Answer:
The answer is the production possibility frontier.
The CEO of Fly Corporation decides to change an accounting method at the end of the current year. The change results in reported profits increasing by 5%, but the company's cash flows are not changed. If capital markets are efficient, then what would happen to the company stock price? Justify your answer with logical arguments
Answer:
Fly Corporation
The stock price will not be affected by the accounting change.
Explanation:
This opinion is based on the assumption that the capital markets are efficient. Therefore, the stock's market price will reflect all available and relevant information. Since all the necessary information is already incorporated into the stock price, the CEO of Fly Corporation cannot beat the market by the change in accounting method, and the stock price will not be undervalued or overvalued. Moreover, the change in accounting method only shifts the timing for reporting income.
Choose the correct statements about the ROC curve.
A. By plotting the true-positive rate against the false-positive rate for different threshold values, the ROC curve can be used to select the optimal model.
B. ROC stands for Receiver Operating Characteristic curve, which was originally developed to detect enemy aircrafts on radar.
C. The ROC curve is a useful diagnostic tool for determining the optimal classification model.
D. The ROC curve was originally developed to optimize healthcare and detect congestive heart failure readmission rate.
Answer:
B
Explanation:
The ROC stands for Reviever Operating Characteristics curve ehic was originally developed to detect enemy aircrafts on reader
The correct statement about the ROC curve is that ROC stands for the Receiver Operating Characteristic curve, which was originally developed to detect enemy aircraft on radar. Thus, option B is correct.
What is a curve?A curve can be defined as the relation that can be between the teo element. this is represented by the graph that is formed on the basis of the change in the elements that are surrounding it. If there is a change in one thing then there can also be a change in another and it may have an effect.
The best accuracy and false alarm rate for a classification algorithm at the approaches suggested are calculated and plotted to create the ROC curve.
The Receiver Operating Characteristic curve, abbreviated ROC curve, was created to find hostile aircraft using radar. Therefore, option B is the correct option.
Learn more about ROC curve, here:
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Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 4,800 5,500 5,360 The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,200 units. The budgeted production units for July are: Multiple Choice 6,000 units. 3,600 units. 6,175 units. 2,400 units. 4,975 units.
Answer: 4,975 units
Explanation:
Budgeted production in July = Sales forecast for July + Ending inventory for July - Beginning inventory
Beginning inventory = 25% of July sales
= 25% * 4,800
= 1,200 units
Ending inventory = 25% of August sales
= 25% * 5,500
= 1,375 units
Budgeted production is therefore:
= 4,800 + 1,375 - 1,200
= 4,975 units
XZYY, Inc. currently has an issue of bonds outstanding that will mature in 16 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 13.0% with annual coupon payments. The bond is currently selling for $1,176. The bonds may be called in 3 years for 113.0% of the par value. What is your expected quoted annual rate of return if you buy the bonds and hold them until maturity
Answer: 10.66%
Explanation:
The expected quoted annual rate of return when the bonds are bought and being held until maturity will be calculated thus:
Coupon payment = 1000 × 13% = 130
The Yield to Maturity formula will be:
= Rate(maturity period, coupon payment, -price, fave value)
= Rate(16, 130, -1176, 1000)
Yield to Maturity = 10.66%
Therefore, the expected quoted annual rate of return is 10.66%.
One of the reasons why cash flow analysis is popular is because ________.
a) cash flows are more subjective than net income
b) cash flows are hard to understand
c) it is easy to manipulate, or spin the cash flows
d) it is difficult to manipulate, or spin the cash flows
e) none of these
Answer:
D
Explanation:
Cash flow is the flow of cash and cash equivalent in and and out of a business.
there are three types of cash flows:
1. Investing cash flow - It involves the use of long term cash. it is the cash flow generated from the purchase and sale of fixed asset e.g. Sale of plant assets.
2. operating cash flow - it shows the net amount of cash generated from a company's normal business operation
3. financing cash flow - it shows the net amount of funding a company receives over a given period e.g. issuance of common stock
Reasons why cash flow analysis is popular
Cash flows are less subject to manipulation when compared with net incomeCash flow in often positive when net income is negative or zeroDetermine the amount of money in a savings account at the end of 1 year, given an initial deposit of $12,000 and a 4 percent annual interest rate when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Answer:
$ 12480
$ 12,484,80
$12,487.25
Explanation:
annually
quarterly
semi annually
The formula for calculating future value:
FV = P (1 + r) nm
FV = Future value
P = Present value
R = interest rate
m = number of compounding
N = number of years
annually - 12,000 x 1,04 = 12480
semi annual - 12,000 x (1.02)^2 = 12,484,80
quarterly - 12,000x (1.01)^4 = 12,487.25
John, a bachelor, after reading a book on home making, suddenly becomes twice as productive in doing household chores. This will likely make his indifference curves (between income on the vertical axis and household time on the horizontal axis) become :__________
Answer:
steeper
Explanation:
An indifference curve is a line that represent the goods combinations between the consumer that become indifferent. The indifference curve should be steep when the marginal rate of subsitution is high and the person would gave up a high amount of y in order to received very little of x
So as per the given situation, the indifference curve should become steeper
The following data are accumulated by Zadok Company in evaluating the purchase of $370,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $67,500 $160,000 Year 2 47,500 140,000 Year 3 (12,500) 80,000 Year 4 (12,500) 80,000 a. Assuming that the desired rate of return is 12%, determine the net present value for the proposal. b. Would management be likely to look with favor on the proposal? Explain.
Answer: Management will not look at this investment in equipment favorably, as the net present value of the project is negative, which will decrease shareholder's wealth.
Explanation:
0 1 2 3 4
Net Cashflows -370,000 160000 140000 80000 80000
Discount factor 12% 1 0.893 0.797 0.712 0.636
PV of cashflows -370000 142857 111607 56942 50841
NPV -7752
Sales totaled $1,277,750 for the year, variable selling and administrative expenses totaled $158,710, and fixed selling and administrative expenses totaled $212,190. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:
Complete Question:
Krepps Corporation produces a single product. Last year, Krepps manufactured 32,150 units and sold 26,900 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $234, 695 $154, 320 $279, 705 $482, 250 Sales totaled $1,277,750 for the year, variable selling and administrative expenses totaled $158,710, and fixed selling and administrative expenses totaled $212.190. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:
Multiple Choice
O $28,350 higher than under absorption costing.
0 $28,350 lower than under absorption costing.
0 $78,750 lower than under absorption costing,
0 $78,750 higher than under absorption costing.
Answer:
Krepps Corporation
Under variable costing, the company's net operating income for the year would be:
0 $78,750 lower than under absorption costing
Explanation:
a) Data and Calculations:
Production units = 32,150 units
Sales units = 26,900 units
Production costs :
Direct materials $234, 695
Direct labor $154, 320
Variable manufacturing overhead $279, 705
Fixed manufacturing overhead $482, 250
Sales for the year $1,277,750
Variable selling and administrative expenses $158,710
Fixed selling and administrative expenses $212,190
Income Statement under variable costing:
Sales for the year $1,277,750
Variable cost of goods sold $559,520
Variable selling and administrative expenses $158,710
Total variable costs $718,230
Contribution margin $559,520
Fixed manufacturing overhead $482,250
Fixed selling and administrative expenses $212,190
Total fixed costs $694,440
Net operating loss $134,920
Direct materials $234, 695
Direct labor $154, 320
Variable manufacturing overhead $279, 705
Total variable manufacturing cost $668,720
Production units = 32,150
Unit costs = $20.60
Cost of goods sold = $559,520 ($20.80 * 26,900)
Income Statement under absorption costing:
Sales for the year $1,277,750
Cost of goods sold $963,020
Gross profit $314,730
Fixed selling and administrative expenses $212,190
Variable selling and administrative expenses $158,710
Total fixed costs $370,900
Net operating loss $56,170
Direct materials $234, 695
Direct labor $154, 320
Variable manufacturing overhead $279, 705
Fixed manufacturing overhead $482, 250
Total manufacturing costs $1,150,970
Production units = 32,150
Cost per unit = $35.80
Cost of goods sold = $963,020 ($35.80 * 26,900)
Difference = $78,750 ($134,920 - $56,170)
NSDC has a contract to produce 9 satellites to support a worldwide telephone system (for Alaska Telecom, Inc.) that allows individuals to use a single, portable telephone in any location on earth to call in and out. NSDC will develop and produce the 9 units. NSDC has estimated that the R&D costs will be NOK (Norwegian Krone) 12,000,000. Material costs are expected to be NOK 6,000,000. They have estimated the design and production of the first satellite will require 100,000 labor hours and an 80 percent improvement curve is expected. Skilled labor cost is NOK 300 per hour. Desired profit for all projects is 25 percent of total costs.
A. How many labor hours should the eighth satellite require?
B. How many labor hours for the whole project of eight satellites?
C. What price would you ask for the project? Why?
D. Midway through the project your design and production people realize that a 75 percent improvement curve is more appropriate. What impact does this have on the project?
E. Near the end of the project Deutsch Telefon AG has requested a cost estimate for four satellites identical to those you have already produced. What price will you quote them? Justify your price.
we have the following information:
R&D = NOK 12000000
Materials = 6000000
Labour hours = 100000
Improvement curve = 80%
Skilled labour = 300/hour
Desired profit = 25%
a. Number of hours:
Using the learning curves table, the value for 80% in the 8th unit is = 0.5120
therefore the number of learning hours = 100000 x 0.5120
= 51200 hours
the eight satellite would need 51200 hours of labor
b. The labour hours for the whole project of 8
The corresponding value using the learning curves cumulative value table = 5.346
so the labour hours = 100000*5.346
= 534600 hours
The whole project requires 534600 hours.
c. Price for the project
We first find the total cost of the project
Total cost of labor = required hours x cost of labor
= 534600 x NOK300
= 160380000
Then we find the margin of profit
25% x total cost
25% (160380000 + 12000000 + 6000000)
= 178380000 x 0.25
= 44595000
The proposed price would be
44595000+160380000+12000000+6000000
= 222,975,000 NOK
the total price is 222,975,000 NOK. This is the price I would ask for.
D. a 75% rate is = 4.802 at 8 units in the cumulative values table.
Total hours = 100000x4.802
= 480200 hours
Total hours = 480200x 300
= 144060000
profit margin = 25% (144060000x6000000x12000000)
= 40515000
The impact that this has is that the profit margin has now fallen from 44595000 Nok to 40515000 NOK
E.
To build these satellites NSDC had 6million NOK
6million/2 = 3000000
4 units at 80 percent in the learning curve = 3.142
100000x3.142 = 314200 hours
Total cost of labor = 314200 hours x 300
= 94260000 NOK
Profit margin = 25% x 94260000 x 12000000 x 3000000
= 27315000 NOK
The justified price that i would quote them = 27315000+94260000+3000000+12000000
= 136575000 NOK
This is the proposed price for the 4
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MC Qu. 74 Differential Chemical produced... Differential Chemical produced 12,000 gallons of Preon and 16,000 gallons of Preon. Joint costs incurred in producing the two products totaled $8,500. At the split-off point, Preon has a market value of $6.00 per gallon and Preon $3.00 per gallon. Compute the portion of the joint costs to be allocated to Preon if the value basis is used.
Answer:
$5,100
Explanation:
The calculation of the portion of the joint cost for Preon allocation is shown below:
= Total joint cost for two products × (Preon cost ÷ Total cost)
Here,
Total joint cost = $8,500
Preon cost = 12,000 gallons × $6 per gallon = $72,000
And, the total cost is
= 12,000 gallons × $6 per gallon + 16,000 gallons × $3 per gallon
= $72,000 + $48,000
= $120,000
So, the allocated cost should be
= $8,500 × ($72,000 ÷ $120,000)
= $5,100
= $4,500
true or false
1.complex buying behavior is when consumers search for information detals
Answer:
true
Explanation:
Complex buying is when consumers look for details about the product.
Answer:
This is true.
Explanation:
Marketers should have a thorough knowledge of products for customers with complex buying behavior.
Flack Corporation, a merchandiser, provides the following information for its December budgeting process: The November 30 inventory was 1,800 units. Budgeted sales for December are 4,000 units. Desired December 31 inventory is 2,840 units. Budgeted purchases are: Multiple Choice 5,800 units. 6,840 units. 4,000 units. 5,040 units. 1,240 units.
Answer: 5,040 units
Explanation:
Budgeted purchases are the purchases that the company needs to make in order to be able to sell its budgeted sales for the month and still have the desired ending inventory they want.
Budgeted purchases can be calculated by the formula:
= Budgeted sales + Desired Ending inventory - Opening inventory
= 4,000 + 2,840 - 1,800
= 6,840 - 1,800
= 5,040 units
The Director of Taco Bell’s in-house creative agency described the workplace as an "ego-free zone," suggesting openness to his team members’ ideas, also called Multiple Choice staff validity. task validity. boundary spanning. decision informity. hierarchical sensitivity.
Answer:
staff validity
Explanation:
Staff validity is the degree by which the members form good presentations to the leader. As they can have all the information needed to make a good decision.We read about making business level strategies and corporate level strategies in pursuit of our vision or mission. In that, competing moves are described. Identify the firms from your industry that you would characterize as using each of the business level strategies. Use data to support your analysis. Then, can you identify their competitive moves, and the corporate level strategies to support it? This should be no more than three pages. This is a wee bit tricky but most of the information can be gained from first the competitive intelligence reports, and then second, the footwear industry reports.
Answer:
.....
good question. Wait for the answer
Explanation:
Question 6 of 10
How does a low credit score affect a person who applies for a loan?
O A. It causes banks to charge the person higher interest rates on the
loan.
B. It makes it easier for the person to get a loan with a poor debt-to-
income ratio.
C. It allows banks to give the person a loan without checking his or
her tax records.
D. It makes banks more likely to give the person a large, long-term
loan.
SUBMIT.
Answer:
A. it causes Banks to charge the person higher interest rates on the loan
Your firm has net income of $245 on total sales of $1,080. Costs are $610 and depreciation is $120. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow
Answer:
the operating cash flow is $365
Explanation:
the computation of the operating cash flow is shown below:
operating cash flow is
= Net income + depreciation expense
= $245 + $120
= $365
hence, the operating cash flow is $365
We simply added the net income and the depreciation expense to determine the operating cash flow
vai trò của đạo đức trong doanh nghiệp là gì
Explanation:
Đạo đức kinh doanh giúp doanh nghiệp duy trì mối quan hệ tốt hơn và hài hòa với xã hội, khách hàng, nhân viên và các ngành hữu quan. ... Đạo đức kinh doanh có một vai trò quan trọng trong việc nâng cao lợi nhuận và năng suất của doanh nghiệp và cải thiện thiện chí của doanh nghiệp trên thị trường.
đánh dấu tôi là não nhất làm ơn giúp tôi và cảm ơn
How does the devaluation and appreciation of the local currency effect to balance of payment, analyze for each component
Answer: Balance of payment will worsen due to devaluation.
Explanation: The balance of payments refers to the balance of supply and demand for a country's currency in the foreign exchange market. Devaluation will make local currency weaker and foreign currency stronger. Therefore less demand for local currency in the foreign market. The imports will become expensive, more amount of local currency will be paid as it is weaker. The exports will become cheaper, more amount of local currency will be received as foreign currency is stronger than it.
Vise Versa for appreciation.
A company purchased $2,300 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $450 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:
Answer:
Dr Accounts payable 1850
Cr Merchandise inventory $37
Cr Cash $1813
Explanation:
Preparation of the journal entry to record the payment on July 12 Using the gross method,
JOURNAL ENTRY
Jul-12
Dr Accounts payable ($2300-450) 1850
Cr Merchandise inventory ($1850*2%) $37
Cr Cash $1813
($1850-$37)
(Being entry recorded for payment to supplier)
a. Performed $8,200 of services on account.
b. Collected $5,600 cash on accounts receivable.
c. Paid $1,450 cash in advance for an insurance policy.
d. Paid $400 on accounts payable.
e. Recorded the adjusting entry to recognize $300 of insurance expense.
f. Received $1,600 cash for services to be performed at a later date.
g. Purchased land for $9,000 cash. Purchased supplies for $350 cash.
Required:
Record each of the above transactions.
Answer and Explanation:
The journal entries are as follows:
a.
Accounts receivable 8200
To Service revenue 8200
(being services performed on account is recorded)
b. Cash 5600
To Accounts receivable 5600
(Being collections on account is recorded)
c. Prepaid insurance 1450
To Cash 1450
(being cash paid in advance for insurance is recorded)
d. Accounts payable 400
to Cash 400
(Being record payment on account is recorded)
e. Insurance expense 300
To Prepaid insurance 300
(Being insurance expense is recorded)
f. Cash 1600
to Unearned revenue 1600
(Being cash received for services to be performed is recorded)
g. Land 9000
To Cash 9000
(Being land purchased for cash is recorded)
h. Supplies 350
To Cash 350
(being supplies purchased for cash is recorded)
(L.O. 2) Nolan Company sells its product on an installment basis, earning a $450 pretax gross profit on each installment sale. For accounting purposes the entire $450 is recognized in the year of sale, but for income tax purposes the installment method of accounting is used. Assume Nolan makes one sale in 2019, another sale in 2020, and a third sale in 2021. In each case, one-third of the gross sales price is collected in the year of sale, one-third in the next year, and the final installment in the third year. If the tax rate is 50%, what amount of deferred tax liability should Nolan Company show on its December 31, 2021 balance sheet:
Answer:
$225
Explanation:
Calculation to determine what amount of deferred tax liability should Nolan Company show on its December 31, 2021 balance sheet:
Deferred tax liability =[ ($450/ 3) *50%]+ [($450 / 3 * 2) * 50%]
Deferred tax liability=$75+$150
Deferred tax liability = $225
Therefore the amount of deferred tax liability should Nolan Company show on its December 31, 2021 balance sheet is $225
Direct labor variances Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $22.00 per hour. 15,000 units used 61,900 hours at an hourly rate of $19.85 per hour. What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
a. Direct labor rate variance $ Favorable
b. Direct labor time variance $ Unfavorable
c. Direct labor cost variance $ Favorable
Answer:
Results are below.
Explanation:
To calculate the direct labor rate variance, we need to use the following formula:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (22 - 19.85)*61,900
Direct labor rate variance= $133,085
Now, the direct labor time (efficiency variance):
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (45,000 - 61,900)*22
Direct labor time (efficiency) variance= $371,800 unfavorable
Standard quantity= 15,000*3= 45,000
Finally, the total direct labor cost variance:
Total direct labor cost variance= Direct labor rate variance - Direct labor time (efficiency) variance
Total direct labor cost variance= 133,085 - 371,800
Total direct labor cost variance= $238,715 unfavorable
Hudson Manufacturing is an MNE based in the United States with operations in Asia. The firm is considering expansion into the European Union. Executives at the firm are debating whether central Europe or Eastern Europe would be best for the firm. Which of the following best supports a decision to establish operations in Eastern Europe?
a. Hudson wants to implement high performance work system.
b. Hudson plans to staff the foreign facility with local managers.
c. Hudson wants to minimise costs by keeping wages low.
e. Hudson recently lost money in a joint venture Explain each point to the executives as you decide on which point to support
In the question only "option a" is correct which can be defined as follows:
East Europe has also been able to build an industrial engine thanks to its entrepreneurial spirit. Several large companies have chosen the area as a location to produce their products.The decision benefits everyone, not just commercially, even though their motives may differ because of its highly-skilled, but cost-competitive labor force, many countries offer products of exceptional quality.East European workshops adhere to high moral standards of behavior. East European nations offer tremendous potential for organizations with strong ethical standards, particularly in light of Asian labor issues. This brand can offer 'Made in Europe' goods at a competitive rate because of the lower production costs which are retained.Firms can easily access all the gear & supplies they need for the area while lowering its transport costs & spending time on the road. The manufacturers can therefore probably deal with the finest and most established countries in terms of the quality of the products.Several East European workshops are eager to provide high standards and are not afraid to go the extra mile. In addition to other benefits, production in East Europe is financially stable.As just a result, not only is the labor force in Asia cheaper than in the West and more qualified than in Asia, but corporations can also save a lot on commuting costs. Reduced shipping times from factories result in lower costs, and also increased versatility.It's not just a matter of dealing with companies that are already in existence. To attract potential investors to foster the creation of new enterprises, Eastern Countries offer a variety of advantages.The wrong choices can be defined as follows:
In "option b", it is wrong because, To expand within the European Union, Hudson doesn't quite intend to hire local executives for the international plant.In "option c", To minimize costs, Hudson must maintain high pay; thus it is wrong.In "option e", It's the first joint venture wherein Hudson has not lost money. That is why it is bad, and you must explain each position to both the executives as you pick which one to support.Learn more:
Operations in Eastern Europe: brainly.com/question/4101962
out line four roles played by entrepreneurs in Kenya
Answer:
To be a successful entrepreneur it is necessary for the individual to develop essential communication skills, creativity, innovation and the ability to deal with the risks inherent in the business.
A well-positioned and competitive business is one that manages to create value for consumers by offering products and services that satisfy their wants and needs.
In Kenya, entrepreneurship has stood out as a means for citizens to seek employment and income opportunities, especially in opening up trade in products and services.
Entrepreneurship helps a country to develop by moving the economy and improving the population's quality of life, so it is necessary to have government incentives and information available on the subject.
A stronger euro is less favorable for:
Group of answer choices.
A. German tourists traveling abroad.
B. American tourists traveling in France.
C. Canadian firms selling in Germany.
D. Canadian investors with money investments in Germany.
Answer:
B. American tourists traveling in France.
Explanation:
A foreign exchange market can be defined as a type of market where the currency of a country is converted to that of another country.
For example, the conversion of the United States of America dollars into naira, rands, yen, pounds, euros, etc., at the foreign exchange market.
In this context, a stronger euro is less favorable for American tourists traveling in France because the currency of the Americans, which is the U.S dollars would exchange at a far lesser rate to the euros.
However, a stronger euro would be more favorable for German tourists that are traveling abroad, Canadian firms that trade or sells its products in Germany, and Canadian investors who are having money investments in Germany.
Note: Euro is the official currency (legal tender or money) of Germany.
Considering the available options, a stronger euro is less favorable for "American tourists traveling in France."
This is because the United States of America uses the dollar as currency, while European countries, including France, are using Euro.
Thus, should an American carry dollar to France, and meets a stronger Euro, has a value of money (dollar) would be reduced, and therefore would be less favorable to him.
Option A is wrong because German tourists traveling abroad are favorable to the German as the Euro is stronger.
Option C is wrong because Canadian firms selling in Germany would earn in Euro, thereby getting money with more value.
Option D is wrong because Canadian investors with money investments in Germany would earn in Euro.
Hence, in this case, it is concluded that the correct answer is option B. "American tourists traveling in France."
Group of answer choices.
A. German tourists traveling abroad.
B. American tourists traveling in France.
C. Canadian firms selling in Germany.
D. Canadian investors with money investments in Germany.
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Dobles Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool Total Cost Total Activity
Assembly $228,060 18,000 mahcine hours
Processing orders $34,068 1200 orders
Inspection $125560 1720 inspection hours
The company makes 420 units of product D28K a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit.
According to the activity-based costing system, the unit product cost of product D28K is closest to:
a. $95.34 per unit
b. $93.60 per unit
c. $74.32 per unit
d. $89.93 per unit
Answer:
Hence the correct option is option (a) i.e. $95.34 per unit.
Explanation:
Cost of 420 units of D28K product = 460 machine hour cost + 80 order cost + 10 inspection hour cost + 420 direct materials cost + 420 direct labor cost.
18000 machine hours = 228060
so 460 machine hours = 228060 x 460 /18000 = 5828.2
1200 orders = 34068
80 orders = 80 x 34068 / 1200 = 2271.2
1720 inspection hours = 125560
10 inspection hours = 10 x 125560/1720 = 730
So cost of 420 units of D28 products = 5828.2 + 2271.2 + 730 + 420 x 48.96 + 420 x 25.36
=40043.8
So cost of 1 D28K product = 40043.8 / 420 = 95.34
Supervisor: In general, half of all customers you speak to will ask about any upcoming pricing discounts or promotions. Of those who do ask, only 20% qualify for the discount. Employee: So that means if I speak to 300 customers, __________ will qualify for the discount.
Answer: 30 people
Explanation:
In general, only half of those spoken to will ask about upcoming discounts so out of 300, the number that will ask for discounts is:
= 300 / 2
= 150 people
Out of these 150 people who ask about upcoming discounts, only 20% will qualify. The number that will qualify is:
= 150 * 20%
= 30 people
Read the following details and determine why international trade is possible between these two countries.
Koopmansville has many natural lakes and streams. As a result, its residents grow up on the water and have a natural sense of how boats should work and be made. Because of that knowledge, even though there is demand for canoes in both countries, all of the canoe factories have located themselves in Koopmansville to take advantage of local knowledge. Despite their similarities, Cassvania and Koopmansville are able to trade because of:________.
a. external economies of scale.
b. increasing returns to scale
Answer:
Despite their similarities, Cassvania and Koopmansville are able to trade because of:________.
a. external economies of scale.
Explanation:
Koopmansville enjoys external economies of scale over Cassavania in the production of canoes. These benefits come in the form of lower production and operating costs and reduced variable costs per unit as a result of operational efficiencies and synergies. In addition, the residents of Koopmansville, given their environment, have natural sense of boat-making.
Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.
Cost of goods sold……………………………….. $ 735,000
Merchandise inventory, January 1………………. 84,700
Merchandise inventory, December 31…………… 82,400
Accounts payable, January 1……………………. 54,500
Accounts payable, December 31……………….. 60,200
Answer:
$727,000
Explanation:
Calculation of cash paid for merchandise
Cost of goods sold
$735,000
Add:
Merchandise inventory, December 31
$82,400
Less:
Merchandise inventory, January 1
($84,700)
Purchases during the period
$732,700
Add:
Accounts payable, January 1
$54,500
Less:
Accounts payable, December 31
($60,200)
Cash paid for merchandise
$727,000
