Answer:
$532,500
Explanation:
The question is to compute the Statement of Cost of Services Sold for Happy Home Helpers Inc.
To compute this statement, the approach is to sum all direct costs associated with the service provided by the firm.
Particulars Amount Amount
Opening Inventory Of Materials $4,000
Add: The Purchase of Direct Materials $25,600
Direct Material available $29,600
Subtract: Closing Inventory of materials ($2600)
The Direct Material Used for the year $27,000
Add:
Direct Labour Cost $472,500
Variable Overhead Cost $15,000
Fixed Overhead cost $18,000
$505,500
The Cost of Services of HHH Inc $532,500
If rent controls are imposed, they will most likely be set at either _______ or _______. A. Rent0; Rent1 B. Rent1; Rent3 C. Rent3; Rent4 D. All of the above are equally likely rent control levels.
Answer:
A. Rent0; Rent1
Explanation:
From the figure that is given in the question we can see that at Rent0 and Rent1 the demand is higher and supply is less so the rent can be increased to very high amounts as people will be willing to give that amount because of the limited supply. That is why the rent controls should be imposed at either Rent0 or Rent1.
Strategy decisions pertaining to product features, packaging, product line assortment, and branding will be most affected by which target market dimension?A. Geographic location.
B. Urgency to get need satisfied.
C. Behavioral needs and attitudes of consumers.
D. Demographic characteristics of potential customers.
E. Geodemographic characteristics of potential customers.
Answer:
Letter C is correct. Behavioral needs and attitudes of consumers.
Explanation:
Strategic decisions regarding product characteristics will be more affected by the behavioral needs and attitudes of the target market.
A product or service exists to satisfy the needs and desires of the consumer and for which he is willing to pay for the added benefits. Therefore, when implementing a product-oriented strategy, it is necessary for the organization to conduct research on consumer trends and the market in which it is inserted, so that the characteristics of the product are developed focusing on the functional and emotional benefits that the consumer want.
When a company plans to develop a product for a specific market, it is necessary for the company to understand five levels:
1. Central benefit: Corresponds to the main utility of the product, related to the consumer's primary need.
2. Additional benefits : These are the other functions of the product, in addition to the central function.
3. Expected product: These are the basic conditions expected of the product, such as quality and proper functioning.
4. Extended product: Applied to the brand positioning, it corresponds to the level whose product exceeds the customer's expectations.
5. Consumer system: It is the way the user will use the product, obtain, use, adapt and dispose of the product.
Functional structures are usually found in organizations where there___________.
a. is no vertical integration.
b. is a single or closely related product.
c. exists a strong need to decentralize decision making.
d. are unrelated service offerings.
Answer:
The answer is b. is a single or closely related product.
Explanation:
A functional structure divides the organization into departments based on their function. Each is headed by a functional manager and employees are grouped as per their role. Most small industries with only a few products use this structure. The employees are highly skilled due to repetitive work which means high efficiency and the best performance.
Answer:
The correct answer is letter "B": is a single or closely related product.
Explanation:
Functional structures are those with top-down hierarchy where employees are provided with duties according to their skills and knowledge. These companies are characterized by massive manufacturing, thus, they need each department to specialize in a given task.
Stanford issues bonds dated January 1, 2015, with a par value of $500,000. The bonds' annual contract rate is 9%, and the interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $463,140.
1. What is the amount of the discount on these bonds at issuance?
2. How much total bond interest expense will be recognized over the life of these bonds?
3. Prepare the amortization of the bond discount for the first payment period, using the effective interest method to amortize the discount.
Answer:
Explanation:
Discount on bond = Par value of bond - Issued price of bond = 500,000-463,140=36,860
2)
500,000*0.09 = 45,000
22,500 semiannually
Amount repaid:
Six payments (22500*6) 135,000
Add: Maturity value 500,000
Total amount repaid 635,000
Less: Amount borrowed (463,140)
Total bond interest 171,860
Total bond interest expense recognized 171,860
The discount on the bonds at issuance is $36,860. The total bond interest expense over the life of the bonds is $171,860. The discount amortization for the first period using the effective interest method is $5,288.
Explanation:The subject of this question is on discount amortization on bonds and we'll break it down in three steps:
1. The amount of the discount on these bonds at issuance can be calculated as the difference between the par value of the bond and the sale price, which is $500,000 - $463,140 = $36,860.
2. The total bond interest expense recognized over the life of these bonds can be computed by summing up the semiannual contract rates over three years and the discount amount. The semiannual contract rate is $500,000 * 9% / 2 = $22,500. So, the total bond interest expense is $22,500 * 2 * 3 (three years) + $36,860 (discount) = $171,860.
3. To prepare the amortization of the bond discount for the first payment period with the effective interest method, we need to multiply the beginning book value of the bond ($463,140) by the semiannual market rate (12% / 2 = 6%). The result is $27,788. Subtracting the semiannual interest payment of $22,500 from $27,788 gives us the amortization of the bond discount for the first period: $5,288.
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A market that is dominated by a few firms is called a(n) Select one: a. gerontology. b. theocracy. c. biopsy. d. oligopoly.
Answer:
D. Oligopoly
Explanation:
When a market is shared between a few firms, it is said to be highly concentrated. Although only a few firms dominate, it is possible that many small firms may operate in the market.
Answer:
The correct answer is letter "D": oligopoly.
Explanation:
An oligopoly is when a market is controlled by a small group of two or more firms. Businesses in an oligopoly can agree to price collusion and create barriers to entry for new commerce. If the businesses do not, they would likely be forced to lower their prices and open the market for newer smaller firms.
The flow of costs in a job order costing system A. transfers all costs to manufacturing overhead B. includes the major steps of accumulating and amortizing C. cannot be determined until all jobs are complete. D. involves accumulating costs and then assigning costs to jobs.
Answer:
The correct answer is letter "D": involves accumulating costs and then assigning costs to jobs.
Explanation:
The flow of the cost in a job-order costing system starts by recording the costs of labor, raw materials, and overhead. As the costs begin to accumulate, the costs of the units finished are assigned to the Work-In-Progress and Finished Products accounts until they are sold when those costs are recorded to the Costs of Goods Sold account.
In a job order costing system, costs are accumulated and assigned to specific jobs or job orders. The costs are then transferred to the finished goods inventory and eventually to the cost of goods sold.
In a job order costing system, the flow of costs involves accumulating costs and then assigning costs to jobs.
Here are the steps in the flow of costs in a job order costing system:
Accumulate the costs incurred for materials, labor, and overhead.Assign the accumulated costs to specific jobs or job orders.Calculate the unit cost for each job by dividing the total cost by the number of units produced.Transfer the costs to the finished goods inventory when the job is completed.When the finished goods are sold, transfer the costs to the cost of goods sold.Learn more about job order costing here:
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If you buy a factory for $250,000 and the terms are 20 percent down, the balance to be paid off over 30 years at a 12 percent rate of interest on the unpaid balance, what are the 30 equal annual payments?
a. $20,593
b. $31,036
c. $24,829
d. $50,212
e. $ 6,667
Answer:
c. $24,829
Explanation:
We use the PMT formula that is shown in the spreadsheet below:
Provided that,
Present value = $250,000 - $250,000 × 20% = $200,000
Future value = $0
Rate of interest = 12%
NPER = 30 years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the answer would be $24,828.73
.Balance of Work in Process and Finished Goods, Cost of Goods Sold Derry Company uses job-order costing. At the end of the month, the following information was gathered: Job # Total Cost Complete? Sold? 301 $1,600 Yes No 302 1,240 Yes Yes 303 780 No No 304 2,300 Yes No 305 4,150 Yes No 306 350 No No 307 710 Yes Yes 308 620 No No 309 1,200 No No 310 515 No No The beginning balance of Finished Goods was $300, consisting of Job 300, which was not sold by the end of the month.Required:1. Calculate the balance in Work in Process at the end of the month.$2. Calculate the balance in Finished Goods at the end of the month.$3. Calculate Cost of Goods Sold for the month.$
Answer:
1. $3,465
2. $1,950
3. $8,050
Explanation:
The computation is shown below:
1. The balance in Work in Process at the end of the month is shown below:
= Job 303 + Job 306 + Job 308 + Job 309 + Job 310
= $780 + $350 + $620 + $1,200 + $515
= $3,465
2. The balance in Finished Goods at the end of the month is shown below:
= Job 302 + Job 307
= $1,240 + $710
= $1,950
3. The Cost of Goods Sold for the month is given below:
= Job 301 + Job 304 + Job 305
= $1,600 + $2,300 + $4,150
= $8,050
Final answer:
The balance in Work in Process at the end of the month is $3,465. The balance in Finished Goods at the end of the month is $8,050. The Cost of Goods Sold for the month is $4,050.
Explanation:
To calculate the balance in Work in Process at the end of the month, we need to sum up the costs of all the jobs that are not complete. The cost of each job is given in the table, so we can add up the costs for Job 303, Job 306, Job 308, Job 309, and Job 310. The total cost in Work in Process is the sum of these costs: $780 + $350 + $620 + $1,200 + $515 = $3,465.
To calculate the balance in Finished Goods at the end of the month, we need to sum up the costs of all the jobs that are complete and not sold. The cost of each job is given in the table, so we can add up the costs for Job 301, Job 304, and Job 305. The total cost in Finished Goods is the sum of these costs: $1,600 + $2,300 + $4,150 = $8,050.
To calculate the Cost of Goods Sold for the month, we need to sum up the costs of all the jobs that are complete and sold. The cost of each job is given in the table, so we can add up the costs for Job 302, Job 307, and Job 313. The total Cost of Goods Sold is the sum of these costs: $1,240 + $710 + $2,100 = $4,050.
Paul just graduated from college and landed his first "real" job, which pays 37,900 a year. In 13 years, what will he need to earn to maintain the same purchasing power of inflation averages 3 percent?
Answer:
Salary= $55,656.15
Explanation:
Giving the following information:
Paul just graduated from college and landed his first "real" job, which pays 37,900 a year.
n= 13 years
inflation= 3% annually
First, we need to calculate the total inflation of the 13 years:
accumulated inflation= 1.03^13= 1.4685
Now, we can calculate the amount necessary to maintain the purchasing power:
Salary= 37,900*1.4685= $55,656.15
A 25-year-old engineer is opening an individual retirement account (IRA) at a bank. Her goal is to accumulate $1 million in the account by the time she retires from work in 40 years. The bank manager (a) (b) (c) (a) (b) (c) (a) (b) (a) (b) (c) (a) (b) (c) estimates she may expect to receive 6% nominal annual interest, compounded quarterly, throughout the 40 years. The engineer believes her income will increase at a 5% annual rate during her career. She wishes to start her IRA with as low a deposit as possible and increase it at a 5% rate each year. Assuming end-of-year deposits, how much should she deposit the first year
Final answer:
Using a financial formula for growing annuities, we can calculate the initial deposit needed in an IRA to accumulate $1 million in 40 years, considering a 6% interest rate compounded quarterly and a 5% annual increase in contributions.
Explanation:
The student's question is about calculating the initial deposit needed for an individual retirement account (IRA) that will grow to a certain amount by retirement, factoring in compound interest and annual contribution increases. To solve this, we need to use the formula for the future value of a series of annuity payments that are growing at a constant rate (known as a growing annuity). The formula incorporates the initial deposit, the rate of return, the frequency of compounding, and the number of years until retirement.
To calculate the first-year deposit for the 25-year-old engineer's IRA, considering an interest rate of 6% compounded quarterly and an annual contribution increase of 5%, we would use a specific financial formula for growing annuities. The result will give us the amount that needs to be deposited in the first year to reach the goal of accumulating $1 million by retirement in 40 years.
When we discuss _____ approaches, we are talking about how organizational decision makers actually approach ethical issues. a. Organizational b. Individual c. Descriptive d. Values-based e. Normative
Answer:
The correct answer is letter "E": Normative.
Explanation:
Normative Economics incorporates subjectivity and value judgments focusing on what "should be". It is usually implemented at the governmental level. Normative Economics leaves the door open for future changes, eliminates absolute statements and provides an avenue for analysis of different economic scenarios.
Insurance agents frequently emphasize "service" in their advertisements. What services should clients legitimately expect from their insurance agents?
Answer and explanation:
Insurance agents are typically brokers who offer individuals different types of coverage according to their needs. The agents are in charge of quoting insureds with policies, adding or removing members from the coverage, and most importantly, providing insureds verbally and written the information on the type of coverage that they are purchasing. Through servicing, sometimes they serve as intermediaries to expedite insureds claims.
Insurance agents provide services such as giving advice about coverage, helping clients understand policies, assisting in claims procedures, providing updated information, and offering ongoing support. They should guide clients based on their individual needs and keep them informed throughout any claim processes. They also periodically review and adapt policies as needed.
Explanation:Clients can expect various services from their insurance agents, who act as liaisons between them and the insurance companies. Primary services include providing professional advice regarding suitable coverage, helping clients to understand complex insurance policies, and assisting in the event of a claim. Providing accurate and relevant information, answering any queries, updating insurance policies based on changing needs, and providing ongoing support are also expected services.
For instance, if a client is not sure what type of insurance best fits their needs, the agent should be able to provide advice based on the client's lifestyle, assets, and risk factors. Similarly, if a client needs to make a claim, the agent should guide them through the process, ensuring all paperwork is correctly submitted and keeping them informed about the progress of the claim. It's also the agent's responsibility to periodically review policies with clients and advise on any updates or adaptations that might be needed, as situations can change over time.
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Mr. Trail engaged in a current year transaction generating $50,000 of cash but only $40,000 of taxable income and $10,000 of nontaxable income. If Mr. Trail’s marginal tax rate is 40%, compute his after tax cash flow from the transaction.
Answer:
$34,000
Explanation:
Given that,
Cash generated = $50,000
Taxable income = $40,000
Non taxable income = $10,000
Marginal tax rate = 40%
Hence,
After tax cash flow:
= Cash generated in a current year - (Taxable income × Marginal tax rate)
= $50,000 - ($40,000 × 40%)
= $50,000 - $16,000
= $34,000
Therefore, the after tax cash flow from the transaction is $34,000.
You just paid $360,000 for a policy that will pay you and your heirs $13,200 a year forever. What rate of return are you earning on this policy?
Answer:
Rate of return = 3.667%
Explanation:
This is a for of annuity known as perpetuity. Am annuity is an investment that gives yearly returns on the capital
To get the rate of return we use the following formula
Present value= Yearly payments/Rate of return
360,000= 13,200/rate of return
Cross-multiply
Rate of return (360,000)= 13,200
Rate of return= 13,200/360,000
Rate of return= 0.03666666= 3.667%
Answer:
= 3.67%. This means you are to earn at 3.67% on the policy taken
Explanation:
The question is to determine the rate of return of earnings based on the detailed policy.
Rate of Return
This represents a percentage of any investment that can either be a gain or a loss as calculated based on a particular time period. The Rate of Return can simply be called the RoR.
The Rate of Return in the question is calculated as follows:
First, what is the payment for the policy = $360,000
What is the annuity to be paid a year forever = $13,200
Therefore rate of return is simply
= Annuity/ Initial Policy Payment
= $13,200/ $360,000 x 100
= 3.67%. This means you are to earn at 3.67% on the policy taken
A firm has borrowed $5,000,000 for 3 years at 10% interest, compounded annually. It makes no payments until the loan is due, and then pays the loan off as a lump sum. What is the payoff amount at the end of year 3?
Answer:
$6,655,000
Explanation:
[tex]A = P(1\ +\ r)^{n}[/tex]
wherein, A= Amount
P= Principal
R= Rate of interest per annum
n = term to maturity
Pay off amount at the end of year 3 = $5,000,000[tex](1\ +\ .10)^{3}[/tex]
Amount = $5,000,000 × 1.331 = $ 6,655,000
Amount due of a borrowing is equal to the money borrowed initially compounded at a rate of interest for a known period.
Above. rate of interest is 10%, since the money has been repaid only upon due date, three year compounding of the said sum at 10% per annum rate of interest yields the payoff amount which is $6,655,000
You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account and $250 per month in a bond account. The return of the stock account is expected to be 10 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account with a return of 5 percent. How much can you withdraw each month from your account assuming a 25-year withdrawal period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
The withdrawals will be of $ 11,379.014 per month
Explanation:
Future value of the annuities:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 750.00
time 360(30 years x 12 monhs per year)
rate 0.008333333 (10% / 12 months)
[tex]750 \times \frac{1-(1+0.00833)^{-360} }{0.008333} = PV\\[/tex]
PV $1,695,365.9436
[tex]C \times \frac{(1+r)^{time} -1}{rate} = PV\\[/tex]
C 250.00
time 360 (30 years x 12 monhs per year)
rate 0.005 (6% / 12 months)
[tex]250 \times \frac{(1+0.005)^{360} -1}{0.005} = PV\\[/tex]
PV $251,128.7606
Total 1,695,365.84 + 251,128.76 = 1.946.494,6
and from here we withdraw for 25 years:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV 1,946,495
time 300 (25 years x 12 months)
rate 0.004166667 (5% / 12 months)
[tex]1946494.6 \div \frac{1-(1+0.004167)^{-300} }{0.004167} = C\\[/tex]
C $ 11,379.014
Prepare budgetary entries, using general ledger control accounts only, for each of the following unrelated situations: a. Anticipated revenues are $10 million; anticipated expenditures and encumbrances are $9.7 million. b. Anticipated revenues are $9.7 million; anticipated expenditures and encumbrances are $10 million. c. Anticipated revenues are $10 million; anticipated transfers from other funds are $1.3 million; anticipated expenditures and encumbrances are $9.7 million; anticipated transfers to other funds are $1.1 million. d. Anticipated revenues are $9.7 million; anticipated transfers from other funds are $1.1 million; anticipated expenditures and encumbrances are $10 million; anticipated transfers to other funds are $1.3 million.
Answer:
Explanation:
a)
Dr Anticipated Revenue 10,000,000
Cr Anticipated Expenditure and encumbrances 9,700,000
Cr Budgetary fund balance 300,000
b)
Dr Anticipated revenue 9,700,000
Dr Budgetary fund balance 300,000
Cr Anticipated expenditures and encumbrances 10,000,000
c)
Dr Anticipated revenue 10,000,000
Dr Anticipated transfers from other funds 1,300,000
Cr Anticipated expenditures, encumbrances 9,700,000
Cr Anticipated transfers from other funds 1,100,000
Cr Budgetary fund balance 500,000
d)
Dr Anticipated revenue 9,700,000
Dr Anticipated transfers from other funds 1,100,000
Dr Budgetary fund balance 500,000
Cr Anticipated expenditure and encumbrances 10,000,000
Cr Anticipated transfers from others 1,300,000
"The budgetary entries for each situation using general ledger control accounts are as follows:
a. For anticipated revenues of $10 million and anticipated expenditures and encumbrances of $9.7 million:
- Debit Estimated Revenues for $10 million.
- Credit Budgetary Fund Balance for $10 million.
- Debit Budgetary Fund Balance for $9.7 million.
- Credit Appropriations for $9.7 million.
The entries reflect the anticipation of revenues and the authorization to spend up to the amount of the appropriations.
b. For anticipated revenues of $9.7 million and anticipated expenditures and encumbrances of $10 million:
- Debit Estimated Revenues for $9.7 million.
- Credit Budgetary Fund Balance for $9.7 million.
- Debit Budgetary Fund Balance for $10 million.
- Credit Appropriations for $10 million.
In this case, the appropriations exceed the anticipated revenues, indicating a potential deficit situation.
c. For anticipated revenues of $10 million, anticipated transfers from other funds of $1.3 million, anticipated expenditures and encumbrances of $9.7 million, and anticipated transfers to other funds of $1.1 million:
- Debit Estimated Revenues for $10 million.
- Debit Other Financing Sources for $1.3 million.
- Credit Budgetary Fund Balance for $11.3 million.
- Debit Budgetary Fund Balance for $9.7 million.
- Credit Appropriations for $9.7 million.
- Debit Appropriations for $1.1 million.
- Credit Other Financing Uses for $1.1 million.
The transfers from other funds are treated as other financing sources, and transfers to other funds are treated as other financing uses.
d. For anticipated revenues of $9.7 million, anticipated transfers from other funds of $1.1 million, anticipated expenditures and encumbrances of $10 million, and anticipated transfers to other funds of $1.3 million:
- Debit Estimated Revenues for $9.7 million.
- Debit Other Financing Sources for $1.1 million.
- Credit Budgetary Fund Balance for $10.8 million.
- Debit Budgetary Fund Balance for $10 million.
- Credit Appropriations for $10 million.
- Debit Appropriations for $1.3 million.
- Credit Other Financing Uses for $1.3 million.
In this scenario, the total budgetary resources, including transfers in, are less than the total appropriations plus transfers out, indicating a deficit situation that would need to be addressed, possibly by additional financing sources or by reducing appropriations.
These entries are made to reflect the budgetary status of the fund at the beginning of the fiscal period and to authorize spending and other financial activities according to the budget."
Prepare the income statement for Quality Aquatic Company for the most recent year. Use the calculation of cost of goods sold, cost of goods manufactured, and the amounts below. Assume that the company sold 36 comma 000 units of its product at a price of $ 14 each during the year.
Answer:
Net income 167,900
Explanation:
Sales revenue 36,000 x $14 = 504,000
Cost of good sold- (230,600)
Gross Profit: 273,400
Marketing expenses (77,000)
Administrative expenses (28,500)
Net income 167,900
Missing information attached.
We subtract the cost of good sold to get the gross profit.
the material, labor and overhead cost are included in the cost of good sold so we don't have to conted again. We will only post the expenses not related to manufacturing department which are, selling and adminsitrative.
You bought a bond five years ago for $804 per bond. The bond is now selling for $770. It also paid $55 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond.
Answer:
Realized rate of return earned on this bond is 2.61%
Explanation:
Interest Paid per year = $55
Face / Purchase Value = $804
Current Selling price = $770
Coupon rate / Interest rate per year = ( $55 / $804 ) x 100
Coupon rate / Interest rate per year = 6.84%
Return on sale of Bond = $770 - $804 = -$34
Return on sale of Bond ( Percent ) = ( -$34 / 804 ) x 100 = -4.23%
Realized rate of return = Coupon Interest rate + Return on Sale
Realized rate of return = 6.84% + ( -4.23% ) = 2.61%
The realized rate of return on this bond over five years is approximately 30%. This calculation accounts for both the capital gain/loss from the change in the bond's price and the reinvested interest income.
To calculate the realized rate of return on the bond, you need to consider both the capital gain/loss and the reinvested interest. Here's the calculation:
Calculate the total interest received over five years: $55 (annual interest) x 5 years = $275.
Calculate the capital gain/loss: Selling Price - Purchase Price = $770 - $804 = -$34.
Add the interest received to the capital gain/loss: $275 - $34 = $241.
Calculate the realized rate of return: Divide the total return ($241) by the initial investment ($804) and express it as a percentage:
Realized Rate of Return = ($241 / $804) x 100% ≈ 30%.
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Bank Management Printers Inc. produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September 2014 includes this data:
Number of Checkbooks: 15,000
Selling Price per book: $20
Variable cost per book: $8
Fixed costs for the month: $145,000
The actual results for September 2015 were as follows:
Number of Checkbooks: 12,000
Selling Price per book: $21
Variable cost per book: $7
Fixed costs for the month: $150,000
1. Prepare a static-budget based variance analysis of the September performance
2. Prepare a flexible budget based variance analysis of the September performance
3. Why might Bank Management find the flexible budget based variance analysis more informative than the static budget based variance analysis?
The static budget variance analysis for September reveals unfavorable sales, variable, and fixed cost variances because it compares the actual results with the original budget. The flexible budget variance analysis, which adjusts the budget according to the actual volume of output, reveals more favorable variances in sales and variable costs but still an unfavorable fixed cost variance. Flexibility in budget variance analysis is crucial as it isolates management's control from volume fluctuations.
Explanation:1. Static-budget variance analysis compares the actual results with the original budget (September 2014), irrespective of the volume of output:
Sales Variance: (Actual unit sold * Actual price) - (Budgeted unit sold * Budgeted price) = (12,000* $21) - (15,000 * $20) = -$9,000 Variable Cost Variance: (Actual unit sold * Actual variable cost) - (Budgeted unit sold * Budgeted cost) = (12,000* $7) - (15,000 * $8) = +$6,000 Fixed Cost Variance: Actual fixed cost - Budgeted fixed cost = $150,000 - $145,000 = +$5,000
2. A flexible budget adjusts the budget according to the actual volume of output. It would calculate:
Sales Variance: (Actual unit sold * Actual price) - (Actual unit sold * Budgeted price) = (12,000* $21) - (12,000 * $20) = +$12,000 Variable Cost Variance: (Actual unit sold * Actual variable cost) - (Actual unit sold * Budgeted cost) = (12,000* $7) - (12,000 * $8) = +$12,000 Fixed Cost Variance: Actual fixed cost - Budgeted fixed cost = $150,000 - $145,000 = +$5,000
3. The flexible budget variance analysis might be more informative because it adjusts for changes in volume. This flexibility can provide a more accurate assessment of management performance, isolating the effect of volume fluctuations from management's control over costs and revenues.
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An accounting entry that is characterized by having multiple debits and/or multiple credits is called a ________ entry. A. compound journal B. chart of accounts C. posted D. balanced
Answer:
A. compound journal entry
Explanation:
Compound journal entry -
It refers to the type of accounting entry , which consists of more than one debit or credit , is referred to as compound journal entry .
It is the combination of various simple journal entries together to form a compound journal entry .
Hence , from the given information of the question,
The correct option is A. compound journal entry .
Rosalie is organizing a circus performance to raise money for a charity. She is trying to decide how much to charge for tickets. From past experience, she knows that the number of people who will attend is a linear function of the price per ticket. If she charges 5 dollars, 1065 people will attend. If she charges 7 dollars, 805 people will attend. How much should she charge per ticket to make the most money? (Round your answer to the nearest cent.)
To maximize total revenue for a charity circus, Rosalie should charge approximately $8.17 per ticket. This was determined by calculating the demand function's slope from given data points and solving for the price that results in zero derivative of the revenue function.
Explanation:To determine how much to charge per ticket to make the most money for Rosalie's charity circus, we need to find the price that maximizes total revenue. This can be approached by understanding the concept of a downward-sloping demand curve and the relationship between ticket price and number of attendees. Given two price points – 5 dollars with 1065 attendees and 7 dollars with 805 attendees – we can find the slope of the demand function and then determine the revenue-maximizing point. Total revenue is calculated by multiplying the price per ticket by the number of tickets sold.
Calculating the slope, m, of the linear demand function we get:
m = (Change in number of attendees) / (Change in ticket price) = (1065 - 805) / (5 - 7) = 260 / -2 = -130.
This means that for every dollar the price increases, 130 fewer tickets are sold. To represent the demand function, we can use the point-slope form:
y - y₁ = m(x - x₁), where y is the number of attendees, x is the price, y₁ is one number of attendees we know, and x₁ is the price we know. Plugging in the values we get:
Number of attendees = 1065 + (-130)(Price - 5).
Now we calculate revenue (R) by multiplying the price by the number of attendees for that price:
R = Price × Number of attendees = Price × [1065 - 130(Price - 5)].
To maximize revenue, we differentiate R with respect to Price and set the derivative equal to zero, then solve for Price:
R' = 1065 - 260 × Price + 130 × 5,
R' = 0 when Price = $8.17 (rounded to the nearest cent).
Therefore, to maximize total revenue, Rosalie should charge approximately $8.17 per ticket.
ABC, Incorporated desires to have the most qualified people in every position throughout its organization. This is an example of a concern for a. Developing human capital b. Developing social networks c. Decreasing labor intensive training d. Leveraging organizational structure
Answer:
The correct answer is letter "A": Developing human capital.
Explanation:
Developing human capital implies training existing employees of the company so they can specialize in their every-day duties which is likely to be positively reflected in their efficiency at work, increasing at the same time the productivity of the organization.
The situation depicts ABC, Incorporated's interest in 'Developing human capital'. This refers to maximizing the potential of employees through their knowledge, skills, and abilities to contribute to the organization's productivity and output.
Explanation:The scenario described in the question is an example of ABC, Incorporated's concern for Developing human capital. Human capital refers to the knowledge, skills, and abilities possessed by an individual that can be used to provide economic value to an organization. In this case, ABC, Incorporated desires to have the best possible individuals in every position, which is a clear sign of it trying to maximize its human capital. As opposed for developing social networks, decreasing labor-intensive training, or leveraging organizational structure, investing in human capital often leads to increased productivity and output.
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Following are two income statements for Alexis Co. for the year ended December 31. The left number column is prepared before adjusting entries are recorded, and the right column is prepared after adjusting entries. The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts.
Unadjusted Adjusted
Revenues
Fees earned $ 24,000 $ 30,600
Commissions earned 42,500 42,500
Total revenues 66,500 73,100
Expenses
Depreciation expense—Computers 0 1,650
Depreciation expense—Office furniture 0 1,925
Salaries expense 12,500 15,195
Insurance expense 0 1,430
Rent expense 4,500 4,500
Office supplies expense 0 528
Advertising expense 3,000 3,000
Utilities expense 1,250 1,327
Total expenses 21,250 29,555
Net income $ 45,250 $ 43,545
Analyze the statements and prepare the eight adjusting entries that likely were recorded.
Answer:
Find in the excel file attached detailed adjusting entries required for all transactions in the question.
Explanation:
Please note the analysis of each transaction done under the heading "particulars".
Consider a used car market with asymmetric information. The owners of used cars know what their vehicles are worth but have no way of credibly demonstrating those values to potential buyers. Thus, potential buyers must always worry that the used car they are being offered may be a low quality "lemon."
a. Suppose that there are equal numbers of good and bad used cars in the market and that good used cars are worth $13,000 while bad used cars are worth $5,000. What is the average value of a used car?
b. By how much does the average value exceed the value of a bad used car? By how much does the value of a good used car exceed the average value?
c. Would a potential seller of a good used car be willing to accept the average value as payment for her vehicle?
d. If a buyer negotiates with a seller to purchase the seller’s used car for a price equal to the average value, is the car more likely to be good or bad?
e. Will the used-car market come to feature mostly—if not exclusively—lemons? How much will used cars end up costing if all the good cars are withdrawn?
Answer:
a. $9,000
b. $4,000 & $4,000
c. The seller is probably not willing to accept the average value as payment for her vehicle.
d. The car is more likely to be bad.
e. The used car market will still have both good and bad cars. Used cars end up costing the same if all the good cars are withdrawn. In the long run, prices of used cars may fall.
Explanation:
a. Because there are equal numbers of good and bad used cars in the market, the probability that a car is a good car is equal to the probability that a car is a bad car (=0.5). So the average value of a used car is calculated by taking the probability that a car is a good car (0.5), multiplying that by the value of a good car ($13,000), and adding to that the probability that a car is a bad car (0.5), multiplying that by the value of a bad car ($5,000). To put in an equation, we have
Average value of used car = Average value of good used car + Average value of bad used car
= (0.5 x $13,000) + (0.5 x $5,000)
= $9,000
b. The average value exceeds the value of a bad used car by:
Average value of used car - Average value of bad used car
= $9,000 - $5,000
= $4,000
The value of a good used car exceeds the average value by:
Average value of good used car - Average value of used car
= $13,000 - $9,000
= $4,000
c. A potential seller of a good used car would know that her car was worth $13,000, more than the average value ($9,000). Therefore, it would not make sense to sell her vehicle for $9,000. The seller would probably not be willing to accept the average value as payment for her vehicle.
d. If a buyer negotiates with a seller to purchase the seller's used car for a price equal to the average value, the car is more likely to be bad. As in c, a seller of a good used car would probably not be willing to accept the average value as payment for her vehicle.
e. The used car market will always have good and bad used cars because the average price does not apply in the market. If buyers know that they are negotiating the price of a car down to a much lower price, it is likely that the car they are buying are lemons. Likewise, buyers who want good cars may be willing to pay a bit more to ensure that they are not getting bad cars.
If all the good cars are withdrawn, the price of used cars will stay unchanged as buyers do not know whether cars are good or bad (asymmetric information). However, in the long run, buyers will know that and get more information than they had before, so prices will probably fall.
Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $1,800,000 par value, mature in four years, and pay 10% interest semiannually on June 30 and December 31.
1. Record the entry for the issuance of bonds for cash on January 1.
2. Record the entry for the first semiannual interest payment and the second semiannual interest payment.
The first journal entry records the issuance of bonds for cash at par value. The next two entries record the semiannual interest payments, each calculated as 10% per annum of the par value divided by 2.
Explanation:The subject of this question is related to accounting, specifically the journal entries for issuing bonds and paying interest on bonds. In this scenario, Brussels Enterprises issues bonds at par value, so the cash received equals the par value of the bonds.
The first entry on January 1, 2019 would be:
Dr: Cash $1,800,000Cr: Bonds Payable $1,800,000
On June 30, 2019 and December 31, 2019 for interest payment the entry will be:
Dr: Interest Expense $90,000 ($1,800,000 * 10% / 2)Cr: Cash $90,000Learn more about Bond Issuance and Interest Payment here:
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Which of the following help departments organize unique access controls for access to folders and data files within a department or group so that only those employees who need access to confidential data are granted access?
Answer:
D) Role Based Access Controls
Explanation:
First, the multiple options to the question are as follows:
A) Title-based access controls
B) Role-based access controls
C) Administrative access controls
D) Privacy-based access controls
The Role Based Access Controls (RBAC) represents a network access restricting method that only allows the right employee in an organisation to access information that are relevant to their roles, jobs and responsibilities.
The goal is also to ensure that they don't have access to sensitive information that they do not need to be concerned with. In a situation where employees want access to restricted data, formal application will be made and top management will review whether the information requested can be released or not.
Hierarchical authority is a system that can organize unique access controls for departments or groups to ensure that only those who need access to confidential data have it. This system is used in various organizations, such as the Department of Justice.
Explanation:In the context of organizing unique access controls to folders and data files, the option that makes the most sense is Hierarchical authority (option a). Hierarchical authority within a system designates who has access to specific information, such as confidential data. In a department or group, it ensures that access to specific resources is restricted to only those who need it.
This kind of access control is often seen in departmental structures within organizations. For instance, in the Department of Justice, different levels of authority, such as the attorney general, associate attorney general, bureau and division heads, each have different levels of access to information. This hierarchical structure extends to numerous levels within the organization, enabling an efficient deployment of resources and information.
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You and two partners start a company. However, your partners play no role in running the company. You spend all your time managing the business. The time that you could have spent working for someone else and earning wages instead of running the business is your:
a. Explicit costs
b. Marginal cost
c. Sunk cost
d. Opportunity cost
Answer:
The correct answer is letter "D": Opportunity cost.
Explanation:
Opportunity cost is described as the return of the choice selected over the potential return that could have been obtained from the choice left behind. It represents the return of the option chosen compared to the choice forgone. Opportunity costs is also defined as the return of the best next available option.
Final answer:
The time spent managing a business instead of earning wages elsewhere is an opportunity cost, which represents the benefits lost by not choosing the alternative option.
Explanation:
When you and two partners start a company and you are the only one managing the business, the time you could have spent working elsewhere and earning wages represents your opportunity cost. This is because opportunity costs are the benefits you forego when choosing one alternative over another. Since explicit costs involve actual payments like wages and rent and are not the case here, and since there is no mention of additional production costs to consider for a marginal cost, and sunk costs are past costs that cannot be recovered, the correct answer is opportunity cost.
Implicit costs, which include opportunity costs, are important for businesses to consider, especially when resources such as time are used without direct payment. They can also include things like lost leisure time which, when given up to start a business, can subtract from economic profits.
When an investor is not interested in owning their own business, why do they need to understand entrepreneurship?
Answer:
To assess the market potential for up-and-coming businesses
Explanation:
Knowledge in entrepreneurship will give you to ability to understand a couple of things:
- The types of products that currently desired by the market.
- The strength and weaknesses of several business models
- The knowledge on how to scale business operations
Even though investors do not own their own business, understanding all this will help them understand which companies are most likely to succeed. They can put their investments on those companies and maximize the amount of return that they can get from their investment.
Final answer:
Investors need to understand entrepreneurship to grasp key concepts like financial capital and investment decisions that impact various firms.
Explanation:
Entrepreneurship is essential for investors to understand, even if they are not interested in owning a business, as it involves key concepts like financial capital, consumer needs, and investment decisions that impact various firms.
In the business world, investors may need to provide financial capital to firms, from established companies to startups, in exchange for the opportunity to obtain a rate of return on their investment.
Ultimately, entrepreneurs play a crucial role in the economy by offering money to obtain labor services, capital goods, and resources to produce goods and services, highlighting the interconnected nature of entrepreneurship and investment.
The world's largest bank. Deutsche Bank set as its objective to make its name more recognizable in the United States. The success of its decision to sponsor a PGA golf tournament to accomplish this organizational objective will ultimately depend on which management function
Answer:
Planning.
Explanation:
Planning involves the creation of activities aimed at achieving organisational goals. It involves specific steps and contingency plans that are implemented by management to ensure success.
In this instance, Deutsch Bank is faced with the task of planning to make its name more popular in the United States.
Promotional activities can be undertaken to publicise Deutsch Bank's association with the PGA golf tournament. This will endear golf-lovers to the bank, as one of the players in making the tournament Na success.