Drag the tiles to the correct boxes to complete the pairs.
Determine the management style that corresponds with each term.
Lila has complete faith in her team. She believes in
empowering them to make decisions.
Jacob prefers to make all decisions himself. He does
not like it when his employees question his decisions
Hannah makes a final decision after listen to
and considering her employees' suggestions
bureaucratic
laissez-faire
11
autocratic
Answer:
Lila: laissez-faire Jacob: autocratic Hannah: bureaucratic
Explanation:
Lila lets her team do their part and does not intervene.
Jacob wants complete control and would rather make all decisions, giving his employees no say.
Hannah considers all employee decisions, but makes the final choice.
Gradwell, Inc., manufactures and sells two products: Product K8 and Product I4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Direct labor hours Total direct labor hours
production per unit
product K8 300 5.0 1,500
product I4 900 3.0 2,700
total direct labor hours 4,200
The direct labor rate is $17.20 per DLH. The direct materials cost per unit for each product is given below:
Direct materials
cost per unit
product K8 $150.20
product I4 $243.70
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected activity
Activity Cost Pools Activity Measures Overhead
Cost Product K8 Product I4 Total
labor related DLHs $176,064 1,500 2,700 4,200
machine setups setups 71,290 400 600 1,000
order size MHs 121,396 4,300 4,600 8,900
$368,750
The overhead applied to each unit of Product I4 under activity-based costing is closest to:_______.
a. $543.49 per unit.
b. $675.20 per unit.
c. $736.36 per unit.
d. $431.71 per unit.
Answer:
Gradwell, Inc.
The overhead applied to each unit of Product I4 under activity-based costing is closest to:_______.
$243.00 per unit.
Explanation:
a) Data and Calculations:
production per unit DL rate Total Labor Cost
product K8 300 5.0 1,500 $17.20 $25,800
product I4 900 3.0 2,700 $17.20 $46,440
total direct labor hours 4,200 $17.20 $72,240
production per unit Direct Materials Total Material Cost
product K8 300 $150.20 $45,060
product I4 900 $243.70 219,330
Total direct materials costs = $264,390
Estimated Expected activity
Activity Cost Pools Activity Measures Overhead Product Product Total
Cost K8 I4
labor related DLHs $176,064 1,500 2,700 4,200
machine setups setups 71,290 400 600 1,000
order size MHs 121,396 4,300 4,600 8,900
Total $368,750
Overhead Cost Allocation Product Product Total
K8 I4
Labor cost $62,880 $113,184 $176,064
Machine setups 28,516 42,774 71,290
Order size 58,652 62,744 121,396
Total $150,048 $218,702 $368,750
Quantity 300 900
Overhead per unit $500.16 $243.00
Consider an individual who currently earns $20,000 as an unskilled laborer. Suppose that by taking courses full-time at a community college for one year, the person can qualify for a more skilled job paying $23,000 that is guaranteed to last for 10 years (after which the person would retire). Assume the cost of tuition and books at the community college for one year is $2,000 and that the current interest rate is 6%. Is this a good investment
Answer:
investing in these college courses will increase this individual's wealth by $20,080, so it is a good idea
Explanation:
First of all, education is always a good investment. But we still need to analyse this situation like any other project:
initial outlay year 0 = $2,000 tuition costs
cash flows years 1 - 10 = $23,000 - $20,000 = $3,000
NPV = - initial outlay + PV of cash flows
PV of cash flows = $3,000 x 7.3601 (PV annuity factor, 6%, 10 periods) = $22,080
NPV = -$2,000 + $22,080 = $20,080
Kirsten believes her company's overhead costs are driven (affected) by the number of direct labor hours because the production process is very labor intensive. During the period, the company produced 5,000 units of Product A requiring a total of 1,600 labor hours and 2,500 units of Product B requiring a total of 400 labor hours. What allocation rate should be used if the company incurs overhead costs of $20,000
Answer:
Predetermined manufacturing overhead rate= $10 per direct labor hour
Explanation:
Giving the following information:
Product A:
Direct labor hours= 1,600
Product B:
Direct labor hours= 400
Estimated overhead= $20,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 20,000/2,000
Predetermined manufacturing overhead rate= $10 per direct labor hour
Select the correct answer.
which of the following Involved a digital designer?
A The hardware that lets your hard drive work.
B. A computer animated movle
oc. An old cartoon from the 1930s
D. The evening news
Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $8,800 (that had cost $6,503) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $6,000 (that had cost $3,888) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)
Answer:
Levine Company
Journal Entries
April 8:
Debit Cash Account $8,448
Debit Finance Charge Expense $352
Credit Sales Revenue $8,800
To record the sale of goods.
Debit Cost of Goods Sold $6,503
Credit Inventory $6,503
To record the cost of goods sold.
April 12:
Debit Cash Account $5,850
Debit Finance Charge Expense $150
Credit Sales Revenue $6,000
To record the sale of goods.
Debit Cost of Goods Sold $3,888
Credit Inventory $3,888
To record the cost of goods sold.
Explanation:
a) Data and Calculations:
April 8 Sales Revenue = $8,800
Finance charges = 4% of $8,800 = $352
Cost of goods sold = $6,503
April 12 Sales Revenue = $6,000
Finance charges = 2.5% of $6,000 = $150
Cost of goods sold = $3,888
Your would like to share some of fortune with you. offers to give you money under one of the following scenarios (you get to choose): 1. a year at the end of each of the next years 2. (lump sum) now 3. (lump sum) years from now Calculate the present value of each scenario using % interest rate. Which scenario yields the highest present value? Would your preference change if you used a % interest rate?
Answer and Explanation:
The computation is shown below:
1. In the case when the rate of interest is 6%
So, the present value is
1. For at the end of eight years, the present value of $7,000 is
= $7,000 × 6.20979
= $434,68.53 or $43,469
2. The lumpsum now is $45,000
3. The eight years from now is
= $75,000 × 0.62741
= $47,00,55.75 or $47,056
Thus, the highest present value = $47,056
2. In the case when the rate of interest is 12%
1. For at the end of eight years, the present value of $7,000 is
= $7,000 × 4.96764
= $34,773.48 or $34,773
2. The lumpsum now is $45,000
3. The eight years from now is
= $75,000 × 0.40388
= $30,291
Thus, the highest present value = $45,000
Astor, a cash-basis taxpayer, died on February 3. During the year, the estate's executor made a distribution of $12,000 from estate income to Astor's sole heir and adopted a calendar year to determine the estate's taxable income. The following additional information pertains to the estate's income and disbursements for the year:
Estate income:
Taxable interest $ 65,000
Net long-term capital gains allocable to corpus 5,000
Estate disbursements:
Administrative expenses attributable to taxable income $ 14,000
Charitable contributions from gross income to a public charity, made under the terms of the will
9,000
For the calendar year, what was the estate's distributable net income (DNI)?
a. $58,000
b. $39,000
c. $65,000
d. $42,000
Answer:
d. $42,000
Explanation:
Calculation for what was the estate's distributable net income (DNI)
ESTATE'S DISTRIBUTED NET INCOME
GROSS INCOME:
Taxable interest $65,000
ESTATE DISBURSEMENTS:
Less Administrative expenses ($14,000)
Less Charitable contributions from gross income ($9,000)
DISTRIBUTED NET INCOME (DNI) $42,000
($65,000-$14,000-$9,000)
Therefore the estate's distributable net income (DNI) will be $42,000
Colt Football Co. had a player contract with Watts that is recorded in its books at $5,600,000 on July 1, 2014. Day Football Co. had a player contract with Kurtz that is recorded in its books at $7,000,000 on July 1, 2014. On this date, Colt traded Watts to Day for Kurtz and paid a cash difference of $700,000. The fair value of the Kurtz contract was $8,400,000 on the exchange date. The exchange had no commercial substance. After the exchange, the Kurtz contract should be recorded in Colt's books at
Answer:
the amount after the exchange is $6,300,000
Explanation:
The computation of the amount after the exchange is as follows;
= Book value + cash paid
= $5,600,000 + $700,000
= $6,300,000
Since it has no commerical substance so no loss or no gain is recorded
hence, the amount after the exchange is $6,300,000
Therefore the same is to be considered
Since the costs of producing an intermediate product do not change regardless of whether the intermediate product is sold or processed further, these costs are not considered in deciding whether to further process a product.
a) true
b) false
Answer: a) true
Explanation:
The costs incurred to produce the intermediate products have already been incurred and as such are referred to as sunk costs.
They will not change regardless of whether the good is sold before further processing or if it is sold after. They therefore do not matter in the decision to either process or sell and so are not considered.
NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.47 a share. The following dividends will be $0.52, $0.67, and $0.97 a share annually for the following three years, respectively. After that, dividends are projected to increase by 3.3 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 14 percent
Answer:
P0 = $7.383535 rounded off to $7.38
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the price of the stock today, we will use the following formula,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n +
[(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
r is the required rate of return
g is the constant growth rate in dividends
n is the number of years
P0 = 0.47 / (1+0.14) + 0.52 / (1+0.14)^2 + 0.67 / (1+0.14)^3 +
0.97 / (1+0.14)^4 + [(0.97 * (1+0.033) / (0.14 - 0.033)) / (1+0.14)^4]
P0 = $7.383535 rounded off to $7.38
Michelle Duncan wants to know what price home she can afford. Her annual gross income is $54,000. She owes $810 per month on other debts and expects her property taxes and homeowners insurance to cost $170 per month. She knows she can get an 6.00%, 30-year mortgage so her mortgage payment factor is 6.00. She expects to make a 15% down payment. What is Michelle's affordable home purchase price?a. $52.940.b. $950.c. $128,560.d. $126100.e. $960.
Answer:
$143137.25
Explanation:
Given that:
The annual gross income = $54000
The monthly gross income = $54000/12
= $4500
Using the PITI guideline, a mandatory expense of 38% of monthly income is applied.
So;
Expense = $4500 × 38% = $1710
Additional Monthly debt = $810
Cost of Prop. Taxes and H.O insurance = $170
Monthly Balance left = $1710 - $(810 + 170) = $730
Mortgage payment factor = 6.00
Monthly mortgage payment = [tex]\dfrac{monthly \ balance \ left }{ Mortgage \ payment \ factor }\times 1000[/tex]
[tex]=\$ (\dfrac{730}{6.00 })\times 1000[/tex]
= $121666.67
Affordable home purchase price = [tex]\dfrac{monthly \ mortgage \ payment }{1 - percentage \ of \ down \ payment}[/tex]
[tex]= \dfrac{ \$121666.67}{1- 0.15}[/tex]
[tex]= \dfrac{\$121666.67}{0.85}[/tex]
= $143137.25
On May 16, Thorne Co. declares a $0.40 dividend to be paid on April 5. Thorne has 2,060,000 shares of common stock issued and outstanding. The entry recorded by the company on May 16 includes a debit to: Multiple Choice Dividends Payable and a credit to Cash for $824,000. Dividends and a credit to Dividends Payable for $824,000. Dividends Payable and a credit to Cash for $781,600. Dividends and a credit to Dividends Payable for $781,600
Answer:
b. Dividends and a credit to Dividends Payable for $824,000
Explanation:
Dividends payable = 2,060,000 shares * $0.40 per share = $824,000
Journal entry on February 16
Dividends $824,000
Dividends payable $824,000
Factor Weight A B C
Convenience 0.15 85 85 82
Parking facilities 0.20 70 91 91
Display area 0.18 87 97 90
Shopper traffic 0.27 95 90 92
Operating costs 0.10 86 90 97
Neighborhood 0.10 88 92 84
1.00
Using the above factor ratings, calculate the composite score for each location.
Answer and Explanation:
The composite score for each location is as follows;
The Composite score for Location A is
= 85 × 0.15 + 70 × 0.2 + 87 × 0.18 + 0.27 × 95 + 86 × 0.1 + 88 × 0.1
= 85.7
= 86
The Composite score for Location B is
= 85 × 0.15 + 91 × 0.2 + 97 × 0.18 + 90 × 0.27 + 90 × 0.1 + 0.1 ×92
= 90.91
= 91
The Composite score for Location C is
= 82 × 0.15 + 91 × 0.2 + 90 × 0.18 + 92 × 0.27 + 97 × 0.1 + 0.1 ×84
= 89.64
= 90
(a) How does Alibaba implement competitive pricing strategy in market
Explanation:
Alibaba is a Chinese business group that uses one of its main business strategies to offer a lower price than its competitors.
There are several reasons why Alibaba is able to maintain this strategy competitively, for example, as it is a group of companies with different niches and different suppliers, it is possible to find a variety of them within the group's e-commerce, which makes there are options for price variations and incentive for the consumer to choose. In addition, the price variation remains at a healthy level that does not generate losses for Alibaba.
The group also maintains a strategy of offering discounts to consumers that generate greater purchase motivation, such as discount coupons, gifts, free shipping, etc.
Which of the following arguments are in favor of active stabilization policy by the government? Check all that apply
Answer:
D) Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
Explanation:
The Federal Reserve (FED) can respond to excessive pessimism among consumers and businesses by expanding the money supply and lowering interest rates. To deal with excessive optimism they can do the opposite, they can shrink the money supply and increase the interest rate.
HELP ME ASAP!!!
Select the correct answer.
What does the term sustainability refer to in construction?
A.
a building that does not depend on traditional energy sources to power its internal systems
B.
a building that uses only non-renewable energy sources
a building that is environmentally responsible and resource-efficient throughout its life cycle
C.
D.
a building that can withstand the pressure of external forces such as strong winds
Answer:
a building that is environmentally responsible and resource-efficient throughout its life cycle
The following inventory data have been established for the Cotton Tops Inc. (1) Annual sales are 100,000 units. (2) The purchase price per unit is $2.00 (3) Carrying cost is 3% percent. (4) Cost per order placed is $10. (5) Desired safety stock is 30 days supply. Use this data to compute: (a) EOQ - 3 pts (b) Average Inventory - 2 pts (c) Maximum Inventory - 1 pt (d) Optimal number of orders per year - 1 pts (e) Total inventory cost - 3 pts
Answer:
a) in order to calculate the EOQ we do not consider safety stock since that is one time purchase.
EOQ = √(2SD / H)
S = order cost = $10
D = annual demand = 100,000 units
H = annual holding cost = $2 x 3% = $0.06
EOQ = √[(2 x $10 x 100,000) / $0.06] = √33,333.33 = 5,773.5 ≈ 5,774
b) average inventory = (5,774 / 2) + (100,000/12) = 2,887 + 8,333 = 11,220 units
c) maximum inventory = 8,333 + 5,774 = 14,107
d) optimal number of orders = 100,000 / 5,774 = 17.32 times
e) total inventory cost = (17.32 x $10) + (11,220 x $0.06) + (100,000 x $2) + (8,333 x $2) = $173.20 + $673.20 + $200,000 + $16,666 = $217,512.40
At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $654,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $327 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.
Answer and Explanation:
The journal entries are shown below:
On December 31
Bad debt expense Dr $5,232 ($654,000 × 0.80%)
To Allowance for doubtful debts $5,232
(To record the bad debt expense)
On Feb 01
Allowance for doubtful debts Dr $327
To Account receivable $327
(To record the uncollectible amount)
On June 5
Account receivable $327
To Allowance for doubtful debts Dr $327
(To record the uncollectible amount)
On June 5
Cash Dr $327
To Account receivable $327
(To record the cash received)
Point D on the graph represents which phase of the business cycle?
Answer:
Contraction
Explanation:
Just took the Test
The Comil Corporation recently purchased a new machine for its factory operations at a cost of $328,325. The investment is expected to generate $115,000 in annual cash flows for a period of four years. The required rate of return is 13%. The old machine has a remaining life of four years. The new machine is expected to have zero value at the end of the four-year period. The disposal value of the old machine at the time of replacement is zero. What is the internal rate of return
Answer: 15%
Explanation:
IRR is the discount rate that makes the NPV equal zero. Required rates of return that are less than the IRR will therefore result in a positive NPV and those that are higher will result in a negative NPV.
Use Excel to find the IRR.
= IRR(-328325,115000,115000,115000,115000)
= 15%
As the required rate of 13% is less than the IRR of 15%, the new machine will have a positive NPV.
Which describes a type of tax that people pay on more they earn?
A. Flat tax
B. Income tax
C. Purchase tax
D. Progressive tax
Describe three investments
Answer: Stocks, real estate, and precious metals are all ownership investments. The buyer hopes that they will increase in value over time. Lending money is an investment. Bonds and even savings accounts are loans that earn interest over time for the investor.
Explanation:
Germany is capital abundant country and Japan is labor abundant country. If computers are produced mostly by capital and beer is produced mostly by labor, the H-O model predicts that Question 22 options: Japan will export computers in exchange for beer. Germany will export computers in exchange for beer. Germany is too small to be of economic interest to Japan. Computers and beer don't mix, so trade cannot increase either country's well-being.
Answer:
If computers are produced mostly by capital and beer is produced mostly by labor, the H-O model predicts that
Germany will export computers in exchange for beer.
Explanation:
The H-O model or Heckscher-Ohlin theory is an economic model about the comparative advantages of nations in international trade. The model tries to explain the equilibrium of trade existing between two countries that have varying specialties and natural resources. According to the H-O model, countries export more goods and services for which they have plenty resources than they do for goods and services for which they have scarce resources. For example, if a country has capital in abundance, it will export more of capital-intensive products while it will import labor-intensive products, because it has scarce labor resources.
Bonita Industries bought a machine on January 1, 2008 for $809000. The machine had an expected life of 20 years and was expected to have a salvage value of $79000. On July 1, 2018, the company reviewed the potential of the machine and determined that its future net cash flows totaled $402000 and its fair value was $314000. If the company does not plan to dispose of it, what should Bonita record as an impairment loss on July 1, 2018
Answer:
$75,250
Explanation:
we must first determine the book value on June 30, 2018. Straight line depreciation expense per year = ($809,000 - $79,000) / 20 = $36,500
book value on June 30, 2018 = $809,000 - ($36,500 x 11.5 years) = $389,250
impairment loss = book value - fair market value = $389,250 - $314,000 = $75,250
The process of starting, organizing, managing, and assuming the responsibility for a business is called capitalism.
a. True
b. False
Answer: False
Explanation: There you go.
According to the Kinked Demand Curve Model, If one firm operating in an oligopoly raises its price and other firms do not do so, A. the sales of the firm with the higher price will decline slightly. B. the egos of all the top executives will eventually lead to cooperation at that higher price. C. the sales of the firm that increased its price will decline sharply. D. the firm with the increased price will have its higher profits sustained through cooperation.
Answer:
C. the sales of the firm that increased its price will decline sharply.
Explanation:
A kinked demand curve is basically a demand curve that changes direction at an specific point (generally the equilibrium price). When you are dealing with oligopolies, generally competing firms will match price cuts but they will not follow if instead the price increases.
If only one of the oligopolistic competitors increases their price while the others remain stable, sales volume will decrease. Kinked models are based on the assumption that oligopolies will compete focusing on factors other than price.
Antidilutive securities should be included in the computation of diluted earnings per share but not basic earnings per share. are those whose inclusion in earnings per share computations would cause basic earnings per share to exceed diluted earnings per share. should be ignored in all earnings per share calculations. include stock options and warrants whose exercise price is less than the average market price of common stock.
Answer: should be ignored in all earnings per share calculations.
Explanation:
Antidilutive securities are the financial instruments that will lead to a rise in the earning per share when such financial instruments are changed to common stock.
Antidilutive securities should be ignored in all earnings per share calculations. This is because new shares are being offset when such acquisition takes place leading to a rise in the earning per share.
How can lessening utility bills reduce inflation?
Answer:
Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages. Thus, lessening utility bills will reduce.
Explanation:
2. Some companies have eliminated the collection and reporting of detailed analysis on direct labor costs broken down by various activities. Instead, first-line supervisors are responsible for controlling the total costs of direct labor. The justification for this argument is that labor costs represent only a small fraction of the total costs of producing a product and are not worth the time and effort to trace to individual activities. Do you agree or disagree with this argument
Answer:
The description would be presented downwards and as per the circumstance presented.
Explanation:
Instead of assigning resources associated with a specific frequency, activity based costs which always track costs on the basis seem to be an essential component of cost accounting because that would be a more effective means for providing resources. The costs when implementing some activity based accounting systems, furthermore, are even less than the potential advantages of moving towards this framework only then would it have been simpler as well as productive for the growing company ABC.Throughout the case situation, the claim whether direct labor constitutes a member of a minority fraction of the overall wages should not be an excellent explanation for either not apportioning production wages contingent on the operation, but if the organization determines that the expense of someone using ABC to assign labor profitability of different practices is greater than advantages, the organization increasing turn to something like an optimization model for that frequency.