Answer:
Price and quantity will fall
Explanation:
When a complement product/service gets more expensive or it simply becomes mandatory and unavoidable, the equilibrium price and quantity for the first product/service would fall. New consumers would be hindered to buy automobiles with the fact that they have to buy more insurance for that same car. This is the effect of the price change of a complement product/service.
Select all that are examples of how prokaryotes are beneficial to humans.
A. a bacteria causes Lyme disease
B. bacteria that live in the intestines of vertebrate animals
C. bacteria are used to clean up oil spills
D. bacteria are used in biomedical research
E. MRSA is resistant to methicillin
F. bacteria are used to develop medicines
Answer:
C. bacteria are used to clean up oil spills
D. bacteria are used in biomedical research
F. bacteria are used to develop medicines
Explanation:
Other kinds are harmful and not beneficial to humans
Your plant produces 100 snowmobiles per month. Direct costs are $2,000 per snowmobile. Monthly overhead is $90,000. What is the average cost per snowmobile with overhead?
Answer:
$2,900
Explanation:
If we use a cost function, it will be easy to understand. Cost function = (variable cost per unit × quantity) + fixed cost.
Here,
Direct cost per snowmobile = $2,000. It is the variable cost.
Overhead cost = $90,000. It is a fixed cost.
Total snowmobiles = 100 units
Total cost = ($2,000 × 100 snowmobiles) + $90,000
Total cost = $290,000
We know,
Average cost per snowmobile = Total cost ÷ total quantity
Average cost per snowmobile = $290,000 ÷ 100
Average cost per snowmobile = $2,900
Which of the following is NOT an example of the technical support that the International Monetary Fund (IMF) provides to governments
Technical Support
Monetary fund
Loans
Halth support
Answer:
Halth support
Explanation:
IMF (International Monetary Fund), with its International Monetary Fund or more commonly known abbreviation, is an international organization that has duties such as following the global financial order, conducting audits and organizations on issues such as stock exchange, exchange rates, payment plans, as well as providing technical and financial support. To prevent the international trade from shrinking by giving credit to temporary (short-term) payment difficulties that may arise in the balance sheets of the European states; The World Bank was established to provide reconstruction of European states and to eliminate the inherent imbalances in the balance sheets by giving long-term investment loans.
The IMF mainly offers technical assistance and training in four areas:
- Monetary and financial policy (monetary policy tools, banking system supervision and restructuring, external management and operations, payment clearing systems, and central banks);
- Financial policy and management (tax and customs policy and management, budgeting, spending management, social security networking and internal and external debt management);
- Compilation, management, distribution and improvement of statistical data;
- Advice on economic and financial legislation.
Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called a. multiple channeling. b. strategic channel alliance. c. intensive distribution. d. market splitting. a. multi channel distribution.
Answer:
Option "A" is the correct answer for the following.
Explanation:
Multichannel marketing highlights the importance by which businesses deal with customers through multiple channels, both directly and indirectly, to sell products and services to them.Multichannel marketing carries the risk of engaging opportunities, leads, and clients across a mix of explicit and implicit channels of communication.In this way, the consumer controls the procurement process more than just the marketing company.Therefore option "A" is the correct answer.
Organizational culture is: Select one:
a. amorphous and changeable.
b. a potential source of competitive advantage.
c. so difficult to analyze that most firms should choose to ignore it.
d. rarely unique to a single firm.
Answer:
The correct answer is letter "B": a potential source of competitive advantage.
Explanation:
Competitive advantages are those factors inherent of a company that makes it different from its competitors. Organizational culture is considered a competitive advantage because it is difficult to imitate from one firm to another. Organizational culture represents the set of values and beliefs that rule how people act in the organization.
On June 30, 2018, the Esquire Company sold some merchandise to a customer for $42,000. In payment, Esquire agreed to accept a 6% note requiring the payment of interest and principal on March 31, 2019. The 6% rate is appropriate in this situation. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2018 interest accrual, and the March 31, 2019 collection. 2. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over-or understated in 2018 and 2019?
Answer:
Assumption: 6% rate has been taken to be on per annum basis and the question has been solved accordingly.
Following would be the journal entries to record the transaction:
On date of transaction:
June 30 Notes Receivable A/C Dr.$42,000
To Sales $42,000
(Being a note received against goods sold recorded)
Adjusting entry:
Dec 31 Interest Receivable Dr. $ 1,260
To Interest Revenue A/C $1260
(Being 6 months interest due recorded)
On due date of notes receivable
March 31 Cash A/C Dr. 43,890
To Notes Receivable A/C $42000
To Interest Revenue A/C $1890
(Being payment for notes receivable received along with interest recorded)
2. If the adjusting entry for interest accrual is not recorded, the income for 2018 would be understated by $1260 and income for 2019 would be overstated by $1260.
Anu’s Amusement Center has collected the following data for operations for the year: Total revenues $ 2,400,000 Total fixed costs $ 656,250 Total variable costs $ 1,350,000 Total tickets sold 75,000 Required:
a. What is the average selling price for a ticket?
b. What is the average variable cost per ticket?
c. What is the average contribution margin per ticket?
d. What is the break-even point?
e. Anu has decided that unless the operation can earn at least $131,250 in operating profits, she will close it down.
What number of tickets must be sold for Anu’s Amusements to make a $131,250 operating profit for the year on ticket sales?
Answer:
a)$32
b)$18
c)$14
d) 46,875 units
e) 56,250
Explanation:
a) calculate the average selling price for a ticket sold
the formula = Total tickets sold / The total number of tickets sold
= 2,400,000/ 75,000= $32
b) Calculate average variable cost per ticket sold
the formula = The total variable cost / the total number of tickets sold
= 1,350,000/75,000= $18
c) Calculate the average contribution margin per ticket sold
the formula= The selling price of tickets - the variable cost of the tickets
= $32-$18 = $14
d) Estimate the break-even point
The formula = the total fixed costs/ the derived contribution per unit
=656,250/14 = 46,875 units
e) Calculate the number of tickets to be sold to earn $131,250 profit
This is an estimation of target units based on target profit
Target Unit= (fixed costs + expected or target profit) / the Contribution per unit
=(656,250 + $131,250) / $14
=56,250 units need to be sold to arrive at the target profit
Final answer:
This response provides calculations for average selling price, average variable cost, average contribution margin, break-even point, and the number of tickets needed for a specific operating profit in a business scenario.
Explanation:
To calculate various indicators of Anu's Amusement Center's performance, we need to perform several financial analyses based on the provided data.
a. Average Selling Price for a ticket: Selling price per ticket = Total revenues / Total tickets sold. In this case: $2,400,000 / 75,000 = $32 per ticket.
b. Average Variable Cost per ticket: Variable cost per ticket = Total variable costs / Total tickets sold. $1,350,000 / 75,000 = $18 per ticket.
c. Average Contribution Margin per ticket: Contribution margin per ticket = Selling price per ticket - Variable cost per ticket. $32 - $18 = $14 per ticket.
d. Break-even point: Break-even point in tickets = Fixed costs / Contribution margin per ticket. $656,250 / $14 = 46,875 tickets.
e. Number of tickets for $131,250 operating profit: Extra tickets needed = (Fixed costs + Target profit) / Contribution margin per ticket. ($656,250 + $131,250) / $14 = 50,000 tickets.
Loggers are much likely to supply wood to the market if property rights are enforced. In the presence of market failures, public policy can improve economic efficiency. Classify the source of market failure in each case listed. Market Failure Market Power Externality There is only one car dealership in a small town, giving the dealership the ability to influence the price of cars. A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons.
Answer:
much more likely;
There is only one car dealership in a small town, giving the dealership the ability to influence the price of cars. - Market power
A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons. - Externality
Explanation:
Property rights are an incentive for individuals to create goods that are needed on the market. In other words, when a discrepancy between demand and supply occurs on a specific market, entities, businesses or individuals that create the goods are motivated to meet market needs through enforced property rights.
On the other hand, when there is a lack of property rights that regulate the market, market failures occur. Two common types of market failures include market power and externalities.
The car dealership example shows market power in practice, as the reigning company can dictate car prices.
The second example shows an externality, as there is evident influence (cost or benefit) on the third party, which they cannot change. People are affected (negatively) by smoke they did not create.
Loggers are much likely to under supply wood to the market if property rights are enforced.
There is only one car dealership in a small town, giving the dealership the ability to influence the price of cars. - this would be classified as market power
A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons.- this would be classified as an externality
Property rights define who legally owns a property. It also defines how the property can be used.
If property rights are enforced, logger would not be able to indiscriminately fell wood. This would reduce the quantity of wood that can be sold in the market.
A firm has market power when it is able to raise prices above the price that would prevail in a competitive environment.
The car dealership is an example of a monopoly.
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
Externality is when production or consumption activities have effects on third parties not involved in the activity
Smoking generates negative externality
A good has negative externality if the costs to third parties not involved in production or consumption is greater than the benefits.
People around a smoker are in danger of inhaling harmful second-hand smoke
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Chao sells custom bicycles. He buys several bike parts including wheels and tires from Upright Strides, Inc. Although several government-supported regulations help Chao in his business, regulations that make it easy for his business to enjoy good vendor relationships are Select one: a. lower taxes that business-to-business customers pay to each other. b. laws that permit minimal corruption in banking institutions. c. laws that permit small businesses to use the government as an intermediary when doing business with other small businesses. d. laws that support enforceable contracts between firms.
Answer:
d. laws that support enforceable contracts between firms.
Explanation:
These laws will help and make it easy for his business to enjoy good vendor relationships as his rights will be enforceable
Fruit thinning is practiced for peaches to increase the size of the remaining fruit (T/F)
Answer:
The statement is: True.
Explanation:
Fruit thinning is the process by which farmers remove some of the fruits growing on a tree so that the remaining can grow bigger and better. This practice is usually performed during the spring and it is useful to prevent limbs to break due to excessive weight.
The statement is true. Fruit thinning, which involves removing some fruits to let others grow bigger, is commonly practiced in peach cultivation. This practice enhances the size and often the sweetness of the remaining fruits, as nutrients are concentrated in fewer fruits.
Explanation:The statement is True. Fruit thinning is a practice performed in the cultivation of many fruit crops, including peaches. This practice involves selectively removing some fruits to allow the remaining fruits to grow bigger. The reason is that when a tree has too many fruits, resources such as water and nutrients are shared among all, leading to all fruits remaining small.
By thinning the fruits, the available nutrients and water are concentrated in fewer fruits, allowing these fruits to grow larger and often sweeter.Fruit thinning also helps to prevent the branches from breaking under the weight of too many fruits. Thus, the practice is beneficial in improving the yield and quality of the harvest.
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Why is it difficult to develop accounting principles that are appropriate for governments within the same category (e.g., cities, counties) and even more difficult to develop them for governments within different categories?
Answer and Explanation:
The government with the same category may involve in different types of activities but those that are not within the same category may have little in common.
Describe an activity, process, or product of your company that exhibits economies or diseconomies of scale. Describe the source of the scale economy. How could your organization exploit the scale economy or diseconomy
Answer:
Economies & Diseconomies of Scale
Explanation:
Economies of scale is: When the quantity of products produced by a company is increased the cost to produce those products decreases.
For Example big companies buy the products in bulk, this process decreases the cost of per unit of a product because the marginal cost of delivering 10000 bags of rice is very low as compared to 100 bags of rice.
Diseconomies of scale is: When a company tries to expand beyond its optimum size or scale average costs increase.
For Example Large companies face poor communication between the departments, they have coordination problems, motivation level of workers is very low.
1. The new utility function u′ = ln(u) = ln(x^a.y^b)=a*ln(x)+b*ln(y).
What is MRS_x,y of this new utility function?
2. Will the MRS be still the same for each of the following transformation? Explain without directly solving for MRS.
a) u′=u2
b) u′=1/u2
c) u′=1987*u−507
d) u′=eu
Answer:
Explanation:
To begin, we will have to check for all 3 conditions on individual basis
Case one;
U'=U²
Not differentiating both side with respect to x and y we will arrive at below solution;
dU'/dx=2U*dU/dx
dU'/dy=2U*dU/dy
Hence we can say that
MRS of U'=MRS of U
Case Two;
U'=1/U²
U' = U⁻²
Not differentiating both side with respect to x and y we will arrive at below solution;
dU'/dx=(-2U^(-3))dU/dx
dU'/dy=(-2U^(-3))dU/dy
Hence we can say that,
MRS of U'= MRS of U
Case Three;
U'=1987U-507
Therefore, we can say that MRS of U'=MRS of U as differentiation will result the same yield.
Case Four;
U'=exp(u)
Not differentiating both side with respect to x and y we will arrive at below solution;
dU'/dx=exp(u) dU/dx
dU'/dy=exp(u) dU/dy
MRS of U'= MRS of U
3.
if we will consider a monotonic transformation of utility, then the properties of indifference curve of original utility will be equal to new utility. And due to same, it will not have effect on the marginal rate of substitution.
Rent-a-Furniture Center is offering a living room set that retails for $799 for $25 per week for 1 year. What is the percent markup on this furniture set?
Answer:
62.70%
Explanation:
The markup value is found by calculating the gross profit and dividing it by its price. The retail price for the Rent-a-Furniture Center is $799 and the selling is $25 per week.
There are 52 weeks in a year, therefore, with this payment plan of $25/week, the total amount in one year is (52* 25) = $1300. Gross profit is (1300- 799) = $501. The markup value is (501/799) = 62.7033%
Answer:
62.70%
Explanation:
The component of the service environment that involves products or services provided by an organization is/are called _______.a. The delivery systemb. The networkc. Deliverablesd. The organizational culture
Option A
The component of the service environment that involves products or services provided by an organization is/are called The delivery system
Explanation:
A system or scheme for rendering a good or aid to the society is termed as a delivery system. The essential factors for strong service delivery systems are defined which must be followed by every industry to meet their delivery system.
Producing the service delivery system should concentrate on what produces superiority to the central organizations and how to involve front-line workers to deliver the latest client action. The plan is power and continually assessing how both client and end-user observe service delivery is essential for constant collaboration.
Trade-offs between the ______ and the future require weighing the _____ available today against what will be available tomorrow. A good produced for present ______ is a ______ good; a good that will help in the production of other valuable goods for the _____ is a ______ good.
Answer:
The PresentThe benefitsConsumptionConsumer goodFutureCapitalExplanation:
Trade-offs between the now and the future demand that the opportunities available today be balanced against what should be available tomorrow. A product made for present use is a consumer product; a good that will aid in the future produce certain useful products is an investment good.Therefore, those above-written answers are correct.
Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX) of 2002?
a. Made it difficult for companies to hide wrongdoing
b. The Act calls for decreased independence of outside auditors reviewing corporate financial statements.
c. Forced increased oversight of companies
Answer:
b. The Act calls for decreased independence of outside auditors reviewing corporate financial statements.
Explanation:
The Sarbanes-Oxley Act (SOX) of 2002 is a legislation fashioned and passed to oversee the financial reporting system for financial professional.
The purpose is to check the audit requirements in a bid to protect investors in improving the reliability and accuracy of financial statements in terms of corporate disclosures.
Considering the spirit behind the act, the right option (which is not true of the act) is that it the Act calls for decreased independence of outside auditors reviewing corporate financial statements.
Option B.
The Sarbanes-Oxley Act (SOX) of 2002 does not call for decreased independence of outside auditors reviewing corporate financial statements.
Explanation:The correct answer is b. The Act calls for decreased independence of outside auditors reviewing corporate financial statements. This statement is not true regarding the Sarbanes-Oxley Act (SOX) of 2002. In fact, SOX was enacted to strengthen the independence and objectivity of external auditors to prevent conflicts of interest. The Act requires the audit committee of a company's board of directors to be responsible for the appointment, compensation, and oversight of the external auditors.
SOX was introduced in response to major accounting scandals, such as the Enron scandal, to restore public trust in the reliability and accuracy of financial reporting by publicly traded companies. It aimed to increase transparency, accountability, and minimize financial fraud and corporate wrongdoing.
Therefore, the correct answer is b. The Act calls for decreased independence of outside auditors reviewing corporate financial statements.
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A limited partnership: Multiple Choice a. has an unlimited life. b. can opt to be taxed as a corporation. c. terminates at the death of any one limited partner. d. has at least one partner who has unlimited liability for all of the partnership's debts. e. consists solely of limited partners.
Answer:
The correct answer is letter "C": terminates at the death of any one limited partner.
Explanation:
A partnership is an entity that runs a company with two or more owners. They share the profits in proportion to their relationship benefit in percentage terms. There are two types of partnerships: general partnerships (unlimited liability) and limited partnerships (liability proportional to the contribution to the partnership).
When one of the partners is removed, retires, or deceases or even when a new partner will be added, the partnership dissolves and a new partnership is formed.
Assume that Frank, a farmer in a competitive market, is maximizing profits selling 80 bushels of corn. If his total variable cost is $120, and his total fixed cost is $80, and her marginal revenue is $4, then Frank:_______
Answer:
Frank will be earning positive economic profit.
Explanation:
Data provided in the question:
Number of Units sold for maximizing profit = 80 bushels of corn
Total variable cost = $120
Total fixed cost = $80
Marginal revenue = $4
Now,
Marginal revenue is defined as the additional revenue generated by on increasing the sales by one unit.
Here,
The marginal revenue is positive
Therefore,
Frank will be earning positive economic profit.
A. In an AE model with MPC = 0.80, the government increases spending by $100 million. What will be the increase in equilibrium Y in the Keynesian AE model?
Answer:
increase in equilibrium Y in the Keynesian AE model = 500
Explanation:
Formula AE Model = ΔY = 1/1-C * ΔG
Where ΔY = Change in National Income
Marginal Propensity to Consume =0.80
Change in government spending =100
ΔY = 1/1-0.8*100 = 1/0.2*100 = 5*100 = 500
At the beginning of the year (January 1), Buffalo Drilling has $10,000 of common stock outstanding and retained earnings of $6,400. During the year, Buffalo reports net income of $6,700 and pays dividends of $1,400. In addition, Buffalo issues additional common stock for $6,200. Required: Prepare the statement of stockholders' equity at the end of the year (December 31)
Answer:
Total Stock Holder equity=$27900
Explanation:
Amount in the beginning:
Common Stock=$10000 Retained earnings=$6400
Stock Holder equity=Common Stock+ Retained earnings
Stock Holder equity=10000+6400
Stock Holder equity=$16400
During the year:
Net Income=$6700, Dividends=-$1400 (-ve shows less from total)
Additional Common Stock=$6200
Total Common Stock=$10000+$6200
Total Common Stock=$16200
Total Retained Earning=$6400+$6700-$1400
Total Retained Earnings=$11700
Total Stock Holder equity=Total Common Stock+Total Retained Earnings
Total Stock Holder equity=$16200+$11700
Total Stock Holder equity=$27900
Suppose that a certain fortunate person has a net worth of $76.0 billion ($7.60×10107.60×1010). If his stock has a good year and gains $3.20 billion (3.20×1093.20×109) in value, what is his new net worth?
If someone's net worth is $76.0 billion and their stock gains $3.2 billion, their new net worth will be $79.2 billion. Expressed in scientific notation, the new net worth is $7.92 × 10^{10}. This demonstrates how scientific notation can be used in practical applications involving large numbers.
Explanation:The student's question pertains to calculating the new net worth of a person after their stock has increased in value. First, the student has noted the current net worth as $76.0 billion, which expressed in scientific notation is $7.60 × 10^{10}. After gaining $3.20 billion in value, which is $3.20 × 10^{9} in scientific notation, we need to add this to the original net worth. The new net worth, therefore, becomes:
$76.0 billion + $3.2 billion = $79.2 billion
Expressed in scientific notation, the new net worth is:
$7.60 × 10^{10} + $3.20 × 10^{9} = $7.92 × 10^{10}
This calculation shows that a gain in stock value, even when it's in the billions, can have a significant impact on someone's net worth. It is also a practical application of scientific notation in understanding large numbers.
In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.
1. Poole Company enters sales and sales taxes separately in its cash register. On April 10, the register totals are sales $30,000 and sales taxes $1,500.
2. Waterman Company does not segregate sales and sales taxes. Its register total for April 15 is $25,680, which includes a 7% sales tax.
Prepare the entry to record the sales transactions and related taxes for each client.
E10-3 Poole Company
Apr. 10
Waterman Company
15
Answer:
1. Debit Cash $31,500
Credit Sales Revenue $30,000
Credit sales taxes payable $1,500.
Being sales of goods and 5% sales tax
2, Debit Cash $25,680
Credit Sales Revenue $24,000
Credit Sales taxes payable $1,680.
Being sales of goods and 7% sales tax
Explanation:
1. When sales are made in cash, the amount received or the sales value is debited to cash/bank account while the corresponding credit entries go to both sales revenue account and sales tax payable account. The tax element must be separated from the sales revenue because of its statutory nature and also to allow for easy remittance.
The following entries will be passed
1. Debit Cash $31,500
Credit Sales Revenue $30,000
Credit sales taxes payable $1,500.
Being sales of goods and 5% sales tax
2, The same entries will be passed as it is in number 1 above, but since Waterman Company does not segregate sales and sales taxes, we need to compute the net sales and sales tax payable before passing any entry.
Let the net sales = X
Gross Sales = $25,680
Gross sales = X + (7% of X)
$25,680 = X + 0.07X
$25,680 = 1.07X
Divide both sides by the coefficient of X
$25,680/1.07 = 1.07X/1.07
$24,000 = X
That is, sales net of tax is $24,000
The Tax payable is 7% of $24,000 = 1,680
Therefore the following entries will be passed
Debit Cash $25,680
Credit Sales Revenue $24,000
Credit sales taxes payable $1,680
Being sales of goods and 7% sales tax
Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%.
Answer:
$468,844 approx.
Explanation:
Assumption: Since the question is incomplete, with the available information it has been construed that calculation of bond price is required and the question has been solved accordingly.
The price of a bond is the present value of future cash receipts it generates to the investor in the form of interest stream and principal stream.
[tex]B_{0} = \frac{i}{(1\ +\ ytm)^{1} }\ +\ \frac{i}{(1\ +\ ytm)^{2} }\ +.....+\frac{i}{(1\ +\ ytm)^{n} } \ + \frac{RV}{(1\ +\ ytm)^{n} }[/tex]
wherein,
[tex]B_{0}[/tex] = price of bond as on today
i = annual coupon payments
ytm= investor's expectation of interest or market rate of interest on similar bonds
RV = Redemption value of such bonds assumed to be the face value
n = term to maturity
[tex]B_{0} = \frac{22500}{(1\ +\ .05)^{1} }\ +\ \frac{22500}{(1\ +\ .05)^{2} }\ +.....+\frac{22500}{(1\ +\ .05)^{20} } \ + \frac{500000}{(1\ +\ .05)^{20} }[/tex]
[tex]B_{0}=[/tex] 12.46221 × 22,500 + 0.376889 × 22,500 = 280,399.725 + 188444.5
[tex]B_{0} =[/tex] $468,844 approx
This is the present value of the bond which is lower than it's face value because market rate of return of similar bonds is higher than the coupon rate of payment by Westside Corporation.
Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture in its factory. Classify the items into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead
1. salaries for assembly line inspectors
2. insurance on factory machine
3. property taxes on the factory building
4. factory repairs
5. upholstery used in manufacturing furniture
6. wages paid to assembly line workers
7. factory machinery depreciation
8. glue,nails,paint, and other small parts used in production
9. factory supervisors salaries
10. wood used in manufacturing furniture
Answer:
Explanation:
The direct material is the cost which is directly related to the manufacturing process of the product or we can say the raw material
The direct labor is the cost which is directly related to the manufacturing process of the product i.e wages paid, labors like - assembly line workers, etc
And the manufacturing overhead cost is the cost which is indirect in nature that means it dis not directly related i.e depreciation on equipment factory, property taxes etc
So, the categorization is shown below:
1. salaries for assembly line inspectors = Direct labor or manufacturing overhead
2. insurance on factory machine = manufacturing overhead
3. property taxes on the factory building = manufacturing overhead
4. factory repairs = manufacturing overhead
5. upholstery used in manufacturing furniture = direct material
6. wages paid to assembly line workers = direct labor
7. factory machinery depreciation = manufacturing overhead
8. glue,nails,paint, and other small parts used in production = manufacturing overhead
9. factory supervisors salaries = manufacturing overhead
10. wood used in manufacturing furniture = direct material
An inexperienced internal auditor notified the senior auditor of a significant variance from the auditee’s budget. The senior told the new auditor not to worry as the senior had heard that there had been an unauthorized work stoppage that probably accounted for the difference. Which of the following statements is most appropriate?
A: The new auditor should have investigated the matter fully and not bothered the senior.
B: The senior used proper judgment in curtailing what could have been a wasteful investigation.
C: The senior should have halted the audit until the variance was fully explained.
D: The senior should have aided the new auditor in formulating a plan for accumulating appropriate evidence.
Answer:
The correct answer is letter "D": The senior should have aided the new auditor in formulating a plan for accumulating appropriate evidence.
Explanation:
For ethical and professional purposes, every time a piece of information is not clear several facts must be collected to complete the vague idea. In Auditing as in any other profession, the evidence must be gathered to confirm the company being audited is not committing fraud or forbidden practices.
Thus, in the example, the senior auditor should have helped the inexperienced editor in coming up with a plan to collect enough information about the budget difference. If that was not successful, they could have stopped the auditing until they received clarification of the situation.
The Bank of Mesquite has $2 million in deposits and $550,000 in reserves. If excess reserves are equal to $150,000, the required reserve ratio is__________.
a. 15%.
b. 20%.
c. 35%.
d. 65%.
Answer:
b. 20%
Explanation:
First we have to calculate the reserves which were required by the Bank of Mesquite to be kept:
Reserves of the bank=required reserves+excess reserves
550,000=required reserves+150,000
Required reserve=$400,000
Now we have to calculate the required reserve ratio which shall be calculated as follows:
Required reserve ratio=Required reserve/deposits of the bank
=400,000/2,000,000
=20%
So based on the above calculations, the answer is b. 20%
"Which promotional strategy calls for spending a lot on advertising toward final consumers
Answer:
The correct answer is: Pull strategy.
Explanation:
A pull strategy is adopted by companies to attract customers massively. This type of marketing implies companies investing large amounts of money to achieve that objective under the belief that after they captured consumers' attention they could raise the product's price to compensate the expenditures.
During December, Moulding Corporation incurred $87,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $85,000. Required: Prepare journal entries to record the incurrence of manufacturing overhead and the application of manufacturing overhead to Work in Process. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
The Journal entries are as follows:
(i) Manufacturing overhead A/c Dr. $87,000
To various accounts $87,000
(To record the Manufacturing Overhead costs incurred)
(ii) Work in process A/c Dr. $85,000
To Manufacturing overhead $85,000
(To record the manufacturing overhead applied to work in process)
Final answer:
The question involves preparing journal entries for the incurrence and application of manufacturing overhead costs at Moulding Corporation. Two journal entries are required: one to record the $87,000 in actual overhead costs incurred and another to apply $85,000 of these costs to Work in Process.
Explanation:
The question involves preparing journal entries for the incurrence and application of manufacturing overhead costs in a manufacturing company. In December, Moulding Corporation incurred $87,000 of actual manufacturing overhead costs and applied $85,000 of manufacturing overhead to Work in Process. The necessary journal entries to reflect these transactions are as follows:
For the incurrence of manufacturing overhead costs:
Debit Manufacturing Overhead $87,000
Credit Various Accounts $87,000
For the application of manufacturing overhead to Work in Process:
Debit Work in Process $85,000
Credit Manufacturing Overhead $85,000
The first entry records the actual overhead costs incurred, including costs such as utility bills, rent, and indirect labor. The second entry reflects the application (allocation) of these costs to the Work in Process account, based on the company's overhead allocation method. This process is crucial for accurately assigning production costs to products.
________is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions.
A)Exchange of task-related information
B)Relationship building
C)Conflict management
D)Persuasion
Answer:
The correct answer is letter "B": Relationship building.
Explanation:
Relationship building is the process in which international companies send representatives to their potential partners' countries to build trust between them with the main objective of showing each other how serious they are in establishing a business association. It also allows companies to break barriers and even starting a more familiar communication.