Answer:
Management
Explanation:
The Management of the company are appointed as stewards by the owners of the company (shareholders). They have a role in reporting the entity`s operations and ensuring that they provide a good return for the shareholders investments.
Anola Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:Cost Pool Estimated Cost Activity - Product A Activity - Product B Total ActivityActivity 1 $18,000 300 200 500Activity 2 $16,000 500 100 600Activity 3 $27,000 600 300 900The activity rate under the ABC system for Activity 3 is:
Answer:
Anola Company
Activity 3 rate under the ABC System is:
$30 per activity
Explanation:
a) Data and Calculations:
Cost Pool
Activity Estimated Cost Activity - Activity - Total
Product A Product B Activity
Activity 1 $18,000 300 200 500
Activity 2 $16,000 500 100 600
Activity 3 $27,000 600 300 900
Activity 3 rate = $27,000/900 = $30
b) The activity rate is the product of the estimated cost of the activity divided by the total activity under the activity cost pool.
c) Under ABC costing technique, costs are accumulated and allocated based on the volume of activity. This is to ensure that each cost unit is allocated a cost that measures with the level of activity for the unit. It eliminates arbitrary allocation of costs.
Describe the implications of a successful supply chain management strategy to a business in today's competitive global economy.
Answer:
There are some ramifications of a effective supply chains strategy approach for a company in today's dynamic world economy :-
1. Alignment of Supply Chain responsibilities:
The supply chain has too many layers of chains in service, and it is necessary to have a policy of distributing duties and responsibilities at all layers to minimize the sluggish cycle of working conditions.
2. Use of Technology:
The best technologies will improve supply chain processes and optimize production. You need to upgrade yourself with the latest software that is perfect and helpful for your company. One of the key benefits of effective discharge systems is the exposure of any piece somewhere in the global supply chain.
3. Alignment of Supply Chain responsibilities:
The supply chain has too many layers of chains in service, and it is necessary to have a policy of distributing duties at all layers to minimize the sluggish cycle of working conditions.
Under a _____ costing income statement, only variable costs are included in the computation of total cost per unit.
Answer:
Variable costing income statement
Explanation:
The Variable costing income statement only includes variable costs in the cost per unit product. Variable costs examples are raw materials, direct labor and other variable overheads.
The fixed manufacturing costs together with the non-manufacturing costs are treated as period costs and expensed in the period in which they are incurred.
Janice has car insurance that she must pay four times a year. If each payment is $156, how much money should she set aside each month to cover her car insurance?
Answer:
Cheap Florida Auto Insurance. Low Rates from $53.99 / Month!
Explanation:
The year-end adjusted trial balance of the Timmons Tool and Die Corporation included the following account balances: retained earnings, $310,000; dividends, $48,000; sales revenue, $970,000; cost of goods sold, $670,000; salaries expense, $150,000; rent expense, $47,000; and interest expense, $21,000. Prepare the necessary closing entries.
Answer:
1. Journal - Closing Entries
Date Account Titles Debit Credit
Sales Revenue $970,000
Income summary $970,000
(Closing of revenue account)
2. Closing the expenses accounts as necessary
Journal - Closing Entries
Date Account Titles Debit Credit
Income summary $888,000
Cost of goods sold $670,000
Salary expenses $150,000
Rent expenses $47,000
Interest expenses $21,000
(Closing of expenses account)
3. Closing net Income
Journal - Closing Entries
Date Account Titles Debit Credit
Income summary $82,000
Retained earning $34,000
Dividends $48,000
(Closing of net income)
Which one of the following statements regarding the task of staffing the organization in a manner that facilitates strategy execution is false or inaccurate?
A. The quality of an organization's people is always an essential ingredient of successful strategy execution--knowledgeable, engaged employees are a company's best source of creative ideas for the nuts-and-bolts operating improvements that lead to operating excellence
B. Without a smart, capable, results-oriented management team, the implementation-execution process ends up being hampered by missed deadlines, misdirected or wasteful efforts and/or managerial ineptness.
C. The overriding aim in building a management team should be to replace weak executives who lack strong skills in closely supervising the people who work under them
D. It is difficult for a company to competently execute its strategy and achieve operating excellence without recruiting and retaining a large band of capable, engaged, high-achieving employees
E. In turnaround and rapid-growth situations, and in instances when a company doesn't have insiders with the requisite know-how, filling key management slots from the outside is a standard organization-building approach
Answer: The overriding aim in building a management team should be to replace weak executives who lack strong skills in closely supervising the people who work under them
Explanation: The success of an organization is dependent on several factors including the presence of strategic and result oriented executive within its workforce. This is a vital and important aspect of building and organization capable of withstanding the competirmtuve nature of the market. Being strategic requires smartness, knowledge, experience, expertise and skills in other to make proactive suggestions required to execute groundbreaking projects.
Hence, based on the options provided above, the aim of strategic execution should not be focused on replacing executives who are perceived as being weak.
The sales strategy of getting at least one additional lead from each person interviewed is called selling deeper.a. Trueb. False
Answer:
True
Explanation:
If real gross domestic product (GDP) grew by 2 percent and the inflation rate was 2 percent, then nominal GDP grew by
Answer:
4%
Explanation:
If the real gross domestic product for the year grew by 2%
The inflation rate also grew by 2%
Then nominal GDP rate can be calculated as follows
= Real GDP + inflation rate
= 2% + 2%
= 4%
Hence the nominal gross domestic product grew by 4%
Collateralized mortgage obligation (CMO) tranche A has been created to have the most predictable near-term principal pay off. A tranche set up in this way will have
Answer: d. a lower yield
Explanation:
When a security is said to bring back predictable returns it means the security is of lower risk. A CMO tranche that has the most predictable near-term principal pay off is therefore the one with the a lower risk.
Riskier securities command higher yield than less riskier ones as a way to compensate the holder for taking on more risk. With tranche A having the lower risk, it will have a lower yield.
which method of entering a foreign market has a domestic firm actively managing a foreign company or overseas facility
Complete Question:
Which method of entering a foreign market has a domestic firm actively managing a foreign company or overseas facility?
Group of answer choices
A. joint venture
B. direct ownership
C. exporting
D. licensing
E. contract manufacturing
Answer:
B. Direct ownership.
Explanation:
Direct ownership is a method of entering a foreign market that has a domestic firm actively managing a foreign company or overseas facility.
Generally, it considered to be a good option when there exist similarities between the domestic and foreign cultures and when political risks associated with the market are very minimal or little.
However, direct ownership is considered to be the riskiest method of entering a foreign market and it typically requires more commitment from the business owner than any other method of entering a foreign market such as joint ventures, exporting, licensing, contract manufacturing, piggybacking, franchising etc.
Which of the following is one of the three standard sections of a governmental comprehensive annual financial report?
a) Statistical.
b) Single audit.
c) Actuarial.
d) Investment.
Answer:
a) Statistical.
Explanation:
The three standard sections of a governmental comprehensive annual financial report are:
IntroductoryFinancial: includes financial statements and notes Statistical: include statistical data about relevant financial information and trends, and how they relate to government activitiesc. If the marginal cost of a gallon of milk increases, how will the household respond?
A. The household will increase its consumption.
B. The household will decrease its consumption.
C. The household will continue to consume the same amount.
Answer:
If the marginal cost of a gallon of milk increases, how will the household respond?
C. The household will continue to consume the same amount.
Explanation:
The increase in the marginal cost of a gallon of milk will not greatly alter the quantity of milk consumed by a typical household. At this initial point when the marginal cost of a gallon of milk increases, the household is not affected because the seller has not shifted the cost to consumers. Even when the marginal cost increase is shifted to the consumers, the quantity required by the household remains the same. What may likely change at that stage is that the price at which the a household buys a gallon of milk increases marginally. The marginal increase will not distort demand for milk but households can change brands and not the quantity of milk, or at worst, they pay a higher price for a gallon.
A stock had returns of 16 percent, 12 percent, 19 percent, 17 percent, 18 percent, and -1 percent over the last six years.
What is the arithmetic return for the stock?
What is the geometric return for the stock?
Answer:
What is the arithmetic return for the stock?
arithmetic returns basically refer to the mean (or average) of the returns = (16% + 12% + 19% + 17% + 18% - 1%) / 6 = 81% / 6 = 13.5%What is the geometric return for the stock?
geometric returns involves multiplying the returns and then squaring them = ⁶√(1.16 x 1.12 x 1.19 x 1.17 x 1.18 x 0.99) - 1 = 1.1328 - 1 = 0.1328 = 13.28%Normally, geometric returns are lower than arithmetic returns, and they represent compounding rates.
When a DSS is built, used successfully and integrated into the company's business processes, it was most likely built for a(n)
Answer:
recurrent decision
Explanation:
In such a scenario, it was most likely built for a recurrent decision. This is because a DSS stands for a decision support system and is an information system that supports organizational decision making as well as many business activities in order to allow a company to improve the overall quality, reliability, and efficiency of their work through recurrent decisions.
Three groups that participate in the process of establishing GAAP are users, preparers, and auditors. These groups are represented by various organizations. For each organization listed below, indicate which of these groups it primarily represents.
1. Securities and Exchange Commission
2. Financial Executives International
3. American Institute of Certified Public Accountants
4. Institute of Management Accountants
5. Association of Investment Management and Research
E 1-5 Participants in establishing GAAP. Three groups that participate in the process of establishing GAAP are users, preparers, and auditors.
Answer:
The name of a group is based on whether the group is a user of GAAP or a preparers of GAAP or an auditor of GAAP
The group which an organization represents should be indicated as follows:
Organisation Group
1. Securities and Exchange Commission Preparers
2. Financial Executives International Users
3. American Institute of Certified Public Auditors
Accountants
4. Institute of Management Accountants Users
5. Association of Investment Management Users
and Research
What if the names had not been typed at the bottom of the e-mails?
A. The contract.
B. Select be enforceable.
Answer:
The contract would not be enforceable
Explanation:
If the names had not been typed at the bottom of the e-mails the contract would not enforceable. This is because an acceptable way of signing a legal agreement via email is appending your name at the bottom of the email. Therefore, if the names are missing in an electronic mail agreement, such agreement would not be enforceable. Also, name in itself is a form of signature at times written in a stylish way.
One of a company's main objectives in managing its supply chain is to make the flow of incoming materials and parts independent of production and downstream distribution.
A. True
B. False
Answer:
False
Explanation:
A company manages its supply chain activities in the most efficient way possible. This means that the supply chain is managed in a way that there is no wastage of resources.
In order to achieve this, the supply of process materials has to take into consideration the process activities and production schedules of the company. The supply chain cannot be independent of the production and downstream distribution. If the supply chain is independent of the production and downstream distribution, there will be a lot of wastage during periods of low production.
Lee Company purchased goods from Kelly with the following terms and details. Sales price, $6,000 Terms, (4/10, n/30) Date of sale, January 1 Date of payment, January 14 Shipping, FOB Destination, $115, prepaid by seller Determine if Lee, the buyer, qualifies for a cash discount, and who pays for shipping, Lee or Kelly.
Answer:
the question is not very clear about when the goods arrived at Lee Company. The discount term starts to count as soon as the goods are delivered since this is a FOB destination sale (title passes only after goods are delivered to the buyer's warehouse).
Assuming that the goods were delivered the same day as they were shipped, January 1, the discount period ends January 11. Since the payment was done on January 14, there is no cash discount.
Since this is a FOB destination sale, the freight charges are paid by the seller (Kelly).
You verbally promise to pay your sister tomorrow the $25 that you owe her. This promise however, is not a negotiable instrument because:
Answer:
It is not in writing is the answer
Explanation:
A certain contingency benefits the seller. Whose consent is needed to remove this contingency?
Answer:
seller.
Explanation:
A contingency is a term often used in real estate, to describes a form or set of conditions or clauses that must be fulfilled by either one or both of the parties, that is either buyer or seller or both of them, prior to the sales of estate properties.
While in most cases, contingency benefits the buyer, however, in a situation it benefits the seller, it is the seller's consent that is needed to remove the contingency.
The market consensus is that Analog Electronic Corporation has an ROE = 9%, a beta of 1.25, and plans to maintain indefinitely its traditional plowback ratio of 2/3. This year’s earnings were $3 per share. The annual dividend was just paid. The consensus estimate of the coming year’s market return is 14%, and T-bills currently offer a 6% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Calculate the P/E ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Calculate the present value of growth opportunities. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to 1/3. Find the intrinsic value of the stock.
Answer:
a. Analog stock should sell at $10.60.
b. Trailing P/E ratio is 3.53, and Leading P/E ratio is 3.33.
c. The present value (PV) of growth opportunities is -$9.28.
d. The intrinsic value of the stock is $15.85.
Explanation:
From the question, we have the following:
ROE = 9%
b = beta = 1.25
pr = Plowback ratio = 2/3 = 0.67
dpr = dividend payout ratio = 1- pr = 1/3 = 0.33
e0 = This year’s earnings per share = $3
mr = The coming year’s market return = 14%
tr = T-bills return = 6%
Therefore, we can now have:
a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
This can be estimated by employing the following formula:
P0 = d * (1 + g) / (r - g) …………………………. (1)
Where;
P0 = Stock Price = ?
d = dividend per share = e0 / dpr = $3 / (1 / 3) = $1
g = Sustainable growth rate = ROE * pr = 9% * 2/3 = 0.06
rf = Risk free rate = Return on T-bills = 6%
b = Beta = 1.25
mr = Market return = 14%
r = Required return on Equity = rf + b * (mr - rf) = 6% + 1.25 * (14% - 6%) = 0.16
Substituting the values into equation (1), we have:
P0 = $1 * (1 + 0.06) / (0.16 – 0.06)
P0 = $1 * 1.06 / 0.10
P0 = $10.60
b. Calculate the P/E ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
P/E ratio can be Trailing P/E ratio or Leading P/E ratio as follows:
Trailing P/E ratio = P0/E0 = $10.60 / $3 = 3.53
Leading P/E ratio = P0/e1 ………………………………………. (2)
Where;
e1 = e0 * (1 + g) = $3 * (1 + 0.06) = 3.18
Substituting the values into equation (2), we have:
Leading P/E ratio = $10.60 / 3.18 = 3.33
c. Calculate the present value of growth opportunities. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
P0 = e1 / r + pvgo …………………………………… (3)
Where pvgo denotes present value of growth opportunities.
Since already obtained P0, e1 and r in part a and b, we just substitute them equation (3) and solve for pvgo, we have:
$10.60 = $3.18 / 0.16 + pvgo
$10.60 = $19.875 + pvgo
pvgo = $10.60 - 19.875
pvgo = -$9.28
d. Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to 1/3. Find the intrinsic value of the stock.
The intrinsic value of a stock refers to the stock price based only on the internal factors of a company.
Base on this new information, we have the following:
g = ROE * pr = 9% * (1 / 3) = 3%
dpr = 1 – pr = 1 - 1/3 = 2/3
d = dividend per share = e0 / dpr = $3 / (2 / 3) = $2
P0 = d * (1 + g) / (r - g) = $2 * (1 + 3%) / (0.16 – 3%)
P0 = $2 * (1 + 3%) / (0.16 – 3%)
P0 = $15.85
Therefore, the intrinsic value is $15.85.
Sophia Martin's goal has been to travel around the world. She has now been traveling for six months and she has decided she is a little tired of living out of a suitcase. She has decided to go home, look for a part time job, and take shorter trips to locations around the world that appeal to her. Which step in the financial planning process does this scenario most likely demonstrate?
Answer:
Identifying alternative course of action
Explanation:
In this scenario Sophia made an initial financial plan in which she would travel around the world.
As she gets tired of this line of action she can identify other activities that will better suit her. So when she decides to go home, look for a part time job, and take shorter trips to locations around the world that appeal to her. She is identifying alternative course of action.
This new action will eventually have financial implications when implemented. In this case coming home and making only short trips will save her more money. She will also get money from her job.
for 2018 rahals auto parts estimates bad debt expense at 1% of credit sales. rahals bad debt expense is
Answer:
the question is incomplete, so I looked for the missing information:
The company reported accounts receivable and an allowance for uncollectible accounts of $86,500 and $2,100, respectively, at December 31, 2020. During 2021, Rahal's credit sales and collections were $404,000 and $408,000, respectively, and $2,340 in accounts receivable were written off. Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021, is:_________
accounts receivables at the end of the year = $86,500 + $404,000 - $408,000 - $2,340 = $80,160
bad debt expense = (total credit sales x 1%) + beginning balance of uncollectible accounts - bad debt written off = ($404,000 x 1%) + $2,100 - $2,340 = $3,800
The profit-maximizing rule for a firm hiring both labor (L) and capital (C) under conditions of imperfect competition is g
Answer:
the least cost rule
Explanation:
Imperfect markets are those where all the conditions for perfect markets don't exist. In perfect markets, the profit maximizing rule for hiring labor is that you will continue to add labor until marginal revenue product = marginal cost of labor. The same applies for capital or land which are the other factors of production.
But on imperfect markets, this is not that clear, the equation in this case would be:
least cost rule ⇒ marginal product of labor / marginal cost of labor = marginal product of capital / marginal cost of capital
________ make tactical decisions, which deal with activities such as short-term planning, organizing, and control.
Answer:
Middle managers.
Explanation:
A middle manager refers to an individual who acts as an intermediary between the executive management (top or senior) and the lower (junior) level staffs in an hierarchical organization.
Middle managers make tactical decisions, which deal with activities such as short-term planning, organizing, and control. They are saddled with the responsibility of controlling and supervision of their subordinates (junior employees), as well as presenting innovative ideas and opportunities to the executive management team.
Match the following regulations to their appropriate categories.a. Non-compatible materials must be segregated in storage b. It must be stacked on level and solidly supported sills c. All materials stored in tiers must be stacked, racked, blocked, interlocked or otherwise secured to prevent sliding, falling or collapse d. Keep storage areas free from accumulated materials that cause tripping, fires or explosions, or that may contribute to harboring rats and pests 1. Lumber material storage 2. Special type material storage 3. General material storage 4. Housekeeping
Answer:
a. Non-compatible materials must be segregated in storage - Special type material storage
Non-compatible materials means that materials are of a special type and not of the normal ones used and so this regulation relates to Special type material storage
b. It must be stacked on level and solidly supported sills - Lumber material storage
For lumber not to get damaged it needs to be stored in a certain way being that it should be stacked on level and solidly supported sills so this relates to Lumber storage.
c. All materials stored in tiers must be stacked, racked, blocked, interlocked or otherwise secured to prevent sliding, falling or collapse. - General material storage
This relates to general material storage as it is a standard method of storage aimed at preventing potential dangers.
d. Keep storage areas free from accumulated materials that cause tripping, fires or explosions, or that may contribute to harboring rats and pests. - Housekeeping
Housekeeping is done to keep the storage as free from calamity as possible so this regulation falls here.
What are sources of income that can be used for debt service on municipal revenue bonds?
Answer:
Municipal Revenue bonds are bonds that are serviced from the income accrued from a project that the bond was used to embark on.
They can therefore be serviced by a variety of income methods that accrue from the projects such as;
User fees for using the asset builtSpecial taxes Lease rentals in cases where the asset is leased outExcise taxes Other Non Ad-valorem taxes that result from benefits attached to usage of the asset built.You manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 28%. The T-bill rate is 8%.
A. Your client chooses to invest 70% of a portfolio in you fund and 30% in an essentially risk-free money market fund. What is the expected value and standard deviation of the rate of return on his portfolio?
B. Suppose that your risky portfolio includes the following investments in the given proportions:
Stock A 25%
Stock B 32%
Stock C 43%
What are the investment proportions of your client's overall portfolio, including the position in T-bills?
C. What is the reward-to-volatility (Sharpe) ratio (S) of you risky portfolio? Your clients?
D. Draw the CAL of your portfolio on an expected return-standard deviation diagrm. What is the slop of the CAL? Show the position of your client on your fund's CAL.
Answer:
a) the expected value (rate of return) is 15% and standard deviation of the rate of return on his portfolio is 19.6%
b)
17.5% in Stock A,
22.4% in Stock B,
30.1% in Stock C.
The fraction invested in T-bills is 30%.
c)
The reward to visibility ratio = 35.7 %
client's portfolio offers the same reward to visibility ratio = 35.7%
d)
the CAL is drawn in the image uploaded along this answer,
the slope of the CAL is the reward to visibility ratio, i.e 35.7%. The client's portfolio is the one providing an expected return E[rc] and standard deviation σc.
Explanation:
a)
Let c represent client’s portfolio and f represent money-market fund while p represent the risky portfolio.
so
E[rc] = E[70%rp + 30%rf ] = 70%Erp + 30%rf
= (70/100 × 0.18) + (30/100 × 0.08) = 15%
∴ the expected value (rate of return) is 15%
Since σf = 0,
standard deviation of client’s portfolio is calculated as;
σc = 0.7σp
σc = 0.7 × 0.28 = 19.6%
∴ standard deviation of the rate of return on his portfolio is 19.6%
b)
we know that portfolio c is 70% invested in p, which means
70/100 × 0.25 = (0.175) 17.5% in Stock A,
70/100 × 0.32 = (0.224) 22.4% in Stock B,
70/100 × 0.43 = (0.301) 30.1% in Stock C.
The fraction invested in T-bills is 30%.
c)
The reward to visibility ratio of fund is given as
(E(rp) - rf) / σp = (0.18 - 0.08) / 0.28 = ( 0.357) = 35.7 %
Now the client's portfolio offers the same reward to visibility ratio
(E(rc) - rf) / σc = (0.15 -0.08) / 0.196 = ( 0.357) = 35.7 %
d)
the CAL is drawn in the image uploaded along this answer,
the slope of the CAL is the reward to visibility ratio, i.e 35.7%. The client's portfolio is the one providing an expected return E[rc] and standard deviation σc.
"An investor purchases $10,000 worth of marginable stock in his margin account. If the investor wishes to pay for this trade using $5,000 of fully paid marginable stock, how much more in cash, if any, will the investor need to deposit?"
Answer:
The investor needs to deposit cash of $5,000.
Explanation:
a) Data and Calculation:
Worth of marginable stock in the margin account = $10,000
Fully paid marginable stock = $5,000
Cash deposit required = $5,000 ($10,000 - $5,000)
b) An investor's margin account is a brokerage account which an investor opens with his or her broker to enable him or her to purchase more securities using the broker's funds (on loan). For instance, the investor can deposit at least half of the funds required to purchase the securities, while the broker lends the investor the balance. This arrangement gives the investor some leverage to purchase more securities than he could afford with his or her own funds. The broker charges the investor some interest for the loaned funds. If the securities appreciate in value, the investor gains, but if they depreciate, he loses money on the margin account.
if you put 7250 in the atm each day, what percent of the days in a month should you expect to run out of cash
Available Question:
If you put $7850 in the ATM each day, what percent of the days in a month should you expect to run out of cash?
nothing%
(Round to the nearest tenth as needed.)
Data set: (00s)
54 92 70 59 66 75 80 90 86 72
76 71 55 64 70 65 66 78 70 83
67 70 70 71 80 72 74 60 81 71
Answer:
23.3%
Explanation:
In the given set, there are only 7 days in which I will run out of cash because the withdrawal is more than $7850.
As we know that:
Probability of running out of Cash = (Relevant Event Occurrence / Total number of events) * 100%
Here
Relevant Event Occurrence is 7 (92, 80, 90, 86, 83, 80, 81)
Total number of events are 30
By putting values, we have:
Probability of running out of Cash = 7 / 30 * 100% = 23.3%