Answer:
Instructions are below.
Explanation:
Giving the following information:
Duval inc budgets direct materials at $1/liter and requires 4 liters per unit of the finished product.
April’s activities show usage of 832 liters to complete 196 units at a cost of $798.72.
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Actual price= 798.72/832= $0.96
Direct material price variance= (1 - 0.96)*832
Direct material price variance= $33.28 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 4*196= 784
Direct material quantity variance= (784 - 832)*1
Direct material quantity variance= $48 unfavorable
Today’s business headlines frequently cite pensions being underfunded, thus costing companies more in contributions to their pension fund as well as pensioners risking not receiving what they had planned for retirement. This has been caused by underperformance of the pension fund itself and the over promising of benefits to retirees. Take the following example:_______.
Assume $20m was invested today to provide for pension payments for a group of employees. Assume also that the average return on these funds was 8.5%
1. How big will the fund be in 25 years?
2. Suppose at year 12 the fund decreased in value by 30%. What returns would be required for the next 13 years to achieve the 25 year amount?
3. Advisor's counseled the company that a conservative investment return of 6% annually for the next 13 years would be advisable and that the company would have to contribute annually to make up the shortfall. How much would have to be contributed annually beginning year 13 if the fund earned 6% in order to achieve the 25 year goal?
Please show the method used to solve this problem.
Answer:
1) in 25 years, the pension fund should equal:
future value = present value x (1 + interest rate)ⁿ
FV = $20,000,000 x (1 + 8.5%)²⁵ = $153,735,247
2) the value in 12 years = $20,000,000 x (1 - 30%) = $14,000,000
future value = present value x (1 + interest rate)ⁿ
$153,735,247 = $14,000,000 x (1 + interest rate)¹³
(1 + interest rate)¹³ = $153,735,247 / $14,000,000 = 10.981
¹³√(1 + interest rate)¹³ = ¹³√10.981
1 + interest rate = 1.2024
interest rate = 1.2024 - 1 = 20.24%
3) if the fund only earns 6%, in 13 years it will be worth:
FV = $14,000,000 (1 + 6%)¹³ = $29,860,996
so you need $153,735,247 - $29,860,996 = $123,874,251 more
we need to use the future value of an annuity formula:
FV of an annuity = annuity payment x annuity factor
FV of an annuity = $123,874,251annuity payment = ?annuity factor (6%, 13 periods) = 18.882annuity payment = $123,874,251 / 18.882 = $6,560,441
One significant way that blacks were able to enjoy economic independence was by settling in the West on federally provided public land.
a. True
b. False
Costs that are capitalized because they are expected to have future value are called product costs; costs that are expensed are called period costs. This classification is important because it affects the amount of costs expensed in the income statement and the amount of costs assigned to inventory on the balance sheet. Product costs are commonly made up of direct materials, direct labor, and overhead. Period costs include selling and administrative expenses.
A service company has which of the following costs
a. Direct Material
b. Overhead Costs
c. Product Costs
d. Expensed in the period incurred
Answer:
b. Overhead Costs
d. Expensed in the period incurred
Explanation:
-Direct material refers to the cost of the material used to manufacture a product.
-Overhead costs are the costs related to the operation of the business and they can't be assigned to a good or service.
-Product Costs are the costs to manufacture a product.
-Expensed in the period incurred are the period costs which are costs not related to the production of a good.
According to these definitions, a service company has the following costs: overhead costs and expensed in the period incurred because these are costs that are not related to the creation of a product.
On the other hand, the other options direct material and product costs are not right because these costs are directly related to products.
(1) You go to Seven-11 and see the price of a super Slurpee quoted as $1.39. (2) You buy the super Slurpee and pay with $1.39 in cash. In the first instance money serves as ___________, while in the second instance money serves as ___________.
Answer:
In the first instance money serves as Measure of Value, while in the second instance money serves as Medium of Exchange.
Explanation:
The measure of value and medium of exchange are two of the functions of money which are explained as follows:
a) Measure of Value
The function of money as a measure of value permits all goods and services to be attached prices. That is, every commodity is valued in terms of money. Therefore, money gives the opportunity to compare values of goods and services. Measure of value is also referred to as a unit of value.
From the question, the function of money as a measure of value is what permits Seven-11 to quote a super Slurpee as $1.39.
b) Medium of exchange
The function of money as a medium of exchange provides the opportunity use money as an intermediary instrument in order to ensure goods and services purchased, sold or traded between parties at a standard value. This is different from what obtained under the trade by barter in which commodities had to be exchanged for commodities without any standard value.
From the question, the function of money as a medium of exchange allows an amount of $1.39 which is a standard value was exchanged for the super Slurpee.
Answer:
(1) Unit of Account
(2) Medium of Exchange
Explanation:
(1) A unit of account is the measure in which prices are quoted. Thus, when the price of the super Slurpee is quoted in dollars, money functions as a unit of account.
(2) A medium of exchange is what people trade for goods and services. Thus, when you buy the super Slurpee, you are offering the $1.39 in exchange for the super Slurpee. Money here serves as a medium of exchange.
Optimal order quantities exist when the curves for the order-processing cost per unit and inventory-carrying cost per unit ________.
Answer:intersect
Explanation:
The optimal order quantity is also referred to as the economic order quantity. It is used to know the optimal quantity that need to be ordered in order to avoid wastage and also reduce cost. It is a cost-effective strategy.
Optimal order quantities exist when the curves for the order-processing cost per unit and inventory-carrying cost per unit intersect.
A publishing company sells 1,250,000 copies of certain books each year. It costs the company $1 to store each book for a year. Each time it must print additional copies, it costs the company $250 to set up the presses. How many books should the company produce during each printing in order to minimize its total storage and setup costs
Answer:
The Company should produce 25,000 books
Explanation:
The production size that minimizes total storage and setup costs is known as the optimum batch size.
Optimum batch size = √(2 × Annual Production Demand × Set up Cost) / Storage Cost per unit
= √ (2 × 1,250,000 × $250) / $1
= 25,000 books
Conclusion :
The Company should produce 25,000 books during each printing in order to minimize its total storage and setup costs.
Firm J has net income of $77,605, sales of $935,000, and average total assets of $467,500. Required: Calculate Firm J’s margin, turnover, and return on investment (ROI).
Answer:
Firm J's margin= 8.3%
Firm J's turnover= 2
Firm J's ROI= 16.6%
Explanation:
Form J has a net income of $77,605
The sales is $935,000
The average total assets is $467,500
Firm J's margin can be calculated as follows
Margin= Net income/sales
= $77,605/$935,000
= 0.083×100
= 8.3%
Firm J's turnover can be calculated as follows
Turnover= Sales/Average Total assets
= $935,000/$467,500
= 2
Firm J's return on investment can be calculated as follows
ROI= Net income/Average Total assets
= $77,605/$467,500
= 0.166×100
= 16.6%
Hence Firm J's margin, turnover and return on investment is 8.3%, 2 and 16.6% respectively.
ZZZ-Best, Inc. recently issued $65 par value preferred stock that pays an annual dividend of $17. If the stock is currently selling for $76, what is the expected return of this preferred stock?
Answer:
r = 0.22368 or 22.368% rounded off to 22.37%
Explanation:
The expected or required rate of return on a preferred stock is the return provided by the stock in terms of dividend as a proportion of the current market price. The expected return on a preferred stock can be calculated as follows,
r = Dividend / current market price
r = 17 / 76
r = 0.22368 or 22.368% rounded off to 22.37%
Purvis Manufacturing, which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (6 pounds at $2 per pound) $12 Direct labor (2 hours at $12 per hour) $24 During the month of April, the company manufactures 300 units and incurs the following actual costs.
Direct materials purchased and used (1,850 pounds) $4,070
Direct labor (620 hours) $7,130
Compute the total, price, and quantity variances for materials and labor. Identify whether the variance is favorable or unfavorable?
Answer:
1. Actual Quantity = 1,850 pounds
Actual materials cost = $4,070
Standard rate per pound = $2
Standard Quantity = 6 pounds per unit * 300 units
Standard Quantity = 1,800
Standard materials cost = Standard Quantity * Standard rate per pound
Standard materials cost = 1,800 * $2
Standard materials cost = $3,600
1a. Total Materials Variance = Actual materials cost - Standard materials cost
Total Materials Variance = $4,070 - $3,600
Total Materials Variance = $470 Unfavorable
1b. Materials Price Variance = Actual materials cost - Actual Quantity * Standard rate per pound
Materials Price Variance = $4,070 - 1,850 * $2
Materials Price Variance = $370 Unfavorable
1c. Materials Quantity Variance = Standard rate per pound * (Actual Quantity - Standard Quantity)
Materials Quantity Variance = $2.00 * (1,850 - 1,800)
Materials Quantity Variance = $100 Unfavorable
2. Actual labor hours = 620
Actual labor cost = $7,130
Standard rate per hour = $12
Standard labor hours = 2 hours per unit * 300 units
Standard labor hours = 600
Standard labor cost = Standard labor hours * Standard rate per hour
Standard labor cost = 600 * $12
Standard labor cost = $7,200
2a. Total Labor Variance = Actual Labor cost - Standard Labor cost
Total Labor Variance = $7,130 - $7,200
Total Labor Variance = $70 Favorable
2b. Labor Price Variance = Actual Labor cost - Actual labor hours * Standard rate per hour
Labor Price Variance = $7,130 - 620 * $12
Labor Price Variance = $310 Favorable
2c. Labor Quantity Variance = Standard rate per hour * (Actual labor hours - Standard labor hours)
Labor Quantity Variance = $12.00 * (620 - 600)
Labor Quantity Variance = $240 Unfavorable
If a bank that faces a 10% reserve ratio received a deposit of $50,000 and makes a loan to a customer for $5,000, what is the consequence if the bank then deposits the rest of the funds at the Federal Reserve?
Answer:
Excess reserve increases by $40,000
Required reserve increases by $5,000
Explanation:
In order to calculate the reserve, we need to multiply the Deposit received by a required reserve ratio.
DATA
Reserve ratio = 10%
Deposit received = $50,000
Loan to customer = $5,000
Solution
Reserve = Deposit x Required reserve ratio
Reserve = $50,000 x 10%
Reserve = $5,000
After providing a $5,000 loan to the customer and keeping $5,000 as a reserve remaining $40,000 would be deposited in the Federal Reserve.
Consider the following information and then calculate the required rate of return for the Global Investment Fund, which holds 4 stocks. The market’s required rate of return is 13.25%, the risk-free rate is 7.00%, and the Fund’s assets are as follows:(hint: market beta =1.0) Stock Investment Beta A $ 200,000 1.50 B 300,000 −0.50 C 500,000 1.25 D $1,000,000 0.75
Answer:
11.77%
Explanation:
total investment = $200,000 + $300,000 + $500,000 + $1,000,000 = $2,000,000
stock weight beta total
A $200,000 / $2,000,000 1.5 0.15
B $300,000 / $2,000,000 -0.5 -0.075
C $500,000 / $2,000,000 1.25 0.3125
D $1,000,000 / $2,000,000 0.75 0.375
Portfolio 0.7625
required rate of return = Rf + beta(Rm - Rf) = 7% + 0.7625(13.25% - 7%) = 11.7656% = 11.77%
Which of the following dimensions of entrepreneurial orientation is described as a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities?
A) proactiveness
B) risk taking
C) autonomy
D) competitive aggressiveness
Answer:
A) Proactiveness.
Explanation:
This explained to be a conceptual development in entrepreneurial orientation that enacts a degree of anticipation in product and also increase a productivity in the entrepreneurial sphere. Some undiluted descriptions shows it to be the introduction of results based on its qualitative study, which is been aimed at the characterizing of the proactiveness in entrepreneurial software firms. Experienced researched organizations has shown that the one which are related to environment monitoring and opportunities quest been highlighted are also core part of proactiveness.
An investor owns 5,000 shares, which is 1% of a corporation's outstanding stock before a stock repurchase. The investor did not sell any of his stock during the 25,000 share repurchase. Which one of the following statements is correct?
A. The investor still owns 1% of the corporation.
B. The stock's price is likely to drop by 5%.
C. The investor owns more than 1% of the corporation.
D. The investor now has 5,250 shares.
Answer:
C. The investor owns more than 1% of the corporation.
Explanation:
data provided in the question
Number of shares own = 5,000 shares
Outstanding stock percentage = 1%
Repurchased shares = 25,000
Based on the above information, the following statement is correct
i.e the investor owns more than 1% of the corporation as the A option, B and D options are incorrect and the option C is most appropriate option
A process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity is known as
Answer:
Bounded rationality.
Explanation:
This is explained to be a model that is been used in making choices between alternatives. Models of this kind brings about use of logic, analysis and objectivity always which appear over subjectivity and insight. In this particular model, approaches like Formulating of goal, decision making, identification of criteria for decision making, performing analysis etc are seen to make this model a better type of its kind. Here individuals who are seen to posses high cognitive ability are seen handling of decisions and making quality arrangements towards its actualization.
In a lot of cases, it is seen to not consider factors that cannot be quantified, such as ethical concerns or the value of altruism.
In a short-run model of a large open economy with a floating exchange rate, net capital outflow ______ as the domestic interest rate increases and is just equal to the ______ in net exports. Group of answer choices increases; decrease decreases; increase increases; increase decreases; decrease
Answer:
1. decreases
2. decrease
Explanation:
When Domestic interest rate increases, as a result of floating exchange rate, the net capital outflow decreases which in turn leads to most goods to be used internally, instead of exporting it abroad, there by reducing the level of exports.
Hence, All things being equal, it is assumed or believed that, In a short-run model of a large open economy with a floating exchange rate, net capital outflow DECREASES as the domestic interest rate increases and is just equal to the DECREASE in net exports.
Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in the LLC as compensation. Winterhaven currently has $43,000 of accounts payable and no other debt. The current fair market value of Winterhaven’s capital is $270,000. (Leave no answer blank. Enter zero if applicable.)
a. If Connie receives a 5 percent capital interest only, how much income must she report and what is her tax basis in the LLC interest?
Income ______
Tax Basis ______
b. If Connie receives a 5 percent profits interest only, how much income must she report and what is her tax basis in the LLC interest?
Income ______
Tax Basis ______
c. If Connie receives a 5 percent capital and profits interest, how much income must she report and what is her tax basis in the LLC interest?
Income ______
Tax Basis ______
Answer and Explanation:
a. Connie registers $13,500 of ordinary revenue or 5% of the LLC's $270,000 property. Her LLC investment base is $13,500 as well.
b. Connie does not disclose any profits but will have an interest rate equal to her share of the LLC 's debt in the LLC. Since debt from the LLC is a non-recourse loan, it needs to be distributed to her through interest on earnings from Connie. Therefore her investment in the LLC is equivalent to $2,150 or 5% of the $43,000 accounts payable by the LLC.
c. Connie reports $13,500 of ordinary revenue or 5 percent of the $270,000 capital of the LLC. Her LLC interest base is $13,500, too. Her base in the LLC is $15,650 consists of the $13,500 benefit she accepts for earning her capital gain and her $2,150 non-recourse tax payable from the LLC.
Due to numerous lawsuits, major chemical manufacturer has recently experienced a market reevaluation. The firm has 15-year, 8% coupon bond, paid semiannually and par value of $1,000. The required nominal rate (yield) on this debt has now risen to 10%. What is the current price of this bond?
Answer:
Bond Price = 846.2754897 rounded off to $846.28
Explanation:
To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 0.08 * 1/2 * 1000 = $40
Total periods (n)= 15 * 2 = 30
r or YTM = 10% * 1/2 = 5% or 0.05
The formula to calculate the price of the bonds today is attached.
Bond Price = 40 * [( 1 - (1+0.05)^-30) / 0.05] + 1000 / (1+0.05)^30
Bond Price = 846.2754897 rounded off to $846.28
Stephanie’s company uses a job order cost system. Stephanie just made a $15,000 debit to the Work in Process Inventory account for raw materials assigned to job 1074. Which of the following steps does Stephanie also need to complete?
A. Posting a $15,000 decrease in Direct Labor to the subsidiary ledger for job 1074.B. Posting a $15,000 increase in Direct Materials to the job cost sheet for job 1074.C. Posting a $15,000 increase in Direct Labor to the job cost sheet for job 1074.D. Posting a $15,000 increase in Raw Materials to the subsidiary ledger for job 1074.
Answer:
B. Posting a $15,000 increase in Direct Materials to the job cost sheet for job 1074
Explanation:
According to the given situation, Materials account of the specific work will be debited as costs are allocated to Jobs. Assigning those costs to operate would reduce the balance of inventories.
Therefore from the above explanation the correct answer is b as it has been posted $15,000 which is rising the direct material to the job cost sheet for job 1074.
Which of the following are assumptions of the sustainable (self-supporting) growth model? Check all that apply. The firm maintains a constant net profit margin. The firm’s liabilities and equity must increase at the same rate. The firm pays no dividends. The firm maintains a constant ratio of liabilities to equity.
Answer:
The firm maintains a constant ratio of liabilities to equity
Explanation:
The cost-recovery method of recognizing profit for accounting purposes is permitted if a. collections in the year of sale do not exceed 30% of the total sales price. b. an unrealized profit account is credited. c. there is no reasonable basis for estimating collectibility. d. the method is consistently used for all sales of similar merchandise.
Answer:
Correct Answer:
c. there is no reasonable basis for estimating collectibility.
Explanation:
The cost recovery method of revenue recognition is a concept in accounting that refers to a method in which a business does not recognize income related to a sale until the cash collected exceeds the cost of the good or service sold. When a situation present itself where there is no reasonable basis for estimating collectibility, it justifies the use of the cost recovery method of revenue and profit recognition.
The involvement by a company in more than one of the activities in the entire value chain from development through production, distribution, sales, and after-sales service is called ________. opportunity cost vertical integration relevant cost avoidable cost
Answer: vertical integration
Explanation: The integrating (to include as a constituent part or functionality) of successive stages in the production and marketing process under the ownership or control of a single management organization is known as vertical integration. As such, such a firm is usually involved in various activities in the entire value chain. This helps it reduce costs, ensure tighter quality control, as well as ensuring a better flow and control of information across the value chain.
perline, inc., has balance sheet equity of $6.2 million.At the same time, the income statement shows net income of $948600. The company paid dividends of $493272 and has 100000 shares of stock outstanding. If the benchmark PE ratio is 26, what is the target stock price in one year?
Answer:
The target stock price in one year is $264.75
Explanation:
We first calculate the ROE as below
ROE= Earnings / Book value of Equity
ROE= $948,600 / $6,200,000
ROE= 0.153
The payout ratio is:
b= Dividend / Net income
b = $493,272 / $948,600
b = 0.52
So the sustainable growth rate is:
g = ROE * (1-b)
g = 0.153 * (1-0.52)
g = 0.153 * 0.48
g = 0.07344
The earning in the first year are
EPS1 = $948,600 / 100,000 * (1 + 0.07344)
EPS1 = $9.486 * 1.07344
EPS1 = $10.1827
According to the benchmark PE ratio, the target stock price in one year is
Price = EPS1 * 26
Price = $10.1827 * 26
Price = $264.75
Booker Corporation had the following comparative current assets and current liabilities: Dec. 31, 2019 Dec. 31, 2018 Current assets Cash $60,000 $30,000 Short-term investments 40,000 10,000 Accounts receivable 55,000 95,000 Inventory 110,000 90,000 Prepaid expenses 35,000 20,000 Total current assets $300,000 $245,000 Current liabilities Accounts payable $140,000 $110,000 Salaries payable 40,000 30,000 Income tax payable 20,000 15,000 Total current liabilities $200,000 $155,000 During 2019, credit sales and cost of goods sold were $750,000 and $400,000, respectively. Compute the following liquidity measures for 2019:
Answer:
1. 1.5 Times
2.$100,000
3.0.775 Times
4.$75,000
5.$100,000
Explanation:
Liquidity ratios can be found by just simply putting the given values in their appropriate formulas. All you have to memorize is the simple formulas
1.Current Ratio
CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITIES
CURRENT RATIO = $300,000/$200,000
CURRENT RATIO = 1.5 Times
2. Working Capital
WORKING CAPITAL= CURRENT ASSETS- CURRENT LIABILITIES
WORKING CAPITAL= $300,000 - $200,000
WORKING CAPITAL= $100,000
3. Acid ratio
ACID RATIO = CURRENT ASSETS - INVENTORY - PREPAID EXPENSES/CURRENT LIABILITIES
ACID RATIO = ($300,000 - $110,000 - $35,000)/$200,000
ACID RATIO = 0.775 Times
4. Receivable turnover
RECEIVABLE TURNOVER = CREDIT SALES/AVERAGE RECEIVABLE
RECEIVABLE TURNOVER = $750,000/$75,000
RECEIVABLE TURNOVER = 10 Times
Working
AVERAGE RECEIVABLE = (Opening receivables+Closing receivables)/2
AVERAGE RECEIVABLE = ($55,000 + $95,000) / 2 = $75,000
5. Inventory Turnover
INVENTORY TURNOVER = COST OF GOODS SOLD / AVERAGE INVENTORY
INVENTORY TURNOVER = $400,000 / $100,000
INVENTORY TURNOVER = 4 Times
Working
AVERAGE INVENTORY = (Opening inventories+Closing inventories)/2
AVERAGE INVENTORY = (110,000 + 90,000)/2
AVERAGE INVENTORY = $100,000
Company A was sued by Company B. The management of Company A feels that it is probable that it will have to pay the full amount to Company 8. What is the effect of this contingent event on Company A's accounting equation?
a. Increase liabilities and decrease stockholders' equity.
b. Increase assets and increase stockholders' equity.
c. No effect on the accounting equation.
d. Decrease assets and decrease liabilities.
Answer: a. Increase liabilities and decrease stockholders' equity.
Explanation:
Contingent Liabilities are obligations that the company may owe if a future event happens such as them being ruled against in a case in court.
Contingent Liabilities are to be recorded in the financial statements only when it is probable that it will happen and that the amount to be paid is reasonably estimable.
Company A's management feels like the loss is probable and that they would have to pay the full amount to company B which means that the loss is both likely and estimable.
Company A should therefore increase their liabilities and debit loss which will come from the Equity thereby reducing it.
Some managers use _____, which provides four indicators with which organizations can set goals and measure performance.
Answer:
balanced scorecard
Explanation:
The term that is being mentioned in this question is known as a balanced scorecard. This is a strategic management performance metric that is used to measure and provide feedback to a company's management by identifying and improving different internal business functions and their outcomes, usually in regards to the employees themselves. An example of a balanced scorecard can be seen in the attached photo.
A portfolio with a 20% standard deviation generated a return of 10% last year when T-bills were paying 5.0%. This portfolio had a Sharpe ratio of ____. A. 0.45 B. 0.20 C. 0.25 D. 0.15
Answer:
0.25
Explanation:
A portfolio has a standard deviation of 20%
The portfolio also generated a return of 10%
T-bills were paying 5%
Therefore, Sharpe ratio of the portfolio can be calculated as follows
Sharpe ratio= 10-5.0/20
= 5/20
= 0.25
Hence the Sharpe ratio of the portfolio is 0.25
At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%; the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%
Answer:
Machine to select for maximum payoff:
Expected Outcomes:
A = $45,000 x 90% = $40,500
B = $80,000 x 50% = $40,000
C = $60,000 x 75 % = $45,000
C has the highest expected outcome of $45,000
Choose C.
Explanation:
Anticipated benefits:
A = $45,000 with pr = 90%
B = $80,000 with pr = 50%
C = $60,000 with pr = 75%
The expected benefit or outcome Machine A is obtained by multiplying the anticipated benefit with its probability of occurrence. This gives a value that has been weighed. The decision rule is to choose the machine with the highest outcome.
Which of the following statements is true of the new product development process? Question 8 options: 1) Commercialization is the process of inviting broad communities of people such as customers, employees, and scientists into the new product innovation process. 2) The purpose of the idea screening stage is to create a large number of ideas. 3) The concept testing stage is the stage at which the product and its proposed marketing program are introduced into realistic market settings. 4) Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage. 5) A product concept is the way consumers perceive an actual or potential product.
Answer: 4) Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage.
Explanation:
The Business Analysis stage of the New Product Development Process is a more in-depth analysis of the product to find out the viability of the product in the market and what it means for the firm.
Here the big questions are asked such as;
The Cost of the product to produceIf adequate profit will be generatedProjected market demandExisting competitors etcOnce these questions have been answered and other analysis made and the company is satisfied, the product can then move to the Product Development Stage.
It is true that under the business analysis stage, if a new product satisfies the company's objectives, it moves to the product development stage.
In a New Product Development Process, the Business Analysis stage entails in-depth analysis of the product to find out the viability of the product in the market and what it means for the firm.
The questions asked in the Business Analysis stage includes:
The Cost of the product to produce If adequate profit will be generated Projected market demand Existing competitorsIn conclusion, it is true that under the business analysis stage, if a new product satisfies the company's objectives, it moves to the product development stage.
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3. Explain how the employees of an American organization and Bangladeshi organization will be culturally different in terms of power distance, uncertainty avoidance, and masculinity-femininity inde
Answer:
Explanation:
POWER DISTANCE : This dimension deals with the fact that all individuals in societies are not equal – it expresses the attitude of the culture towards these inequalities amongst us. Power Distance is defined as the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally.
Bangladesh scores high on this dimension (score of 80) which means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat MASCULINITY : A high score (Masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in field – a value system that starts in school and continues throughout organisational life.
A low score (Feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A Feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (Masculine) or liking what you do (Feminine).
Bangladesh scores 55 on this dimension and can be considered a a Masculine society. In Masculine countries people “live in order to work”, managers are expected to be decisive and assertive, the emphasis is on equity, competition and performance and conflicts are resolved by fighting them out. UNCERTAINTY AVOIDANCE : The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the score on Uncertainty Avoidance.
Bangladesh scores 60 on this dimension and thus has an high score. Countries exhibiting high Uncertainty Avoidance maintain rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas. In these cultures there is an emotional need for rules (even if the rules never seem to work) time is money, people have an inner urge to be busy and work hard, precision and punctuality are the norm, innovation may be resisted, security is an important element in individual motivation.
"Frank bought a house for $100,000. He put 20% down and borrowed the rest from the bank. However, the value of the house has now increased to $160,000 and he has paid off $20,000 of the bank loan. What is the equity that Frank has in his home
Answer:
$100,000
Explanation:
The computation of the equity in his home is shown below;
Given that
Increased in the value of the house = $160,000
And, the amount he has to paid is
= Borrowed amount - down payment
= $80,000 - ($100,000 × 20%)
= $80,000 - $20,000
= $60,000
So, the equity is
= $160,000 - $60,000
= $100,000
hence, the equity value is $100,000
Answer:
The equity that Frank has in his home is $100000
Explanation:
The purchase price of house = $100000
The down payment = 20% or $100000 ×20% = $20000
The remaining amount paid by bank = $80000
The increased value of house = $160,000
Payment of loan amount = $20000
The Value of house is $160000 and he pays $20000 to the bank as a part of loan payment so reaming amount that he has to pay the bank is ($80000-20000) = $60000.
Thus, his equity will be $100000.