Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of quality analysis. The following cost and revenue data are available for the most recent year ended December 31: Sales revenue$250,000 Cost of goods sold 140,000 Warranty expense 21,000 Inspection costs 15,000 Scrap and rework 8,600 Product returns due to defects 6,000 Depreciation expense 10,000 Machine maintenance expense 3,000 Wage expense 35,000 Machine breakdown costs 4,000 Estimated lost sales due to poor quality 5,000
Answers
Explanation:
a. The classification is shown below:
Prevention cost: This cost incurred so that the faults, or defects could be minimized as compare to before. It includes the machine maintenance expense i.e $3,000
Appraisal cost: This cost incurred specially to meet the quality of the customer expectations. It is a quality control cost. It includes the inspection cost of $15,000
Internal failure: This cost is occurred before delivery the product from the factory. It includes Scrap and rework of $8,600 and Machine breakdown cost of $4,000
External failure: This cost is occurred after delivery the product. It includes the warranty expense of $21,000, product return due to defects of $6,000 and Estimated lost sales due to poor quality of $5,000
b. Now the percentage is
= (Prevention and appraisal cost) ÷ (Sales revenue) × 100
= ($3,000 + $15,000) ÷ ($250,000) × 100
= 7.2%
c. The percentage is
= (Internal and external failures) ÷ (Sales revenue) × 100
= ($8,600 + $4,000 + $21,000 + $6,000 + $5,000) ÷ ($250,000) × 100
= 17.84%
Below is the attachment for cost of quality report
Related Questions
Debt Book Equity Market Equity Operating Income Interest Expense Firm A 500 300 400 100 50 Firm B 80 35 40 8 7 1. What is the market debt-to-equity ratio of each firm? 2. What is the book debt-to-equity ratio of each firm? 3. What is the interest coverage ratio of each firm? 4. Which firm will have more difficulty meeting its debt obligations?
Answers
Answer:
Data for Question
Debt Book Equity Market Equity Operating Income Interest Expense
Firm A
500 300 400 100 50
Firm B
80 35 40 8 7
1.
Market debt-to-equity ratio = Debt of Firm / Market Equity
Firm A = 500 /400 = 1.25
Firm B = 80 / 40 = 2
2.
Book debt-to-equity ratio = Debt of Firm / Book Equity
Firm A = 500 /300 = 1.67
Firm B = 80 / 35 = 2.29
3.
Interest coverage ratio = Operating Income / Interest Expense
Firm A = 100 /50 = 2
Firm B = 8 / 7 = 1.14
4.
Firm B will have more difficulty meeting its debt obligations because it has higher debt equity ratio and lower interest coverage ratio than Firm A.
Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $160 million of 8% bonds, dated January 1, on January 1, 2013. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $142 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2013, was $150 million.
Required:
1. Prepare the journal entry to record Fuzzy Monkey's investment on January 1, 2013.
a. Record the Fuzzy Monkey's investment on bonds on January 1, 2013.
2. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2013 (at the effective rate).
a.Record the interest revenue on June 30, 2013.
3. Prepare the journal entry by Fuzzy Monkey to record interest on December 31, 2013
a. record interest revenue
4. At what amount will Fuzzy Monkey report its investment in the December 31, 2013, balance sheet?
5. Prepare an entry necessary to achieve the reporting objective.
a. fair value adjustment
6. How would Fuzzy Monkey's 2013 statement of cash flows be affected by this investment?
a. Operating CF
b. Investing CF
Answers
Answer:
Following is given the solution for all parts as required.
I hope it will help you!
Explanation:
The brave new world of artificial intelligence (AI) is beginning to appear in applications for delivering human resource management services. Imagine how Amazon's Alexa for Business device might be used to provide the "human" touch to employees. Alexa has mastered thousands of skills and continues to get smarter every day. Amazon is hoping that companies might put Alexa to work for tasks like booking hotel rooms, scheduling and administering virtual meetings, and doing other duties that can be programmed into an algorithm. IBM is producing a chatbot that is designed to replicate a human voice. The chatbot can be used during employment recruiting, during onboarding and training of employees, and for answering questions in an employee service center. These intelligent assistants may be the next revolution in workplace technology.
These AI/chatbots are becoming more popular due to changing consumer and employee preferences. Millennials and individuals in Generation Z have little patience when making a request; they typically expect a response within 10 minutes. It can be difficult for human workers to respond that quickly with accurate and timely information. AI devices can scour countless company documents and other sources of information to rapidly compile all of the facts needed to response to an inquiry. IBM's Watson computer can quickly identify important information and connect it together to deliver to the person asking the question. Workers who are accustomed to getting this speedy service in their personal lives will soon expect their company's HR department to be just as efficient. So, HR professionals of the future may need to start learning about how this technology can help them serve employees better.
Talent acquisition and onboarding processes can be greatly improved by incorporating AI. Consistency in responding to frequently asked questions about employee benefits and career opportunities can enhance the employee experience. This technology can be especially helpful to workers who operate remotely and rarely interact with HR staff in person. A chatbot created by Loka, called Jane, provides real-time answers to a variety of HR questions. She can easily field questions such as "Is Memorial Day a paid holiday?" or "What is the copay for a generic prescription?" Jane can do much more, however. She can be used to proactively promote benefits and programs that employees are not familiar with. Jane can be designed to reach out to employees to notify them of the current wellness programs, like flu shots or weight loss challenges sponsored by the company. She can also collect information and prepare a report to management showing areas of concern. Perhaps many employees are asking questions about a particular learning and development program. Jane can bring this to the attention of HR leaders so that they can investigate further.
Training professionals may also utilize AI technology. IBM's Jill Watson served as a teaching assistant for online courses. She was available to deal with learner questions 24/7/365. This allowed the learner to move forward with the online course rather than waiting for guidance from a live instructor. While not able to field every question, Jill was successful 40 percent of the time. Thus, trainers could spend their time dealing with more complex issues and working with learners face to face.
Dire predictions are being made about a "robot apocalypse" whereby robots will soon replace human workers and unemployment will skyrocket. Which of the following statements, if true, weakens this prediction?
a. Old jobs will be redundant, and new technology will eliminate the need for new job titles.
b. Companies are introducing inflexible scheduling and rigid employment policies, leading to a high attrition rate.
d. Organizations are constantly looking to reduce skills gaps.
Answers
Answer:
i think the answer is a
Explanation:
The statement 'Organizations are constantly looking to reduce skills gaps' weakens the prediction of a 'robot apocalypse' because it highlights the ongoing need for human skills and expertise in the job market. This indicates that although AI will automate certain tasks, many jobs which require human creativity and emotional intelligence will remain.
Explanation:The predictions about a 'robot apocalypse' indicate the fear that robots and artificial intelligence (AI) will replace human workers and cause unemployment to skyrocket. The statement that weakens this prediction, among the provided options, is: 'Organizations are constantly looking to reduce skills gaps.'
This statement weakens the prediction because it implies that human skills and expertise will still be in demand in the job market. Although AI can handle routine and predictable tasks efficiently, there are still many tasks that demand human creativity, critical thinking, communication ability, and emotional intelligence. These tasks are hard to automate completely, hence reducing skills gaps will still be a priority for many organizations.
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Organizational obligations are the same as personal ethical obligations Group of answer choices True False
Answers
Answer:FALSE
Explanation:Organisational obligations are not the same as personal ethical obligations in many ways.
Organisational obligations are obligations which concerns different class and set of persons working together in an organization towards achieving the goals of the organization,organisational obligations are a collection of different personal Ethical obligations which are brought together to achieve the goals of an organization.
Personal ethical obligations are sets of principles, guidelines or norms that guides a person's conduct, it happens on the personal or individual level.
Assuming periodic inventory procedure, what effect would an understatement of ending inventory have on the different items on the financial statements?
Answers
Answer:
The understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
Explanation:
The relationship between the elements of inventory in a financial statement is as shown below,
Opening balance + purchases - cost of goods sold = closing balance
As such, the understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
The understatement of the ending inventory will overstate the cost of goods sold and directly it will understate the gross margin and net income.
The periodic inventory system is the method of recording the inventory on a periodic basis. In this case, the inventory is recorded at the end of the financial period only. Thus, the chances of understatement or overstatement of the inventory can be high.
The amount of ending inventory affects the amount of cost of goods sold, gross profit, and net income. When the ending inventory is understated that is the amount is written less than the actual amount then it will show the higher cost of goods sold, lower gross margin, and lower net income.
These changes would be seen in the trading, and profit and loss financial statement.
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Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $222,000; and fixed costs $71,900. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative.
1. Increase selling price by 10% with no change in total variable costs or sales volume. What's the Net income?
2. Reduce variable costs to 60% of sales. Whats the Net income?
3. Reduce fixed costs by $19,000. Whats's the Net income?
Which course of action will produce the highest net income?
Answers
Answer:
Option 2 ( Net Income 48100)
Explanation:
The current Net income is,
Sales - Variable Cost - Fixed Cost = Net Income
300000 - 222000 - 71900 = 6100While the Selling Price is 300000 / 5000 = 60 / unit1. If option one is implemented,
New Selling Price = 60 * 1.1 = 66 / UnitSales Revenue = 66 * 5000 = 330000Net Income = 330000 - 222000 - 71900 = 361002. New Variable Cost = 60 % of Sales = 300000 * 0.6 = 180000
Net Income = 300000 - 180000 - 71900 = 481003. New Fixed Cost will be = 71900 - 19000 = 52900
Net Income = 300000 - 52900 - 222000 = 25100Final answer:
To find the highest net income for Barnes Company, the computations show that reducing variable costs to 60% of sales will result in the highest net income of $48,100.
Explanation:
To calculate the net income under each alternative for the Barnes Company, we will first identify the current net income and then apply each change proposed by management.
Current net income is computed as follows:
Sales ($300,000) - Variable Costs ($222,000) - Fixed Costs ($71,900) = Net Income ($6,100).
Net Income = New Sales - Variable Costs - Fixed Costs = $330,000 - $222,000 - $71,900 = $36,100.Reduce variable costs to 60% of sales: New Variable Costs = $300,000 * 60% = $180,000.
Net Income = Sales - New Variable Costs - Fixed Costs = $300,000 - $180,000 - $71,900 = $48,100.Reduce fixed costs by $19,000: New Fixed Costs = $71,900 - $19,000 = $52,900.
Net Income = Sales - Variable Costs - New Fixed Costs = $300,000 - $222,000 - $52,900 = $25,100.
The course of action to reduce variable costs to 60% of sales will produce the highest net income of $48,100.
There are arguments for and against the alternative exchange rate regimes. a) List the advantages of the flexible exchange rate regime. b) Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime. c) Rebut the above criticism from the viewpoint of the proponents of the flexible exchange rate regime.
Answers
Answer:
a. The advantages of the flexible exchange rate system include: (I) provides insulation against unemployment problem in other countries and (ii) promotes economic development and helps to achieve full employment in the country, iii) automatically corrects the disequilibrium in the balance of payments.
b. If exchange rates are fluctuating randomly, that may discourage international trade and encourage market segmentation, they are very volatile
c. Economic agents can hedge exchange risk by means of forward contracts and other techniques. In addition, under a fixed exchange rate regime, governments often restrict international trade in order to maintain the exchange rate.
Explanation:
The branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole is called A. macroeconomics. B. microeconomics. C. public economics. D. normative economics.
Answers
Answer:
A. Macroeconomics
Explanation:
Macroeconomics is the branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole. In other words, macroeconomics is a branch of economics concerned with the level of employment, savings, investment, national income and general price level of an economy. General equilibrium forms the base of macroeconomics. Its objectives are full employment, economic growth and price stability.
Gammil company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $390,000, what was the cost of raw materials purchased? A. $366,000 B. $414,000 C. $390,000 D. $420,000
Answers
Answer:
The cost of raw materials purchased was B. $414,000
Explanation:
The cost of raw materials purchased is calculated by using following formula:
The cost of raw materials purchased = Ending raw materials inventories + Direct materials used - Beginning raw materials inventories
Gammil company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. Direct materials used were $390,000.
The cost of raw materials purchased = $120,000 + $390,000 - $96,000 = $414,000
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows:Year Cash Flow0 –$ 34,000 1 15,000 2 17,000 3 13,000 If the required return is 14 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal)
Answers
The Internal Rate of Return (IRR) is the discount rate which makes the net present value of the project's cash flows equal to zero. It can be found by setting up the NPV equation, making it equal to zero, and solve for IRR using a financial calculator or software. If the calculated IRR is greater than the required return of 14 percent, the firm should consider it as a good investment project.
Explanation:The Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of a project zero. In other words, it's the rate at which the present values of the cash inflows equal the initial investment. We can find it by setting up an equation where NPV equals zero and using a financial calculator or appropriate software to solve for IRR. Here's how to do it:
First, set up the equation for NPV, which is: NPV = -34,000 + 15,000/(1 + IRR) + 17,000/(1 + IRR)^2 + 13,000/(1 + IRR)^3Set this equation equal to zero and solve for IRR using a financial calculator or software: 0 = -34,000 + 15,000/(1 + IRR) + 17,000/(1 + IRR)^2 + 13,000/(1 + IRR)^3Once you get the IRR, convert it to a percentage. This is the IRR for this project.If the IRR is greater than the required return of 14 percent, the project is a good investment. If not, the firm should not invest in the project.
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Planning enables organizations to set goals and to formulate operational plans to achieve those goals. This activity is important because, as a manager, you will spend a great deal of time planning.
The goal of this exercise is to challenge your knowledge of the various types of standing plans and single-use plans.
A ____________ encompasses a wide range of activities or projects.
A ____________ designates a specific required action.
A ____________ outlines a set responses to particular circumstances.
A ____________ plan is used for activities that are not likely to be repeated again.
A ____________ has less complexity and scope than a program
A ____________ plan is best for activities that occur over and over again.
A ____________ gives a general idea of how to respond to a designated situation.
The choices are: layout, framework, schedule, mission, program, rule, standing, single-use, policy, project, scheme, procedure
Answers
Answer:
Explanation:
Program encompasses a wide range of activities or projects.
A rule designates a specific required action.
A procedures outlines a set responses to particular circumstances.
A single-use plan is used for activities that are not likely to be repeated again.
A project has less complexity and scope than a program
A standing plan is best for activities that occur over and over again.
A policy gives a general idea of how to respond to a designated situation.
Organizational planning involves different types of plans. A program involves many activities or projects and a project is smaller than a program. Rules give specific required actions, procedures provide responses to specific situations, standing plans are for recurring activities, policies are general responses to situations, and single-use plans are for non-recurring activities.
In the context of organizational planning, a program encompasses a wide range of activities or projects. A rule designates a specific required action, ensuring all employees are guided by the same principles. A procedure outlines a set responses to particular circumstances providing a standard way to respond to recurring situations. A single-use plan is used for activities that are not likely to be repeated again. A project has less complexity and scope than a program and is designed to accomplish a specific goal. A standing plan is best for activities that occur over and over again in the organization. Lastly, a policy gives a general idea of how to respond to a designated situation, functioning as a guideline for decision making.Learn more about Organizational Planning here:
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You want to buy your dream car which will cost you $5700. If you could invest your entire savings of $4000 at an annual interest of10%, how long (in years rounded to two decimal places) would you have to wait until you have accumulated enough money to buy the car
Answers
Answer:
It will take 3 years and 263 days to collect $5,700
Explanation:
Giving the following information:
The car cost $5700. You could invest your entire savings of $4000 at an annual interest of 10%.
Based on the Future Value formula we can calculate the required number of years to achieve the objective:
FV= PV*(1+i)^n
Isolating n:
n=[ln(FV/PV)]/ln(1+i)
n= [ln(5,700/4,000)/ln(1+0.10)]
n= 3.72
0.72*365= 263 days
It will take 3 years and 263 days to collect $5,700
Assume December 31 is a Wednesday. Weld-Rite Company’s wages are paid every Friday, and the weekly payroll (for five days) amounts to $6,000. To record the correct amount of expense for December, Weld-Rite makes the following entry on December 31: __________________________.
Answers
Answer:
Please see explanation
Explanation:
The following journal entry shall be recorded in the accounts of Weld-Rite Company in respect of salaries expense to be accrued as at December 31:
Debit Credit
Salaries expense $3,600
(6,000/5*3)
Salaries payable $3,600
Weld-Rite needs to record the wages incurred in December which accounts for $3,600, regardless of the actual payment date. This is done by dividing the weekly wages by 5 (to get daily wages) and then multiplying by the number of workdays in December.
Explanation:The business subject of this question is the journal entry of expenses for payroll. In accrual accounting, Weld-Rite needs to recognize the expenses as they are incurred, not when they are paid. Given that December 31 is a Wednesday and assuming Weld-Rite's workweek begins on Monday, the company had incurred three workdays' worth of wages by the end of December. To calculate the correct amount to record on December 31:
First, find the daily payroll by dividing the weekly amount by 5. In this case, $6,000 / 5 = $1,200 per day.Then, multiply the daily amount by the three workdays in December. In this case, $1,200 x 3 = $3,600.
Then, the journal entry on December 31 will be:
Debit Wage Expense $3,600
Credit Wage Payable $3,600
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Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders' equity: a. Accounts payable b. Accounts receivable c. Fees earned d. Supplies e. Supplies expense f. Utilities expense
Answers
Answer and explanation:
An asset is a resource with economic value. Assets can be tangible, such as equipment and land or intangible including things like a brand, a chemical formula or property rights.
Liabilities are all those responsibilities firms incur as a result of the operations of the business. Liabilities include notes, accounts, salaries, and interest payable.
Stockholders' Equity represents the equity stakeholders own of a company. They could be common stock, preferred stock, retained earnings or expenses incurred during the period. Thus:
A) Accounts payable (Liability)
B) Accounts receivable (Asset)
C) Fees earned (Stockholder's equity)
D) Supplies (Assets)
E) Supplies expense (Stockholder's equity)
F) Utilities expense (Stockholder's equity)
a. Accounts payable is a liability,
b. accounts receivable and supplies are assets,
c. fees earned is associated with stockholders' equity,
d. supplies are assets,
e. both supplies expense and f. utilities expense are operating expenses that indirectly affect equity.
Explanation:In the context of business and accounting:
Accounts payable is a liability. It represents the money a company owes to someone else or its creditors. For example, when a company purchases supplies from a vendor on credit, it creates an account payable.Accounts receivable is an asset. It represents the money owed to a company by its customers who have bought goods or services on credit. For instance, if a company sells a product to a customer on credit, it creates an account receivable.Fees earned is associated with stockholders' equity. It is revenue that increases the equity, assuming that no liabilities have been created in the process of earning these fees.Supplies are considered as an asset, as they represent items that can be used for producing goods or services in the future.Supplies expense and Utilities expense are neither assets, liabilities, nor directly related to stockholders' equity. They are operating expenses that are deducted from revenues in the calculation of net income, which indirectly affects stockholders' equity by reducing it.Learn more about Business Accounting here:https://brainly.com/question/36268454
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Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine's useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product.
Determine the machine's second-year depreciation under the straight-line method.
Answers
The machine's second-year depreciation under the straight-line method. is $3,850.
Straight-Line DepreciationAnnual Depreciation Expense = Cost minus - salvage/ Estimated useful life (years)
Annual Depreciation Expense = $43,500 - $5,000 / (10 years)
Annual Depreciation Expense = $38,500/10
Annual Depreciation Expense = $3,850
This, the Year 2 Depreciation is $3,850 and the Year end book value (Year 2) is $35,800.
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To calculate the second-year depreciation of the manufacturing machine using the straight-line method, subtract the salvage value from the cost of the machine, and divide by the useful life. The second-year depreciation would be $3,850.
Explanation:The student is asking about calculating depreciation for a manufacturing machine using the straight-line method. To determine the second-year depreciation, we subtract the salvage value from the cost of the machine, and divide that by the machine's useful life in years. The initial cost of the machine is $43,500, the salvage value is $5,000, and the machine's useful life is estimated to be 10 years. Therefore, the annual depreciation is ($43,500 - $5,000) / 10 = $3,850. This is the machine's second-year depreciation under the straight-line method, which implies that the depreciation expense is the same for each year of the asset's useful life.
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Bond outstanding with a coupon rate of 5.66 percent and semi-annual payments. The bond has a yield to maturity of 6.3 percent, a par value of $2,000, and matures in 16 years. What is the quoted price of the bond?
Answers
Answer
Price of bond = 17.96825
Explanation:
Bond price = ∑(C / [tex](1+YTM)^{n}[/tex] )+ P /[tex](1+i)^{n}[/tex]
where
n = no. of years
C = Coupon payments
YTM = interest rate or required yield
P = Par Value of the bond
put values in above equation
price = (5.66%/2) × 2000 × (0.31746) + ( 2000 ÷ 4.595×[tex]10^{18}[/tex])
= 17.96825
The level of industry demand: a. has little effect on competition in the industry. b. is one of the determinants of the intensity of rivalry in the industry. c. increases when customers exit a marketplace. d. does not impact the market share that established companies hold. e. decreases the rivalry among established companies, when in decline.
Answers
Answer: b. is one of the determinants of the intensity of rivalry in the industry.
Explanation: intensity of rivalry occurs between competitors in an industry and it is the extent to which firms in the industry impact one another to either maximize their profit potential or limit it. Competing firms in most industries are mutually dependent in such a way that any move by any one firm is noticeable by another. As such, rivals harness various strategies based on price, product, advertising etc. to boost their profit while limiting profitability of others. These strategies often increase the cost of operation leading lower supply or reduce the price of
products leading to greater demand. Consequently, the intensity of rivalry among firms in an industry is an integral part of determining the condition a firm is in for doing business.
If the buyer has a clear and unambiguous description or specification and wants to find out which supplier can deliver the best value when and where needed, he or she will typically issue a:
Answers
Final answer:
A buyer looking for the best supplier value for a product or service with a clear description would issue an RFP. To counter asymmetric information and imperfect information, sellers can use warranties, certifications, and customer testimonials to reassure potential buyers.
Explanation:
When a buyer has a clear and unambiguous description or specification and is looking to find a supplier that can deliver the best value when and where needed, they would typically issue a Request for Proposal (RFP). This document invites suppliers to bid on supplying goods or services and usually includes a detailed description of requirements, criteria for selection, and how the buyer will evaluate bids.
To address asymmetric information, a situation where one party has more information about the quality of the item for sale than the other, sellers might provide warranties, seek certifications, gather customer testimonials, or offer free trials to reassure buyers. These actions can reduce the uncertainty caused by imperfect information, where the qualities of the product or service are not fully known by the buyer or the seller.
On the balance sheet, owner's equity is a.equal to the total of assets and liabilities b.subtracted from liabilities and the net amount is equal to assets c.added to assets and the two are equal to liabilities d.added to liabilities and the two are equal to assets
Answers
Answer:
d.added to liabilities and the two are equal to assets.
Explanation:
The accounting equation is also called the balance sheet equation and states the a companie's assets is a sum of the total liabilities and owner's equity.
This is the basis of double entry accounting, where every transaction has an equal amount of debits and credits.
Mathematically
Asset= Liabilities + Owner Equity
Owner's equity, as part of a balance sheet, is added to liabilities, and the sum is equal to the total assets of the company. This reflects the fundamental accounting equation: Assets = Liabilities + Owner's Equity.
Explanation:In the context of a balance sheet, owner's equity is d. added to liabilities and the two are equal to assets. In simple terms, this means the sum of the owner's equity and the company's liabilities should equal the total assets of the company. The balance sheet is basically a financial statement that follows the equation: Assets = Liabilities + Owner's Equity. This basic principle of accounting shows the relationship between a company's resources (assets), financial obligations (liabilities), and the owner's share (equity).
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If in January 2007, $1 = 110 yen, and in July 2007, $1 = 90 yen, then a Harley Davidson motorcycle that cost $8,000 in January would now cost _______ in yens in Japan in July.
Answers
Answer:
The correct answer is: 720,000 yen.
Explanation:
Currency exchange in January:$1 = 110 yen ---> $8,000 = 8,000 x 110
$8,000 = 880,000 yen
Currency exchange in July:$1 = 90 yen ---> $8,000 = 8,000 x 90
$8,000 = 720,000 yen
Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. Lucia's labor The $400 Kenji spends to purchase tax services from A-Plus Accountants The $325 per week Kenji earns working for Spotless Car Wash
Answers
Answer:
The 325 per week kenji earns working for spotless car wash.
The 400 kenji spends to purchase tax services from A- plus accountants.
Explanation:
This are examples of the way households interact with business firm and this interaction can be inward flow or outward flow depending on the need.
House hold and business firms are the two basic types of economic agents in the market economy.
This interaction can be documented in a flow diagram to measure flow of money, goods and services.
The elements that represent a flow from a firm to a household include:
the $425 per week Andrew earns working for Spotless Car Wash
the car wash Beth receives
The Household income flow is a diagram that express the circular flow of income from a firm to the household in the economy.
Hence, the elements that represent a flow from a firm to a household include the $425 per week Andrew earns working for Spotless Car Wash and the car wash Beth receives.
Therefore, the Option A and D is correct.
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10. Inflation and unemployment Suppose that the government believes the economy is not producing goods and services at its optimal level. In an attempt to stimulate the economy, the government increases the quantity of money in the economy by printing more money.
Answers
Answer: Increase in money in circulation will increase Demand and Inflation will go up which will eventually lead to lower levels of unemployment in the short term.
Explanation: Governments through out the world Implements certain policies which may be a short term or long term policy to control or regulate the Economy. Most of the policy is to ensure that the Economy runs in an equilibrium,which means Demand will be similar to supply etc.
When the volume of money is Increased,it will lead to increase Demand for goods and services which will cause inflation to rise and unemployment rate will reduce.
If a firm’s earnings per share grew from $1 to $2 over a 10-year period, the total growth would be 100%, but the annual growth rate would be less than 10%. True or false? Explain.
Answers
Answer:
TRUE
Explanation:
as the growth rate follows the law of compounding it will be applied to the increases and then over the icnrease of the increases and so on. Giving a higher grow than 100% if 10 per year is applied:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal $1.00 earnings
time 10.00 years
growth rate 10% = 10/100 = 0.10000
[tex]1 \: (1+ 0.1)^{10} = Amount[/tex]
Amount 2.59
This will be a grow of 2.59 - 1 = 1.59 = 159% which isn't the 100% percent growth the company actually had
Zola borrows $1000. To repay the amount, she makes 12 equal monthly payments of $95. Compounding is done monthly. Determine nominal interest rate. Hint use the excel formula RATE to find the monthly effective interest rate. Then convert that to the nominal rate. Remember nominal interest does not account for sub-period compounding. (EX: effect monthly interest is 3%, the nominal rate is 3*12 = 36%)
Answers
Answer:
Effective monthly rate 2.076%
Yearly nominal rate: 24,912%
Explanation:
In excel we have to specify the number of period. The amount we borrow and the payment we are doing This should be negative as represent a cash outflow.
This is solving for the rate of the annuity for 95 of 12 months that discounted at X rate gives 1,000 as the present value:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
[tex]95 \times \frac{1-(1+r)^{-10} }{rate} = 1000\\[/tex]
we write on A1
=RATE(12;1000;-95)
and we will receive 2.076% as answer
Now to convert into nominal:
2.076 x 12 = 24,912%
The nominal interest rate can be calculated with the RATE formula in Excel to determine the monthly effective interest rate. We then convert this to the nominal annual interest rate by simple multiplication. If, for example, the effective monthly interest rate is 3%, the nominal annual interest rate would be 36%.
Explanation:To calculate the nominal interest rate, we first need find the monthly effective interest rate using the Excel RATE function. Given the 12 equal payments of $95, for a loan of $1000, we can use the formula RATE(12,-95,1000,0). The negative sign is used because it is a cash outflow, a payment. The result is the monthly effective interest rate.
After getting the monthly effective rate, we will then need to convert the effective monthly interest rate to annual nominal interest rate. We do this through simple multiplication. This is provided we are assuming simple interest. For example, if the effective monthly interest rate is 3%, then the nominal annual interest rate is 3% x 12 = 36%.
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Scott Confectionery sells its Stack-o-Choc candy bar for $0.60. The variable cost per unit for the candy bar is $0.34; total fixed costs are $171,000.
a. What is the contribution margin per unit for the Stack -O- Choc candy bar?
b. What is the contribution margin ratio for the Stack -O-Choc candy bar?
C. What is the breakdown point in units? In sales dollars?
D. If an increase in chocalate prices causes the variable cost per unit to increase to $0.55, what will happen to the breakeven point?
Answers
Answer:
(i) $0.26
(ii) 43.33%
(iii) 657,692.31 units
(iv) 3,420,000
Explanation:
Given that,
Selling price = $0.60
Variable cost per unit = $0.34
Total fixed costs = $171,000
(i) contribution margin per unit = Selling price - Variable cost per unit
= $0.60 - $0.34
= $0.26
(ii) contribution margin ratio:
= (contribution margin ÷ Selling price) × 100
= ($0.26 ÷ $0.6) × 100
= 43.33%
(iii) Break-even point in units:
= Total Fixed cost ÷ contribution margin
= (171,000 ÷ 0.26)
= 657,692.31 units
(iv) If an increase in chocolate prices causes the variable cost per unit to increase to $0.55.
contribution margin per unit = Selling price - Variable cost per unit
= $0.60 - $0.55
= $0.05
New Break-even point in units:
= Total Fixed cost ÷ contribution margin
= (171,000 ÷ 0.05)
= 3,420,000 units
Therefore, there is an increase in the break-even units or more units have to be sold to cover the variable and fixed cost.
a. The contribution margin per unit for Stack-O-Choc candy bars is $0.26.
b. The contribution margin ratio is approximately 43.33%.
c. The breakdown point is approximately 657,692 units or $394,615.38 in sales dollars.
d. If the variable cost per unit increases to $0.55, the new breakeven point will be 3,420,000 units, indicating a higher breakeven level.
a. The contribution margin per unit for the Stack-O-Choc candy bar can be calculated as follows:
Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit Contribution Margin per Unit = $0.60 - $0.34 = $0.26
b. The contribution margin ratio (CM ratio) is the contribution margin per unit divided by the selling price per unit, expressed as a percentage:
CM Ratio = (Contribution Margin per Unit / Selling Price per Unit) x 100%
CM Ratio = ($0.26 / $0.60) x 100% ≈ 43.33%
c. The breakdown point in units can be calculated using the following formula:
Breakdown Point in Units = Total Fixed Costs / Contribution Margin per Unit Breakdown Point in Units = $171,000 / $0.26 ≈ 657,692 units
To find the breakdown point in sales dollars, you can multiply the breakdown point in units by the selling price per unit:
Breakdown Point in Sales Dollars = Breakdown Point in Units x Selling Price per Unit
Breakdown Point in Sales Dollars = 657,692 units x $0.60 ≈ $394,615.38
d. If the variable cost per unit increases to $0.55 due to higher chocolate prices, you can calculate the new breakeven point using the updated variable cost:
New Breakdown Point in Units = Total Fixed Costs / Updated Contribution Margin per Unit
New Breakdown Point in Units = $171,000 / ($0.60 - $0.55) = $171,000 / $0.05 = 3,420,000 units
So, if the variable cost per unit increases to $0.55, the new breakeven point in units will be 3,420,000 units. This increase in variable cost will result in a higher breakeven point.
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Grove Corp. purchased equipment at a cost of $260,000 in January, 2012. As of January 1, 2016, depreciation of $88,000 had been recorded on this asset. Depreciation expense for 2016 is $22,000. After the adjustments are recorded and posted at December 31, 2016. What are the balances for the Depreciation Expense and Accumulated Depreciation?
A Depreciation Expense: $ 22,000; Accumulated Depreciation: $110,000
B Depreciation Expense: $ 22,000; Accumulated Depreciation: $ 88,000
C Depreciation Expense: $110,000; Accumulated Depreciation: $110,000
D Depreciation Expense: $110,000; Accumulated Depreciation: $ 88,000
Answers
Answer:
A Depreciation Expense: $ 22,000; Accumulated Depreciation: $110,000
Explanation:
Given that
Purchase cost of equipment = $260,000
Depreciation at the beginning of year 2016 = $88,000
Depreciation expense = $22,000
So, the balance would be
Depreciation expense = $22,000
And, the accumulated depreciation is
= Depreciation expense + Depreciation at the beginning of year 2016
= $22,000 + $88,000
= $110,000
A comparable property sold one month ago for $400,000. That property has a three-car garage, whereas the subject property you’re preparing to list only has a two-car garage.
What should you do to determine the subject property’s market value?
Answers
Final answer:
To estimate the market value of a property with a two-car garage, use a comparative market analysis (CMA) and adjust the sale price of a comparable property with a three-car garage by subtracting the value difference caused by the additional garage space.
Explanation:
To determine the market value of the subject property, you should look for comparable property sales with similar characteristics to the subject property and make adjustments for differences such as the size of the garage. This method is known as the comparative market analysis (CMA). In the case of the property with the three-car garage selling for $400,000, you would subtract the value a three-car garage adds over a two-car garage from the $400,000 to estimate the subject property's value. To accurately assess this value, you should also consider other factors like location, property condition, and market trends. It's also beneficial to look at a range of comparable sales to ensure that your estimate is robust and reflective of the current market.
In economics, the demand for a good refers to the amount of the good that people:_________
a. Will buy at alternative income levels
b. Need to achieve a minimum standard of living.
c. Will buy at various prices
d. Would like to have if the good were free
Answers
Answer:
c. Will buy at various prices
Explanation:
Demand can be defined as the amount of goods a consumer is willing to buy at various prices. Elasticity is the degree to which prices respond to changes in price.
For a good with elastic demand as price increases demand for that product is reduced, while a decrease in price leads to increased demand.
Answer:
The correct answer is letter "C": Will buy at various prices.
Explanation:
Demand is the economic term for the consumer's combined desires and wishes as they relate to a specific good or service. In general terms, ceteris paribus, as the demand for a good rises, so does the price of that good. Different needs imply different producers available to fulfill the wants that also mean different prices will be set and accepted by consumers.
Consider the market for 7-eleven slurpees. In a market economy only those consumers who are willing and able to pay for Slurpees get Slurpees, is this fair? What about the market for health care?
Answers
Answer:
When we take Slurpees, these are labelled under luxury. This is not the basic need of any human being to drink Slurpees in order to quench his or her thirst. This can't be categorized as a basic, primary or biological need. Water is considered very for for this purpose and we even can't survive biologically without water, whereas, we can very happily without Slurpees. More specifically, we can live definite more happy and healthy without drinking these carbonated drinks which are not good for any human's health, and this facts have been proven by medical science in much finer details. These drinks, sometimes, can kill humans as well, damaging their stomach directly. If this was the basic need, then organizations might have offered it instead of giving employees salary and monetary rewards.
Fitzgerald Supermarkets (FS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities their activity cost rates as follows:
Ordering $95 per purchase order
Delivery and receipt of merchandise $76 per delivery
Shelf-stocking $19 per hour
Customer support and assistance $0.15 per item sold
The revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity-area usage of the three product lines are as follows:
Baked Goods Milk and Fruit Juice Frozen Products
Financial data
Revenues $60,000 $66,500 $50,500
Cost of goods sold $41,000 $51,000 $32,000
Store support $12,300 $15,300 $9,600
Activity-area usage (cost-allocation base)
Ordering (purchase orders) 44 24 14
Delivery (deliveries) 120 60 36
Shelf-stocking (hours) 170 150 20
Customer support (items sold) 15,400 20,200 7,960
Under its simple costing system, FS allocated support costs to products at the rate of 30% of the cost of goods sold.
Required:
1. Use the simple costing system to prepare a product-line profitability report for FS.
2. Use the ABC system to prepare a product-line profitability report for FS.
3. What new insights does the ABC system in requirement 2 provide to FS managers?
Answers
Answer:(1) Baked Goods profit $6,700, Milk and Fruit juice profit $200, Frozen Products profit $8,900 (2) Baked Goods profit $160, Milk and Fruit juice profit $2,870, Frozen Products Profit $12,860. (3) it provide insight to FS managers that Frozen Products is the most profitable among the three product lines.
Explanation:
(1) Baked Goods. Milk and Fruit juice. Frozen Products
$ $ $
Revenue. 60,000. 66,500. 50,500
Less : Cost of good sold 41,000. 51,000. 32,000
------------- -------------- ---------------
Gross Margin. 19,000. 15,500. 18,500
Less: Store Support. 12,300. 15,300. 9,600
----------- ------------ -------------
Profit. 6,700. 200. 8,900
------------- --------------- ----------------'
(2)
Baked Goods. Milk and Fruit juice. Frozen Products
$ $ $
Revenue. 60,000. 66,500. 50,500
Less Cost of good sold 41,000. 51,000. 32,000
------------- ---------------- -----------
Contribution. 19,000. 15,500. 18,500
Less Overhead
Ordering cost. 4,180. 2,280. 1,,330
Delivery&Receipt. 9,120. 4,560. 2,736
Shelf Stocking. 3,230. 2,850. 380
Customer Support & Assistant 2,310. 3,030. 1,194
------------ -------------- ------------
Profit. 160. 2,870. 12,860
------------------ ----------------- ---------------
(3) The new insight to FS managers is that Frozen Products is the most profitable among the three products lines
Workings
Ordering cost ($95 × 44) = 4,180 ($95 × 24) = 2,280 ($95 × 14) = 1,330
Delivery &Receipt ($76 × 120) = 9,120 ($76 × 60) = 4,560 ($76 × 36) = 2,736
Shelf Stocking ($19 × 170) = 3,230 ($19 × 150) = 2,850 ( $19 × 20) = 380
Customer Support &Assistant ($0.15 × 15,400) = 2,310 ($0.15 × 20,200) = 3,030 ($0.15 × 7,960)= 1,194
To prepare a product-line profitability report for FS, first, use the simple costing system by allocating support costs to products at a rate of 30% of the cost of goods sold. Second, use the ABC system by calculating the total activity cost for each product line and allocating it based on activity-area usage. The ABC system provides more insights into cost drivers and helps in analyzing profitability.
Explanation:1. Simple costing system:
Under the simple costing system, FS allocates support costs to products at a rate of 30% of the cost of goods sold. To prepare a product-line profitability report, we need to calculate the support costs allocated to each product line by multiplying their respective cost of goods sold by 30%. Then, subtract the allocated support costs from the revenues to determine the profitability.
2. ABC costing system:
Under the ABC costing system, we need to calculate the total activity cost for each product line by multiplying the activity cost rate with the respective activity-area usage. Then, allocate the total activity costs to each product line based on their activity-area usage. Finally, subtract the allocated support costs from the revenues to determine the profitability.
3. New insights from ABC system:
The ABC system provides a more accurate and detailed view of the costs associated with each product line. It allows FS managers to identify the activities that contribute the most to the total support costs and analyze the profitability of each product line based on these cost drivers. This insight helps in making informed decisions regarding product line management and pricing strategies.
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