Answer:
A. True
Explanation:
In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;
I. Value.
II. Vision.
III. Mission.
Basically, strategic controls are subjective criteria that are developed by a business firm so as to verify and ensure that the business firm has implemented the appropriate strategies for the conditions in the external environment and the competitive advantages of the business firm.
A firm sells two products, Regular and Ultra. For every unit of Regular sold, two units of Ultra are sold. The firm's total fixed costs are $1,612,000. Selling prices and cost information for both products follow. The contribution margin per composite unit is: Product Unit Sales Price Variable Cost Per Unit Regular $ 20 $ 8 Ultra 24 4 Multiple Choice
Answer:
$12
$20
Explanation:
contribution margin = price - variable cost
20 - 8= 12
24 - 4 = 20
Lighting design personnel must: A. Understand environmental, cost, and associated benefits of energy-efficient lighting B. Recognize when specialized knowledge is necessary C. Estimate energy cost savings D. All of the above
Answer: All of the above
Explanation:
The Lighting Design Personnel is in charge of the designing, the installation, and the operation of lighting and every other special electrical effects.
Such person must understand environmental, cost, and associated benefits of energy-efficient lighting. Also, he or she must be bake to recognize when specialized knowledge is necessary and also estimate energy cost savings
Therefore, the correct option is all of the above.
In marketing, we use which terms? (needs, wants, or demands). Why?
Answer:
needs are things that satisfy the basic requirement. Wants are requests directed to specific types of items.
what is another name for advertising?
Answer:
commercial, message, pitch
Explanation:
yes
Using the GLOBE study results and other supporting data, determine what Japanese managers believe about their subordinates. How are these beliefs similar to those of U.S. and European managers? How are these beliefs different?
Airline Accessories has the following current assets: cash, $93 million; receivables, $85 million; inventory, $173 million; and other current assets, $9 million. Airline Accessories has the following liabilities: accounts payable, $80 million; current portion of long-term debt, $26 million; and long-term debt, $14 million. Based on these amounts, calculate the current ratio and the acid-test ratio for Airline Accessories. (Enter your answers in millions, not in dollars. For example, $5,500,000 should be entered as 5.5.)
Answer:
See below
Explanation:
1. The current ratio is the sum of current assets divided by current liabilities. It used to measure the ability of the airlines accessories to meet its short term obligation due within a year
Current ratio = $93 million + $85 million + $9 million / $80 million + $26 million
Current ratio = $187 million / $106 million
Current ratio = 1.76:1
Current ratio = 1.76 times
2. Acid test ratio. This measure liquidity but with adjustment for risky current assets i.e Inventory
Acid test ratio = Current assets - Inventories / Current liabilities
Acid test ratio = ($187 million - $173 million) / $106 million
Acid test ratio = $14 million / $106 million
Acid test ratio = 0.13:1
Acid test ratio = 0.13 times
What is the effective annual interest rate of an investment that pays 14.75% per year with a compound frequency n= 2? (Answer percentage rounded to second decimal place).
Answer:
15.29%
Explanation:
r = Interest rate = 14.75%
m = Number of times compounding in a year = 2
Effective Annual Rate = (1 + r/m)^m - 1
Effective Annual Rate = (1 + 0.1475/2)^2 - 1
Effective Annual Rate = 1.07375^2 - 1
Effective Annual Rate = 1.1529390625 - 1
Effective Annual Rate = 0.1529391
Effective Annual Rate = 15.29%
So, the effective annual interest rate of the investment is 15.29%
The forecasted sales pertain to Arrow Corporation: Month Sales September $400,000 October 320,000 Finished Goods Inventory (August 31): 28,000 Arrow Corporation has a selling price of $5 on all units and expects to maintain ending inventories equal to 25 percent of the next month's sales. How many units does Arrow expect to produce in September
Answer:
68,000 units
Explanation:
The computation of the number of units that produced in september is given below;
The sales units at September is
= $400,000 ÷ 5
= 80,000 units
And, the october sales units is
= $320,000 ÷ 5
= 64,000 units
So, the production should be
= Ending finished units + sales units - beginning finished units
= (25% of 64,000 units) + 80,000 units - 28,000 units
= 16,000 units + 80,000 units - 28,000 units
= 68,000 units
Do government statisticians calculate GDP by simply adding up the total sales of all business firms in one year? Explain.
Answer:
No
Explanation:
No, because the gross domestic product is determined by encompassing the final product. If the total sales are used to determine the GDP then the false value of GDP will come up because the problem of double counting will arise. Many firms sell their goods to other firms which is intermediate goods for the other firms.
Gerry works 40 hours a week managing Gerry’s Market, without drawing a salary. He could earn $600 a week doing the same work for Jean. Gerry’s Market owes its bank $100,000, and Gerry has invested $100,000 of his own money. If Gerry’s accounting profits are $1,000 per week while the interest on his bank debt is $200 per week, his economic profits are:
Answer:
The correct response is "$395 per week".
Explanation:
Given:
Salary forgone,
= $600
Dividend forgone,
= $5
Accounting profit,
= $1,000
Now,
The implicit cost will be:
= [tex]Salary \ forgone+Dividend \ forgone[/tex]
By substituting the values, we get
= [tex]600+5[/tex]
= [tex]605[/tex] ($) per week
hence,
The economic profit will be:
= [tex]Accounting \ profit-Implicit \ cost[/tex]
= [tex]1000-605[/tex]
= [tex]395[/tex] ($) per week
14.With earned value management (EVM), the Government can determine if a program is currently experiencing a/n
Answer: cost or schedule variance
Explanation:
Earned value management, refers to the project management technique that's used for the measurement of project progress and performance.
Earned value management integrates the cost, schedule, and scope in the measurement of project performance and this can be used by the government to determine if a program is currently experiencing a cost or schedule variance.
A startup jewelry company wants to research designs from its potential new jewelry line. It has little money to devote to the research. Which combination of research methods would best suit its situation
Answer:
Mail and online research.
Explanation:
Since in the given situation, it can be seen that the company does not have much amount to be incurred on the research so the best option is to do online research and mail as the person research and the telephone research becomes expensive as compared to the mail and online research
Therefore the above should be the answer
If planned aggregate expenditure (PAE) in an economy equals 2,000 0.8Y and potential output (Y*) equals 11,000, then this economy has
Answer: a recessionary gap
Explanation:
Equilibrium occurs where the planned aggregate expenditure is equals to the income Y.
Therefore, based on the question given, for this economy,
(2,000 + 0.8Y) = Y
Y - 0.8Y = 2000
0.2Y = 2000
Y = 2000/0.2
Y = 10,000.
Since potential output Y* is given as 11,000, then there's a recessionary gap since the actual output is lower than the potential output.
What is a plan implemented by a company promising value to its customers and converting customer payments into a profit called
Answer:
Business model
Explanation:
A business plan can be defined as a formally written document that comprises of the financial and operational objectives (plans) of a business firm.
Basically, a business plan is a roadmap or guide that outline the goals of a business, methods on how to achieve those goals, and the timeframe required to achieve those goals.
Similarly, a business model can be defined as a plan developed and implemented by a company while expressly promising value to its customers and converting the payments made by customers for goods or services into a profit.
Your parent offer you the opportunity to invest $ 50,000 in new coffee shop on the existing building on their property. It is located in the city centre. This building has 200m2 of space. Assumed that the project lasts 9 years, opportunity cost of capital is 10%, corporate income tax is ignored.
a. You should make some assumptions and forecast intial investment (cost of reparing old building and purchase of fix assets); operation cash flow (\, price per cup of coffee, number of cups of coffee per year; cost, depreciation, profit and cash flow from operation); and cash flow from changes in working capital.
b. What is NPV of this project? Do you invest this project? Why?
Answer:
no I don't invest this project
Compute the payback period for a project that requires an initial outlay of $297,771 that is expected to generate $40,000 per year for 9 years.
Answer:
7.44
Explanation:
The computation of the payback period is given below:
Time Amount Cumulative
0 (297,771) (297,771)
1 40,000 (257,771)
2 40,000 (217,771)
3 40,000 (177,771)
4 40,000 (137,771)
5 40,000 (97,771)
6 40,000 (57,771)
7 40,000 (17,771)
8 40,000 22,229
9 40,000 62,229
Now the payback period is
=7 + (17,771 ÷ 40,000)
= 7.44
There is an increase in the demand for aspirin at the same time as workers in the aspirin industry receive a substantial pay increase. What will most likely happen?
Answer:
There would be an increase in equilibrium quantity and there would be an indeterminate effect on equilibrium price
Explanation:
A stock just paid an annual dividend of $1.10. The dividend is expected to increase by 10 percent per year for the next two years and then increase by 2 percent per year thereafter. The discount rate is 14 percent. What correctly computes the current stock price?
Answer: $10.79
Explanation:
This requires the use of the Dividend Discount Model.
The price of the stock is the present value of the dividends for the two years and then the Terminal value.
Terminal value = Third year dividend / (Required return - Growth rate)
= (1.10 * 1.10² * 1.02) / (14% - 2%)
= 1.35762 / 12%
= $11.31
Price of stock is:
= Present value of first year dividend + Present value of second year dividend + Present value of Terminal value
= ((1.10 * 1.1) / 1.14) + (( 1.10 * 1.1²) / 1.14²) + (11.31 / 1.14²)
= $10.79
Contribution Margin Ratio a. Young Company budgets sales of $890,000, fixed costs of $26,000, and variable costs of $115,700. What is the contribution margin ratio for Young Company
Answer:
87 %
Explanation:
contribution margin ratio = Contribution ÷ Sales
therefore,
contribution margin ratio = ($890,000 - $115,700) ÷ $890,000
= 0.87 or 87 %
The contribution margin ratio for Young Company is 87 %.
Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $45,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. It has a current market value of $55,000. Variable manufacturing costs are $33,400 per year for this machine. Information on two alternative replacement machines follows.
Alternative A Alternative B
Cost $ 119,000 $ 112,000
Variable manufacturing costs per year 23,000 10,200
Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase?
Answer and Explanation:
The computation is shown below;
For Alternative A
Cost to buy new machine -$119,000.00
Cash received $55,000.00
Reduction in variable manufacturing cost ($33400 - $23000) ×5 $52,000.00
Total change in net income -$12,000.00
For Alternative B
Cost to buy new machine -$112,000.00
Cash received $55,000.00
Reduction in variable manufacturing cost ($33400 - $10200) × 5 $116,000.00
Total change in net income $59,000.00
So here Xinhong should purchase a machine that belong from Alternative B.
If $4000 is invested at 2% interest, find the value of the investment at the end of 6 years.
An investment of $4000 is deposited into an account in which interest is compounded continuously. Complete the table by filling in the amounts to which the investment grows at the indicated interest rates.
t = 5 years
Rate per year Amount
1%
2%
3%
4%
5%
6%
Answer:
a. Value of investment at the end of 6 years = $4,504
b. Table Completion:
Rate per year Future Value Factor Amount
1% 1.051 $4,204
2% 1.104 $4,416
3% 1.159 $4,636
4% 1.217 $4,868
5% 1.276 $5,104
6% 1.338 $5,352
Explanation:
Data and Calculations:
Investment = $4,000
Interest rate = 2%
Period of investment = 6 years
Future value factor at 2% for 6 years = 1.126
Value of investment at the end of 6 years = $4,504 ($4,000 * 1.126)
b) Investment = $4,000
Interest rates = from 1% to 6%
Period of investment, t = 5 years
Future value factors are as follows:
Rate per year Future Value Factor Amount
1% 1.051 $4,204 ($4,000 * 1.051)
2% 1.104 $4,416 ($4,000 * 1.104)
3% 1.159 $4,636 ($4,000 * 1.159)
4% 1.217 $4,868 ($4,000 * 1.217)
5% 1.276 $5,104 ($4,000 * 1.276)
6% 1.338 $5,352 ($4,000 * 1.338)
You own a stock portfolio invested 30 percent in Stock Q, 14 percent in Stock R, 40 percent in Stock S, and 16 percent in Stock T. The betas for these four stocks are .99, 1.05, 1.45, and 1.90, respectively. What is the portfolio beta
Answer:
the portfolio beta is 1.33
Explanation:
The computation of the portfolio beta is shown below:
= respective percentage × respective betas
= 0.30 × 0.99 + 0.14 × 1.05 + 0.40 × 1.45 + 0.16 × 1.90
= 0.297 + 0.147 + 0.58 + 0.304
= 1.328
= 1.33
Hence, the portfolio beta is 1.33
The same should be considered and relevant too
Crane Corporation's computation of cost of goods sold is:
Beginning inventory $34800
Add: Cost of goods purchased 470000
Cost of goods available for sale 504800
Less: Ending inventory 72000
Cost of goods sold $432800
The average days to sell inventory for Fry are:________
Answer:
16.64 days
Explanation:
Given the above information, we will calculate the average days to sell inventories with the formula below;
Average days to sell inventories = [Ending inventory / Cost of goods sold] × 100
Ending inventory = $72,000
Cost of goods sold = $432,800
Then, Average days to sell inventories
= [$72,000 / $432,800] × 100
= 16.64 days
Therefore, the average days to sell inventory for Fry are 16.64 days
In recent decades there have been fewer trade blocs established to promote regional economic integration. True False
Answer: False
Explanation:
Trade bloc refers to an intergovernmental agreement, whereby the barriers to trade are eliminated among the countries that are involved.
The statement that "in recent decades there have been fewer trade blocs established to promote regional economic integration" is false.
There has been an increase in trade blocs in recent decades such as Brazil, Russia, India, China, and South Africa(BRICS), North American Free Trade Agreement(NAFTA), Association of Southeast Asian Nations( ASEAN).
They all promote economic development.
Ramanond Technologies is an independent business that facilitates foreign exchange trades. In the context of institutions that make foreign exchange happen, Ramanond Technologies is categorized under:
Answer:
Fiscal investors.
Explanation:
Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.
Basically, trade can be categorized into two (2) main groups and these are;
I. Import: this involves bringing in goods from a foreign country to sell in a different (domestic) country.
II. Export: it involves the sales of goods produced in a domestic country to a foreign country.
Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.
Under globalization, a fiscal investor refers to an independent business that facilitates or enhances foreign exchange trades between two or more countries.
This ultimately implies that, fiscal investors are institutions or business firms that make it possible for foreign exchange to take place with respect to the buying and selling of goods and services between countries.
Review the following statements and determine which is (are) correct regarding an adjusted trial balance and how it is used In preparing financial statements. (Check all that apply.) Multiple select question. The adjusted trial balance includes all accounts and balances appearing in financial statements. The ending Retained Earnings account balance on the balance sheet is taken directly from the adjusted trial balance. Financial statements are easier to prepare using the adjusted trial balance than the general ledger. The balance sheet is the first financial statement prepared. The ending Retained Earnings account balance on the balance sheet is transferred from the statement of retained earnings. The income statement is the first financial statement prepared after preparing the adjusted trial balance.
Answer:
The Correct Statements regarding an adjusted trial balance and its use in preparing financial statements are:
1. The adjusted trial balance includes all accounts and balances appearing in financial statements.
3. Financial statements are easier to prepare using the adjusted trial balance than the general ledger.
5. The ending Retained Earnings account balance on the balance sheet is transferred from the statement of retained earnings.
6. The income statement is the first financial statement prepared after preparing the adjusted trial balance.
Explanation:
a) The above answers leave the following incorrect statements about the adjusted trial balance:
2. The ending Retained Earnings account balance on the balance sheet is taken directly from the adjusted trial balance.
4. The balance sheet is the first financial statement prepared.
b) In conclusion, the adjusted trial balance, which lists the general ledger account balances, is compiled after considering period-end adjustment entries, in line with the accrual concept and the matching principles of generally accepted accounting principles.
Consider public policy aimed at smoking.
a. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs $2 and the government wants to reduce smoking by 20 percent, by how much should it increase the price?
b. If the government permanently increases the price of cigarettes, will the policy have a larger effect on smoking one year from now or five years from now?
c. Studies also find that teenagers have a higher price elasticity of demand than do adults. Why might this be true?
Answer:
1. government shoud increase price by 50%. so it would be $3
2. larger effect 5 years from now
3. this is true due to their limited finance compared to adults
Explanation:
1. prices elasticity = % change in quantity demanded ÷ % change in price
price elasticity = 0.4
% change in dmd = 20%
% change in price = ?
[tex]0.4=\frac{0.20}{?}[/tex]
we cross multiply
? = 0.20/0.4
= 0.5
= 50%
so if the government wants to reduce smoking by 20%, it has to increase the price of cigarettes by half of its price= $2 + $1 = $3
2. goods usually have more elastic demand as time goes on. So if cigarette price is permanently raised, it would have a bigger effect five years from now. This is based on the fact that the people may not feel short run effect of the increase as they would in the long run. But gradually given this increase, people may start to gradually reduce their smoking.
3. The effect of the change in price would be more felt on the teenagers. this is due to the fact that they have limited financial strength compared to adults. Also they are new to smoking compared to the adults and are more likely to be less involved in the habit.
In a perpetual inventory system a.a count must be made in order to know the inventory amount. b.the inventory records cannot be computerized. c.the amount of inventory for sale and the amount sold are not listed in the inventory account. d.each purchase and sale of inventory is recorded in the inventory account.
Answer:
d. each purchase and sale of inventory is recorded in the inventory account.
Explanation:
The perpetual inventory system keeps record of inventory and cost of sales after each and every transaction. Its records are always updated after every purchase or sale transaction thus, In a perpetual inventory system : each purchase and sale of inventory is recorded in the inventory account.
On June 5, Staley Electronics purchases 100 units of inventory on account for $10 each. After closer examination, Staley determines 20 units are defective and returns them to its supplier for full credit on June 9. All remaining inventory is sold on account on June 16 for $15 each.Required:Record transactions for the purchase, return, and sale of inventory.
Answer:
See the journal entries below.
Explanation:
First, we have:
Units of inventory purchased = 100
Units of inventory returned = 20
Units of inventory sold = Units of inventory purchased - Units of inventory returned = 100 - 20 = 80
Therefore, the journal entries will be as follows:
Date Details Debit ($) Credit ($)
June 5 Inventory (100 * $10) 1,000
Accounts payable 1,000
(To inventory purchased on account.)
June 9 Accounts payable (20 * $10 ) 200
Inventory 200
(To record inventory return.)
June 16 Account receivable (80 * $15) 1,200
Sales 1200
(To record sales on account.)
Cost of goods sold (80 * $10) 800
Inventory 800
(To record cost of goods sold on account)
When a shift in ________ occurs, rational expectations hold that its impact on output and employment will only be minimal.
Answer:
Aggregate demand occurs.
Explanation:
The aggregate demand curve of the AD curve will move to the right and components of the demand like consummation, government, and investment spending on the exports and imports will rise. Macroeconomics states that the curve is vertical over time and people should rationally accept this pattern.