibilities. The fund fees, which were formerly a significant problem, have been steadily declining, which lessens the strain on employees' retirement funds. In fact, the 401(k) contributions that invested a sizeable sum in these index funds as low cost and low risk methods of engaging in the equity markets are responsible for the index funds' quick surge in popularity in the US, including Vanguard and Blackrock. Employees have access to a low-cost way to invest for the future, and since 401(k) contribution limits are inflation-indexed, participants can gradually make higher contributions.
Employers most frequently match worker contributions up to a percentage of annual income. There are a number possible ways to implement this constraint. Your employer has the option of matching all of your contributions up to a certain percentage of your overall compensation or only a portion of them. The latter circumstance necessitates you to make additional contributions to your plan in order to earn the maximum match, even while the overall cap on employer contributions stays the same.
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how do I create a marketing plan
A machine makes three different components used in a gyroscope. Call these components A, B, and C. The following repeating schedule is used to make components: make 100 units of A, make 50 units of B, and then make 200 units of C. How many components are made in the production cycle
Answer:
350
Explanation:
Calculation for How many components are made in the production cycle
Components A 100 units
Components B 50 units
Components C 200 units
Total 350 components
Therefore How many components are made in the production cycle is 350 components
On January 1, 2020, Crane Company sold to Blossom Company $740000 of its 8% bonds for $655119 to yield 11%. Interest is payable semiannually on January 1 and July 1. What amount should Crane report as interest expense for the six months ended June 30, 2020? a) $36032 b) $26205 c) $40700 d) $29600
Answer:
a) $36032
Explanation:
The computation of the interest expense reported is shown below:
= BOnd value × rate of interest × given months ÷ total months
= $655,119 × 11% × 6 months ÷ 12 months
= $36,032
Hence, the amount that should be reported as interest expense is $36,032
The following unadjusted accounts are taken from the records of Brown Corp. at December 31, 2019:
Bank Loan 201 Interest Expense 632 Interest Payable 222 12,000 200 100
Additional Information: The bank loan bears interest at 6% per year. It was obtained on April 1, 2019.
Payment in full is due on March 31, 2020.
Required: Prepare the adjusting entry at December 31, 2019
Answer:
Dr Interest expense $340
Cr Interest payable $340
Explanation:
Preparation of the adjusting entry at December 31, 2019
First step is to calculate the interest expense to be debited
Interest expense for 2019 $540
(12,000*6%*9/12)
Less Interest expense already debited ($200)
Interest expense to be debited $340
($540-$200)
Now let Prepare the journal entry
December 31, 2019
Dr Interest expense $340
Cr Interest payable $340
($540-$200)
(Being Interest expense recorded)
On January 1, 2021, Oliver Foods issued stock options for 47,000 shares to a division manager. The options have an estimated fair value of $7 each. To provide additional incentive for managerial achievement, the options are not exercisable unless Oliver Foods' stock price increases by 6% in four years. Oliver Foods initially estimates that it is not probable the goal will be achieved. How much compensation will be recorded in each of the next four years
Answer:
$82,250
Explanation:
the compensation per year = 47,000 x 1/4 x$7 per stock = $82,250
The compensation must be allocated proportionally to every year included in the plan, regardless of the conditions specified by the plan. The stock price already implicitly includes the most probable market conditions for the company, so that is the price that has to be used to record the compensation plan.
Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits$75per hourAnnual labor hours 6,350hoursAnnual materials purchase$1,206,250 Materials purchasing, handling, and storage$241,250 Overhead for depreciation, taxes, insurance, etc.$670,000 Target profit margin for both labor and materials 25% What should Shale set as the materials markup per dollar of materials used
Answer:
45%
Explanation:
Annual material purchase $1,206,250
Material purchasing, handling and storage cart $241,250
Material purchasing, handling and storage % on 20%
material purchase ($241,250/$1,206,250*10)
Target profit margin 25%
Material markup per dollar of material used 45%
the true statement from the list below, regarding the Contribution Format Income statement. Multiple Choice The Contribution Format Income Statement could be prepared by someone external to the company just by using the reported GAAP Traditional Income Statement. The Contribution Format income statement is utilized only for external reporting purposes. The Contribution Format Income Statement is utilized for internal decisionmaking purposes. The format of the Contribution Format Income statement begins as: Sales minus Cost of Goods Sold equals Contribution Margin.
Answer:
The Contribution Format Income Statement is utilized for internal decision-making purposes.
Explanation:
The contribution format income statement is a most and useful tool for the planning and decision-making as it represents the revenue that is produced after subtracting the variable and fixed expenses. So it would be utilized for the decision-making motive for internal.
The wireless phone manufacturing division of a consumer electronics company uses activity-based costing. For simplicity, assume that its accountants have identified only the following three activities and related cost drivers for indirect production costs: Activity Cost Driver Materials handling Direct-materials cost Engineering Engineering change notices Power Kilowatt hours Three types of cell phones are produced: Senior, Basic, and Deluxe. Direct costs and cost-driver activity for each product for a recent month are as follows: Senior Basic Deluxe Direct-materials cost $25,000 $ 60,000 $135,000 Direct-labor cost $14,546 $ 3,762 $ 6,772 Kilowatt hours 230,000 220,000 100,000 Engineering change notices 21 20 69 Indirect production costs for the month were as follows: Materials handling $ 15,400 Engineering 99,000 Power 11,000 Total indirect production cost $125,400 1. Compute the indirect production costs allocated to each product with the ABC system. 2. Suppose all indirect production costs had been allocated to products in proportion to their direct labor costs. Compute the indirect production costs allocated to each product. 3. In which product costs, those in requirement 1 or those in requirement 2, do you have the most confidence
Answer:
1. The indirect production costs allocated to each product with the ABC system:
Senior Basic Deluxe Total
Total indirect production cost $25,250 $26,600 $73,550 $125,400
2. The indirect production costs allocated to each product with direct labor costs:
Senior Basic Deluxe Total
Total indirect production cost $72,730 $18,810 $33,860 $125,400
3. I repose much more confidence in the product costs according to requirement 1.
Explanation:
a) Data and Calculations:
Activity Cost Driver
Materials handling
Direct-materials cost
Engineering Engineering
Senior Basic Deluxe Total
Direct-materials cost $25,000 $ 60,000 $135,000 $220,000
Direct-labor cost $14,546 $ 3,762 $ 6,772 $25,080
Kilowatt hours 230,000 220,000 100,000 550,000
Engineering change notices 21 20 69 110
Indirect production costs:
Materials handling $ 15,400 $15,400/$220,000 = $0.07
Engineering 99,000 $99,000/110 = $900
Power 11,000 $11,000/550,000 = $0.02
Total indirect production cost $125,400
Overhead Senior Basic Deluxe
Rates
Materials handling $0.07 $1,750 $4,200 $9,450
Engineering $900 18,900 18,000 62,100
Power $0.02 4,600 4,400 2,000
Total indirect production cost $25,250 $26,600 $73,550
Allocation based on direct labor costs:
Predetermined rate = $5 per direct labor cost.
Senior Basic Deluxe Total
Total indirect production cost $72,730 $18,810 $33,860 $125,400
Elm Company's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019 Raw materials inventory $420,000 $350,000 Work in process inventory 400,000 275,000 Finished goods inventory 200,000 125,000 During 2020, $750,000 of raw materials were purchased, direct labor costs amounted to $560,000, and manufacturing overhead incurred was $630,000. The total raw materials available for use to assign to production during 2020 for Elm Company is Group of answer choices
Answer:
$680,000
Explanation:
The computation of the raw material allocated to production is shown below:
As we know that
Raw materials used in production = Beginning raw materials + Purchase of raw materials - Ending raw materials
= $350,000 + $750,000 - $420,000
= $680,000
Imagine that after completing your economics course (you get an A, of course) you are at a family gathering. Your grandmother asks you about a news story she read this morning. The story explained that when the government adjusts Social Security payments for inflation, it generally uses the CPI-W, which is the Consumer Price Index for Urban Wage Earners and Clerical Workers. Because senior citizens spend a lot more than average on medical care, adjustments to their Social Security payments are not keeping up with their cost of living.
Last year I received $15,000 per year from the government. The story said that the CPI increased from 144 to 162. How much will I get this year?
Answer:
$16,875
Explanation:
The amount received per year is $15,000 and the CPI increased from 144 to 162
Inflation rate = (New CPI - Old CPI)/Old CPI * 100
Inflation rate = 162-144/144 * 100
Inflation rate = 0.125
Inflation rate = 12.5%
Amount received = $15,000 * 12.5% = $1,875
==> $15,000 + $1,875 = $16,875
So, Grandmother will receive $16,875
Nick and Beth run a catering business in which they have two major tasks: getting new clients and preparing food for events and parties. It takes Nick 8 hours to prepare food for an event and 4 hours of effort to get each new client. For Beth, it takes 12 hours to prepare food for an event and 3 hours to get a new client.
1. Who has an absolute advantage in food preparation?
2. Who has a comparative advantage in food preparation?
Suppose that initially, Nick and Beth are both splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food for one more event, and the other person will use the freed-up time to get more clients. As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by __?__.
The second part threw me off and I got confused. I put up the entire problem just to see if i answered it correctly or not to see whether that was what threw me off or not. Thanks in advance! :)
Answer:
NICK
NICK
2
Explanation:
A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries
Nick prepares food in 8 hours while Beth produces the food in 12 hours. ick thus has an absolute advantage in food preparation because he produces food in less time
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
Opportunity cost of Nick in food preparation = 4/8 = 0.5 hours
Opportunity cost of Beth in food preparation = 3 / 12 = 0.25 hours
Nick has a comparative advantage in food preparation
0.0004×0.81/0.0027×0.004
Answer:
0.00048
Explanation:
I hope this helped
Gelb Company currently manufactures 56,500 units per year of a key component for its manufacturing process. Variable costs are $4.05 per unit, fixed costs related to making this component are $85,000 per year, and allocated fixed costs are $78,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.50 per unit. Calculate the total incremental cost of making 56,500 units and buying 56,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier
Answer:
Incremental Costs to Make
Variable Cost Per Unit = $4.05 = 56,500 units*$4.05 = $228,825
Fixed Manufacturing Costs = $85,000
Total Incremental Costs to Make $313,825
Incremental Costs to Buy
Purchase Price Per Unit = $3.50 = 56,500 unit*$3.50 = $197,750
Total Incremental Cost to Buy = $197,750
The company should buy the component from outside supplier as it results in a lower total incremental cost of $197,750
A pre-concert rehearsal is an example of
Media strategy
Marginal analysis
Quality control
Goodwill
Answer:
Quality control
Explanation:
Six Sigma is a quality business management strategy which helps business organizations to improve the quality of processes, products and services by discovering and eliminating defects, variations or errors. It is a strategic business concept that was developed in 1986 by Motorola.
Under the six sigma approach, any process that doesn't provide customer satisfaction or causes challenges in an organisation's process should be eliminated from the system in order to produce quality products and services. It allows only 3.4 defective features for every million opportunities and as such expects processes to be defect free 99.99966 percent of the time.
Generally, there are two (2) main methods of achieving the six sigma approach;
1. DMAIC: define, measure, analyze, improve and control.
2. DMADV: define, measure, analyze, design and verify.
Hence, a pre-concert rehearsal is an example of quality control because the participants or team members are made to practice their routines so as to master them and prevent mistakes on the day of the concert. Thus, a pre-concert is aimed at getting the best out of a team in order to deliver a quality performance to the audience.
In each of the following transactions ( a ) through ( c ) for Romney's Marketing Company, use the three step process illustrated in the chapter to record the adjusting entry at year-end December 31, 2015. The process includes (1) determining if revenue was earned or an expense incurred, (2) determining whether cash was received or paid in the past or will be received or paid in the future, and (3) computing the amount of the adjustment.
a. Estimated electricity usage at $450 for December; to be paid in January of next year.
b. On September 1 of the current year, loaned $6,000 to an officer who will repay the loan principal and interest in one year at an annual interest rate of 14 percent.
c. Owed wages to 10 employees who worked four days at $200 each per day at the end of the current year. The company will pay employees at the end of the first week of next year.
Answer:
Romney's Marketing Company
Using the three-step process to record the adjusting entry at year-end December 31, 2015:
a1. Expense was incurred
2. Cash will be paid in the future
3. The amount of the adjustment is $450
b1. Revenue was earned at December 31, 2015
2. Cash will be received in the future.
3. The amount of the adjustment is $280.
c1. Expense was incurred.
2. Cash will be paid in the future.
3. The amount of the adjustment is $8,000.
Explanation:
a) Data and Calculations:
Interest receivable = $280 ($6,000 * 14% * 4/12)
b) The three-step process for recording the adjusting entry at year-end:
(1) determining if revenue was earned or an expense incurred.
(2) determining whether cash was received or paid in the past or will be received or paid in the future.
(3) computing the amount of the adjustment.
You purchased eight put option contracts with a strike price of $30 and a premium of $1.10. What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $26.50 a share
Answer:
$23120
Explanation:
The computation of the total net amount received is shown below:
Total Premium Paid
= 800 Option × $1.10
= $880
And,
Amount Received is
= 800 Option × $30
= $24000
So, Net Amount Received is
= $24000 - $880
= $23120
2) Company issues
to invites its members to subscribe for its
Deposit scheme. (Advertisement, Circular, Newspapers)
Answer:
Advertisement.
Explanation:
An advertisement can be defined as a strategic process or technique which is typically used to bring an announcement, information or notice to the general public.
This ultimately implies that, an advertisement is a means of communication through the use of mediums such as newspapers, blogs, magazines, television, radio, flyers, pamphlets, etc., to bring a specific information or announcement to the general public.
Generally, advertisements are considered to be a form of promoting an idea, product and services.
Hence, company issues advertisement to invites its members to subscribe for its Deposit scheme.
Develop a scope statement for the project described in this post (Links to an external site.) that contains examples of all the elements. Assume that the big finale (with the first batch of invites) will occur in four weeks. Provide your best estimate of the dates for milestones. Project Scope Checklist:_________. 1. Project Objective 2. Product Scope Description 3. Justification 4. Deliverables 5. Milestones 6. Technical Requirements 7. Limits and exclusions 8. Acceptance Criteria
Answer:
o,o what.....
Explanation:
whats a good song
ill mark brain star
Answer:
it depends like like this person nf.....and kpop.....
there is a song from him....clouds and intro 1 2 and 3
Explanation:
I listen to stray kids too:))))))))))
In 2009, Khalid was in an automobile accident and suffered physical injuries. The accident was caused by Rashad's negligence. Khalid threatened to file a lawsuit against Amber Trucking Company, Rashad's employer, claiming $50,000 for pain and suffering, $25,000 for loss of income, and $100,000 in punitive damages. Amber's insurance company will not pay punitive damages; therefore, Amber has offered to settle the case for $120,000 for pain and suffering, $25,000 for loss of income, and nothing for punitive damages. Khalid is in the 35% marginal tax bracket. What is the after-tax difference to Khalid between Khalid's original claim and Amber's offer
Answer:
$5,000
Explanation:
Amber offer = 120,000 + 25,000 = $145,000
Original claim = ($50,000 + $25,000) + [$100,000 × (1 - 0.35) = $140,000
Difference = $145,000 - $140,000 = $5,000
So, the after-tax difference to Khalid between Khalid's original claim and Amber's offer is $5,000
A trading company on April 30, paid BD 750,000 for a machine which can produce 1,400,000 units in 10 years life. The machine have a salvage value of BD 50,000 and produce 25,000 units in first year, 45,000 units in second year and 70,000 units in third year. Compute depreciation expense for the Second year assuming the company uses the unit production method. O A. 22500 O B. 35000 O C. 12500 O D. 15000
Answer: A. BD 22,500
Explanation:
First find the depreciation per unit:
= (Cost of machine -Salvage value) / Total units to be produced over lifetime
= (750,000 - 50,000) / 1,400,000
= BD 0.5 per unit
There are 45,000 units to be produced in the second year:
= 45,000 * 0.5
= BD 22,500
WILL GIVE BRAINLIEST PLZ HELP
The controller (money manager) for a small company puts some money in a bank account paying 3% per year. He uses some additional money, amounting to 1/3 the amount placed in the bank, to buy bonds paying 4% per year. With the balance of the funds, he buys a 9% certificate of deposit. The first year the investments bring a return of $785. If the total of the investments is $10,000 how much is invested at each rate?
Answer:
$1,500 is invested in a bank account paying 3% per year.
$500 is used to buy bonds paying 4% per year.
$8,000 is used to buy 10% certificate of deposit
Explanation:
Let
x = money used to invest in a bank account paying 3% per year
y = money used to buy 10% certificate of deposit
Because the money used to buy bonds (that pays 4% per year) is equal to one-third of the money used to invest in a bank account paying 3% per year,
x/3 = money used to buy bonds (that pays 4% per year)
Because the total investment is $10,000, we add all the variables that represents the amount of money for each investments. So,
(1)
To compute the return of each investment, we change the rate to decimal and multiply it to the amount of investment because the problem only states the return of first year of investment. Then,
0.03x = return from a bank account paying 3% per year
0.04(x/3) = return from a bond paying 4% per year
0.1y = return from 10% certificate of deposit
Since the total return for the first year of investment is $865, we just add the returns of each investment and create the following equation:
Note: In equation (2), we want to have an equation with 3y so that when we subtract equation (1) to equation (2), we only have an equation involving x, which is easier to solve.
By subtracting equation (1) to equation (2),
(4x + 3y) - (1.3x + 3y) = 30,000 - 25,950
2.7x = 4,050
x = $1,500 = amount deposited in a bank account paying 3% per year
So,
x/3 = 1500/3
x/3 = $500 = amount used to buy bonds paying 4% per year
Using the value of x = 1,500 and replacing the value of x in equation (1),
4x + 3y = 30,000
4(1,500) + 3y = 30,000
6,000 + 3y = 30,000
3y = 24,000
y = $8,000 = money used to buy 10% certificate of deposit