Answer:
Profit
Explanation:
Competitive Strategy can be regarded as as long term plan of a particular firm so that it can gain competitive advantage in the industry over its competitors . It is a way to set defensive position by a firm in particular industry. A firm that is in competitive market will definitely strive to maximize profits, which involves compititive strategy, The profit can be regarded as difference between total revenue and total cost of the firm. It should be noted that profit is a competitive strategy that provides organizations with a way to analyze their organizational environment and internal operations to create value.
Cal Lury owes $21,000 now. A lender will carry the debt for five more years at 6 percent interest. That is, in this particular case, the amount owed will go up by 6 percent per year for five years. The lender then will require that Cal pay off the loan over the next 13 years at 9 percent interest. What will his annual payment be
Answer:
$3,753.59
Explanation:
Value of debt at end of 5 years = $21,000 * (1 + 6%)^5
Value of debt at end of 5 years = $21,000 * 1.3382255776
Value of debt at end of 5 years = $28102.7371296
Value of debt at end of 5 years = $28,102.74
Let x be the annual payments:
x*[1 - (1 + 9%)^-13] / 9% = $28,102.74
x * [1-0.32617864688] / 0.09 = $28,102.74
x * 7.486904 = $28,102.74
x = $28,102.74 / 7.486904
x = 3753.58626
x = $3,753.59
Complete the proportion you can use to convert 60 inches to centimeters. Enter your answer with one decimal place. 1 inch 2.54 centimeters = 60 inches centimeters
Answer:
nothingbiy cu im gonna give you the rong anser yu cant cheat
Explanation:
A total materials variance is analyzed in terms of quantity and quality variances. tight and loose variances. price and quantity variances. buy and sell variances.
Answer:
price and quantity variances.
Explanation:
In Financial accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Manufacturing costs can be defined as the overall costs associated with the acquisition of resources such as materials and the cost of converting these raw materials into finished goods. Manufacturing costs include direct labor costs, direct materials cost and manufacturing overhead costs.
Total direct materials variance gives the difference between the budgeted cost and actual cost of a unit of goods produced.
Generally, a total materials variance is analyzed in terms of price and quantity variances used by a manufacturer in the manufacturing of a particular product.
A zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value. If stated interest rates are 5% annually (with monthly compounding) how much would you pay today for a zero-coupon bond with a face value of $1,900 that matures in 8 years
Answer:
Zero-cupon bond= $1,286
Explanation:
Giving the following information:
Interest rate= 5%
Face value= $1,900
Years to maturity= 8 years
To calculate the value of the bond, we need to use the following formula:
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,900 / (1.05)^8]
Zero-cupon bond= $1,286
Miracle Clean's variable costs are $3.00 per bottle and Fixed Expenses are $350,000 per year. The company currently sells 150,000 bottles for $6.50 which results in profit of $175,000. The company is considering raising the selling price to $7.00 per bottle which is expected to decrease sales by 20%. If the price is raised, the number of units that must be sold to keep the profits unchanged is
Answer:
131,250= number of units
Explanation:
Giving the following information:
We need to calculate the number of units to be sold to maintain a profit of $175,000.
Unitary variable cost= $3
Fixed expenses= $350,000
Selling price= $7
Net income= total contribution margin - fixed cost
175,000= number of units*(7 - 3) - 350,000
525,000 = number of units*4
525,000 / 4= number of units
131,250= number of units
Molly, a company mediator, had agreed to help Martin and Samir. The two men had been in constant disagreement ever since they became co-managers of the marketing department two months ago, and this disagreement was starting to impact all parts of the department. During a mediation session, Molly asked the men to explain their conflict over a recent business proposal. "Tell me exactly which part of the proposal is causing the issues," she instructed.
"Well," Samir started cautiously, "I grew up in Arizona, and I know that the Hispanic American community there sometimes does things differently from the way we do things here in New York. Martin wants to try to close the deal quickly, but I don't think that will work. We need to focus on building relationships. I'm afraid Martin's way of operating might cause some conflict with the client."
"But Samir's approach will take too long! Do you want to be successful or not?" Martin said.
By taking into account differences in the Hispanic American community's cultural orientation, Samir is considering their __________ when determining the proposal approach.
a) intercultural inventory
b) subculture
c) preferred conflict style
d) cross-culture
By taking into account differences in the Hispanic American community's cultural orientation, Samir is considering their subculture when determining the proposal approach. Thus, option B is the correct option.
In this context, Samir is recognizing that the Hispanic American community in Arizona has a distinct cultural background that influences their behaviors and preferences. This cultural background can be considered a subculture, which is a smaller cultural group within a larger culture, sharing certain norms, values, and practices that differentiate them from the dominant culture.
Samir is taking into account this subculture's perspective when considering the approach to the proposal, recognizing that their way of doing things might differ from the New York business norms.
Thus, option B is the correct option.
Learn more about subculture here:
https://brainly.com/question/28585493
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A. A stock's returns have the following distribution:
Demand for the
Company's Products Probability of This
Demand Occurring Rate of Return If
This Demand Occurs
Weak 0.1 (22%)
Below average 0.2 (12)
Average 0.3 17
Above average 0.2 33
Strong 0.2 56
1.0
Calculate the stock's expected return. Round your answer to two decimal places.
%
Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.
%
Calculate the stock's coefficient of variation. Round your answer to two decimal places.
B. A stock has a required return of 16%; the risk-free rate is 4.5%; and the market risk premium is 5%.
What is the stock's beta? Round your answer to two decimal places.
If the market risk premium increased to 7%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged. :
I. If the stock's beta is greater than 1.0, then the change in required rate of return will be greater than the change in the market risk premium.
II. If the stock's beta is less than 1.0, then the change in required rate of return will be greater than the change in the market risk premium.
III. If the stock's beta is greater than 1.0, then the change in required rate of return will be less than the change in the market risk premium.
IV. If the stock's beta is equal to 1.0, then the change in required rate of return will be greater than the change in the market risk premium.
V. If the stock's beta is equal to 1.0, then the change in required rate of return will be less than the change in the market risk premium.
New stock's required rate of return will be ?%. Round your answer to two decimal places.
Answer:
Following are the response to the given question:
Explanation:
For question 1:
The weighted average of each return is the expected return.
[tex]Expected\ return = 0.1 \times -0.22 + 0.2 \times -0.12 + 0.3 \times 0.17 + 0.2 \times 0.33 + 0.2 \times 0.56 \\\\[/tex]
[tex]= 0.1830 \\\\= 18.30\%[/tex]
For question 2:
Standard deviation is a measured source of the square deviations from the mean via probability.
[tex]Std \ dev = [0.1 \times (0.183-(-0.22))^2 + 0.2 \times (0.183-(-0.12))^2 + 0.3\times(0.183-0.17)^2 + 0.2\times (0.183-0.33)^2 + 0.2\times (0.183-0.56)^2]^{(\frac{1}{2})}\\\\[/tex]
[tex]= 0.2596 \\\\= 25.96\%[/tex]
For question 3:
For point a:
[tex]\text{Coefficient of variation} = \frac{std \ dev}{expected\ return} \\\\[/tex]
[tex]=\frac{0.2596}{0.183} \\\\= 1.42[/tex]
For point b:
As per the CAPM: [tex]\text{Required return = risk free rate + beta}\times \text{market risk premium}[/tex]
[tex]\to 16\% = 4.5\% + beta\times 5\%\\\\\to beta = 2.3[/tex]
In Option I:
When the beta of the stock exceeds 1.0, the change in the required rate of return must be higher than the increase in the premium of market risk. Beta is the degree to which stock return changes as market returns change.
[tex]\text{Required return = risk free rate + beta}\times \text{market risk premium}[/tex]
[tex]Required \ return = 4.5\% + 2.3\times 7\%\\\\Required \ return = 20.6\%\\\\[/tex]
Select financial statement data for two recent years for Davenport Company are as follows:
20Y5 20Y4
Sales $1,776,000 $1,020,000
Fixed assets: Beginning of year 720,000 640,000
End of year 760,000 720,000
a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round to one decimal place.
20Y5 20Y4
Fixed Asset Turnover Ratio
b. Does the change in the fixed asset turnover ratio from 20Y4 to 20Y5 indicate a favorable or an unfavorable change?
Answer:
20Y5 = 2.4
20Y4 = 1.5
It is favourable
Explanation:
Fixed asset turnover = revenue / average net fixed assets
Average fixed asset =( fixed asset at the beginning of year + fixed asset at the end of year) / 2
20y5 = (720,000 + 760,000) / 2 = 740,000
20y4 = (720,000 + 640000) / 2 = 680,000
Fixed asset turnover = $1,776,000 / 740,000 = 2.4
$1,020,000 / 680,000 = 1.5
the higher the ratio, the better for a firm. it means that less fixed asset is generating higher revenues
Flagstaff Company has budgeted production units of 9,000 for July and 9,200 for August. The direct labor requirement per unit is 0.50 hours. Labor is paid at the rate of $22 per hour. The total cost of direct labor budgeted for the month of August is:
Answer:
the total cost of direct labor budgeted for the month of August is $101,200
Explanation:
The computation of the total cost of direct labor budgeted is shown below:
Direct labor cost is
= 9,200 × .50 hours × $22 per hour
= $101,200
Hence, the total cost of direct labor budgeted for the month of August is $101,200
The same should be relevant
Assume , and suppose that is initially equal to 0. Suppose that the rate of unemployment is initially equal to the natural rate. In year , the authorities decide to bring the unemployment rate down to 3% and hold it there forever. b. Determine the rate of inflation in years , , , and . c. Do you believe the answer given in (b)
The question is incomplete. The complete question is :
Suppose that the Phillips curve is given by :
[tex]$\pi_t=\pi_t^e+0.1-2u_t$[/tex]
a). What is the natural rate of unemployment ?
Assuming [tex]$\pi_t^e=\theta \pi_{t-1}$[/tex] , and suppose that [tex]$\theta$[/tex] is initially equal to 0. Suppose that the rate of unemployment is initially equal to the natural rate. In year t, the authorities decide to bring the unemployment rate down to 3% and hold it there forever.
b). Determine the rate of inflation in years t, t+1, t+2 and t+5.
c). Do you believe the answer given in (b)? Why or why not?
Solution :
Given the equation :
[tex]$\pi_t=\pi_t^e+0.1-2u_t$[/tex]
a). At [tex]$u_N$[/tex], [tex]$\pi_t = \pi_t^e$[/tex] (Inflationary exponents are constant)
[tex]$0.1 = 2u_N$[/tex]
∴ [tex]$u_N=0.05$[/tex]
= 5%
b). [tex]$\pi t^e=\theta \pi_{t-1}$[/tex]
Let [tex]$\theta = 0$[/tex], then [tex]$\pi t^e = 0$[/tex], [tex]u-u_N=3\%[/tex]
Now for year t [tex]$\pi t^e=0, \pi_t= 0.1-2(0.03)=0.04=4\%$[/tex]
[tex]$(t+1) : \pi (t+1)^e=0, \pi (t+1) = \pi t = 4\%[/tex]
[tex]$= \pi (t+2)= \pi (t+5) = 4\%$[/tex]
c). No, I do not believe as
[tex]\pi t^e=0[/tex], but πt comes out to be 4%, [tex]$\pi (t+1)^e=0$[/tex] but [tex]\pi (t+1)= 4 \%[/tex].
If inflation is consistently positive, why to make the expectations of zero percentage.
Cape Corp. will pay a dividend of $3.60 next year. The company has stated that it will maintain a constant growth rate of 5 percent a year forever. a. If you want a return of 17 percent, how much will you pay for the stock
Answer:
$30
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
$3.6 / (0.17 - 0.05)
$3.60 / 0.12 = $30
Assume a sales price per unit of $10, variable cost per unit $6, and total fixed costs of $184800. What is the breakeven point in units
Answer:
The correct solution is "$462000".
Explanation:
The given values are:
Selling price per unit,
= $10
Variable cost per unit,
= $6
Now,
The contribution margin ratio will be:
= [tex]\frac{Selling \ price \ per \ unit-Variable \ cost \ oer \ unit}{Selling \ price \ per \ unit}[/tex]
By putting the values, we get
= [tex]\frac{10-6}{10}[/tex]
= [tex]\frac{4}{10}[/tex]
= [tex]0.4[/tex]
hence,
The break-even point will be:
= [tex]\frac{Fixed \ costs}{Contribution \ mar gin \ ratio}[/tex]
= [tex]\frac{184800}{0.4}[/tex]
= [tex]462000[/tex] ($)
In the liquidation of a partnership, any gain or loss on the realization of noncash assets should be allocated Group of answer choices first to creditors and the remainder to partners. to the partners on the basis of their capital balances. to the partners on the basis of their income-sharing ratio. only after all creditors have been paid.
Answer:
to the partners on the basis of their capital balances.
Explanation:
When the partnership is liquidated so any gain or loss that should be realized on non-cash asset should be distributed to the partners based on their capital balances. As at the time of gain or loss the sale of the non-cash assets should be distributed to the partners at their profit sharing ratio
therefore as per the given situation, the above represent the answer
Assume the single-factor model applies and a portfolio exists such that 65 percent of the funds are invested in risky Security Q and the rest in the risk-free asset. Security Q has a beta of 1.5. The portfolio has a beta of:________
a. 1.500.
b. .925.
c. .650.
d. .975.
e. 1.000.
Answer:
d. .975.
Explanation:
The computation of the portfolio beta is shown below;
Portfolio beta = Respective betas × Respective weights
= (0.65 × 1.5) + (0.35 × 0)
= 0.975 + 0
= 0.975
Hence, the portfolio has a beta of 0.975
We simply applied the above formula so that the correct beta could come
The outputs of a computerized accounting information system are called A. reports. B. software. C. processing. D. purchase invoices.
Answer:
Option A
Explanation:
In simple words, The numerous outputs of an accountancy information systems demonstrate the platform's flexibility in data processing. Accounts receivable ageing reports based on user knowledge, amortization plans for capital assets, and trial balancing for financial statements are all produced by an AIS.
This, from the above we can conclude that the correct option is A.
Short Answer 7: If the government announced that they were going to reduce the income tax next year, financed by finding a large and previously-unknown warehouse of real goods. What would happen to labor
Answer:
The labor would increase
Explanation:
When the government decides to lower the income tax in the coming year, which is financed by the findings of a large as well as a previously unknown warehouse for real goods, then there would be an increase in the labor as the reduction in the income tax would cause more and more investment. And thus organizations and firms increase their efficiencies and create more and more output by increasing the labor.
Lucy has decided to save for a vacation in 18 months. She will save the money into a short-term investment account returning 4% annually. How much will she have to put away at the beginning of each month if the vacation cost is $15,000
Answer:
Monthly deposit= $810.20
Explanation:
Giving the following information:
Number of periods (n)= 18 months
Interest rate (i)= 0.04/12= 0.0033
Future value (FV)= $15,000
To calculate the monthly deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (15,000*0.0033) / [(1.0033^18) - 1]
A= $810.20
Suppose that the production function is y= 9k^0.5 N^0.5. With this production function, the marginal product of labor is MPN= 4.5K^0.5 N^-0.5. The capital stock is K= 25. The labor supply curve is NS= 100[(1-t)w]^2, where w is the real wage rate, t is the tax rate on labor income, and hence (1-t)w is the after-tax real wage rate.
Required:
a. Assume that the tax rate on labor income, t, equals zero. Find the equation of the labor demand curve. Calculate the equilibrium levels of the real wage and employ- ment, the level of full-employment output, and the total after-tax wage income of workers.
b. Repeat part (a) under the assumption that the tax rate on labor income, t, equals 0.6.
Answer:
A) i) w/P = MPN , ( NS ) = 100[ (1-t) w]^2
ii) w = 1.5 , N = 225,
iii) y = 675 ,
iv) 337.5
B) i) ( NS ) = 100[(1-0.6)w]^2
ii) w = 2.372 , N = 90
iii) y = 426.91
iv) 85.839
Explanation:
Given data :
Production function ( y ) = 9k^0.5 N^0.5
MPN = 4.5k^0.5N^-0.5
capital stock ( K ) = 25
labor supply curve ( NS ) = 100[ (1-t) w]^2
assume P = 1
a) Determine
i) equation of labor demand curve = w/P = MPN
where; w = 22.5 N^-0.5 , N=506.25/(w^2)
labor supply curve ( NS ) = 100[ (1-t) w]^2
ii) equilibrium levels of real wage and employment
506.25/(w^2) = 100[(1-t)w]^2 ( equilibrium condition )
w ( equilibrium level of real wage ) = 1.5
equilibrium level of employment = 100[(1-t)w]^2 ; where t = 0 , w = 1.5
= 100 ( 1 * 1.5 )^2
N = 225
iii) level of full-employment y = 9k^0.5 N^0.5 ; where N = 225 , k = 25
= 9(25)^0.5 * (225)^0.5
y = 675
iv) Total after-tax wage income of workers
= w*N = ( 225 * 1.5 ) = 337.5
B) assuming t = 0.6
i) equation of labor demand curve
labor supply curve ( NS ) = 100[(1-0.6)w]^2 = 16 w^2
ii) equilibrium levels ; 16w^2 = 506.25/(w^2).
w( equilibrium real wage ) = 2.372
Equilibrium employment ( N )= 16 * ( 2.372 )^2 =90
iii) level of full employment y = 9k^0.5 * 90^0.5
= 9(25)^0.5 * 90^0.5 = 426.91
iv) Total after tax wage/income of workers
= (1-0.6)*2.372*90 = 85.839
Los Angeles Dodgers pitcher Clayton Kershaw has a seven year contract that gives him an average annual salary of $30.7 million. Assuming he starts 30 games in a season ( and his salary is solely for pitching, how much is he paid per game
noce ingle snte opu eyudrdo a
At the beginning of the year, American International had inventory worth $325,500 at cost. At the end of the year, the cost value of the inventory was $540,250. If annual cost of goods sold was $1,978,250 find the inventory turnover at cost for the year. (Round your answer to the nearest tenth) Group of answer choices
Answer:
Inventory turnover= 4.57
Explanation:
To calculate the inventory turnover, we need to use the following formula:
Inventory turnover= Cost of goods sold/ average inventory
Average inventory= (beginning inventory + ending inventory) / 2
Average inventory= (325,500 + 540,250) / 2
Average inventory= 432,875
Inventory turnover= 1,978,250 / 432,875
Inventory turnover= 4.57
Contingency approach notion
Answer:
Following are the responses to the given choices:
Explanation:
The contingency approach is also an organizational argument that assumes that the best way to manage, manage, or choice is not feasible. Instead, it is also the internally and externally situation that depends again on the best course of action.
It helps the manager improve leadership and decision-making. Emergency provides employees various options which enable people to grow & share their thoughts with the company. It helps develop the structure as an organizational structure and to design appropriate systems for data choices.
Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 115,200 $ 80,000 $ 18,000 $ 7,200 $ 4,000 $ 6,000 Percent uncollectible 1 % 3 % 5 % 8 % 11 % 1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. 2. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000 credit.
Answer:
Net Zero Products
1. The balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method is:
= $2,680.
2. The Adjusting Entry:
Debit Bad Debts Expense $1,680
Credit Allowance for Doubtful Accounts $1,680
To record bad debts expense and to bring the balance of the Allowance for Doubtful Accounts to a credit balance of $2,680.
Explanation:
a) Data and Calculations:
Days Past Due Total Percent Amount
AR Uncollectible Uncollectible
0 $80,000 1 % $800
1 to 30 $18,000 3 % 540
31 to 60 $7,200 5 % 360
61 to 90 $4,000 8 % 320
Over 90 $6,000 11 % 660
Total $ 115,200 $2,680
Allowance for Doubtful Accounts:
Unadjusted balance = $1,000
Adjusted balance 2,680
Bad Debts Expense = $1,680
Assume that total costs assigned to the setup activity cost pool in June are $60,000 and 50 setups were completed in June. Further, assume that during June machines were setup 12 times to make product G10. The total setup cost that would be assigned to product G10 would be:
Answer:
Allocated cost= $14,400
Explanation:
First, we need to calculate the allocation rate for setup:
Cost allocation rate= total estimated costs for the period/ total amount of allocation base
Cost allocation rate= 60,000 / 50
Cost allocation rate= $1,200 per setup
Now, we can allocate setup cost to G10:
Allocated cost= 1,200*12
Allocated cost= $14,400
Sheridan Company's prepaid insurance was $192000 at December 31, 2021 and $89600 at December 31, 2020. Insurance expense was $62000 for 2021 and $53300 for 2020. What amount of cash disbursements for insurance would be reported in Sheridan's 2021 net cash provided by operating activities presented on a direct basis
Answer:
$164,400
Explanation:
Calculation to determine What amount of cash disbursements for insurance would be reported in Sheridan's 2021 net cash provided by operating activities presented on a direct basis
Using this formula
Cash disbursements for insurance =2021 prepaid insurance +Insurance expense-BOY prepaid insurance
Let plug in the formula
Cash disbursements for insurance=$192,000+ $62,000-$89,600
Cash disbursements for insurance=$164,400
Therefore the amount of cash disbursements for insurance that would be reported in Sheridan's 2021 cash provided by operating activities presented on a direct basis is $164,400
You are now 20 years of age and decide to save $100 at the end of each month until you are 65. If the interest rate is 9.2%, how much money will you have when you are 65?
Answer:
FV= $804,326.91
Explanation:
Giving the following information:
Monthly deposit (A)= $100
Interest rate (i)= 0.092/12= 0.0077
Number of periods= 45*12= 540 months
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {100*[(1.0077^540) - 1]} / 0.0077
FV= $804,326.91
The annual demand of a product is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year. Calculate the optimal order quantity using the fixed-order quantity model. [Select the appropriate range in which your answer falls.]
Answer: 240
Explanation:
Since the annual demand of a product is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, then the optimal order quantity will be calculated as:
Optimal order quantity = √(2 × Annual demand × Ordering cost / Holding cost)
where,
Annual demand = 12000
Ordering cost = 6
Holding cost = 2.5
Optimal order quantity will be:
= √(2 × 12000 × 6/2.5)
== √(144000/2.5)
= ✓57600
= 240
Which of the following statements are true about the chart of accounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Answer:
The following statements are true about the chart of accounts:
a. Different companies use different charts of accounts based on individual company need.
c. The chart of accounts should be ordered in a logical sequence based on type of account.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Which of the following statements are true about the chart of accounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
a. Different companies use different charts of accounts based on individual company need.
b. The chart of accounts contains the balance of all of the accounts in a ledger.
c. The chart of accounts should be ordered in a logical sequence based on type of account.
d. The chart of accounts can be ordered in any sequence because they are not formal financial systems.
The explanation of the answer is now provided as follows:
A chart of accounts can be described as a list of financial accounts that an accountant sets up for an organization and makes available to the bookkeeper for inputting transactions into the general ledger.
Therefore, the chart of accounts for each account type should be organized in a logical sequence. Depending on the needs of the business, different organizations employ different charts of accounts.
Based on the explanation above, the following statements are true about the chart of accounts:
a. Different companies use different charts of accounts based on individual company need.
c. The chart of accounts should be ordered in a logical sequence based on type of account.
The cost of preferred stock is different from the cost of _____ because there is no maturity date on which principal must be paid.
Answer:
debt
Explanation:
One of the cheapest source used by organizations to finance their businesses after financing a debt they incurred is preferred stock.
Cost of preferred stock can be defined as the rate or price that a company pays their investors in return for the income generated through the issuance and sales of its stocks.
Generally, the cost of preferred stock is different from the cost of debt because there is no maturity date on which principal must be paid by the company to the investors.
On June 30, 2024, L. N. Bean issued $30 million of its 8% bonds for $28 million. The bonds were priced to yield 10%. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, how much bond interest expense should the company report for the 6 months ended December 31, 2024
Answer:
$1,400,000
Explanation:
Calculation to determine how much bond interest expense should the company report for the 6 months ended December 31, 2024
December 31, 2024 Bond interest expense = Carrying value * Effective interest rate/2
Let plug in the formula
December 31, 2024 Bond interest expense= $28,000,000 * 10% / 2
December 31, 2024 Bond interest expense= $1,400,000
Therefore the amount of bond interest expense should the company should report for the 6 months ended December 31, 2024 is $1,400,000
Product G10 used the following quantity of activity drivers to produce 100 units of final product: 12 setups 22 material moves, and 32 machine hours. The total ABC cost and unit ABC cost assigned to Product G10 is:
Complete Question:
Ace, Inc. has three activity pools which have the following costs: Machine setups $15,000 Material moves $22,000 Machine operations $14,000 The activity cost drivers (and driver quantity) for the three pools are, respectively, number of setups (100), number of material moves (220), and number of machine hours (175). Product G10 used the following quantity of activity drivers to produce 100 units of final product: 12 setups, 20 material moves, and 32 machine hours. The total ABC cost and unit ABC cost assigned to Product G10 is: Select one: A. $3,630 total ABC cost and $36.30 unit ABC cost B. $10,300 total ABC cost and $103. unit ABC cost C. $6,360 total ABC cost and $63.60 unit ABC cost D. $3,300 total ABC cost and $330 unit ABC cost
Answer:
Ace, Inc.
The total ABC cost is:
= $6,560 and
Unit ABC cost assigned to Product G10 is:
= $65.60.
Explanation:
a) Data and Calculations:
Activity Pools Costs Cost Drivers Activity Rate
Machine setups $15,000 number of setups (100) $150/setup
Material moves $22,000 number of material moves (220) 100/move
Machine operations $14,000 number of machine hours (175) 80/m.hr
Product G10
Number of units produced = 100
Machine setups cost = $1,800 (12 * $150)
Material moves cost = 2,200 (22 * $100)
Machine operations cost 2,580 (32 * $80)
Total ABC cost = $6,560
Unit ABC cost = $65.60 ($6,560/100)
