Answer:
Production.
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year.
Basically, budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The key principle of supply chain management can be best summed up as collaboration between multiple firms. Thus, these multiple firms include a company that is saddled with the responsibility of manufacturing, a wholesaler, and a retailer who typically sells the products to the customers or consumers.
A retailer can be defined as an individual or company that buys finished goods directly from a wholesaler and sells directly to the end users (consumers).
In this context, a retailer would prepare an administrative, sales and cash budget but certainly wouldn't prepare a production budget because retailers aren't saddled with the responsibility of producing goods.
Simply stated, a production budget would be prepared by a manufacturer or producer.
Which one of the following will not cause a change in the demand for labour, illustrated by a shift of the demand curve?
A. An increase in the number of employers
B. Anncrease in the wage rate
C. A decrease in the price of the product
D. An increase in the productivity of labour
Answer:
B. Anncrease in the wage rate
One thing that will not lead to a change in the demand for labor is B. Annual increase in the wage rate.
What affects the demand for labor?When there are more employers, more labor will be demanded as when there is an increase in labor productivity.
When there is a decrease in the price of a product however, the demand for labor drops. Annual increases in the wage rate are already accounted for and so do not affect labor demand.
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Using the data below, determine the ending inventory amount assuming the weighted average method under a periodic inventory system.
Beginning inventory 10 units
Purchases 20 units
Total cost of units available for sale $3,000
Ending inventory 12 units
Answer:
$1200
Explanation:
The computation of the ending inventory is shown below:
Weighted Average Cost per unit is
= Cost of units available for sales ÷ units available for sales
= $3000 ÷ 30
= $100
Now
Ending Inventory is
= 12 units × Weighted Average Cost per unit $100
= $1200
Which of the following is an example of a sunk cost? A. The amount a company pays for labor to produce its product. B. The opportunity cost of a company owner's time. C. The amount for which a company could rent equipment it owns to another company. D. The amount a company originally paid for specialized equipment for a plant.
Answer:
D. The amount a company originally paid for specialized equipment for a plant.
Explanation:
A sunk cost is the expenditure that a company has already incurred and cannot be retrieved or taken back. In other words, a sunk cost can be defined as the expenditure that is already paid and cannot be taken back.
Among the given options, an example of a sunk cost is the amount a company paid for specialized equipment. This is a prepaid amount that cannot be canceled or taken back, resulting in a fixed expenditure and can no longer be recovered.
Thus, the correct answer is option D.
Warehouse Sports, a large box store retailer of athletic shoes, orders 200,000 shoes per year from its manufacturer. If w-
and spends $10,000 in total annual ordering costs, what is the cost of ordering and delivery per order?
O $2,000
$50
W
O $500
O There is not enough information to answer this question.
Global Communications has an 8 percent, semiannual coupon bond outstanding with a current market price of $1,021.26. The bond has a par value of $1,000 and a yield to maturity of 6.74 percent. How many years is it until this bond matures?
a) 3.53
b) 1.82
c) 3.34
d) 1.71
Answer: 1.82
Explanation:
Following the information given, the number of years that it will take until this bond matures will be calculated thus:
Current price = $1021.26
Coupon = 8% = 0.08
Face value = $1000
Semiannual coupon = 0.08/2 × 1000 = 40
Semiannual Yield = 6.74%/2 = 0.0674/2 = 0.0337
Total semiannual period = NPER(0.0337, 40, -1021.26, 1000) = 3.64
Total years will now be: = 3.64/2 = 1.82
Therefore, the correct option is B.
By appropriately preparing a forecast budget, a company can avoid __________. a net loss inventory shortages insolvency regulation
Answer:
insolvency
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.
The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.
A specialized budget can be defined as a financial plan that is typically focused on specific assets or activity of a master (comprehensive) budget.
In conclusion, by appropriately preparing a forecast budget, a company can avoid insolvency.
Karen usually does not spend much time selecting gifts. However, when choosing a fountain pen for her husband's birthday this year, she visited several stores and spent a lot of time asking the sales staff about different features of the pen before making her purchase. This scenario illustrates _______. a. shopping involvement.b. enduring involvement.c. product involvement.d. situational involvement.
Answer:
Option d: situational involvement
Explanation:
Types of Involvement
Product Involvement; message involvement, situational involvement
Product involvement
In this stage of involvement, consumer's level of interest in product is largely based on perceived risk and application to daily life. This is simply known as a product category that is of high personal relevance.
Message involvement
This is simply the effects the media has on consumers such as high involvement is equal to high cognitive effort required (newspaper) while low-involvement equal to low cognitive.
Situational Involvement
This is simply defined as the circumstances surrounding the purchase area that may temporarily change a low-involvement decision into a high-involvement one. High-involvement is therefore when the consumer perceives risk in a specific situation. This usually takes place at location where purchasing.
The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $91,050. The conversion cost for the period in the Filling Department is $497,860. The total equivalent units for direct materials and conversion are 60,700 ounces and 68,200 ounces, respectively. Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent. Direct materials cost per equivalent unit: $fill in the blank 1 per ounce Conversion costs per equivalent unit: $fill in the blank 2 per ounce
Answer:
Cost of Direct material per unit = $1.50 per unitCost of Conversion = $7.30 per unitExplanation:
Cost of Direct material per unit is:
= Total cost of direct material / Total equivalent units for direct materials
= 91,050 / 60,700
= $1.50 per unit
Cost of conversion
= Total cost of Conversion / Total equivalent units for Conversion
= 497,860 / 68,200
= $7.30 per unit
Two towns, each with three members, are deciding whether to put on a fireworks display to celebrate the New Year. Fireworks cost $420. In each town, some people enjoy fireworks more than others. In the town of Bayport, each of the residents values the public good as follows:
Resident Value (Dollars)
Shen 60
Valerie 150
Antonio 180
The total benefit of the fireworks display to the town of Bayport is:_________
Answer:
the total benefit of the fireworks display to the town of Bayport is $390
Explanation:
The computation of the total benefit is given below:
= Shen residental value + valerie resident value + antonio resident value
= $60 + $150 + $180
= $390
Hence, the total benefit of the fireworks display to the town of Bayport is $390
We simply add all 3 resident value
A Real estate broker has a fiduciary responsibility to her client and her responsibilities include financial references, orders and examine reports, and must follow ADA title lll. This broker is most likely working for the client as:
Answer:owowo
Explanation:
Isidore
Assume you had invested $1,000 in a lawn mower to set up a lawn mowing business for the summer. During the first week, you could choose either to mow the grounds at a housing development for $1,400 or to help paint a garage for $1,360. Each job would take one week. You cannot do both. You would incur additional costs of $160 for lawn mowing and $80 for garage painting. These costs include $60 under each alternative for transportation to the job. Prepare a schedule showing the net benefit or advantage of selecting one alternative over the other. (This is all information provided)
Lawn mow bus. service Painting garage Differential
Revenues $1,400 $1,360 $40
Cost $160 $80 $80
Net benefit in favor (40)
of lawn service
Answer:
Schedule showing the net benefit or advantage of Painting over Lawn Mowing:
Lawn Mowing Painting Differential
Revenues $1,400 $1,360 $40
Cost $160 $80 $80
Net benefit $1,240 $1,280 ($40)
in favor of lawn mowing
This implies that Painting garage is more beneficial than lawn mowing.
Explanation:
a) Investment in a lawn mower = $1,000
Revenue from mowing grounds at a housing development = $1,400
Revenue from painting a garage = $1,360
Additional costs for lawn mowing = $160
Additional costs for garage painting = $80
Included transportation cost to the jobs = $60 each
b) It costs more (opportunity cost) to mow grounds than to paint a garage. The decision-maker should choose to paint a garage and earn incremental profit of $40 instead of mowing grounds and losing $40.
Tara has started a new job ad has been assigned to work on a team. She is anxious about getting along with her new team members. What is one piece of advice you could to tara about working with others
Answer:
A
Explanation:
Avoid gossip
I Think so
Why was Circuit City so successful as to be fea- tured in Good to Great? What was its strategic position during its successful period? How did it contribute to competitive advantage?
Answer:
Circuit city was the second largest multinational U.S elctronic retailer. Founded in 1949 and it has 567 circuit superstores around the world. McCollough was the CEO who has an experience of 13 years. Because of his experienece in marketing and store management, he could serve the company as a genral manager.
McCollough implimented several strategies in order to gain the brand image for the company.
They have used five S's stratergies which includes selection, saving, service, satisfaction and speed
Explanation:
Several other reasons for calling circuit city successful as Good to Great are as follows,
The company has a point-of-point scale and also inventory-tracking technology to have control on secured cash transactions and consistent systems
The company is able to provide a quit response for timely chnaging trends and adapt to the dynamic environment in the market
They have avoided unneccessary business practices and neglected several unnessary competencies in the market
IBM wants to issue new 20-year bonds. The company currently has 8.5 percent bonds with face value of $1000 on the market that sell for $994, make semiannual payments, and mature in 7 years. What should the coupon rate be on the new bonds if the firm wants to sell them at par
Answer: 8.62%
Explanation:
Based on the information given, the coupon rate on the new bonds if the firm wants to sell them at par will be calculated thus:
The following information can be gotten from the question:
Par Value = $1,000
Current Price = $994
Time to Maturity = 7 years
Annual Coupon Rate = 8.50%
Semiannual Coupon Rate = 8.50%/2 = 4.25%
Semiannual Coupon = 4.25% × $1,000 = $42.50
Semiannual Period to Maturity = 7/½ = 14
Let the semiannual Yield to maturity be represented by x Therefore,
994 = 42.50 × PVIFA(x, 14) + 1,000 × PVIF(x, 14)
Then, we'll use the financial calculator where,
N = 14
PV = -994
PMT = 42.50
FV = 1000
Based on this, the value of x will be 4.308%.
Since the Semiannual YTM is 4.308%, then the Annual YTM will be:
= 2 × 4.308%
= 8.616%
= 8.62%
Therefore, the coupon rate should be 8.62%
Portal Manufacturing has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a) At a minimum, how many units must Portal sell in order not to incur a loss?b) Prepare a contribution margin income statement showing predicted net income (loss) if Portal sells 100,000 units for the year ended December 31.
At a bare minimum, the units must portal sold in order not to incur a loss of 130,000 units.
Contribution margin per unit = Selling price per unit - Variable costs per unit
= $15 - $11
= $4
Break-even sales = Fixed costs / Contribution margin per unit
= $520,000 / $4
= $130,000
Sales (130,000 units * $15) $1,950,000
Variable costs (130,000 units * $11) ($1,430,000)
Contribution margin $520,000
Fixed costs ($520,000)
Net income $0
What is the Contribution margin per unit?The asking price of 1 unit of the product less the variable producing expenses is that the contribution margin per unit. the quantity that every sale contributes toward covering mounted prices is understood because of the unit contribution margin. it'll show the profit per unit oversubscribed when the mounted prices are paid.
Revenue less variable prices equal contribution margin. The formula for conniving the contribution margin magnitude relation is revenue - variable prices / by revenue.
The nearer the contribution margin is to 100 percent, the better; 100 percent is that the ideal contribution margin. The larger the quantity, the lot effectively a business pays its operational expenses out of money existing.
Selling price per unit less variable price per unit equals contribution margin, usually called dollar contribution per unit. the quantity of sales revenue stated as "Contribution" is the fraction that's not accustomed pay variable prices and thus helps to hide mounted prices.
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Fallgater, Inc. expects to sell 15,000 units. Each unit requires 3 pound of direct material at $12 per pound and direct labor hours at $10 per direct labor hour. The manufacturing overhead rate is $8 per direct labor hour. The beginning inventories are as follows: direct material, 2,000 pound; finish goods 2,500 units. The planned ending unventories are as follows: direct materials, 5,000 pounds finished goods,3000 units. given a planned production of 10,000 units what are the planned direct materials purchases? A. $324,000 B.$288,000 C.$360,000, D $396,000
Answer:
Purchase cost= $396,000
Explanation:
Giving the following information:
Each unit requires 3 pounds of direct material at $12 per pound
Beginning inventory= 2,000 pounds
Desired ending invnetory= 5,000 pounds
Production= 10,000 units
To calculate the direct material purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 10,000*3 + 5,000 - 2,000
Purchases= 33,000 pounds
Purchase cost= 33,000*12= $396,000
For each of the following, compute the future value:
Present Value Years Interest Rate Future Value $2,450 10 14 % $9,152 8 8 80,355 15 13 187,796 6 5
Answer:
938 4828 4838385848382 4>3>42[29495 56 6
i have a question about my asignment. everyone help me pls.
Answer:
ohk ask
Explanation:
maybe I will help you
Fred, a financial accountant at a multinational company, is asked by his supervisor to find out the exact income the
company earns from the sale of its products over the next five weeks. To do this, for the next five weeks, Fred matches the
revenue earned from the sale of the company's products and matches the expenses incurred by the company to the
revenue they help produce. In this scenario, which of the following has Fred used to get the required information?
Answer: accrual basis accounting
Explanation:
Following the information given in the question, Fred used the accrual basis accounting. The accrual basis accounting refers to the accounting method such that the expenses and the revenue are recorded when the transaction takes place rather than waiting for the time that payment is being made.
This helps follow the matching principle, that states that the revenues and the expenses incurred have to be recognized in thesame period.
Entries for Uncollectible Accounts, using Direct Write-Off Method
Journalize the following transactions in the accounts of Canyon River Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables:
Jan. 19 Sold merchandise on account to Dr. Kyle Norby, $46,800. The cost of goods sold was $25,300.
June 2 Received $10,800 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible.
Oct. 23 Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $36,000 cash in full payment.
Answer and Explanation:
The journal entries are as follows:
On Jan. 19
Accounts receivables $46,800
To Sales $46,800
(Being the merchandise sold on account is recorded)
Cost of goods sold $25,300
To Inventory $25,300
(being the cost of merchandise is recorded)
On June 2
Cash $10,800
Bad debt expense $36,000
To Accounts receivables $46,800
(being cash received is recorded)
On Oct. 23
Accounts receivables $36,000
To Bad debt expense $36,000
(being written off is recorded)
Cash $36,000
To Accounts receivables $36,000
(being cash received is recorded)
You are valuing an investment that will pay you $23,000 per year for the first 8 years, $27,000 per year for the next 12 years, and $53,000 per year the following 12 years (all payments are at the end of each year). If the appropriate annual discount rate is 10.00%, what is the value of the investment to you today?
a. $203,969.69
b. $262,205.54
c. $1,144,000.00
d. $762,183.00
e. $1,273,500.80
Answer:
Total PV= $262,205.54
Explanation:
Giving the following information:
Discount rate= 10%
We need to calculate the present value of each cash flow, and then the total present value. We will start from the lasts payments to the firsts.
To calculate the present value, first, we need to determine the value at the moment of each change in cash flow:
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
A= annual cash flow
53,000 for 12 years:
PV= 53,000*{(1/0.1) - 1/[0.1*(1.1^12)]}
PV= $361,125.67
27,000 for 12 years:
PV= 27,000*{(1/0.1) - 1/[0.1*(1.1^12)]}
PV= $183,969.68
23,000 for 8 years:
PV= 23,000*{(1/0.1) - 1/[0.1*(1.1^8)]}
PV= $122,703.30
Now, the value today of each part:
PV= FV / (1 + i)^n
PV1= 361,125.67 / (1.1^20)= $53,679.03
PV2= 183,969.68 / (1.1^8)= $85,823.21
PV3= 122,703.3
Total PV= $262,205.54
Kohl Co. provides warranties for many of its products. The January 1, 2013, balance of the Estimated Warranty Liability account was $54,088. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 0.60% of sales. During 2013, the actual cost of servicing products under warranty was $39,922, and sales were $2,149,100. Required: a. What amount of Warranty Expense will appear on Kohl Co.'s income statement for the year ended December 31, 2013
Answer: $12,894.60
Explanation:
Warranty expense for 2013 will be calculated as:
= Actual warranty expense * Estimated warranty expense %
Actual warranty expense = Sales because these are the products under warranty.
Warranty expense is therefore:
= 2,149,100 * 0.60%
= $12,894.60
a 10 ounce bottle of soap costs $2.00. You can buy a 20 ounce bottle for $5.00. What is TRUE about your soap purchasing options?
a) it’s always better to purchase a product that offers more ounces.
b) both bottles cost the same price when you compare the price per ounce.
c) it is better to buy the 20-ounce bottle as the price per ounce is cheaper.
d) it is better to but the 10-ounce bottle because the price per ounce is cheaper.
Answer:
The TRUTH about the soap purchasing options is:
d) it is better to but the 10-ounce bottle because the price per ounce is cheaper.
Explanation:
a) Data and Calculations:
Cost of 10 ounce bottle of soap = $2.00
The per ounce cost of the 10-ounce bottle of soap = $0.20 ($2/10)
Cost of 20 ounce bottle of soap = $5.00
The per ounce cost of the 20-ounce bottle of soap = $0.25 ($5/20)
Therefore, the 10 ounce bottle of soap is cheaper and better.
b) It is more cost-effective to buy the 10 ounce bottle of soap. With $4.00, one can buy 2 of 10 ounce bottle of soap unlike $5.00 spent for 20 ounce bottle.
Answer: It is better to buy the 10-ounce bottle because the price per ounce is cheaper.
Analysis of a foreign subsidiary's financial statements denominated in Euro, its local currency, shows a growth rate in revenue of 16%. Suppose that during the year, the value of the Euro increased in terms U.S. dollars. The subsidiary's revenue growth rate expressed in U.S. dollars will be:
Answer:
The appropriate answer is "Greater than 16%".
Explanation:
Throughout this situation, the country's currency of companies has shown a 16 percent raise, which means that the sales of the subsidiaries would increase more than 16 percent whenever represented among Us dollars.As several currencies are increasing inside this valuation of the national currency, the transformation rate is greater than 16% as that the incidence increases.Swift Motor Lines has a delivery truck that cost $11,000, and has $1,000 of accumulated depreciation. What is the fair market value of the truck
Answer: Information is not sufficient to answer.
Explanation:
The fair market value of a fixed asset is the current value in the market of the fixed asset. Given that we do not know the current market value as it is not given in the question, we are unable to answer this question.
If the question had asked to calculate the net book value then we would have simply subtracted the accumulated depreciation from the cost price but this is a fair market value question so its different.
Malik is a recent college graduate. He just started his first job as an investment
representative for Edward Jones. He has carefully budgeted his finances, and plans to
set aside $500/month for his retirement,
How would you recommend Malik invest his money?
Answer:
The answer is below
Explanation:
Given that Malik wants to invest his money for retirement purposes, here are some of the income-producing retirement investments he can invest his money:
1. Immediate Annuities
2. Bonds
3. Retirement Income Funds
4. Rental Real Estate
5. Real Estate Investment Trusts (REITs)
6. Variable Annuity With a Lifetime Income Rider
7. Closed-End Funds
8. Dividend Income Fund
9. Total Return Portfolio
Kwik Pix is a large digital processing center that serves 130 outlets in grocery stores, service stations, camera and photo shops, and drug stores in 16 nearby towns. Kwik Pix operates 24 hours a day, 6 days a week. Classify each of the following activity costs of Kwik Pix as either unit-level, batch-level, product-level, or facility-level.
a. Color printing materials.
b. Photocopy paper.
c. Depreciation of machinery.
d. Setups for enlargements.
e. Supervisor's salary.
f. Ordering materials.
g. Pickup and delivery.
h. Commission to dealers.
i. Insurance on building.
j. Loading developing machines.
Answer:
a. Color printing materials.
Classify of activity costs: Batch or unit-level
b. Photocopy paper.
Classify of activity costs: Unit-level
c. Depreciation of machinery.
Classify of activity costs: Unit-level
d. Setups for enlargements.
Classify of activity costs: Batch or unit-level
e. Supervisor's salary.
Classify of activity costs: Facility-level
f. Ordering materials.
Classify of activity costs: Batch or product-level
g. Pickup and delivery.
Classify of activity costs: Batch or product-level
h. Commission to dealers.
Classify of activity costs: Unit-level
i. Insurance on building.
Classify of activity costs: Facility-level
j. Loading developing machines.
Classify of activity costs: Batch-level
Classification of activity costs of Kwik Pix as either unit-level, batch-level, product-level, or facility-level is:
Activity cost: Color printing materialsActivity costs level: Unit-levelClassification of activity costa. Activity cost: Color printing materials.]
Activity costs level: Unit-level
b. Activity cost: Photocopy paper.
Activity costs level: Unit-level
c. Activity cost: Depreciation of machinery.
Activity costs level: Unit-level
d. Activity cost: Setups for enlargements.
Activity costs level: Batch or unit-level
e. Activity cost: Supervisor's salary.
Activity costs level: Facility-level
f. Activity cost: Ordering materials.
Activity costs level: Batch or product-level
g. Activity cost: Pickup and delivery.
Activity costs level: Batch or product-level
h. Activity cost: Commission to dealers.
Activity costs level: Unit-level
Inconclusion classification of activity costs of Kwik Pix as either unit-level, batch-level, product-level, or facility-level is: Activity cost: Color printing materials; Activity costs level: Unit-level.
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During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows:
6 Purchased goods for $1,200 from Green with terms 2/10, n/30.
6 Purchased goods from Munoz for $900 with terms 2/10, n/30.
14 Paid Green in full.
Feb. 2 Paid Munoz in full.
28 Purchased goods for $350 from Reynolds with terms n/45.
Required:
Prepare journal entries to record the transactions, assuming Axe uses a perpetual inventory system.
Answer:
Axe Corporation
Journal Entries:
Feb. 6 Debit Inventory $1,200
Credit Accounts payable (Green) $1,200
To record the purchase of goods with terms 2/10, n/30.
Feb. 6 Debit Inventory $900
Credit Accounts payable (Munoz) $900
To record the purchase of goods with terms 2/10, n/30.
Feb. 14 Debit Accounts payable (Green) $1,200
Credit Cash $1,176
Credit Cash Discounts $24
To record the payment on account with discounts.
Feb. 20 Debit Accounts payable (Munoz) $900
Credit Cash $900
To record full settlement on account.
Feb. 28 Debit Inventory $350
Credit Accounts payable (Reynolds) $350
To record the purchase of goods with terms n/45.
Explanation:
a) Data and Analysis:
Feb. 6 Inventory $1,200 Accounts payable (Green) $1,200
with terms 2/10, n/30.
Feb. 6 Inventory $900 Accounts payable (Munoz) $900
with terms 2/10, n/30.
Feb. 14 Accounts payable (Green) $1,200 Cash $1,176 Cash Discounts $24
Feb. 20 Accounts payable (Munoz) $900 Cash $900
Feb. 28 Inventory $350 Accounts payable (Reynolds) $350
with terms n/45.
The actual cash received from cash sales was $83,452, and the amount indicated by the cash register total was $83,480. Journalize the entry to record the cash receipts and cash sales.
Answer:
Dr Cash $83,452
Dr Cash short or Over $28
($83,480-$83,452)
Cr Sales $83,480
Explanation:
Based on the information given the appropriate journal the entry to record the cash receipts and cash sales is:
Dr Cash $83,452
Dr Cash short or Over $28
($83,480-$83,452)
Cr Sales $83,480
(To record the cash receipts and cash sales)
In the wake of everything described in the case study, Wells Fargo has fired many employees, clawed back bonuses from executives, replaced many of its directors, dismantled its sales incentive system and made other changes. Do you think these changes were made out of a utilitarian calculation designed to avoid further monetary penalties, a desire to avoid the shame and embarrassment the bank’s managers and employees were feeling, or a combination of both? If a combination, which do you think played a bigger role? Why?
Answer:
These changes made by Wells Fargo were made as a result of a combination of utilitarian calculation to avoid further monetary penalties and the desire to avoid the shame and embarrassment the bank's managers and employees were feeling.
The factor that played a bigger role is the utilitarian calculation because it foresaw that it could lose more through monetary penalties.
Explanation:
Wells Fargo must have factored in the benefits and harms that could result from its actions and then compared them with the benefits and harms that might result from other actions. It then figured out that it could pay it better to make amends instead of facing the torrents of accusations for fraud. Admitting that one is wrong from the beginning and showing signs of changes is less painful overall.
