The CEO of Kwikee Shoppe, a chain of convenience stores, believes that some of his managers aren’t making decisions as effectively as they could. He has hired you as a consultant to analyze the types of bias that could be causing poor decisions. If you can identify the biases that may cloud their judgment, then they can be made aware of these tendencies so they can improve their performance. You gather data about Kwikee Shoppe managers’ most recent decisions.
Stella is in charge of the western region, and she has a strong track record of opening new stores that perform well and closing stores that could not contribute satisfactorily to the bottom line. Lately, however, many of her new stores have had below average performance, and she has closed some stores that probably could have been turned around by putting a different store manager in charge, advertising more, or offering more specials on popular products. Nonetheless, Stella knows that she is great at her job. Which of the following would not be a way for Stella overcome this bias?
A. Consult with other regional managers for their opinion before closing stores.
B. Before closing a store, replace the manager with one from a successful store and revisit the decision in 90 days.
C. Create a checklist of items to ask before closing stores, providing weights to each item based on their importance.
D. Focus on the stores that she closed that would not have improved with a different manager in place, additional advertising, or sales.

Answers

Answer 1

Answer:

Kwikee Shoppe

The way that Stella would overcome this bias is:

D. Focus on the stores that she closed that would not have improved with a different manager in place, additional advertising, or sales.

Explanation:

The other listed actions would enable Stella to overcome her personal bias, which may be clouding her sense of judgment.  The focus on the stores that she had closed would only puff her ego instead of reducing bias.  To focus on the past when Stella is proud of her achievements cannot allow her to objectively review the situation in order to improve on her decisions and performance.


Related Questions

Suppose a third firm enters the market. If they all don't cheat, then they split the profits three ways so that each firm gets 2 million. If one firm cheats, he steals profits from the other two firms and earns 5.5 million while the other firms incur losses of 1 million. Will it be harder or easier to sustain cooperation?

Answers

Answer: Harder to sustain cooperation

Explanation:

When the number of firms in an oligopolistic market increases as is the case here, cooperation becomes harder because profits become smaller so companies start to become more selfish.

Also in this scenario, the cheating firm has the incentive to do so because the profit is so much higher than sharing so companies will always be looking to cheat in order to make this profit. The other firms would reply by reducing prices and all of them would suffer.

ABC systems ________. Multiple Choice will allocate costs based on the overall level of activity highlight the different levels of activities usually will undercost complicated or complex products will limit cost drivers to units of output

Answers

Answer: highlight the different level of activities

Explanation:

Activity Based Costing system assigns costs to the activity that are used in production and it highlight the different level of activities.

Activity based costing system is quite different from the traditional costing systems based on the way the indirect cost is being treated.

HealthSouth manipulated their financial statements by making ______________ in false or unsupported entries in the company's accounting systems.

Answers

Answer: 2.7 billion

Explanation:

Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Product 1 Product 2 Product 3 Cost $ 35 $ 105 $ 65 Selling price 85 165 115 Costs to sell 8 70 25 Required: What unit values should Herman use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory

Answers

Answer:

                     Cost   Selling Price   Costs to Sell   NRV  Inventory value

                        A              B                      C           D=(B-C) E=(lowerof A&D)

Product 1        35            85                    8                 77              35

Product 2       105          165                  70                95             95

Product 3        65           115                   25               90              65

The phase of the business cycle with the highest level of GDP and the lowest unemployment rate is called an?

Answers

Answer:

Expansion phase

Explanation:

Expansion is an economic cycle phase in which real gross domestic product rises for two or more months in a succession, going from a trough to a high. Expansion is often known as an improving economy since it is usually followed by an decrease in unemployment, consumer sentiment, and commodity prices.

Answer:

peak

Explanation:

An asset has an average return of 5 percent and a standard deviation of 10 percent. Which of the following statements is true?
a. its variance is 25,
b. its coefficient of variation is 2.0
c. if returns are normally distributed, 95 percent of the time its returns will fall between -5 percent and 15 percent
d. if returns are normally distributed, 99 percent of the time its returns will fall between -15 percent and 25 percent.

Answers

Answer: b. its coefficient of variation is 2.0

Explanation:

The Coefficient of Variation, given the above data, is calculated by the formula:

= Standard Deviation/ Mean

= 10% / 5%

= 2.0

Option B is therefore correct.

Differential cost is ______. Multiple select question. also known as incremental cost the same as opportunity cost the difference in cost between two alternatives never relevant to a product decision

Answers

Answer:

I. also known as incremental cost

II. the difference in cost between two alternatives

Explanation:

Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

Differential cost is also known as incremental cost and it is the difference in cost between two alternatives.

In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities etc.

On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses etc.

The differential cost is called the incremental cost, and it is the difference in the cost that lies between two alternatives.

The following information should be relevant:

It is the difference between the cost of 2 alternative decisions or the output level is varied.It is also known as the incremental cost.

Therefore we can conclude that the differential cost is called the incremental cost, and it is the difference in the cost that lies between two alternatives.

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If a real estate license holder wants to assist a property owner by soliciting tenants, collecting rents, and being responsible for property maintenance, which specialization would the license holder likely choose?

Answers

Answer: Property management

Explanation:

Property management refers to the operation, oversight and the maintenance of real physical properties and real estate.

Since the real estate license holder wants to assist a property owner by soliciting tenants, collecting rents, and being responsible for property maintenance, the license holders should be specialized in property management.

communication is tha​

Answers

Answer:

key?

Explanation:

A stock just announced that its next annual dividend will be $1.02 and it expects to increase that dividend by 2.5 percent annually. The stock is currently selling for $28 a share. How do you compute the expected rate of return?
a) i = ($1.02/$28) + 0.025
b) i = [($1.02 x 1.025)/$28] + 0.025
c) i = ($1.02/$28) - 0.025
d) i = ($1.02 X 1.025)/$28

Answers

Answer: A. i = ($1.02/$28) + 0.025

Explanation:

The expected rate of return will be calculated as:

= (Expected dividend/Price today) + growth rate

where,

Expected dividend = $1.02

Price today = $28

Growth rate = 2.5%

Then, slotting the figures into the equation will give:

= (1.02/28) + 2.5%

= (1.02/28) + 0.025

Therefore, the correct option is A

A liquidity ratio measures the Group of answer choices income or operating success of an enterprise over a period of time. ability of the enterprise to survive over a long period of time. short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash. number of times interest is earned.

Answers

Answer:

short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash

Explanation:

A liquidity ratio can be regarded as type of financial ratio which is been utilized in determination of a ability of a company to pay out its short-term debt obligations. The metric is way to determine if there is a possibility for company to use its current as well as liquid and assets to cover up for its current liabilities.

It should be noted that A liquidity ratio measures short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash.

Identify and explain each of the situational influences that are described in this scenario: Which situational influence was not described? Ruth, who has no children, wants to buy a special baby gift for her best friend's baby shower, which is this evening. Since she won't have any time between work and the baby shower, she must go today during her lunch break. She is planning on taking her sister with her to help make the selection. Ruth knows she will be ready to buy every baby-oriented product she sees because she wishes that she too was having a baby.

Answers

Answer:

Physical surroundings.

Explanation:

Ruth wants to buy special gift for her best friend's baby shower party. She has invited her sister to help her out with the selection in the shopping. Situational influence is described but there is no hint of physical surrounding. Author has not mentioned anything about the physical surrounding in the passage.

An accounting system that provides information that management can use to evaluate the performance of a department's activities is a:______.
A. Service accounting system.
B. Standard accounting system.
C. Revenue accounting system.
D. Departmental accounting system.
E. Cost accounting system.

Answers

Answer: D. Departmental accounting system.

Explanation:

As the term implies, Departmental accounting system engages in accounting for individual departments. The financial information of the department of interest will be recorded as well as other activities.

Management will then use this information to analyze and understand how well the department is doing. The information will also tell them if the department is being cost efficient and profitable.

Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $420,000 and total machine hours at 60,000. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Job 101 Job 102 Job 103 TotalDirect materials used 19,200 14,400 9,600 43,200 Direct labor 28,800 11,200 9,600 49,600 Machine hours 1,000 hours 4,000 hours 2,000 hours 7,000 hoursJob 101 was completed and sold for $60,000.Job 102 was completed but not sold.Job 103 is still in process.Actual overhead costs recorded during the first month of operations totaled $45,000.Required: 1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)2. Compute the total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations. (Round your intermediate calculations to 2 decimal places.)3. Compute the balance in the Work in Process Inventory account at the end of the first month. (Round your intermediate calculations to 2 decimal places.)4. How much gross profit would the company report during the first month of operations before making an adjustment for over- or underapplied manufacturing overhead? (Round your intermediate calculations to 2 decimal places.)5-a. Determine the balance in the Manufacturing Overhead account at the end of the first month. (Round your intermediate calculations to 2 decimal places.)

Answers

Answer:

Tyler Tooling Company

1. The predetermined overhead rate is:

= $7

2. The total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations is:

= $49,000

3. The balance in  the Work in Process Inventory account at the end of the first month is:

= $86,800

4. The gross profit that the company would report during the first month of operations before making an adjustment for over- or underapplied manufacturing overhead is:

= $5,000

5a. The balance in the Manufacturing Overhead account at the end of the first month is:

= $4,000 overapplied

Explanation:

a) Data and Calculations:

Estimated total manufacturing overhead for the coming year = $420,000

Estimated total machine hours for the coming year = 60,000 mh

Actual jobs data:                 Job 101   Job 102   Job 103     Total

Direct materials cost         $19,200  $14,400   $9,600    $43,200

Direct labor cost                 28,800     11,200     9,600      49,600

Machine hours cost              1,000      4,000     2,000        7,000

Sale of Job 101 = $60,000

Actual overhead for the first month = $45,000

1. Predetermined overhead rate = Estimated overhead/estimated machine hours

= $420,000/60,000

= $7

2. The total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations is:

= total machine hours used * $7

= $49,000 (7,000 * $7)

3. The balance in  the Work in Process Inventory account at the end of the first month is:

Work in Process

Account Titles            Debit      Credit

Direct materials      $43,200

Direct labor              49,600

Overhead applied   49,000

Cost of Job 1 sold                 $55,000 ($19,200+$28,800+$7,000)

Ending balance                     $86,800 (= costs of Job 102 and 103)

4. The gross profit that the company would report during the first month of operations before making an adjustment for over- or underapplied manufacturing overhead is:

= Gross profit for Job 101 = $5,000 ($60,000 - $55,000)

5a. The balance in the Manufacturing Overhead account at the end of the first month is:

= Actual overhead incurred - overhead applied

= $45,000 - $49,000

= $4,000 overapplied

A firm is currently unlevered with 1,000,000 shares each price at $50. The firm is debating of changing its capital structure by taking $20 million in debt that matures in 4 years and repurchasing shares. It will pay down this debt by $5 million every year. If the tax rate is 21% and cost of debt is 7.5%, what is the firm value of the restructured firm

Answers

Answer:

its would be 50,000 dont really know

A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $60,000; the land at $46,600, and the parking lot at $18,400. Land should be recorded in the accounting records with an allocated cost of

Answers

Answer:

$37,280

Explanation:

We use the appraised values to apportion the Purchase Cost of the Property to determine the Cost of Land as follows :

Land Cost = $46,600 / $125,000 x $100,000

                  = $37,280

Land should be recorded in the accounting records with an allocated cost of $37,280.

Kelso's has a debt-equity ratio of 0.6 and a tax rate of 35 percent. The cost of equity is 14.5 percent and the after tax cost of debt is 4.8 percent. What is the weighted average cost of capital

Answers

Answer:

10.86 percent

Explanation:

Calculation to determine the weighted average cost of capital

Weighted average cost of capital = (1/1.6) (0.145) + (0.6/1.6) (0.048)

Weighted average cost of capital = (0.625) (0.145) + (0.375) (0.048)

Weighted average cost of capital = 10.86 percent

Therefore Weighted average cost of capital is 10.86 percent

Frank and Daniel both agreed to volunteer for a company project cleaning and organizing the district warehouse. There were to be 50 volunteers. Upon arrival, they discovered volunteer turnout was low. They were assigned to the northwest corner of the warehouse where they were to meet Trixie, who would give them their assignment. When they arrived, Trixie was nowhere to be found but they did find two push-brooms leaning against the wall. Frank took a seat on a box to wait for Trixie and his assignment. Daniel grabbed one of the push-brooms and began sweeping. While he was sweeping, Daniel thought, "This is why my desk looks so tidy, while Frank’s desk looks like a disaster." Which of the following statements is likely true of this scenario? Multiple Choice I

a. n this weak situation, Frank’s laziness trait is activated. In this strong situation, Daniel’s neurotic trait is activated.
b. In this weak situation, Daniel’s introversion trait is activated. In this strong situation Frank’s conscientiousness trait is activated.
c. In this weak situation, Daniel’s extraversion trait is activated.

Answers

Answer:

a. In this weak situation, Frank’s laziness trait is activated. In this strong situation, Daniel’s neurotic trait is activated.

Explanation:

A trait can be defined as the characteristics of a person that describes his nature and his behavior. It is the result of one's genes or are influence from surrounding or nature.

A neurotic trait of a person helps the person to deal with the stress. It is a tendency towards shyness, anxiety, etc.

In the context, it is given that both Frank and Daniel volunteered themselves for cleaning a district warehouse. They were assigned the northwest corner of the warehouse to clean. Daniel found a push-broom and started sweeping and cleaning the floor, while Frank waited for Trixie to arrive who will assigned them their job.

In this situation, it shows the laziness trait of Frank who felt too lazy to start his work before someone assigning them to him while Daniel is active and it shows his neurotic trait because of which Daniel started his job and did not waited for Trixie to come.

Thus the correct option is (a).

What are the advantages or disadvantages of creating a hypothesis without adequate research?

Answers

When does advantage is stating a hypothesis may lead to bias other consciously or unconsciously on the part of the researcher this because the researcher may be tempted to arrange the procedures or manipulate the data set in such a way as to bring about the desired outcome and advantage is it represents by researchers expect to find in a study or experiment.

Hypothesis can defined as a guess or predicted outcome of a scientific

process.

The advantage of creating a hypothesis without adequate research include

the following:

Complex calculationsAmbiguity

The disadvantage of creating a hypothesis without adequate research

include the following:

ValidityReliability

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The contribution margin ratio is interpreted as the percent of: Multiple choice question. each variable cost dollar that remains after deducting fixed costs each sales dollar that remains after deducting fixed costs each sales dollar that remains after deducting unit variable cost

Answers

Answer: each sales dollar that remains after deducting unit variable cost

Explanation:

The contribution margin ratio is interpreted as the percent of each sales dollar that remains after the deduction of unit variable cost.

The contribution margin ratio refers to the difference between the sales that a company makes and its variable costs which is expressed as a percentage. The ratio simply indicates the amount of money that is available to cover the fixed costs.

Collingsworth, Inc. produces 3 products: AKM, BWT, and CPQ. Product AKM requires 700 purchase orders, Product BWT requires 1,080 purchase orders, and Product CPQ requires 1,720 purchase orders. The company has identified an ordering and receiving activity cost pool with allocated overhead of $504,000 for which the cost driver is purchase orders. How much ordering and receiving overhead is assigned to Product AKM

Answers

Answer:

Allocated MOH= $100,800

Explanation:

First, we need to calculate the predetermined allocation rate for ordering and receiving:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Ordering and receiving= 504,000 / (700 + 1,080 + 1,720)

Ordering and receiving= $144 per order

Now, we allocate to product AKM:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 144*700

Allocated MOH= $100,800

At the beginning of the year, SnapIt had $13,800 of inventory. During the year, SnapIt purchased $42,600 of merchandise and sold $35,700 of merchandise. A physical count of inventory at year-end shows $14,800 of inventory exists. Prepare the entry to record inventory shrinkage.

Answers

Answer:

Shrinkage = Closing inventory according to the books - Actual closing inventory after physical count

Closing inventory = Beginning inventory + Purchased inventory - Sold inventory

= 13,800 + 42,600 - 35,700

= $20,700

Date                   Account Title                                Debit               Credit

XX-XX-XXXX     Cost of Goods sold                  $20,700

                          Merchandise inventory                                      $20,700

By the 1990s, A. Tourism was possibly the largest single global industry. B. The manufacture of computers and microchips had moved from California to China. C. Cellular telephones outnumbered landline telephones. D. Food continued to be the most important production item.

Answers

Answer:

C. Cellular telephones outnumbered landline telephones

Explanation:

The cordless or portable phones as a handset that could be used as a landline were made popular. The cellular industry was one of the fastest growing industry in the market and still maintains a strong global position.

One bond has an 8% coupon and a 10% current yield, the other has a 10% coupon and an 8% current yield. Which bond is cheaper

Answers

Answer: The bond with the 8% coupon and a 10% current yield.

Explanation:

When a bond has a coupon rate that it less than the yield, it is said to be a discount bond because it will be trading at a price that is less than its par value. The first bond will therefore be trading at a price lower than its par value.

The second bond however, is a premium bond. It will be trading at a price that is higher than its par value because that is what bonds so when their coupon rate is higher than their yield.

The first bond will therefore b cheaper because:

First Bond < Par < Second bond

Contribution Margin Ratio a. Young Company budgets sales of $890,000, fixed costs of $26,000, and variable costs of $115,700. What is the contribution margin ratio for Young Company

Answers

Answer:

87 %

Explanation:

contribution margin ratio = Contribution ÷ Sales

therefore,

contribution margin ratio = ($890,000 - $115,700) ÷ $890,000

                                        = 0.87 or 87 %

The contribution margin ratio for Young Company is 87 %.

What is the dollar price of a zero coupon bond with 21 years to maturity, semiannual compounding, and a par value of $1,000, if the YTM is:

Answers

Answer:

Zero-cupon bond= $192.57

Explanation:

Giving the following information:

Number of periods to maturity= 21*2= 42 semesters

Par value= $1,000

I will assume a yield to maturity of 8%. 4% semestral.

To calculate the price of the bond, we need to use the following formula:

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= [1,000 / (1.04^42)]

Zero-cupon bond= $192.57

A thief uses a bag of sand to replace a gold statue that sits on a weight sensitive alarmed pedestal. The bag of sand and the statue have exactly the same volume 1.75 L. Assume that the mass of the bag is negligible. Calculate the mass of each object.

Answers

Answer:

No, the thief didn't set off the alarm. As the mass of the gold statue and the bag of sand is different, the alarm clock will start ringing once the statue is replaced with the bag of sand. Thus, the thief screwed up the operation.

No, the robber did not activate the alarm. The alarm clock will begin to sound as soon as the gold statue is swapped out for the sand bag because of the differences in mass. As a result, the theft went wrong.

What is the role of density in sand and the statue?

The density of a substance quantifies how much mass is contained in each unit volume of that substance.

From this definition, we can infer that it is an intrinsic parameter, meaning that its value is unaffected by the size of the sample of the material under consideration.

Therefore, No, the thief didn't set off the alarm. The alarm clock will begin to sound as soon as the gold statue is swapped out for the sand bag because of the differences in mass. As a result, the theft went wrong.

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Scenario:
AlphaCo and BetaCo are both mid-sized pharmaceutical companies that employ over a thousand workers. The highest paid employees at each company are the executives and the senior level researchers.
This year, both companies have a raise pool of $5,000,000 - that is, each can raise the total compensation paid to all of its workers by a total of five million dollars.
AlphaCo uses $3,500,000 of its raise pool to increase pay for executives and researchers. Most of the other workers receive small raises, and some receive no raise at all.
BetaCo uses $3,500,000 of its raise pool to give everyone in the firm an equal 5% raise. Some key employees receive a raise of over 5%.
1. Which company will have employees who are, overall, more satisfied? Why?
2. Which company is likely to outperform the other over the next year? Why?

Answers

Answer:

BetaCo  BetaCo

Explanation:

BetaCo raised the salaries of everyone in the company meaning that even those who were not getting paid so much saw their salaries increase. Employees here will feel more appreciated as a result of this financial incentive as opposed to AlphaCo that neglected to cater for all its employees in an equal manner.

BetaCo will outperform AlphaCo over the next year all else equal because motivated employees tend to work harder for a company. In addition, BetaCo increased the salaries of key staff by more than 5%. Those key staff will work harder as a result of this incentive and push the company further than AlphaCo.

Accounts receivable $ 18,000 Long-term notes payable $ 21,000 Accounts payable 11,000 Office supplies 2,800 Buildings 45,000 Prepaid insurance 3,560 Cash 7,000 Unearned services revenue 3,000 Compute Chavez Company's current ratio using the above information.

Answers

Answer: 2.24

Explanation:

Current ratio = Current Assets / Current liabilities

Current assets = Accounts receivable + Office supplies + Prepaid insurance + Cash

= 18,000 + 2,800 + 3,560 + 7,000

= $31,360

Current liabilities:

= Accounts payable + Unearned service revenue

= 11,000 + 3,000

= $14,000

Current ratio = 31,360 / 14,000

= 2.24

In a production operation of an electronics firm, a company manufactures I/O circuit chips that is used in a final assembly process. The chips, manufactured in batches sizes are

Answers

Answer:

defective

Explanation:

In an electronic firm it is necessary to keep check for every circuit as they turn out to be defective. There can be minor error is circuit formation but this will be considered as defective because circuits are very sensitive and even minor error can lead to short circuits which could lead to a disaster. It is necessary for a firm to keep track and quality of every circuit should be checked.

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