Answer:
The method that has the bigger forecast bias is:
the first method.
Explanation:
a) Data and Calculations:
Days 1 2 3 4 Total
First method, number of callers predicted 23 5 14 20 62
Second method, number of callers predicted 20 13 14 20 67
Actual number of callers 23 10 15 19 67
Comparison with actual callers:
Actual number of callers 23 10 15 19 67
First method, number of callers predicted 23 5 14 20 62
Forecast bias 0 -5 -1 +1 -5
Comparison with actual callers:
Actual number of callers 23 10 15 19 67
Second method, number of callers predicted 20 13 14 20 67
Forecast bias -3 +3 -1 +1 0
b) A forecast bias between first method of prediction and actual number of callers occurs because there is a difference between the total actual number of callers and the total predicted forecasts of callers. But there is no difference between the total actual number of callers and the predicted forecasts of the callers for method two.
Predictions are termed as the forecasting of the uncertain event or the happening. These are also dependent on the probability of whether the event has to have occurred or have the ratio of changes to occur.
The correct answer for the method that has the bigger forecast bias is the first method.
a) Data and Calculations:
Days 1 2 3 4 Total
First method, number of callers predicted 23 5 14 20 62
Second method, number of callers predicted 20 13 14 20 67
Actual number of callers 23 10 15 19 67
Comparison with actual callers:
Actual number of callers 23 10 15 19 67
The first method, number of callers predicted 23 5 14 20 62
Forecast bias 0 -5 -1 +1 -5
Comparison with actual callers:
Actual number of callers 23 10 15 19 67
Second method, number of callers predicted 20 13 14 20 67
Forecast bias -3 +3 -1 +1 0
b) There is a projection imbalance between the first technique of prognosis and the actual number of callers because there is a mismatch between the total actual number of callers and the total predicted forecasts of callers. However, there is no difference between the total number of actual callers and the projected caller projections in approach two.
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Suppose that city leaders want to prevent the price of AA batteries from rising when tornadoes threaten Tulsa, Oklahoma. They impose a price ceiling of $8 for packages of AA batteries. c. This price ceiling of $8 per pack will impact the AA battery market during a typical week. d. What are quantity demanded and quantity supplied with the price ceiling in effect during the weeks when tornadoes threaten Tulsa
I have attached the word document below, it includesall the necessary information. I hope it will be helpful.
Answer:
The market for packs of AA batteries during a typical week in Tulsa, Oklahoma is described in the table below. Price (dollars)
$20
18
16
14
12
10
8
6 AA Battery Market
Quantity of Batteries
Explanation:
I have attached the document in which the answer is explained in quite detail. I hope this will help. Thanks
A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 80%. If it is known that returns are normally distributed with a mean of 8%, what is the risk, measured by standard deviation, that this investment manager assumes in his calculation
Answer:
9.5%
Explanation:
we solve for the z value using
z = barX - μ/σ
= 0-0.08/σ
= p(x>0) = 0.80
1-0.80 = 0.20
0-0.08/σ = 0.20
using the z calculator we find the z score using a p value of 0.20
= -0.842
0-0.08/σ = -0.842
-0.08 = -0.842σ
Divide through by -0.842
0.08/0.842 = σ
0.095 = σ
The risk measured by the standard deviation at 80%= 9.5%
Thank you
what are expansionary ficalpolicy? Contrationary fiscal policy, What do you mean by automatic stabilizer?
subject Macroeconomics, please please help...
Answer:
Here is your answer : )
Explanation:
Contractionary fiscal policy means when the government taxes more than it spends.
Expansionary fiscal policy means when the government spends more than it taxes.
Automatic stabilizers means features of the tax and transfer systems that temper the economy when it overheats and stimulate the economy when it slumps without direct intervention by policymakers.
Hope it helps you
Erika would like to hire a financial advisor. The financial advisor that she has been considering indicated that she would charge $2,500 to write a financial plan and 1% of any asset she manages. The financial advisor that Erika is considering is using what type of compensation model
Answer:
Fee-only
Explanation:
The financial advisor that Erika is considering is using the fee only compensation model. An advisor who uses this model of compensation is one who receives payment for his or her services rendered directly as fees and not through any forms of commissions. This payment could be based on a particular percentage of your assets that they are in charge of, or it could be hourly.
Answer:
Plato Users
Explanation:
The first drop down is risk and the second one is liquid got 100% on the test.
Q2. Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued bonds, shipping charges, payments for raw materials, real estate taxes, executive salaries, insurance premiums, wage payments, sales taxes, and rental payments on leas
Answer:
Variable costs vary with the volume of production and can be changed in the short run.
Fixed costs do not vary with the volume of production and cannot be changed in the short run. Only in the long run can they be changed.
Variable costs:
Advertising expendituresFuelShipping chargesPayments for raw materialsWage paymentsSales taxesFixed costs:
Interest on company issued bonds Real estate taxesExecutive salaries Insurance premiums Rental payments on leased office machinery.Explain AHIMA's data quality management model, including the domains it covers and the data characteristics
Answer:
Data Quality management: AHIMA created this model for quality data management to support the need for true and accurate data. Patient care, patient outcomes, reimbursement, process...
Hope this helped :)
Explanation:
Answer: it’s a data quality management model
Explanation:
Liz Chapa manages a portfolio of 250 common stocks. Her staff compiled the following rate of return performance statistics for two new stocks: Stock Mean Standard Deviation Salas Products, Inc. 15% 5% Hot Boards, Inc. 20% 5% What is the coefficient of variations for both stocks
Answer: See explanation
Explanation:
The coefficient of variations for both stocks will be calculated thus:
For Salas Product
Coefficient of Variation = Standard deviation / Mean × 100
= 5/15 × 100
= 1/3 × 100
= 33.33%
Hot boards:
Coefficient of Variation = Standard deviation / Mean × 100
= 5/20 × 100
= 1/4 × 100
= 25%
COST OF PRODUCTION (5 pts each for a total of 25 pts) a. What is the relationship between the marginal cost of production and average total cost of production? b. What is efficient scale of production? c. Why is the average total cost curve (ATC) U-shaped in the short run? d. Why is the average total cost curve (ATC) U-shaped in the long run? e. What are the shapes of the average variable cost curve (AVC) and the average fixed cost curve (AFC)?
Answer:
a. When marginal cost is above average cost, average cost is rising; but when marginal cost is below average cost, average cost is falling.
b. The lowest point at which a plant or firm can produce such that the long-run average cost of the plant or firm is at the minimum.
c. The average total cost curve (ATC) U-shaped in the short run because of diminishing returns.
d. The average total cost curve (ATC) is U-shaped in the long run because economies of scale and diseconomies of scale.
e. The shape of the average variable cost curve (AVC) is usually U-shaped or upward-sloping; while the shape of the average fixed cost curve (AFC) is a Rectangular Hyperbola.
Explanation:
a. What is the relationship between the marginal cost of production and average total cost of production?
Marginal cost refers to the change in total cost when extra unit of output is produced, while average cost is the total cost divided by the number of units produced.
The relationship between the two is that when marginal cost is above average cost, average cost is rising; but when marginal cost is below average cost, average cost is falling.
b. What is efficient scale of production?
Efficient scale of production can be described as the lowest point at which a plant or firm can produce such that the long-run average cost of the plant or firm is at the minimum.
c. Why is the average total cost curve (ATC) U-shaped in the short run?
The average total cost curve (ATC) U-shaped in the short run because of diminishing returns.
Diminishing returns occur when the amount of a single factor of production is incrementally increased while holding all other factors of production constant, the marginal output of a production process decreases.
d. Why is the average total cost curve (ATC) U-shaped in the long run?
The average total cost curve (ATC) is U-shaped in the long run because economies of scale and diseconomies of scale.
Economies of scale can be described as a situation whereby increasing output leads to lower long-run average total costs.
But, after a given level of output, scale diseconomies may be encountered by a firm.
Diseconomies of scale can be described as a situation whereby increasing output leads to higher long-run average total costs.
e. What are the shapes of the average variable cost curve (AVC) and the average fixed cost curve (AFC)?
Note: See the attached photo for the curves of the AVC and AFC showing their shapes.
The shape of the average variable cost curve (AVC) is usually U-shaped or upward-sloping.
The shape of the average fixed cost curve (AFC) is a Rectangular Hyperbola. This occurs because the same amount of fixed cost is split by increasing output. Therefore, the AFC curve slopes downwards and is a rectangular hyperbola, meaning that the area under the curve is constant at all places.
Star Corp., a publicly traded, accrual-method C corp., incurred the following expenses in 2020 (all of which are ordinary and neccessary unless the facts indicate otherwise):
Office rent: $50,000
CEO compensation: $1,500,000
Salary paid to janitor: $250,000
Business meals: $30,000 (100% of the amount paid)
Client entertainment: $100,000 (100% of the amount paid)
Political contribution/lobbying: $5,000
Advertising: $70,000
Taxes & licenses (state, local &
payroll tax; not fed. inc. tax): $30,000
Life insurance policy on CEO - premiums: $12,000
Federal income taxes: $250,000
Average office rents in the area run $50,000-$55,000/year for similar office space. Star Corp.'s janitor is the CEO's sister. Reasonable salary for a janitor with similar experience, job description and work hours is $20,000/year. Star Corp. is the beneficiary on the life insurance policy. What is Star Corp.'s total deductible business expenses for the year?
Answer:
Star Corp.
Star Corp.'s total deductible business expenses for the year is:
= $1,952,000.
Explanation:
Ordinary and Necessary Expenses incurred in 2020:
Office rent: $50,000
CEO compensation: $1,500,000
Salary paid to janitor: $250,000
Business meals: $30,000 (100% of the amount paid)
Client entertainment: $100,000 (100% of the amount paid)
Political contribution/lobbying: $5,000
Advertising: $70,000
Taxes & licenses (state, local &
payroll tax; not fed. inc. tax): $30,000
Life insurance policy on CEO
- premiums: $12,000
Federal income taxes: $250,000
Total expenses incurred $2,297,000
Total Deductible Business Expenses for the year:
Office rent: $50,000
CEO compensation: $1,500,000
Salary paid to janitor: $20,000
Business meals: $15,000 (50% of $30,000)
Client entertainment: $0 (0% of $100,000)
Political contribution/lobbying: $5,000
Advertising: $70,000
Taxes & licenses (state, local &
payroll tax; not fed. inc. tax): $30,000
Life insurance policy on CEO
- premiums: $12,000
Federal income taxes: $250,000
Total deductible expense = $1,952,000
Nathan's Athletic Apparel has 2,000 shares of 6%, $100 par value preferred stock the company issued at the beginning of 2020. All remaining shares are common stock. The company was not able to pay dividends in 2020, but plans to pay dividends of $25,000 in 2021.
Required:
Assuming the preferred stock is cumulative and noncumulative, how much of the $25,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2021?
Answer:
Cumulative Noncumulative
Preferred Dividend 2021 $12,000 $12,000
Preferred Dividend in arrears for 2020
$12,000 $0
Remaining dividend for common Stock holders $1,000 $13,000
Explanation:
Calculation to determine how much of the $25,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2021
First step is to calculate the Dividend to be paid to preferred stock holders
Dividend to be paid to preferred stock holders=(2000*$100)*6%)
Dividend to be paid to preferred stock holders=$12,000
Now let determine how much of the $25,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2021
CUMULATIVE NONCUMULATIVE
Preferred Dividend 2021 $12,000 $12,000
Preferred Dividend in arrears for 2020
$12,000 $0
Remaining dividend for common Stock holders $1,000 $13,000
($25,000-$12,000+$12,000=$1,000)
($25,000-$12,000=$13,000)
Total Dividend $25,000 $25,000
Consolidated Freightways is financing a new truck with a loan of $60,000 to be repaid in six annual end-of-year installments of $13,375. What annual interest rate is Consolidated Freightways paying
Answer:
9%
Explanation:
Calculation to determine What annual interest rate is Consolidated Freightways paying
Based on the information given we would be using Financial calculator to determine the ANNUAL INTEREST RATE
PV= $60,000
PMT= -$13,375
N= 6
I/Y=?
Hence:
I/Y = 9%
Therefore annual interest rate that Consolidated Freightways is paying will be 9%
Your firm has the responsibility to review transactions and activities occurring after the year-end to determine whether anything occurred that might affect the statements being audited. The procedures required to verify these transactions are commonly referred to as the review for _______ Group of answer choices contingent liabilities. subsequent events. late unusual occurrences. subsequent year's transactions.
Answer: Subsequent events
Explanation:
Reviewing transactions is what gives accountability in organization, without this organizations would not know when they are running at a loss or making gains. The best time to do this is at the end of yearly transactions, the procedure required to verify this transactions are referred to as subsequent events, meaning events that happened as time went on.
This act is carried out most times by auditors
The following units of an inventory item were available for sale during the year. Beginning inventory 10 units at $55 First purchase 25 units at $60 Second purchase 30 units at $65 Third purchase 15 units at $70 The firm uses the periodic inventory system. During the year, 60 units of the item were sold. The ending inventory cost using FIFO is
Answer:
$1,375
Explanation:
Given the information above, the Ending inventory = Units available - Units sold
Units available = 10 + 25 + 30 + 70 = 80
Units sold = 60
Ending inventory = 80 - 60
Ending inventory = 20
Cost of ending inventory under FIFO
= (15 × $70) + (20 - 15) × $65
= $1,050 + $325
= $1,375
Therefore, the ending inventory cost using FIFO is $1,375
Which firm will have a higher level of economic performance: a) a firm with valuable, rare, and costly-to imitate resources and capabilities operating in a very attractive industry or b) a firm with valuable, rare, costly-to-imitate resources and capabilities operating in a very unattractive industry
Answer: a) a firm with valuable, rare, and costly-to imitate resources and capabilities operating in a very attractive industry.
Explanation:
Companies that have valuable, rare and costly to imitate resources and capabilities will see a better economic performance overall because they are offering the market something that not a lot of companies are offering which gives them the opportunity to increase profitability.
This would be even more effective if the company was in an attractive industry. An attractive industry means that there are a lot of buyers and sellers but because the company has costly to imitate resources, they will worry less about the sellers and gain more buyers thereby helping them to perform better.
Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,324,000 $2,630,000 Preferred dividends $50,000 $50,000 Average number of common shares outstanding 70,000 shares 120,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 Earnings per Share $fill in the blank 1 $fill in the blank 2 b. Is the change in the earnings per sha
Question Completion:
b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?
Answer:
Black Bull Inc.
20Y5 20Y6
1. Earnings per share (EPS) $18.20 $21.50
2. The change in the earnings per share from 20Y5 to 20Y6 is favorable.
More revenue and profits were generated in 20Y6 and despite the increased number of shares outstanding, the EPS for 20Y6 performed better than 20Y5's.
Explanation:
a) Data and Calculations:
20Y5 20Y6
Net income $1,324,000 $2,630,000
Preferred dividends $50,000 $50,000
Earnings available to common
stockholders $1,274,000 $2,580,000
Average number of
common shares outstanding 70,000 shares 120,000 shares
Earnings per share (EPS) $18.20 $21.50
($1,274,000/70,000) ($2,580,000/120,000)
Pepsi had accounts receivable turnover ratio of 9.9 this year and 11.0 last year. Coke had a turnover ratio of 9.3 this year and 9.9 last year. This implies:______.
1. Coke has the better turnover for both years
2. Pepsi has the better turnover for both years
3. Coke's turnover is improving
4. Coke's credit policies are too loose
5. Coke is collecting its receivables more quickly than Pepsi in both years
short term finance is required for 5 years true or false
Answer:
yeah, its true
Explanation:
All of the following are examples of qualitative information that should be collected by the financial planner EXCEPT: Group of answer choices General attitudes towards spending. Risk tolerance. Client age and number of children. Education goals.
Answer:
Client age and number of children.
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on a periodic basis.
A financial planner refers to an individual who is an expert in the planning of a financial budget for another.
A client age and number of children aren't examples of qualitative information that should be collected by the financial planner.
Consider a model in which two products, x and y, are produced. There are 30 pounds of material and 60 hours of labor available. It requires 9 pounds of material and 12 hours of labor to produce a unit of x, and 5 pounds of material and 15 hours of labor to produce a unit of y. The profit for x is $300 per unit, and the profit for y is $250 per unit.
Required:
How many units of x and y to produce to maximize profit, the model is
Answer:
2 units of x and 2 units of y
Explanation:
The model can be represented as:
[tex]\begin{array}{cccc} & {x} & {y} & {} & {Materials} & {9} & {5} & {30} & {Labor} & {12} & {15} & {60} & {} & {300} & {250} \ \end{array}[/tex]
So, we have:
Max [tex]z = 300x + 250y[/tex] --- the objective function
Subject to:
[tex]9x + 5y \le 30[/tex]
[tex]12x + 15y \le 60[/tex]
[tex]x,y > 0[/tex]
Multiply the first equation by 3
[tex]9x + 5y \le 30[/tex] becomes
[tex]27x + 15y \le 90[/tex]
Subtract [tex]12x + 15y \le 60[/tex] from [tex]27x + 15y \le 90[/tex]
[tex]27x - 12x + 15y - 15y \le 90 - 60[/tex]
[tex]15x \le 30[/tex]
Divide by 15
[tex]x \le 2[/tex]
Substitute 2 for x in [tex]9x + 5y \le 30[/tex]
[tex]9 * 2 + 5y \le 30[/tex]
[tex]18 + 5y \le 30[/tex]
Collect like terms
[tex]5y \le 30 - 18[/tex]
[tex]5y \le 12[/tex]
Divide by 5
[tex]y \le 2.4[/tex]
y must be an integer;
So:
[tex]y \le 2[/tex]
So, we have:
[tex](x,y) \le (2,2)[/tex]
Hence, the company must product 2 units of x and 2 units of y
Marketing covers several elements and concepts. At the center of all marketing efforts is:
At the center of all marketing efforts is the customer for understanding and meeting customer needs, wants and preferences is the primary focus of marketing.
The customer centric involves identifying target markets, conducting market research and developing products or services that resonate with consumers.
The effective marketing strategies aim to create value for customers, build strong relationships, and satisfy their demands better than competitors.
The customer serves as the guiding force that shapes marketing strategies and determines their success in the ever-evolving marketplace.
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impact of population growth on environmental degradation
Answer:
Explanation:
Population growth may be described in simple terms as the rate at which the number of people residing in a particular country is increasing or multiplying. Some states or countries have a higher population figure than the other and also higher rate of growth. As population increases, the resources available to people in that community suffers as the burden will also grow. The environment also will also take its own share of the effects as overcrowding seems to creep in together with increased burden on environmental resources and infrastructure. If proactive measures aren't taken in other to boost resources and infrastructure as indaquate handling of population growth will almost always result in environmental and infrastructure degradation or decline.
Companies usually buy __________ assets. These include both tangible assets such as _______________ and intangible assets such as _____________. To pay for these assets, they sell _____________ assets such as_____________. The decision about which assets to buy is usually termed the _____________ or _______________ decision. The decision about how to raise the money is usually termed the _____________ decision.
Answer:
Companies usually buy ____real______ assets. These include both tangible assets such as ___property, plant, and equipment____________ and intangible assets such as ____patents, copyrights, and brands_________. To pay for these assets, they sell ____financial_________ assets such as_____bonds________. The decision about which assets to buy is usually termed the _____investment________ or _____capital budgeting__________ decision. The decision about how to raise the money is usually termed the ____financing_________ decision.
Explanation:
Real assets can be tangible or intangible assets. They are also known as long-term or fixed assets, given their time horizon before they are fully consumed in production. Real assets, which possess intrinsic value, can be distinguished from financial assets, which are based on contractual claims or securities, including stocks and debts. In any management role, decisions are made about capital budgeting or investment. These also require financing decisions to fund the investments.
The condensed financial statements of Ness Company for the years 2016 and 2017 are presented below.
NESS COMPANY
Balance Sheets
December 31 (in thousands)
2017 2016
Current assets
Cash and cash equivalents $330 $360
Accounts receivable (net) 47 400
Inventory 46 390
Prepaid expenses 130 160
Total current assets 1,390 1,310
Property, plant, and equipment (net) 410 380
Investments 10 10
Intangibles and other assets 530 510
Total assets $2,340 $2,210
Current liabilities $820 $790
Long-term liabilities 480 380
Stockholders’ equity—common 1,040 1,040
Total liabilities and stockholders’ equity $2,340 $2,210
NESS COMPANY
Income Statements
For the Year Ended December 31 (in thousands)
2017 2016
Sales revenue $3,800 $3,460
Costs and expenses
Cost of goods sold 970 890
Selling & administrative expenses 2,400 2,330
Interest expense 10 20
Total costs and expenses 3,380 3,240
Income before income taxes 420 220
Income tax expense 168 88
Net income $ 252 $ 132
Compute the following ratios for 2017 and 2016. (Round current ratio and inventory turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.)
(a) Current ratio.
(b) Inventory turnover. (Inventory on December 31, 2015, was $340.)
(c) Profit margin.
(d) Return on assets. (Assets on December 31, 2015, were $1,900.)
(e) Return on common stockholders’ equity. (Equity on December 31, 2015, was $900.)
(f) Debt to assets ratio.
(g) Times interest earned.
Answer:
Ness Company
2017 2016
(a) Current ratio = 1.70 1.66
(b) Inventory turnover = 4.45 2.44
(c) Profit margin = 6.63% 3.82%
(d) Return on assets. (Assets on December 31, 2015, were $1,900.)
= 10.77% 5.97%
(e) Return on common stockholders’ equity. (Equity on December 31, 2015, was $900.)
= 24.23% 12.69%
(f) Debt to assets ratio = 0.56 0.53
(g) Times interest earned = 43X 12X
Explanation:
Condensed Financial Statements:
NESS COMPANY
Balance Sheets
December 31 (in thousands)
2017 2016
Current assets
Cash and cash equivalents $330 $360
Accounts receivable (net) 47 400
Inventory 46 390
Prepaid expenses 130 160
Total current assets 1,390 1,310
Property, plant, and equipment (net) 410 380
Investments 10 10
Intangibles and other assets 530 510
Total assets $2,340 $2,210
Current liabilities $820 $790
Long-term liabilities 480 380
Stockholders’ equity—common 1,040 1,040
Total liabilities and stockholders’ equity $2,340 $2,210
NESS COMPANY
Income Statements
For the Year Ended December 31 (in thousands)
2017 2016
Sales revenue $3,800 $3,460
Costs and expenses
Cost of goods sold 970 890
Gross profit $2,830 $2,570
Selling & administrative expenses 2,400 2,330
EBIT $430 $240
Interest expense 10 20
Total costs and expenses 3,380 3,240
Income before income taxes 420 220
Income tax expense 168 88
Net income $ 252 $ 132
(a) Current ratio = Current assets/Current liabilities
= $1,390/$820 = 1.70 1.66 (1,310/$790)
(b) Inventory turnover. (Inventory on December 31, 2015, was $340.)
= Cost of goods sold/Average Inventory
= $970/$218 = 4.45 2.44 ($890/$385)
Average inventory for 2016 = $365 ($390 + $340)/2
Average inventory for 2017 = $218 ($46 + $390)/2
Cost of goods sold for 2017 = $970 and 2016 = $890
(c) Profit margin = Net income/Sales
= 6.63% ($252/$3,800 *100) 3.82% ($132/$3,460 * 100)
(d) Return on assets. (Assets on December 31, 2015, were $1,900.)
= Net income/Total assets
= 10.77% ($252/$2,340 * 100) 5.97% ($132/$2,210 * 100)
Average assets for 2017 = $2,275 ($2,340 + $2,210)/2
Average assets for 2016 = $2,055 ($2,210 + $1,900)/2
(e) Return on common stockholders’ equity. (Equity on December 31, 2015, was $900.)
= Net income/Common stockholders' equity
= 24.23% ($252/$1,040 * 100) 12.69% ($132/$1,040 * 100)
(f) Debt to assets ratio = Total Debt/Total Assets
= 0.56 ($1,300/$2,340) 0.53 ($1,170/$2,210)
(g) Times interest earned = EBIT/Interest
= 43X ($430/$10) 12X ($240/$20)
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company.
For each cost, indicate whether it would most likely be classified as direct labor, direct materials, manufacturing overhead, selling, or an administrative cost.
1. The wages of the assembly shop's supervisor.
a. Direct labor cost
b. Direct materials cost
c. Manufacturing overhead cost
d. Marketing and selling cost
e. Administrative cost
2. The wages of the company's accountant.
a. Direct labor cost
b. Direct materials cost
c. Manufacturing overhead cost
d. Marketing and selling cost
e. Administrative cost
3. Depreciation on equipment used to test assembled computers before release to customers.
a. Direct labor cost
b. Direct materials cost
c. Manufacturing overhead cost
d. Marketing and selling cost
e. Administrative cost
4. Rent on the facility in the industrial park.
a. Direct labor cost
b. Direct materials cost
c. Manufacturing overhead cost
d. Marketing and selling cost
e. Administrative cost
Answer and Explanation:
The classification is as follows;
1. Since the wages are to paid for supervising the assembling process so the same is related to the factory operations therefore considered to be the manufacturing overhead cost
2. The wages paid to the accountant so classified as the administration cost
3. The depreciation is the manufacturing overhead cost as it is the indirect cost.
4. The rent facility should be classified as the manufacturing overhead cost and distributed as per the cost drivers.
Feedback is important in improving our performance, and we should solicit feedback, and not just wait until someone provides us with feedback
a. True
b. False
Bond J has a coupon rate of 3 percent and Bond K has a coupon rate of 9 percent. Both bonds have 13 years to maturity, make semiannual payments, and have a YTM of 6 percent. a. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds
Solution :
Given :
Coupon rate for Bond J = 3%
Coupon rate for Bond K = 9%
YTM = 6 %
Therefore,
The current price for Bond J = $ 718.54 =PV(6%/2,13x2,30/2,1000)x -1
The current price for Bond K = $ 1281.46 =PV(6%/2,13x2,90/2,1000)x -1
If the interest rate by 2%,
Bond J = $ 583.42 = -18.80% (change in bond price)
Bond K = $ 1083.32 = -15.46% (change in bond price)
Montana Industries has computed the following unit costs for the year just ended:
Variable manufacturing overhead $85
Fixed manufacturing overhead 20
Variable selling and administrative cost 18
Fixed selling and administrative cost 11
Which of the following choices correctly depict amounts included in the per-unit cost of inventory under variable costing and absorption costing?
a. Variable, $85; absorption, $105.
b. Variable, $85; absorption, $116.
c. Variable, $103; absorption, $116.
d. Variable, $103; absorption, $105.
e. None of the answers is correct.
Answer:
a. Variable, $85; absorption, $105.
Explanation:
The options that correctly depict amounts included in the per-unit cost of inventory under variable costing and absorption costing is:
i. Variable costing = Variable manufacturing overhead
Variable costing = $85
ii. Absorption costing = Variable manufacturing overhead + Fixed manufacturing overhead
Absorption costing = $85 + $20
Absorption costing = $105
my sister (laugh) at my story
Answer:
no
Explanation:
Answer:
My sister laughed at my story.
Explanation:
When leaders of an organization compete and debate for scarce resources. They are operating within which frames of reference?
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Q2. Why can the distinction between fixed costs and variable costs be made in the short run? Classify
the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued
bonds, shipping charges, payments for raw materials, real estate taxes, executive salaries, insurance
premiums, wage payments, sales taxes, and rental payments on leased office machinery. “There are
no fixed costs in the long run; all costs are variable.” Explain
Answer:
Fixed costs cannot be changed in the short run and are the same regardless of the volume of production. Variable costs vary with production but can b changed in the short run.
Fixed costs:
Interest on company issued bonds Real estate taxesExecutive salaries Insurance premiums Rental payments on leased office machinery.Variable costs:
Advertising expendituresFuelShipping chargesPayments for raw materialsWage paymentsSales taxesAll costs are variable in the long run because all costs can be changed by investment and planning. For instance, over the long term, the company could buy the leased office machinery and not have to pay rent on it thereby stopping that fixed cost.
