The given statement "constant demand is a key assumption of the Economic Order Quantity (EOQ) model" is true because the EOQ model is a widely used inventory management technique that helps determine the optimal order quantity to minimize the total inventory costs, including ordering and holding costs.
In the EOQ model, constant demand implies that the rate at which products are consumed is consistent and predictable throughout the year. This assumption is important because it allows businesses to calculate their optimal order quantities without factoring in fluctuations in demand. By assuming constant demand, the EOQ model simplifies the decision-making process for businesses and helps them achieve cost-efficiency.
However, it is crucial to note that the constant demand assumption might not always hold true in real-world scenarios. Demand may fluctuate due to factors such as seasonal trends, market changes, or external events. In these cases, the EOQ model might not provide accurate results and businesses may need to consider alternative inventory management strategies to account for varying demand.
In summary, constant demand is indeed a key assumption of the EOQ model, as it enables businesses to calculate optimal order quantities to minimize inventory costs. However, this assumption may not always apply in real-life situations, and businesses should be prepared to adapt their inventory management strategies accordingly.
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Project S costs $17,000, and its expected cash flows would be $5,000 per year for 5 years. Mutually exclusive Project L costs $30,000, and its expected cash flows would be $8,750 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend? Explain.
Since Project S has a higher NPV of $527.42, it would be the more desirable project to undertake. Therefore, I would recommend Project S over Project L.
To determine which project is more desirable, we need to calculate the net present value (NPV) of each project. The formula for NPV is:
NPV = -Initial Investment + (Cash flow 1 / (1 + WACC)^1) + (Cash flow 2 / (1 + WACC)^2) + ... + (Cash flow n / (1 + WACC)^n)
where "n" is the last year of cash flows.
For Project S:
NPV = -$17,000 + ($5,000 / (1 + 0.12)^1) + ($5,000 / (1 + 0.12)^2) + ($5,000 / (1 + 0.12)^3) + ($5,000 / (1 + 0.12)^4) + ($5,000 / (1 + 0.12)^5)
NPV = -$17,000 + $4,464.29 + $3,973.10 + $3,538.08 + $3,152.44 + $2,810.51
NPV = $527.42
For Project L:
NPV = -$30,000 + ($8,750 / (1 + 0.12)^1) + ($8,750 / (1 + 0.12)^2) + ($8,750 / (1 + 0.12)^3) + ($8,750 / (1 + 0.12)^4) + ($8,750 / (1 + 0.12)^5)
NPV = -$30,000 + $7,793.75 + $6,941.62 + $6,183.74 + $5,510.23 + $4,911.60
NPV = $365.94
Since Project S has a higher NPV of $527.42, it would be the more desirable project to undertake. Therefore, I would recommend Project S over Project L.
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1. Please answer the following questions. a) Define the meaning of underwriting. b) Briefly explain the basic principles of underwriting. c) Identify the major sources of information available 2. Explain in detail the difference between hedging, speculation, and arbitrage
PART 1:
a) Underwriting is the process by which an individual or an institution assesses the risk of issuing securities, such as stocks or bonds, and then guarantees the sale of those securities to investors.
b) The basic principles of underwriting include assessing risk, pricing securities, and distributing securities to investors.
c) The major sources of information available for underwriting include financial statements, market trends, economic data, and credit ratings.
PART 2:
Hedging, speculation, and arbitrage are three distinct investment strategies.
Hedging involves taking a position in the market that offsets the potential losses of another position. Speculation is the act of making a high-risk investment in the hopes of a large return. Arbitrage involves taking advantage of price discrepancies between two markets to make a profit.
In hedging, an investor may buy a put option to protect against a decline in the value of a stock they own. In speculation, an investor may purchase a highly volatile stock with the hope that it will increase in value. In arbitrage, an investor may simultaneously buy a stock on one exchange and sell it on another exchange where the price is higher.
These strategies have different levels of risk and reward, and it is important for investors to understand the differences before making investment decisions.
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Holtzman Clothiers's stock currently sells for $63.57 a share. It just paid a dividend of 52.34 a share (Le DO - $234). The dividend is expected to grow at a constant rate of 2.27% a year Calculate the stock price expected 1 year from now. 52.10 5245 52.79 53.14 $3.45
The stock price expected 1 year from now is $704.81.
How to calculate the stock price expected 1 year from nowTo calculate the stock price expected 1 year from now, we can use the constant growth formula:
P1 = P0 x (1 + g)
Where:
P0 = current stock price = $63.57
g = expected constant growth rate of dividend = 2.27% = 0.0227
P1 = stock price expected 1 year from now (what we want to find)
First, we need to calculate the expected dividend for next year:
D1 = D0 x (1 + g) = $52.34 x (1 + 0.0227) = $53.49
Now, we can use the dividend discount model to calculate the stock price expected 1 year from now:
P1 = D1 / (r - g)
Where:
r = required rate of return, which we'll assume to be 10% = 0.1
P1 = $53.49 / (0.1 - 0.0227) = $704.81
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true/ false – fluctuations in currency exchange can wreak havoc on international businesses because they can make profitable deals seemingly unprofitable.
The given statement is true because changes in exchange rates can significantly affect the value of foreign currency and the price of imported goods, making it difficult for businesses to predict and manage their costs and revenues.
For example, if a business sells goods in a foreign country and the currency in that country depreciates against the home currency, the business will receive less revenue in terms of their home currency. This can impact their profitability and cash flow.
Similarly, if a business imports raw materials or goods from a foreign country and the currency in that country appreciates against the home currency, the business will have to pay more for those materials or goods, which can increase their costs and reduce their profitability.
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Ms. Murakami used 1.000 oz. of silver to make jewelry that she plans to sell six months from today. The spot price of silver is 14,76 per OZ She is worried that the price of silver will decline during the next six months, lowering the price she will be able to get from selling the jewelry since she plans to sell the pieces for whatever the price of silver is at that time. Therefore, to hedge het "long" position in silver she enters into 500 short forward contracts on silver with a six-month forward price equal to 15.06 per oz. Each forward contract is for one omce of silver The continuously compounded risk-free rate is 4% and the price of silver in six months is 16.83 per oz. What is her profit on the forward contracts at the end of six months? PossibleAnswers A-1.035 B -885 0 Wc BENG 2M
To determine Ms. Murakami's profit on the forward contracts at the end of six months, we can follow these steps:
1. Calculate the total amount of silver she used to make jewelry: 1,000 oz.
2. Calculate the total value of her short forward contracts: 500 contracts * 15.06 USD/oz = 7,530 USD
3. Calculate the total value of silver at the end of six months: 1,000 oz * 16.83 USD/oz = 16,830 USD
4. Calculate the total value of her short forward contracts at the end of six months: 500 contracts * 16.83 USD/oz = 8,415 USD
5. Calculate her profit on the forward contracts: Total value of short forward contracts at the end of six months - Total value of short forward contracts = 8,415 USD - 7,530 USD = 885 USD
Therefore, Ms. Murakami's profit on the forward contracts at the end of six months is 885 USD, which corresponds to option B.
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brooks's law says that adding more people to a late software project only makes it later. this law is mainly referring to
This law is mainly referring to the fact that adding more people to a late software project can actually slow down the project's progress, rather than speed it up.
What does "software project" mean?A software project is the entire process of developing software, from gathering requirements to testing and maintenance, carried out in accordance with execution techniques over a predetermined amount of time to produce the desired software output.
Brooks's Law states that adding more people to a late software project only makes it later. This law is mainly referring to the fact that adding more people to a late software project can actually slow down the project's progress, rather than speed it up. This is because each new person added to the project needs time to learn the system, understand the requirements, and coordinate with other team members. This can lead to additional communication overhead and coordination costs, which can slow down the project's overall progress.
In addition, adding more people to a project can also increase the complexity of the project, as each new person may have their own ideas and approaches that need to be integrated into the project. This can lead to more bugs, rework, and delays, which can further slow down the project's progress.
Overall, Brooks's Law highlights the importance of effective project management and team coordination, as simply adding more people to a project is not always the best solution for speeding up a late software project.
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According to Brooks' Law, enlarging a software project after it has already begun will only make it continue to take longer. Process losses are the major subject of this statute.
Do more workers being added to a project that is already behind schedule make coordination less necessary, according to Brooks law?
According to Brooks' Law, a late project requires less coordination as more workers are added. The customer will not be compensated for their time and money if a scrum project is terminated due to financial or scheduling constraints.
What number of individuals does the Brooks law increase?
Fred Brooks invented the term "Brooks' Law," a well-known software development guideline, in The Mythical Man-Month. According to the law known as "Adding Manpower to a Late Software Project Makes It Later," whenever a person is added When a project is presented to a team and is already running behind schedule, the project time extends rather than shortens.
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the purpose of performance auditing is to determine if the desired results of a program are being achieved. the first step in conducting such an audit is to
The goal of a performance audit is to provide objective and independent feedback on the effectiveness and efficiency of a program, with the aim of helping to improve its performance and achieve its desired outcomes.
The first step in conducting a performance audit to determine if the desired results of a program are being achieved is to establish the audit objectives and scope. This involves defining the specific goals and outcomes that the program is intended to achieve and identifying the key performance indicators (KPIs) that will be used to measure success.
Once the audit objectives and scope have been established, the next step is to gather information and data about the program's performance. This may involve conducting interviews with program staff and stakeholders, reviewing program documents and reports, and analyzing program data and metrics.
After gathering this information, the auditor will evaluate the program's performance against the established objectives and KPIs. This may involve comparing actual program performance to expected performance, identifying any gaps or deficiencies, and making recommendations for improvement.
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One major limitation of using accounting profitability as a measure for competitive advantage is its focus on____ versus ____a. tangible assets, intangible assets b. resources, capabilitiesc. business strategy, corporate startegyd. ROIC, Not Profit
One major limitation of using "accounting-profitability" as a measure for "competitive-advantage" is its focus on tangible assets versus intangible assets , the correct option is (a).
The "Intangible-Assets" are the non-physical assets that cannot be seen or touched but provide value to a company.
The "Tangible-Assets" are physical assets that can be seen and touched, such as equipment, buildings, and inventory.
The Accounting profitability as a measure for competitive advantage often focuses on tangible assets such as revenues, expenses, and assets.
This approach neglects the importance of intangible assets such as brand value, intellectual property, and employee expertise, which can be significant sources of competitive advantage.
Therefore, Option(a) is correct.
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The given question is incomplete, the complete question is
One major limitation of using accounting profitability as a measure for competitive advantage is its focus on ____ versus ____ .
(a) tangible assets, intangible assets
(b) resources, capabilities
(c) business strategy, corporate strategy
(d) ROIC, Not Profit
please show work8. Calculate the present value of a perpetuity which pays $2500 each year, assuming that the appropriate rate of return (discount rate) is 5.5%.
The present value of perpetuity will be $45,454.55. A perpetuity is a type of financial instrument that pays a fixed amount of money at regular intervals indefinitely, without a specific maturity date or a fixed redemption value.
In other words, it is a never-ending stream of payments that continues forever. Perpetuities are often used in finance and investing to value assets such as stocks, bonds, and real estate, and they are also commonly used in academic finance to study financial models and concepts. One example of a perpetuity is a government bond that pays a fixed interest rate indefinitely.
To calculate the present value of a perpetuity that pays $2500 each year with a 5.5% rate of return, you'll need to use the following formula:
Present Value = Annual Payment / Rate of Return
In this case, the annual payment is $2500 and the rate of return (discount rate) is 5.5% (0.055 as a decimal). Plugging these values into the formula, we get:
Present Value = $2500 / 0.055
Now, simply divide the numbers:
Present Value = $45,454.55 (rounded to two decimal places)
So, the present value of this perpetuity is $45,454.55.
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EVA encourages the right kind of behavior from divisions because of its emphasis on A. after-tax net income. B. total capital employed. C. true cost of capital. D. before-tax operating income.
EVA encourages the right kind of behavior from divisions because of its emphasis on C) true cost of capital.
EVA (Economic Value Added) is a financial performance metric that emphasizes the creation of shareholder value. It measures the difference between a company's after-tax operating profit and the true cost of capital.
The true cost of capital includes not only the cost of debt and equity financing but also the opportunity cost of using capital in a particular investment rather than an alternative investment. By focusing on the true cost of capital, EVA encourages divisions to only invest in projects that generate returns greater than their cost of capital.
This helps to ensure that capital is allocated efficiently and effectively, leading to increased shareholder value. Therefore, the correct answer is C. true cost of capital.
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Problem 2 Mixture Laboratories has a current account in BDO. The company's account reveals the following: Balances taken from the company's general ledger: Cash balance, November 30, 2021 P637,860 Cash balance, December 31, 2021 576,420 Receipts, December 1 to 31, 2021 306,220 Balances taken from the December bank statement: Bank balance, November 30, 2021 P685,180 Bank balance, December 31, 2021 637,220 Disbursements (debits) 356,080 Outstanding checks, November 30, 2021 (P26,140 was paid by bank in December) 64,140 Checks written and recorded in December; not included in the checks returned with the December bank statement 36,080 Deposit in transit, November 30, 2021 15,260 Deposit in transit, December 31, 2021 16,140 A bank credit memo was issued in December to correct an erroneous charge made in November 1,500 Note collected by bank in December (company was not informed of the collection) 2,060 A check for P2,020 (payable to a supplier) was recorded in the check register journal in December as P3,000 980 A check for P2,240 was charged by the bank as P2,420 in December 180 Mixture issued a stop payment order to the bank in December. This pertains to a check written in December which was not received by the payee. A new check was written and recorded in the check register journal in December The old check was written off by a journal entry also in December. 780 Bank service charge, November 30, 2021 60 5. What is the total unadjusted book disbursements in December? 6. What is the total unadjusted bank receipts in December? 7. What is the total outstanding checks on December 31? 8. What is the adjusted bank balance on November 30?_ 9. What is the adjusted bank disbursements in December? 10. What is adjusted book balance on December 31? Problem 1 Lim Company provided the following bank reconciliation for the month February: Balance per bank statement, February 28 Deposits outstanding Checks outstanding Bank credit recorded in error Balance per book, February 28 P3,600,000 800,000 (1,200,000) 200,000) P3,000,000 Data per bank statement for the month of March follow: P5,500,000 March deposits, including note collected of P1,000,000 for Lim March disbursements, including NSF customer check P350,000 and service charge of P50,000 4,400,000 All items that were outstanding on February cleared through the bank in December, including the bank credit. In addition, checks amounting to P500,000 were outstanding and deposits of P700,000 were in transit on March 31. 1. What is the adjusted cash in bank on March 31? 2. What is the cash balance per ledger on March 31? 3. What is the amount of unadjusted cash receipts per book in March? 4. What is the amount of unadjusted cash disbursements per book in March?
1. Adjusted cash in bank on March 31 is P5,700,000. 2. Cash balance per ledger on March 31 = P2,950,000. 3. Unadjusted cash receipts per book in March = P4,500,000. 4. Total unadjusted book disbursements is P36860. 5. Total unadjusted book disbursements = P100,220. 6. Total unadjusted bank receipts = P337,620. 7. Total outstanding checks on Dec. 31 = P74,080. 8. Adjusted bank balance on Nov. 30 = P637,800. 9 Adjusted bank disbursements in December = P356,700. 10. Adjusted book balance on Dec. 31 = P521,960.
1. Adjusted cash in bank on March 31:
Balance per bank statement on March 31 = P5,500,000
Add: Deposits in transit = P700,000
Less: Outstanding checks = P500,000
Adjusted cash in bank on March 31 = P5,700,000
2. Cash balance per ledger on March 31:
Balance per book on Feb. 28 = P3,000,000
Add: Cash receipts in March = P2,500,000
Less: Cash disbursements in March = P2,550,000 (P4,400,000 - P350,000 - P50,000)
Cash balance per ledger on March 31 = P2,950,000
3. Unadjusted cash receipts per book in March:
Cash receipts in March per bank statement = P5,500,000
Less: Note collected in March not recorded in books = P1,000,000
Unadjusted cash receipts per book in March = P4,500,000
4. Total unadjusted book disbursements = Checks written and recorded in December + Old check written off
= P36,080 + P780
= P36,860
5. Total unadjusted book disbursements in December:
Beginning balance of outstanding checks on Nov. 30 = P64,140
Checks recorded in December not included in bank statement = P36,080
Total unadjusted book disbursements = P100,220
6. Total unadjusted bank receipts in December:
Beginning balance of deposit in transit on Nov. 30 = P15,260
Deposit in transit on Dec. 31 = P16,140
Receipts from bank statement = P306,220
Total unadjusted bank receipts = P337,620
7. Total outstanding checks on Dec. 31:
Beginning balance of outstanding checks on Nov. 30 = P64,140
Less: Outstanding check paid by bank in December = P26,140
Plus: Checks written and recorded in December not included in bank statement = P36,080
Total outstanding checks on Dec. 31 = P74,080
8. Adjusted bank balance on November 30:
Bank balance on Nov. 30 per bank statement = P685,180
Less: Outstanding checks on Nov. 30 = P64,140
Add: Deposit in transit on Nov. 30 = P15,260
Add: Bank credit memo issued in December = P1,500
Adjusted bank balance on Nov. 30 = P637,800
9. Adjusted bank disbursements in December:
Unadjusted bank disbursements from bank statement = P356,080
Less: Erroneous check charge of P180 = P356,080 - P180 = P355,900
Add: Check written off due to stop payment order = P780
Adjusted bank disbursements in December = P356,700
10. Adjusted book balance on December 31:
Unadjusted book balance on Dec. 31 = P576,420
Add: Credit memo of P1,500 not recorded in books = P577,920
Less: Check recorded as P3,000 instead of P2,020 = P980
Add: Note collected by bank not recorded in books = P2,060
Add: Deposit in transit on Dec. 31 = P16,140
Less: Total outstanding checks on Dec. 31 = P74,080
Adjusted book balance on Dec. 31 = P521,960
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When someone files an ethics complaint against a licensee through the local association of REALTORS, what must be specified? A. The standards of practice that were violated B. Quotes from the NAR Code of Conduct Preamble C. The name of the ombudsman D. The list of articles in the NAR Code of Ethics that were violated
The NAR Code of Ethics that were violated. Quotes from the NAR Code of Conduct Preamble and the name of the ombudsman are not required to be included in the complaint.
When someone files an ethics complaint against a licensee through the local association of REALTORS, they must specify the standards of practice that were violated and the list of articles in the NAR Code of Ethics that were violated. Quotes from the NAR Code of Conduct Preamble and the name of the ombudsman are not required to be included in the complaint.
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The following information is available to reconcile Severino Co.'s book balance of cash with its bank statement cash balance as of December 31, 2017. a. The December 31 cash balance according to the accounting records is $32,878.30, and the bank statement cash balance for that date is $46,822.40. b. Check No. 1273 for $4,589.30 and Check No. 1282 for $400, both written and entered in the accounting records in December, are not among the canceled checks. Two checks, No. 1231 for $2,289 and No. 1242 for $410.40, were outstanding on the most recent November 30 reconciliation. Check No. 1231 is listed with the December canceled checks, but Check No. 1242 is not c. When the December checks are compared with entries in the accounting records, it is found that Check No. 1267 had been correctly drawn for $3,456 to pay for office supplies but was erroneously entered in the accounting records as $3,465. d. Two memoranda are enclosed with the statement and are unrecorded at the time of the reconciliation. The first is for a $762.50 charge that dealt with an NSF check for $745 received from a customer, Titus Industries, in payment of its account. The bank assessed a $17.50 fee for processing it. The second is $99 in miscellaneous expenses for check printing. e. The bank statement shows that the bank collected $19,000 cash on a note receivable for the company, deducted a $20 collection expense, and credited the balance to the company's Cash account. Severino did not record this transaction before receiving the statement. f. Severino's December 31 daily cash receipts of $9,583.10 were placed in the bank's night depository on that date but do not appear on the December 31 bank statement. Required 1. Prepare the bank reconciliation for this company as of December 31, 2017 2. Prepare the journal entries (in dollars and cents) necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of December 31, 2017. Check (1) Reconciled balance, $51,005.80; (2) Cr. Notes Receivable, $19,000.00
The sum of the aforementioned journal entries is a credit of $51,005.80, bringing the book balance and the reconciled cash balance as of December 31, 2017 into agreement.
Bank Reconciliation for Severino Co. as of December 31, 2017:
Book balance of cash as of December 31, 2017: $32,878.30
Add: Deposit in transit (December 31 receipts): $9,583.10
Adjusted book balance of cash: $42,461.40
Bank statement cash balance as of December 31, 2017: $46,822.40
Less: Outstanding checks:
Check No. 1231: $2,289.00
Check No. 1242: $410.40
Check No. 1273: $4,589.30
Check No. 1282: $400.00
Adjusted bank statement cash balance: $39,143.70
Add: Deposited but unrecorded note receivable collection: $19,000.00
Add: NSF check charge and bank fee: $762.50
Add: Miscellaneous expenses: $99.00
Adjusted reconciled balance of cash as of December 31, 2017: $51,005.80
Journal Entries to Bring Book Balance of Cash into Conformity with Reconciled Balance:
a. Adjust for outstanding checks:
Debit: Accounts Payable - Check No. 1231: $2,289.00
Debit: Accounts Payable - Check No. 1242: $410.40
Debit: Accounts Payable - Check No. 1273: $4,589.30
Debit: Accounts Payable - Check No. 1282: $400.00
Credit: Cash: $7,688.70
b. Adjust for error in recording Check No. 1267:
Debit: Office Supplies Expense: $9.00
Credit: Cash: $9.00
c. Adjust for NSF check charge and bank fee:
Debit: NSF Expense: $762.50
Debit: Bank Service Charge Expense: $17.50
Credit: Cash: $780.00
d. Adjust for miscellaneous expenses:
Debit: Miscellaneous Expense: $99.00
Credit: Cash: $99.00
e. Record the deposited but unrecorded note receivable collection:
Debit: Cash: $19,000.00
Credit: Notes Receivable: $19,000.00
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Will More Money Fill the Gap?
In a referendum on June 23, 2016, a majority of UK voters decided that they wanted to leave the European Union. While negotiations will be lengthy and complex, it is anticipated that the United Kingdom will leave by March 2019. Being a member of the European Union meant that people from other EU nations were free to move to the United Kingdom for work. This was seen as a positive for the pro-Brexit campaign, with supporters stressing the benefits of controlling the movement of labor. But the question now is, will UK businesses find local workers to fill these soon-to-be vacant jobs?
According to the Office of National Statistics, in 2016, 7 percent—2.2 million—of the UK labor market were EU nationals. While these workers were employed across all sectors, the majority are employed in the lower-skilled jobs, such as cleaning, farming, hospitality, and food retail. If these workers are unable to work in the United Kingdom, organizations need to think about how they can encourage UK workers to take their place. Food retailer and restaurant chain Pret a Manger claims that only 1 in 50 applicants for their vacant jobs is British, so this is going to be a real challenge for them. This is supported by the UK Government, which believes that it will be years before British workers will be ready to fill these low-skilled jobs.
Organizations may need to explore alternative solutions such as investing in training and education programs to upskill and reskill UK workers or automating certain tasks. Ultimately, filling the gap created by Brexit will require a multifaceted approach that considers various factors beyond just financial incentives.
More money may not necessarily fill the gap created by the departure of EU nationals from the UK labor market. While increasing wages may attract more local workers to these lower-skilled jobs, it may not be enough to replace the significant number of EU workers who previously filled them. Additionally, many of these jobs have low profit margins, making it difficult for businesses to significantly increase wages without sacrificing profitability.
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which of the following would likely cause the greatest deadweight loss? a. a tax on gasoline b. a tax on salt c. a tax on cigarettes d. a tax on cruise line tickets
A tax on gasoline would likely cause the greatest deadweight loss. Therefore, A. is the correct option.
A tax on gasoline would likely cause the greatest deadweight loss because gasoline is an essential commodity that is inelastic in demand. This means that consumers will continue to buy gasoline even if the price increases due to the tax. As a result, the tax would increase the price of gasoline, but consumers would not be able to reduce their consumption by much, causing a significant deadweight loss.
Deadweight loss refers to the loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved due to market inefficiencies. A tax can create deadweight loss because it can change the equilibrium price and quantity of the taxed good or service.
Therefore, option A. a tax on gasoline, is the correct option.
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1-1 What is the basic difference in orientation between financial and managerial accounting? 1-2 What are the three major activities of a manager? 1-3 Describe the steps in the planning, Implementation, and control cycle. 1-4 What are the major differences between financial and managerial accounting? 1-5 Describe the lean business model and its corresponding management practices. 1-6 What are the pros and cons of a JIT system? 1-7 "It is vital that management accountants abide by a code of ethics." Do you agree or disagree? Explain.
1-1 The basic difference between financial and managerial accounting is that financial accounting focuses on providing information to external users, while managerial accounting focuses on providing information to internal users for decision-making purposes.
1-2 The three major activities of a manager are planning, organizing, and controlling.
1-3 The steps in the planning, implementation, and control cycle are: setting objectives, formulating strategies, implementing plans, monitoring performance, and taking corrective action if needed.
1-4 Major differences between financial and managerial accounting include their purpose, users, reporting frequency, and the level of detail and regulations.
1-5 The lean business model focuses on minimizing waste and maximizing efficiency through continuous improvement and streamlined processes, and its corresponding management practices involve empowering employees, reducing inventory, and utilizing just-in-time production methods.
1-6 Pros of a JIT system include reduced inventory costs and increased efficiency, while cons include potential disruptions to production and increased reliance on suppliers.
1-7 I agree that it is vital for management accountants to abide by a code of ethics, as it ensures professionalism, integrity, and transparency in their work, which ultimately benefits the organization and its stakeholders.
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according to the law of diminishing marginal rate of technical substitution, as a producer uses __________ of an input, ___________ of the other input must be used to achieve the same level of output.
According to this regulation, as a producer makes use of increasing amounts of 1 input, it eventually reaches a point where the marginal gain of using more of that input decreases, even as the marginal benefit of the usage of the other enter increases.
Which means that as a way to hold the equal level of output, the producer should use more and more large quantities of the alternative enter as they use extra of the primary input. that is because the two inputs are substitutes for each different, and as one input will become exceptionally more highly-priced or tough to achieve, it turns into extra cost-powerful to use more of the other input.
The DMRTS precept has vital implications for the green allocation of resources in a manufacturing system, and can help manufacturers to optimize their use of inputs to obtain most output at the lowest viable cost.
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A small nonprofit organization, a junior football league, discovered that its treasurer had stolen more than $50,000 from the league over a two-year period. The treasurer had sole responsibility for writing and depositing checks. What internal control policies should have been in place to prevent such theft?
To prevent theft and financial irregularities, the small nonprofit organization should have implemented internal control policies such as segregation of duties, regular auditing, authorization and approval of financial transactions.
Internal control policies are a set of guidelines, procedures, and processes established by an organization to ensure that its operations are conducted in a manner that is efficient, effective, and compliant with applicable laws and regulations. These policies are designed to safeguard an organization's assets, ensure accurate financial reporting, and prevent fraud and other unauthorized activities.
Internal control policies may cover a wide range of areas, including financial reporting, budgeting, cash management, inventory control, and information technology. They may also include procedures for hiring and training employees, monitoring compliance with regulations and policies, and reporting and investigating potential violations.
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changing labor utilization through varying work hours or number of employees is the goal of ________.
Changing labor utilization through varying work hours or number of employees is the goal of workforce management.
Changing labor utilization through varying work hours or the number of employees is the goal of workforce management. Workforce management involves a set of processes that organizations use to optimize the productivity of their workforce, such as tracking employee performance, forecasting labor demand, scheduling shifts, managing time and attendance, and implementing workforce policies. By adjusting work hours or the number of employees, organizations can manage their workforce more efficiently, reduce labor costs, and improve overall productivity.
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Question 3 2 points The common stock and debt of Windows Phone Corp. are valued at $57 million and $27 million, respectively. Investors currently require a 15% return on the common stock and an 7% return on the debt. There are no taxes. Calculate the weighted average cost of capital. Enter your answer as a percentage. Do not include the percentage sign in your answers. Enter your answer rounded to 2 DECIMAL PLACES. WACC =
The weighted average cost of capital (WACC) is 12.43%.
To calculate the weighted average cost of capital (WACC) for Windows Phone Corp, we'll need to use the following formula:
WACC = (E/V) * Re + (D/V) * Rd
where E is the value of common stock, D is the value of debt, V is the total value of the company (E+D), Re is the required return on common stock, and Rd is the required return on debt.
It is given that:
E = $57 million
D = $27 million
Re = 15%
Rd = 7%
1: Calculate the total value of the company (V).
V = E + D = $57 million + $27 million = $84 million
2: Calculate the weights of common stock (E/V) and debt (D/V).
Weight of common stock = E/V = $57 million / $84 million = 0.6786
Weight of debt = D/V = $27 million / $84 million = 0.3214
3: Calculate the WACC using the formula.
WACC = (0.6786 * 15%) + (0.3214 * 7%) = 10.1786% + 2.2498% = 12.4284%
Therefore, the weighted average cost of capital for Windows Phone Corp is 12.43% (rounded to 2 decimal places).
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magic realm, incorporated, has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor. required: 1-a. prepare a contribution format income statement for the game last year. 1-b. compute the degree of operating leverage. 2. management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)
Magic Realm, Incorporated sold 15,000 fantasy board games last year at a selling price of $20 per game. The fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. Production of the game is entrusted to a printing contractor.
Here’s the contribution format income statement for last year:
Sales (15,000 x $20) $300,000
Variable expenses (15,000 x $6) $90,000
Contribution margin $210,000
Fixed expenses $182,000
Net operating income $28,000
The degree of operating leverage (DOL) can be calculated as follows:
DOL = Contribution margin / Net operating income
DOL = $210,000 / $28,000
DOL = 7.512
Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games or 20% over last year). Given this assumption:
a. The expected percentage increase in net operating income for next year is:
% increase in net operating income = DOL x % increase in sales
% increase in net operating income = 7.5 x 20%
% increase in net operating income = 150%
b. The expected amount of net operating income for next year is:
Expected net operating income = Net operating income + (DOL x Increase in sales)
Expected net operating income = $28,000 + (7.5 x ($20 x 3,000))
Expected net operating income = $28,000 + $450,000
Expected net operating income = $478,0001
An organisation's income statement, one of the key financial statements, shows the company's profit and loss over time. The profit or loss is calculated by adding all of the revenues, and then all operating and non-operating costs are deducted. The income statement is one of the three statements that are utilized in corporate finance and accounting, including financial modelling.
The statement clearly and logically breaks out the business's revenue, costs, gross profit, selling and administrative costs, other expenses and income, taxes paid, and net profit. The statement is broken down into time periods that correspond to how the firm runs.
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1-a. Contribution Format Income Statement for the game last year is: Net Operating Income: $28,000.
1-b. Degree of Operating Leverage = 7.5
2-a. Percentage increase in net operating income for next year = 69.3%.
2-b. Expected total dollar net operating income for next year = $355,500.
1-a. Contribution Format Income Statement for the game last year:
Revenue: 15,000 x $20 = $300,000
Variable Expenses: 15,000 x $6 = 90,000
Contribution Margin: $210,000
Fixed Expenses: 182,000
Net Operating Income: $28,000
1-b. The degree of operating leverage is calculated by the formula: Degree of Operating Leverage = Contribution Margin/ Net Operating Income. Therefore, Degree of Operating Leverage = $210,000 / $28,000 = 7.5.
2-a. Percentage increase in net operating income for next year = (Expected Net Operating Income – Net Operating Income from Previous Year)/Net Operating Income from Previous Year x 100.
Therefore, Percentage increase in net operating income for next year = ($47,400 - $28,000) / $28,000 x 100 = 69.3%.
2-b. Expected total dollar net operating income for next year = Degree of Operating Leverage x Expected Net Operating Income.
Therefore, Expected total dollar net operating income for next year = 7.5 x $47,400 = $355,500.
Complete Question:
Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed expense associated with the game total $182,000 per year, and variable expense are $6 per game. Production of the game is entrusted to a printing contractor. Variable expense consist mostly of payments to this contractor.
Required:
1-a. Prepare a contribution format income statement for the game last year.
1-b. Compute the degree of operating leverage. (Round your answer to 1 decimal place.)
2.Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year).
a.Compute the expected percentage increase in net operating income for next year. (Do not round intermediate calculations.)
b.Compute the expected total dollar net operating income for next year. (Do not prepare an income statement; use the degree of operating leverage to compute your answer.) (Do not round intermediate calculations.)
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project l costs $35,000, its expected cash inflows are $9,000 per year for 9 years, and its wacc is 13%. what is the project's payback? round the answer to two decimal places.
According to the question the payback period of the project is 3.89 years.
What is payback period?Payback period is a time-based method of evaluating a capital investment and calculating the time needed to break even. It is used to determine the length of time it will take to recover the cost of an investment. It is calculated by dividing the initial investment by the annual cash inflows generated by the investment. The payback period is the length of time it takes to recoup the initial investment before any profits are realized. This method of evaluation does not take into account the time value of money, and therefore it is not the most accurate way to determine the profitability of an investment.
The payback period of a project can be calculated by dividing the initial cost by the annual cash inflow.
Payback = 35,000 / 9,000 = 3.89 years
Therefore, the payback period of the project is 3.89 years.
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do you think economic dependence (particularly on the export of commodities) was inevitable? discuss two countries in your answer.
Answer:
They remain vulnerable to global economic trends and fluctuations in commodity prices.
Explanation:
Economic dependence on the export of commodities was not inevitable for every country, but it was certainly a reality for many developing nations. Two countries that exemplify this situation are Venezuela and Nigeria.
Venezuela is a country that heavily relied on its oil exports to sustain its economy. In the 1970s, oil exports made up over 90% of Venezuela's export earnings, and the government became heavily dependent on this revenue stream. However, this economic model left the country vulnerable to fluctuations in oil prices, and when prices fell in the 1980s, Venezuela struggled to maintain its economic stability.
Similarly, Nigeria has also been heavily dependent on the export of oil. The country's economy is largely driven by oil exports, which account for approximately 90% of its foreign exchange earnings. However, the country's economy has suffered due to mismanagement and corruption, and the dependence on oil exports has prevented Nigeria from diversifying its economy and creating more sustainable growth.
In both cases, economic dependence on the export of commodities was not inevitable, but it was a reality that developed due to various political and economic factors. These countries could have pursued policies to diversify their economies and reduce their reliance on commodity exports, but they failed to do so.
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K is an insured under a life insurance policy owned by a third party. Which of these statements is true?-K has no ownership rights
According to the insurance policy owned by a third party, the true statement is K has no ownership rights (option c).
In the case of K, he or she is insured under a life insurance policy owned by a third party. This means that K does not own the policy, but rather, the policy is owned by someone else. As the insured, K is covered by the insurance policy and is entitled to the benefits of the policy, but he or she does not have any ownership rights over the policy.
Therefore, the statement "K has no ownership rights" is true. The owner of the policy is the one who has the ownership rights, and they are the ones who have the right to make decisions about the policy, such as changing the beneficiaries or canceling the policy. K, as the insured, does not have any control over the policy, but rather is simply the recipient of the insurance coverage.
Hence the correct option is (c).
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Complete Question:
K is an insured under a life insurance policy owned by a third party. Which of these statements is true?
a) K has ownership rights
b) K has partial ownership rights
c) K has no ownership rights
d) None of these.
Question 4 paints Amanda's mortgage is repaid over 24 years by payments of $588.78 made of the beginning of each month if interest is monthly what the more Enter your answer to the nearest dollar. Do not enter the sien. Sample input-248977
We can estimate Amanda's mortgage amount to be approximately $169,032.96 and her monthly payment to be $752 based on a reasonable assumption of an annual interest rate of 4%.
How can we estimate Amanda's mortgage amount and monthly payment based on given information?
The mortgage amount is not given in the question, so we cannot calculate the exact answer. However, we can use the given information to find the approximate amount of Amanda's mortgage.
We know that Amanda's mortgage is being repaid over 24 years, and she is making monthly payments of $588.78. To find the total amount she will pay over the 24-year period, we can multiply the monthly payment by the number of months in 24 years:
Total payments = $588.78/month x 12 months/year x 24 years = $169,032.96
This means that Amanda's mortgage is approximately $169,032.96.
To find the monthly interest rate, we can use the formula:
We are not given the annual interest rate, so we cannot calculate the exact monthly interest rate. However, we can assume a reasonable rate, such as 4% per year. In that case, the monthly interest rate would be:
Monthly interest rate = (4% / 12) / 100 = 0.00333333
To calculate the mortgage payment, we can use the formula:
Mortgage payment = Pˣ (rˣ (1 + r)ⁿ) / ((1 + r)ⁿ ⁻ ¹)
Where P is the principal (the amount of the mortgage), r is the monthly interest rate, and n is the number of months in the mortgage term (24 years x 12 months/year = 288 months).
Using our estimated values, we get:
Mortgage payment = $169,032.96ˣ (0.00333333ˣ(1 + 0.00333333)²⁸⁸) / ((1 + 0.00333333)²⁸⁸⁻ ¹) = $751.91
Rounding this amount to the nearest dollar, we get:
Amanda's mortgage payment is $752 per month.
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QUESTION 15 A contract that is so one sided or oppressive that it is regarded as shockingly unjust or unfair unprecedented contract familiarity contract unconscionable contract unsolicitated contract
The term that best describes a contract that is so one-sided or oppressive that it is regarded as shockingly unjust or unfair is "unconscionable contract". This type of contract is usually considered unfair because it takes advantage of one party's lack of bargaining power, knowledge, or experience.
In some cases, it may even violate public policy. Unconscionable contracts are usually enforced by courts, but they can be challenged and declared void if they are found to be unconscionable. It is important to read and understand all terms of a contract before signing it to avoid being bound to an unfair agreement.
The type of contract you are referring to is known as an "unconscionable contract." An unconscionable contract is one that is extremely unjust or overwhelmingly one-sided in favor of one party. These contracts are generally not enforceable in a court of law because they are considered to be against public policy.
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identify and discuss the four critical assumptions underlyingthe crisis communications efforts of the Federal EmergencyManagement Agency (FEMA) in the 1990's?
The four critical assumptions are Timely and accurate information, Clear and concise messaging, Coordination with other agencies, Consideration of cultural and linguistic differences
Timely and accurate information: FEMA assumed that timely and accurate information was critical to effective crisis communication. To achieve this, FEMA established a system for collecting and disseminating information quickly during emergencies.
Clear and concise messaging: FEMA assumed that clear and concise messaging was necessary to ensure that the public understood the severity of the crisis and the actions being taken to address it. To achieve this, FEMA developed messaging that was easily understandable by the public.
Coordination with other agencies: FEMA assumed that coordination with other agencies was essential to effective crisis communication. To achieve this, FEMA established partnerships with other federal, state, and local agencies to ensure that communication efforts were aligned and consistent.
Consideration of cultural and linguistic differences: FEMA assumed that cultural and linguistic differences needed to be taken into account in crisis communication efforts.
To achieve this, FEMA developed messaging that was sensitive to different cultures and languages, and worked to ensure that the messaging was effectively translated and disseminated to diverse communities.
Overall, these assumptions reflected FEMA's recognition of the importance of communication in emergency management and the need to tailor communication efforts to the specific context of each crisis.
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a(n) is a yearly document that describes a firm's financial status and usually discusses a firm's financial activities during the past year and its prospects for the future
An annual report is a yearly document that describes a firm's financial status and usually discusses a firm's financial activities during the past year and its prospects for the future.
An annual report is a comprehensive report that provides shareholders and stakeholders with detailed information about a company's financial performance during the previous year. It includes a summary of the company's financial statements, such as the balance sheet, income statement, and cash flow statement, as well as an analysis of the company's overall performance.
In addition to financial data, annual reports may also include non-financial information, such as an overview of the company's operations, its strategy, and its key initiatives. Annual reports are typically published once a year and are an important tool for investors, analysts, and other stakeholders to assess a company's financial health and future prospects.
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View Policies Current Attempt in Progress You have been given the following information about the production of Jennifer Co, and are asked to provide the factory manager with information for a meeting with the vice president of operations. The following is a variance report for the most recent period of operations. How many units were produced duting the period? Number of units eTextbook and Media Attempts: 0 of 3 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. Thisrhoartwill be available when you complete the part above. (d) Theneartsof this ouestion m st be completed inorder. This oart will be availablewhen you complete the oart above.
Variance analysis is a technique used to compare actual results with budgeted or expected results, in order to identify differences and determine the reasons behind them.
It is often used to monitor performance and control costs in manufacturing operations. During the meeting, the factory manager should be prepared to explain any significant variances that occurred during the period, both favorable and unfavorable. This may involve identifying the causes of any production delays, quality issues, or material shortages that affected output levels. They should also be prepared to discuss any changes made to the production process or budget assumptions that may have contributed to the variances. Overall, the focus of the meeting should be on identifying opportunities for improvement and implementing corrective actions to address any issues identified through variance analysis. By using variance analysis as a tool for continuous improvement, Jennifer Co can enhance its operational efficiency and competitiveness in the marketplace.
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true or false for purposes of the deduction for educational interest, an educational loan must be used to pay tuition to any type of school.
True. In order to qualify for the deduction for educational interest, the educational loan must be used to pay for tuition and other qualified educational expenses at an eligible institution, which can include any type of school that is eligible to participate in a student aid program administered by the U.S. Department of Education.
True, for purposes of the deduction for educational interest, an educational loan must be used to pay tuition to any type of school. This includes qualified educational expenses at eligible institutions, such as colleges, universities, and vocational schools.
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