Answer:
A) Comparability.
Explanation:
According to FASB, the objective of financial reporting is to provide information that is useful to existing and potential investors or creditors. One of the main uses given to financial reports is comparing one business to another. In order for the reports to be comparable, they must follow strict standards and be properly prepared.
If the reports aren't comparable, they use is extremely limited, since how else can you decide if investing in company A is a better idea than investing in company B. Comparability applies even to the same company, since you must be able to compare the financial results of different years in order to evaluate the performance of the company.
Mann, Inc., has a bonus plan covering all employees. The total bonus is equal to 10% of Mann’s preliminary (prebonus, pretax) income reduced by the income tax (computed on the preliminary income less the bonus itself). Mann’s preliminary income for the year is $200,000 and the income tax rate is 40%. How much is the bonus for the year?
Answer:
$12,500
Explanation:
Bonus = 10% x ($200,000 - taxes)
Bonus = $20,000 - 0.1T
So we must now find T:
T = 40% x ($200,000 - Bonus)
T = $80,000 - 0.4Bonus
now we can replace:
Bonus = $20,000 - 0.1($80,000 - 0.4Bonus)
Bonus = $20,000 - $8,000 + 0.04Bonus
Bonus - 0.04Bonus = $12,000
0.96Bonus = $12,000
Bonus = $12,000 / 0.96 = $12,500
The bonus for the year would be $12,500 when Mann, inc. Has a bonus plan covering all employees.
What is the bonus?Bonus is usually paid to the employees by their employers in addition to their actual salary.
Bonuses may be allocated by a company as an inducement or to reward great performance.
Computation of the bonus:
According to the question,
Bonus :
[tex]\text{Bonus} = \text{Bounus Percentage} \times\ (\text{Preliminary Income}- \text{Taxes})\\\\\text{Bonus} = 10\% \times (\$200,000 - \text{taxes})\\\\\text{Bonus} = \$20,000 - 0.1\times\rm{Taxes}[/tex]
Now, we have to find the value of taxes:
[tex]\rm{Taxes} = \text{Tax Rate}\times\text{Preliminary Income- Bonus}\\\\\rm{Taxes} = 40\% x (\$200,000 - \text{Bonus})\\\\\rm{Taxes} = \$80,000 - 0.4\timesitext{Bonus}[/tex]
Now, by arranging the above two equations, we get:
[tex]\text{Bonus} = \$20,000 - 0.1\times(\$80,000 - 0.4\times\rm{Bonus})\\\\\text{Bonus} = \$20,000 - \$8,000 + 0.04\times\text{Bonus}\\\\Bonus - 0.04\times Bonus = \$12,000\\\\0.96\times Bonus = \$12,000\\\\Bonus = \dfrac{\$12,000}{0.96}\\\\ Bonus= \$12,500[/tex]
Therefore, the bonus amount for the year would be $12,500.
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Which of the following statements concerning family businesses is correct?
1. Family members often work in the business but may not sit on the council.
2. Family businesses employ about 20 percent of America's total workforce.
3. Most top managers at family firms tend to stay in their positions much longer than those at nonfamily firms.
4. Family businesses plan for succession using a critical-point plan.
Answer:
3. Most top managers at family firms tend to stay in their positions much longer than those at nonfamily firms.
Explanation:
A key success factors in family firms is understanding the culture. This is usually the foundation of the business.
So when family members occupy a position, they tend to stay on much longer because they have intimate knowledge of the business and the goals and objectives are personal to them.
Also loyalty tends to play a part, family members have close relationships which are long-term.
The correct statement about family businesses is that family members may work in the business but might not be part of its council. Family businesses significantly contribute to job creation and come in various sizes. Unique challenges they face include succession planning and balancing family dynamics within a business environment.
The correct statement concerning family businesses is that family members often work in the business but may not sit on the council. This reflects the common structure of family-owned businesses where multiple generations collaborate, but not all family employees are involved in the governance or strategic decision-making processes of the business. Family businesses are a substantial part of the U.S. economy; while they come in various sizes, many operate on a small scale with fewer than 100 employees.
These businesses face unique challenges, such as planning for succession and navigating the complexities of family dynamics in a professional context. It is essential to note that family businesses can contribute significantly to job creation, representing 99.7 percent of all employer firms and generating a majority of net new jobs annually. However, it is a misconception to assume that family businesses employ about 20 percent of America's workforce, as the workforce distribution is much more varied.
Moreover, while many family firms may indeed have leadership that remains for extended periods, it is not universally accurate to state that most top managers at family firms stay longer than those at nonfamily firms. As for the planning of succession, family businesses often use a more personalized approach rather than a one-size-fits-all 'critical-point plan.'
____ is the process of systematically examining information assets for evidentiary material that can provide insight into how an incident transpired.
Answer:
Forensics accounting analysis
Explanation:
Forensic accounting analysis uses auditing (accounting) and investigative skills to determine whether the financial reports of a company or an individual are valid (i.e. true). This technique can also be used to determine how certain abnormal transactions occurred and who was responsible for carrying them out.
___________is a conductor installed on the supply side of a service or separately derived system to ensure the required electrical conductivity between metal parts required to be electrically connected.
Answer:
Supply-side bonding jumper
Explanation:
A supply side bonding jumper is a transmitter on the stockpile side or inside an assistance or independently inferred framework to guarantee the electrical conductivity between metal parts required to be electrically associated.
A bonding jumper on the stock side of an over current gadget
The size of the stock side holding jumper depends on the unground stage conductors
An electrical conductor is a key component for ensuring electrical conductivity between required metal parts in a service or separately derived system, by providing a pathway for electrons to move freely, reflected in low resistance and certain material properties.
The conductor in question is an electrical conductor, which is a material that allows electrons to move freely. This is essential in ensuring that there is sufficient electrical conductivity between metal parts that must be electrically connected. In the context of a service or separately derived system, this conductor is installed on the supply side. It plays a crucial role in maintaining safety and functionality by providing a reliable conductive path for electrical currents. Conductors are characterized by their low resistance and can be made from various materials, with copper and aluminum being common for electrical wiring.
In the realm of power systems, this connectivity is paramount to form an effective electrical network. Conductors can be simple, like wires, or complex systems interconnected at nodes, which are critical junctions where electrical continuity is ensured. Moreover, the resistance of conductors is an important consideration, varying with length and material, and must be considered in electrical design to maintain efficiency and safe operation.
Reinforay, an aircraft manufacturer, makes passenger, cargo, short-haul, and long-haul aircraft from the same design, with many shared components. Reinforay is using a _____.
A. product platform
B. brand platform
C. channel platform
D. category platform
Answer:
a. product platform
Explanation:
Product platform -
It refers the process of designing , where all the parts of the goods or services have some common element in common , is referred to as product platform .
The method is used to -
increases the process of developing new products , reduce the cost of development , a single element acts as a identification for the product .Hence , from the given scenario of the question ,
The correct option is a. product platform .
Thomas signed a sales contract with Bricklay's, a firm that supplies bricks for private individuals. The contract specified the type and amount of bricks needed, and that Thomas would pick up the bricks from the Bricklay's warehouse 15 days later. Thomas received a document of title, but failed to pick up the goods on the stipulated date. In this scenario, at what point of time is the title to goods passed over to Thomas?
Answer:
when Thomas received the document of title.
Explanation:
When a contract is formed there has to be an offer and agreement. Bricklay's made an offer by drawing up the title documents and sending them to Thomas.
When Thomas recieves the title deeds he has accepted the offer made by Bricklay's.
So the goods have officially been passed to Thomas even if he had not picked it up
Mineral Resource Company contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Mineral Resource so that it cannot fulfill its contracts, the distributor:
a. can substitute some other material for the tin.
b. is excused from the performance of its contracts.
c. is liable for breach of contract.
d. must still supply the tin needs of its customers.
Answer:
The correct option is B
Explanation:
Contract is the legal agreement among the parties, which binds the parties to deliver or perform their obligations or the services are rendered. And in order to be legally valid, the contract need to contain some key elements.
Under this situation, the company had a contract with the manufacturers of the tin, but due to the embargoes furniture shipment, due to which it could not be able to fulfill its contract, then the distributor will be excused from the performing the contract.
Economists usually assume that production is subject to increasing opportunity costs because:
a. not all resources are equally suited to producing every good.
b. individuals desire constantly increasing opportunities to make themselves better off.
c. if production is efficient, it is not possible to increase the production of all goods simultaneously.
d. higher production usually results in more inflation.
Answer:C
Explanation:
An investor purchases one municipal bond and one corporate bond that pay rates of return of 4% and 5.5%, respectively. If the investor is in the 20% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively, _____.
Answer:
After-tax rates of return on the municipal bond is 4%
After-tax rates of return on the corporate bond is 4.4%
Explanation:
given data
rates of return = 4% = 0.04
rates of return = 5.5% = 0.055
tax bracket = 20% = 0.20
solution
we get here After-tax rates of return on the municipal bond that is
and here no taxes are levied so
rates of return = return ( 1 - 0 )
rates of return = 0.04 (1 - 0)
rates of return = 0.04 or 4%
and now we get After-tax rates of return on the corporate bond
rates of return = 0.055 × (1 - 0.20)
rates of return = 0.044 or 4.4%
Nebulus Corporation owns 30% of the voting stock of Suite Company. It reports the 30% interest as an equity method investment, with a current carrying value of $32,000,000 and a market value of $45,000,000. Nebulus acquires the remaining 70% interest for $120,000,000 in cash. At that time, the fair value of Suite's identifiable net assets was $125,000,000, and Suite's book value was $45,000,000.As part of the acquisition entry, Nebulus records:A) A gain of $13,000,000, in income.B) Goodwill of 27,000,000.C) Goodwill of $107,000,000.D) A gain of $5,000,000, in income.
Answer:
B) Goodwill of 27,000,000.
Explanation:
Nebulus's original 30% investment on Suite had a carrying value of $32,000,000 + $120,000,000 more paid in cash for the remaining 70% = $152,000,000
The fair market value of Suite's total assets = $125,000,000
So that means that Nebulus must record Suite's assets at fair market value, and the remaining $27,000,000 million must be recorded as goodwill.
Goodwill = total purchase price of a company - fair market value of all the assets belonging to that company = $152,000,000 - $125,000,000 = $27,000,000
Nebulus Corporation used the equity method for accounting. After acquiring an additional 70% interest in Suite Company, leading them to own 100% of the company, they recorded a Goodwill of $27,000,000, which is the surplus of the total amount paid over the fair value of Suite's net assets.
Explanation:The type of accounting in the scenario implies the use of the equity method. Under this approach, the purchasing company, Nebulus Corporation in this scenario, recognizes the ownership of the firm purchased, Suite Company, by recording its initial investment and adjusting this annually for its share of the company's earnings and dividends.
After acquiring an additional 70% interest in Suite Company, Nebulus owns 100% of the voting stock. First, we consider the paid amount for this acquisition, which is $120,000,000. Subtracting the fair value of Suite's identifiable net assets (which is $125,000,000) from the total investment ($120M for 70% plus $32M for 30%, equalling $152,000,000), reveals a difference of $27,000,000, reflecting the presence of Goodwill.
In the aftermath of such an acquisition, Goodwill is calculated as the surplus of the total amount paid over the fair value of the acquired firm's net assets. Goodwill can serve as documentation of the company's intangible assets, such as a reputable brand name or robust customer relations. As such, here Nebulus records a Goodwill of $27,000,000 (Option B).
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Calculate a company’s Current Assets based on the following data from its Balance Sheet: Cash - $100,000; Accounts Receivable - $18,000; Equipment - $75,000; Property - $90,000; Inventory - $50,000. a. $168,000 b. $333,000 c. $243,000 d. $118,000
Answer:
a. $168,000
Explanation:
The computation of the current asset is shown below:
= Cash + Account receivable + inventory
= $100,000 + $18,000 + $50,000
= $168,000
The current assets show a combination of the cash, account receivable, and the inventory account that is to be converted into cash within one year. The rest of the items displayed the long term assets. Hence, ignored it
Lucky started a new business last year. Since it was the first year of operation, the business purchased $10,000 in machinery and used the straight-line method for depreciation. Business is booming, so Lucky purchased $15,000 in equipment during the current year to help meet production demands. Which of the following statements is true regarding the depreciation choices available to Lucky? The new machinery can be depreciated under the same method or a different method than the previously purchased machinery T/F
Answer:
True
Explanation:
The reason is that the Internation Financial Reporting Framework says that though there are choices the company must opt to the depreciation method that brings fairness to the financial statement, which means that the method used calculates the depreciation for the year that actually represents the decrease in the value of the assets in market value. So if the current method brings the fairness to the Financial statements, Lucky can use them and if those don't bring fairness to the financial statements then its better to use alternative which will bring the fairness to financial statements.
Lucky can indeed choose to depreciate the new machinery purchased using either the same straight-line method or a different depreciation method than what was used for the machinery purchased in the previous year.
Explanation:The statement that Lucky can depreciate the new machinery under the same method or a different method than the previously purchased machinery is true. For each asset, a business can choose a depreciation method that best reflects the asset's usage and revenue generation over time. The straight-line depreciation method, which Lucky used in the first year, is just one option. Other methods include declining balance, sum-of-the-years' digits, and units of production. Each method has different implications for the annual depreciation expense and consequently the reported income.
A person may have very strong ethics in the way he or she treats family and friends, but not understand how failure to submit tax withholdings to the government affects peoples' lives or constitutes unethical or fraudulent behavior. This is an ethical issue encountered in which level of the ethical maturity model?A. Personal ethical understanding
B. Ethical courage
C. Ethical leadership
D. Application of ethics to business situations
Answer: (D) Application of ethics to business situations
Explanation:
The applications of the business ethics is one of the form of professional ethics in an organization that helps in examine the overall ethical principle and also the moral problems in the environment.
It also helps in governing the actions during the decision making process and also manage the behavior of the person in an organization.
It is also refers to the unwritten principle and the values in an organization that helps managing the company. According to the given question, the application of the business ethics situation is basically encountered by the ethical maturity model.
Therefore, Option (D) is correct answer.
Among many other responsibilities, Angela Morrison also manages two research teams at a market research firm. Team leaders from both report to her and give her regular updates on how the work is progressing. She carefully monitors the performance of both teams and gives them regular feedback on their work. This is an example of __________.a. auditing b. controlling c. organizing d. planning
Answer:
The correct answer is option B,controlling.
Explanation:
Controlling is a feedback mechanism that enables actual performance to be gauged viz-a-viz set standards within an organization in order to determine whether actual performance exceeds targets(favorable variance), or falls short of expectation(unfavorable variance).
Control is key as learning points might be drawn from outstanding performance for future purposes,the same way unsatisfactory performance requires that corrective measures be put in place if the organization must achieve its short,medium and long term goals.
An increase in the financial leverage of a firm as a result of an increase in outstanding debt has which effect on the potential reward to stockholders while increasing the risk of financial distress or bankruptcy?
Answer:
When the financial leverage of a firm increases, the potential returns (rewards/profits) of the stockholders increases, but so does the financial risks of the company.
When a company gets a lot of debt, it needs to pay interests and if it isn't able to do so, it can go bankrupt. On the other hand, the company has to distribute dividends only if it made a profit.
An increase in the leverage of a firm results in greater returns, but the higher the return, the higher the risk.
Russeng, a travel agency, had a huge setback in its business as customers started to book travel tickets online and make their own itineraries using the information available on the Internet. It failed to take the necessary corrective measures to address this issue, and this led to an overall decrease in the company's performance. This scenario best illustrates ________.A) Organizational declineB) Design iterationC) Technological discontinuityD) Generational change
Answer: (A) Organizational decline
Explanation:
The organizational decline is basically occur when an organization recognized, adapt and also anticipate the external and the internal pressure. The companies or the many organizations does not reduce the risk of the organizational decline. There are basically five stages of the organizational decline are as follows:
Inaction Faulty actions DissolutionCrisis BlindedAccording to the given scenario, the Russeng is one of the travel agency and they started a business as they booked the tickets online for the customers for travelling and the different types of problems occur and it best illustrating the organizational decline concept.
Therefore, Option (A) is correct answer.
Chevelle, Inc. has sales of $487,000 and costs of $394,500. The depreciation expense is $43,800. Interest paid equals $18,200 and dividends paid equal $6,500. The tax rate is 35 percent. What is the addition to retained earnings?
Answer:
The correct answer is $13,325.
Explanation:
According to the scenario, the given data are as follows:
Total sales = $487,000
Cost of goods sold = $394,500
Depreciation expense = $43,800
Interest paid = $18,200
dividends paid = $6,500
Tax rate = 35%
so, first we calculate net income.
Net income = ( Total sales - Cost of goods sold - Depreciation expense - Interest paid ) - 35%
= ($487,000 - $394,000 - $43,800 - $18200 ) - 35%
= $30,500 - $10,675
= $19,825
Addition to retained earnings = Net income - Dividends Paid
= $19,825 - $6,500
= $13,325
Hence, the correct answer is $13,325.
For what minimum period of time after the closing of any customer's account must a broker/dealer preserve account cards or records which related to the terms and conditions with respect to the opening and maintenance of the account under FINRA Rules?
Answer:
The answer options are:
A. 90 days
B. 1 year
C. 4 years
D. 6 years
Explanation:
FINRA Rules prescribe that broker/dealers preserve for a period of not less than 6 years after the closing of any customer's account, any account cards or records which related to the terms and conditions with respect to the opening and maintenance of the account.
Quincy had no idea how consumers would respond to a survey about attitudes toward a program opening up space travel to private citizens. He could use __________ to allow respondents to answer in their own words.
Answer:
a survey with open-ended questions
Explanation:
Using a survey with open-ended questions will give Quincy's survey respondents the opportunity to give their opinions about opening up space travel to private citizens.
Consumers will also be able to give feedback on their experience with the survey and other valuable input as regards improvement of the program.
Marla is an associate at JCPenney who wants to work 40 hours week but works 25 hours a week because sales at JC Penney are slow. Marla works part time for _______ reasons. Joe is a server at Olive Garden who wants to work 40 hours a week but works 15 hours a week because the number of patrons at Olive Garden has decreased. Joe works part time for _______ reasons.
Answer:
Economic ; Economic
Explanation:
A decision will be considered as 'economic reason' if that decision is based on monetary benefit. This is what Maria's intention when working at JCPenny. She just wants to get the highest salary as possible.
Joe on the other hand, works for patron.
Meaning that He works there seeking for connections. Even though he is not aiming directly for money/salary, getting connections actually a monetary reasons since it often lead to more career/business opportunities.
Marla and Joe are both working part time due to factors beyond their control, not by choice - slow sales at JCPenney and fewer patrons at Olive Garden, which may be due to general economic conditions or industry trends.
Explanation:Marla and Joe are examples of workers who are working part time or fewer hours than they'd like to because of conditions within their respective workplaces, not due to their own choice.
Marla works part time for economic reasons. The slow sales at JCPenney imply an overall decrease in the demand for their products which means less need for work hours. Similar to Marla, Joe also works part time, but for industry-specific reasons.
The decrease in patrons at Olive Garden suggests an industry-wide downturn, leading to less demand for server hours. Often such labor-related adjustments might be as a result of changes in minimum wages, but in these cases, the forces at work seem to be more to do with overall economic conditions and specific industry trends.
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Cleftell Inc., a coal mining company in the United States, is the only supplier of coal in its area. The company is backed by the government as it offers its supplies at a discounted rate. Government backing makes it easier for the company to deal with legislation, thereby increasing its overall efficiency and productivity. Which of the following market structures is exemplified in the scenario?
a. Monopsony
b. Pure competition
c. Oligopoly
Answer:
Oligopoly
Explanation:
Oligopoly - it is referred to as a marketing structure in which there are few suppliers in the market and every supplier has its own unique function and unique control over the market.
In the given question, cleftell Inc is also one of that firm which has its own control over the market that is why government back them so that they will supply the coal in discounted rate as before
The General Agreement on Tariffs and Trade was a precursor to the World Trade Organization and provided a forum for tariff negotiations. True False
Answer:
True
Explanation:
The General Agreement on Tariffs and Trade (GATT) was introduced because of its principal function to allow trading without discrimination that is market are equally transacted within member nations.
For example: when a member country and its trading partners had agreed to reduce a tariff, that tariff cut will be automatically extended to every other GATT member.
In one day, Sue can change the oil on 20 cars or change the tires on 20 cars. In one day, Fred can change the oil on 20 cars or change the tires on 10 cars. Sue's opportunity cost of changing oil is ________ than Fred's and her opportunity cost for changing tires is ________ than Fred's.
A) greater; less
B) less; greater
C) less; less
D) greater; greater
Answer:
Sue's opportunity cost of changing oil is more than Fred's and her opportunity cost for changing tires is less than Fred's.
Explanation:
Opportunity Cost is the value of next best alternative sacrifised while choosing an alternative. Eg : If I can read English or Science & opportunity cost of reading it is reading Science.
Oil Tires Sacrifise Ratio (Oil:Tires)
Sue 20 20 20:20 = 1:1
Fred 20 10 20:10 = 2:1 or 1:0.5
Sue can change oil by sacrifising 1 unit tire, Fred can change oil by sacrifising 0.5 unit of tire. So, Sue's opportunity cost of changing oil is more than Fred's .
Fred can change tire by sacrifising 2 units of oil, Sue can change tire by sacrifising 1 unit of oil. So, Sue's opportunity cost of changing tires is less than Fred's.
Sue's opportunity cost for both changing oil and tires is a one-to-one ratio, while Fred's opportunity cost for changing oil is lower as he sacrifices less (changing tires on 10 cars instead of 20), and his opportunity cost for changing tires is higher as he foregoes the chance to work on 20 cars instead. Thus, Sue's opportunity cost of changing oil is less than Fred's, and her opportunity cost for changing tires is greater.
Explanation:In the context of opportunity costs, Sue can change either oil on 20 cars or tires on 20 cars, whereas Fred can change oil on 20 cars or tires on only 10 cars. The opportunity cost for an individual is what they forego by choosing one alternative over another.
For Sue, the opportunity cost of changing oil is giving up changing tires on 20 cars, and vice versa. For Fred, the opportunity cost of changing oil is giving up changing tires on 10 cars, and if he chooses to change tires, his opportunity cost is changing oil on 20 cars.
Therefore, Sue's opportunity cost of changing oil is the same as changing tires - one for one. Comparatively, Fred's opportunity cost of changing oil is lower than Sue's because if he changes oil instead of tires, he is only giving up changing tires on 10 cars instead of 20. However, his opportunity cost of changing tires is greater than Sue's because he is giving up the opportunity to change oil, which he could do on 20 cars.
Thus, the answer is that Sue's opportunity cost of changing oil is less than Fred's and her opportunity cost for changing tires is greater than Fred's.
A demand curve: a. illustrates the positive relationship between price and quantity demanded. b. illustrates the negative relationship between price and quantity demanded. c. is based on the assumption of a stable supply curve. d. has a positive slope.
Answer:
b. illustrates the negative relationship between price and quantity demanded.
Explanation:
The demand curve is negatively sloped. The higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. This illustrates a negative relationship between price and quantity demanded.
I hope my answer helps you
A demand curve illustrates the negative relationship between price and quantity demanded.
A demand curve illustrates the negative relationship between price and quantity demanded. As price increases, the quantity demanded decreases, and vice versa. It does not assume anything about the stability of the supply curve, so option c is incorrect.
Moreover, a demand curve can have a positive, negative, or flat slope depending on the price and quantity relationship, so option d is also incorrect.
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If an oligopoly does not cooperate and each firm chooses its own quantity, the industry will produce a quantity of output that is _____ the competitive level and _____ the monopoly level.
a. less than; more than
b. more than; less than
c. less than; equal to
d. equal to; more than
Answer:
a. less than; more than
Explanation:
An oligopoly is when there are few large firms operating in an industry.
A competitive industry is when there are many buyers and sellers of homogenous goods and services.
A Monopoly is when there is only one firm operating in an industry.
An oligopoly firm can choose to cooperate with other firms in the industry or not cooperate.
If firms do not cooperate they produce more goods than if they cooperated. The quantity produced can never be as much as that of a competitive firm because the number of producers in an oligopoly is less than that in a competitive firm.
The output would be more than the quantity produced by a monopoly because the number of producers in an oligopoly is more than that in a monopoly.
I hope my answer helps you.
The value chain describes the costs associated with making a product. What box(es) are expensed immediately when incurred on the income statement as operating expenses/SGA ("period costs")?
Answer:
ALL EXCEPT PRODUCTION
Explanation:
The costs of the value chain includes: Research and Development, Design Costs, Production, Marketing, Distribution and Customer Service.
The costs of the value chain are expensed in the current year income statement because they majorly (except production costs) fall under the category called periodic costs.
Periodic costs are costs that are more aligned with the passage of time than directly traceable to units of a product or event. Another major difference between product costs and period costs is that product costs can only be incurred when the products have been acquired or manufactured, while periodic costs will apply when the goods have not been acquired or produced yet, or as aforementioned, are associated with the passage of time.
In the light of above definition, all costs within the value chain are expensed as periodic costs with the exception of production costs which obviously are product costs.
The central focus of the marketer's activities is to develop mutually beneficial relationships with customers and potential customers. If the marketer is able to convince the customer to buy the firm's products, then the customer's lifetime value to the firm is enhanced. Marketers also seek to encourage customers to _________________ the firm's products because that will ____________ the customer's lifetime value to the firm.
Which of the following terms/words best express what marketers should do to enhance a customer's lifetime value to the firm?
recommend; increase
Answer:Strong word-of-mouth communication about; increase.
Explanation: When a marketing organisation promote a mutually beneficial relationship with its customers it will help the customers to go ahead to market the company and its products with a strong word- of-mouth communication, the firm's products because that will increase the customer's lifetime value to the firm,this will help the firm to be more profitable and make more revenue now and in the future.
Assume that England and Spain each has 40 labor hours available. Originally, each country divided its time equally between the production of cheese and bread. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of cheese increased by
Answer:
15
Explanation:
Hrs to Make 1 Unit of Units Produced in 40 Hours
Cheese Bread Cheese Bread
England 1 4 40 10
Spain 4 8 10 5
England's opportunity cost of producing cheese over bread = 10/40 = 0.25 breads per cheeseEngland's opportunity cost of producing bread over cheese = 40/10 = 4 cheeses per breadSpain's opportunity cost of producing cheese over bread = 5/10 = 0.5 breads per cheeseSpain's opportunity cost of producing bread over cheese = 10/5 = 2 cheeses per breadOriginally England produced 20 cheeses and 5 breads, while Spain produced 5 cheeses and 2.5 breads.
total cheese production = 25total bread production = 7.5Since England has the comparative advantage of producing cheese and Spain of producing bread, total cheese production will increase to 40 (15 units more than before), while bread production will be 5.
The total output of cheese has increased from 40 units (20 by England and 20 by Spain) to 80 units (all by England). So, the total output of cheese increased by 40 units.
To determine how the total output of cheese changes when England and Spain each specialize in producing the good in which they have a comparative advantage, we need to consider their original production and compare it to their new production.
Let's assume that in one hour of labor, England can produce 2 units of cheese and 4 units of bread, while Spain can produce 1 unit of cheese and 2 units of bread.
Originally, with 40 labor hours each, England and Spain divided their time equally between cheese and bread. Therefore, the original production for each country was:
England: (40/2) hours on cheese and (40/2) hours on bread, resulting in 20 units of cheese and 40 units of bread.
Spain: (40/2) hours on cheese and (40/2) hours on bread, resulting in 20 units of cheese and 40 units of bread.
Now, let's consider specialization. Each country will focus on producing the good in which it has a comparative advantage:
England specializes in cheese, using all 40 labor hours to produce cheese. Therefore, England now produces 2 units of cheese per labor hour * 40 labor hours = 80 units of cheese.
Spain specializes in bread, using all 40 labor hours to produce bread. Therefore, Spain now produces 2 units of bread per labor hour * 40 labor hours = 80 units of bread.
So, the total output of cheese increased by 40 units.
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You realize that many students who come to early morning hockey practice do not get up early enough to eat breakfast. You borrow $500 from your parents to start a bagel delivery service to the hockey rink in the early mornings. You are acting as______________.
Answer: An entrepreneur.
Explanation:
An entrepreneur is an individual that is identifies consumers needs and produces products/services to meet those needs. As described in the question I identified the need of the hockey players and started selling bagel to meet those needs, therefore am acting as an entrepreneur.
This passage is excerpted from William Graham Sumner, "The Absurd Effort to Make the World Over," originally published in 1894. Sumner was an outspoken economist and highly influential sociology professor at Yale University.It will not probably be denied that the burden of proof ison those who affirm that our social condition is utterlydiseased and in need of radical regeneration. My task atpresent, therefore, is entirely negative and critical: to5 examine the allegations of fact and the doctrines which areput forward to prove the correctness of the diagnosis and towarrant the use of the remedies proposed.When anyone asserts that the class of skilled and unskilledmanual laborers of the United States is worse off now in10 respect to diet, clothing, lodgings, furniture, fuel, and lights;in respect to the age at which they can marry; the number ofchildren they can provide for; the start in life which they cangive to their children, and their chances of accumulatingcapital, than they ever have been at any former time, he15 makes a reckless assertion for which no facts have beenoffered in proof. Upon an appeal to facts, the contrary of thisassertion would be clearly established. It suffices, therefore,to challenge those who are responsible for the assertion tomake it good.20 Nine-tenths of the socialistic and semi-socialistic, andsentimental or ethical, suggestions by which we areoverwhelmed come from failure to understand thephenomena of the industrial organization and its expansion. Itcontrols us all because we are all in it. It creates the25 conditions of our existence, sets the limits of our socialactivity, regulates the bonds of our social relations,determines our conceptions of good and evil, suggests ourlife-philosophy, molds our inherited political institutions, andreforms the oldest and toughest customs, like marriage and30 property. I repeat that the turmoil of heterogeneous andantagonistic social whims and speculations in which we liveis due to the failure to understand what the industrialorganization is and its all-pervading control over human life,while the traditions of our school of philosophy lead us35 always to approach the industrial organization, not from theside of objective study, but from that of philosophicaldoctrine. Hence it is that we find that the method ofmeasuring what we see happening by what are called ethicalstandards, and of proposing to attack the phenomena by40 methods thence deduced, is so popular.The advance of a new country from the very simplestsocial coordination up to the highest organization is a mostinteresting and instructive chance to study the developmentof the organization. It has of course been attended all the way45 along by stricter subordination and higher discipline. Allorganization implies restriction of liberty. The gain of poweris won by narrowing individual range. The methods ofbusiness in colonial days were loose and slack to aninconceivable degree. The movement of industry has been all50 the time toward promptitude, punctuality, and reliability. Ithas been attended all the way by lamentations about the goodold times; about the decline of small industries; about the lostspirit of comradeship between employer and employee; aboutthe narrowing of the interests of the workman; about his55 conversion into a machine or into a "ware," and aboutindustrial war. These lamentations have all had reference tounquestionable phenomena attendant on advancingorganization. In all occupations the same movement isdiscernible in the learned professions, in schools, in trade,60 commerce, and transportation. It is to go on faster than ever,now that the continent is filled up by the first superficial layerof population over its whole extent and the intensification ofindustry has begun. The great inventions both make theintension of the organization possible and make it inevitable,65 with all its consequences, whatever they may be. I mustexpect to be told here, according to the current fashions ofthinking, that we ought to control the development of theorganization. The first instinct of the modern man is to get alaw passed to forbid or prevent what, in his wisdom, he70 disapproves.Now the intensification of the social organization is whatgives us greater social power. It is to it that we owe ourincreased comfort and abundance. We are none of us ready tosacrifice this. On the contrary, we want more of it. We would75 not return to the colonial simplicity and the colonial exiguityif we could. If not, then we must pay the price. Our life isbounded on every side by conditions. The main purpose of the passage is to * (A) delineate the course of industrial progress. (B) question the practicality of democratic ideals. (C) encourage support for individual liberties. (D) highlight the uselessness of social reform.
Answer: the correct answer is Alternative D. The excerpt enlicits many times how unnecessary it is to fight for a situation that is settled and that won't change the living standarts of workers for best. It even says that the social reform would turn those standarts to what they were in colonial times. Analyzing those opinions, it is possible to conclude that alternative D is the one that best summons what is said.
The main purpose of this passage is to highlight the uselessness of social reform and challenge the belief that our social condition needs radical regeneration.
Explanation:The main purpose of the passage is to highlight the uselessness of social reform. The author argues that our social condition does not need radical regeneration and challenges those who claim otherwise to provide proof. The passage also discusses the development of the industrial organization and its control over human life, emphasizing the restrictions on individual liberty that come with organizational advancement.
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