Nick manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the of inflation.

Answers

Answer 1

Answer:

Shoe leather cost

Explanation:

Inflation is a persistent rise in general price levels.

shoe leather cost is the cost incurred by people that do not want to hold cash in a period of high inflation so as to avoid paying inflation tax.

Nick's shoe leather costs includes buying goods immediately he is paid and converting the money he cant spend into foreign currency


Related Questions

The use of open innovation can be useful in the ________ stage of the new-product process because it helps organizations find and execute product concepts externally and overcome the associated not-invented-here barriers.

Answers

Answer:

Idea generation

Explanation:

Open innovation is when an organization uses outside sources to generate innovation instead of using ony internal sources.

The new product process involves the following stages:

-Idea generation that is about providing ideas.

-Screening that is about grouping the ideas generated.

-Concept testing is about developing the concept from the idea.

-Business analysis is about finding out if the cost and benefits make the idea viable.

-Product development is about creating the good.

-Market testing is about making sure that the product can be marketed successfully.

-Commercialization refers to selling the product to the customers.

According to this, the use of open innovation can be useful in the idea generation stage of the new-product process because it helps organizations find and execute product concepts externally and overcome the associated not-invented-here barriers as open innovation would allow to use external and internal sources in the idea generation which will help to provide more and better ideas because the company won't be limited ony to their resources which can increase the possibilities.

Consider the following items: (a) Decrease in accounts receivable (f) Gain on the sale of equipment (b) Issuance of common stock (g) Depreciation expense (c) Increase in interest receivable (h) Payment of dividends (d) Purchase of land (i) Decrease in utilities payable (e) Decrease in accounts payable (j) Increase in inventory How many of these items would be added to net income when using the indirect method to prepare the operating activities section of the statement of cash flows

Answers

Answer:

(a) Decrease in accounts receivable

(g) Depreciation expense

Explanation:

Operating activities: It involves those transactions that after net income impact the working capital. This will subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and a rise in current liabilities.

It will manage some adjustments in working capital. For addition, the depreciation expenses are added to the net profit and the loss on the selling of assets is added, while the benefit on the sale of assets is deducted

Based on the above explanation, the items which are to be added in the operating activities are

(a) Decrease in account receivable

(g) depreciation expense

Out of all Other items would be deducted and all other items belong to investing and financing activity

Which of the following is the best characterization of sociocultural forces? a firm's culture, norms, and values a competitor's culture, norms, and values a focus group's culture, norms, and values a society's culture, norms, and values

Answers

Answer:

a society's culture, norms, and values

Explanation:

From the name socio + cultural indicates best how the culture, norms and values affect a society.

Often times the term culture refers to the general way of life of the members of a particular society. While the term norms and values refers to acceptable standards within a particular society. All this terms characterizes sociocultural forces.

Robust Inc. has the following information related to an item in its ending inventory. Product 66 has a cost of $812, a replacement cost of $775, a net realizable value of $800, and a normal profit margin of $50. What is the final lower-of-cost-or-market inventory value for product 66

Answers

Answer:

$775

Explanation:

In inventory valuation , inventory are valued at the lower of cost to replace an item of inventory and the net realizable value.

The net realizable value is the proceed earned from the disposal of an inventory less the cost related to the disposal.

In the scenario described in the question , The replacement cost for product 66 is $775 while the net realizable value is $800. Therefore , the final inventory valuation will be the lower of $775 and $800 which is $775

Until yesterday, J. J. worked for his father's company and was covered by the company's large group health plan. He stopped working to go to college. He is 26 years of age and wants to keep the same coverage until he earns his degree in approximately 24 months. Which of the following statements is true?
A. A good option for J.J. is to exercise the COBRA option under his father's group plan
B. J.J. can obtain coverage under COBRA, but it won't be the same coverage he had under his father's group plan
C. As a student, J.J. is still covered under his father's group plan
D. J.J.'s only option is to buy a personal plan of coverage

Answers

Answer: A good option for J.J. is to exercise the COBRA option under his father's group plan

Explanation:

Consolidated Omnibus Budget Reconciliation Act (COBRA) option provides the workers and their families the right thing continue enjoying and using the group health benefits after they have lost their health benefits.

It should be noted that this is for a certain period of time under some circumstances like job loss or going to college as in J.J case.

if a firm prices low worldwide in an attempt to build global sales volume as rapidly as possible, even it this means taking large losses initially, what kind of strategy is it pursuing?

Answers

Answer: Experience curve pricing

Explanation: The experience curve pricing principle aims to explain the relationship between the unit price of production and marketing and the experience possessed by the marketing and production company or firm on that product. In a bid to acquire more depth in experience in production and marketing, forms tend to sell at prices below the average selling price which may culminate in losses in the early stage

However, with increase in experience in the production and marketing of the product attained as a result of cumulative production, the unit production cost begins to decline.

S&P Enterprises has scheduled direct material purchases of $120,000 in April, $140,000 in May and $160,000 in June. The company pays for 75% of its purchases in the month of purchase and 25% the month after the purchase. Calculate the expected cash disbursements for t

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Purchases:

April= $120,000

May= $140,000

June= $160,000

The company pays for 75% of its purchases in the month of purchase and 25% the month after the purchase.

We can calculate the cash disbursement for each month:

April:

Purchase from April= 120,000*0.75= 90,000

May:

Purchase from May= 140,000*0.75= 105,000

Purchase from April= 120,000*0.25= 30,000

Total= 135,000

June:

Purchase from May= 140,000*0.25= 35,000

Purchase from June= 160,000*0.75= 120,000

Total= 155,000

what is one of the effects that the internet has had on bussiness?

Answers

The advent of the Internet has made the presence of businesses global. ... The communication between customers and businesses increases customer satisfaction and enables businesses to get connected to the customers. The accessibility enables businesses to further expand their service or product, which increases profit.

The revocation or suspension of a federal covered investment adviser's registration under the Investment Advisers Act of 1940 may be appealed A) to the United States Supreme Court because the Investment Advisers Act of 1940 is federal legislation, unlike the Uniform Securities Act, which is a model for state securities legislation B) through arbitration with the Financial Industry Regulatory Authority (FINRA) C) by petition to the appropriate state securities Administrator D) to the U.S. Court of Appeals serving the district where the order was issued within 60 days of its issuance

Answers

Answer:

D) to the U.S. Court of Appeals serving the district where the order was issued within 60 days of its issuance.

Explanation:

An investment adviser is an individual or group of people who professionally advise others with information on investing in securities such as bonds or stocks.

The revocation or suspension of a federal covered investment adviser's registration under the Investment Advisers Act of 1940 may be appealed to the U.S. Court of Appeals serving the district where the order for revocation or suspension was issued within 60 days of its issuance.

Under Section 213 of the Investment Advisers Act of 1940, any individual or party who has their license revoked or suspended by a Commission may appeal and obtain a review of such order in the US Court of Appeals within serving the district where the order was issued within 60 days of its issuance, through a written petition pleading that it be modified or set aside by the court in whole or in part.

_______ is a term referencing the concept that a sufficient interest must exist on the part of an insured in order to take out a policy of insurance. Multiple Choice Insurable interest Pecuniary interest Financial concern Financial effect Profit impact

Answers

Answer:

Insurable interest

Explanation:

The insurance interest is the interest of the insurer while taking the policy so that the risk of the loss is reduced also it is an important requirement that makes the firm or the event to be legal, valid, enforceable,  and protected against any harmful acts done intentionally

Therefore according to the given situation, the concept in which enough interest must exist on the part of the insurer while taking the policy is known as the insurer interest

Hence, the first option is correct

The listening gap is understood to be the difference between ________. Group of answer choices A. The speed of sound and the speed of reception B.A customer explaining a problem and a customer service representative understanding it C.The speed at which the brain can comprehend communication and the speed at which the average adult speaks D.The speech rate of 125 to 150 words per minute and the thought rate of 80 to 100 words per minute

Answers

Answer: the speed at which the brain can comprehend communication and speed at which the average adult speaks

Explanation:

Listening is a primary skill that is used by most individuals to gather information.

The listening gap is understood to be the difference between the speed at which the brain can comprehend communication and speed at which the average adult speaks.

Mike has a car accident and Maria saves his life. To show his appreciation, Mike gives Maria a life estate in one of the homes he owns. Maria lives there for a while and then accepts a job in another state so she gives the property to her sister Jackie in a lawful transaction. Jackie owns the property until:

Answers

Answer:

Jackie owns the property until Maria dies

Explanation:

In this specific scenario, Jackie owns the property until Maria dies. That is because, in common law and statutory law, a life estate also known as life tenancy is defined as the ownership of land for the duration of a person's life. Therefore since Mike granted life estate to Maria and not Jackie, the land is legally Maria's to do as she wishes up until the moment of her death. Once this comes to pass the land ownership is returned to Mike.

Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, and $50 increments. Assume Apple sells $19.2 million in iTunes gift cards in November, and customers redeem $12.2 million of the gift cards in December.
Required:
1. Record the receipt of cash for gift cards.
2. Record the revenue earned from redemption of gift cards.
3. What is the ending balance in Deferred revenue?

Answers

Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr, $19,200,000

             To Deferred revenue $19,800,000

(Being receipt of cash for gift cards is recorded)

2. Deferred revenue Dr, $12,200,000

              To Sales revenue $12,800,000

(Being revenue recognized from the redemption of gift cards is recorded)

3. The computation of ending balance in Deferred revenue is shown below:-

Ending balance in Deferred revenue = Sold apples - Redeem amount of the gifts

= $19,200,000 - $12,200,000

= $7,000,000

If the Administrator were examining the actions of a particular agent to determine whether the agent engaged in churning a client's account, focus would be placed upon A) the number of complaints received relating to that agent B) the amount of profits generated in the client's account C) the client's objectives, financial resources, and the character of the account D) the length of time the account had been opened

Answers

Answer:

C) the client's objectives, financial resources, and the character of the account

Explanation:

While at the time of examining the actions of a specific agent by the administrator with respect to the commission earned would be depended upon the objective of the client, his financial resources,and the character of the account.

The character of the account represents the type of account in which the client is interest as different accounts have different commissions

So these three above objectives should be required

Hence, the option c is correct

Q 7.24: A small grocery store has three employees working each shift, but they only have one checkout register. Depending on which employee is available when a customer is ready to check out, all three employees use the same register at various times of the day. Which principle of control activities does this grocery store violate

Answers

Please answer please please thank you

In March 2012, the state of California started requiring that all packaging for food and drink with the additive 4-methylimidazole (4-MI) be clearly labeled with a cancer warning. Because of this, both Pepsi and Coke changed their formula to eliminate 4-MI as an ingredient. If Pepsi and Coke did NOT change their formula, holding all else constant, what would have happened to the demand for these goods, assuming Pepsi and Coke were in a competitive market

Answers

Answer:

The demand curve for Pepsi and Coke would have shifted to the left, causing the price of both products to decrease and the profits for both companies to fall.

Explanation:

As in the question it is mentioned that the if the Pepsi and Coke do not change the formula and all other things being constant so the demand for the goods in case of the competitive market is that the demand curve is shifted to the left which results in a decrease in the price of both goods also due to price falls the profits for both companies dropped.

WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Product X Product Y Product Z Units produced 2,400 2,900 3,900 Per unit sales value at split-off $ 21.00 $ 24.00 $ 24.00 Added processing costs per unit $ 3.00 $ 5.00 $ 5.00 Per unit sales value if processed further $ 25.00 $ 25.00 $ 30.00 The cost of the joint raw material input is $77,000. Which of the products should be processed beyond the split-off point? Product X Product Y Product Z A) yes yes no B) yes no yes C) no yes no D) no yes yes

Answers

Answer:

WP Corporation

Which of the products should be processed beyond the split-off point? Product X Product Y Product Z

B) yes no yes

Explanation:

a) Data and Calculations:

Budgeted data for the next month:

products                                                           X             Y              Z

Units produced                                              2,400      2,900       3,900

Per unit sales value at split-off                   $ 21.00   $ 24.00   $ 24.00

Added processing costs per unit                $ 3.00     $ 5.00     $ 5.00

Per unit sales value if processed further $ 25.00  $ 25.00    $ 30.00

Added profit after further processing        $ 1.00    ($4.00)      $ 1.00

Further processing of the products X, Y, and Z will yield further or added profit of $1.00 from products X and Z, but a loss of $4 from product Y.  Therefore, product Y should not be processed further, unless its cost structure is such that there is a more than $4 profit to be generated and its further processing is necessary for the other two to be sold, that is if the three products must be sold jointly.  In such a case, management could take further analysis to reduce the cost for consumers.

​Jenco Co. imports raw materials from Japan, invoiced in U.S. dollars. The price it pays is not expected to change for the next several years. If the Japanese yen appreciates, Jenco’s imports from Japan will probably ____ and if the Japanese yen depreciates, its imports from Japan will probably ____.

Answers

Answer:

stay the same; stay the same

Explanation:

Since in the question it is mentioned that Jenco Co. imported the raw material from Japan and the price is not changed as predicted now if the Japanese yen rises so the imports would remain the same and the same case with the decline i.e the imports from Japan would also stays the name

Therefore there would be no change in case of appreciation and depreciation

Herb has $20,000 in an interest-bearing time deposit with the Applebottom Bank and Trust Company. While earning a relatively attractive rate of interest, Herb had to agree to not withdraw any of the funds until the end of a three-year period. Herb's investment represents a(n):

Answers

Answer: Certificate of deposit

Explanation: Herbs investment with Applebottom Bank and Trust Company represents a certificate of deposit which differs from the usual savings deposit due to the the high interest it pays and the fact that it is time bound. The depositor enters into an agreement with the financial institution issuing the certificate of deposit and a fixed term of deposit is agreed with a better interest than usually attached to other deposit accounts. This restricts the depositor from being able to withdraw any amount from his / her account before the stipulated date.

Competitors have found it extremely difficult to imitate Gene Electronics Inc.'s valuable resources, capabilities, or competencies. This is primarily because the source for the company's success has been unclear. The competitors are uncertain if Gene Electronics Inc.'s success is due to its strong leadership, the skills of its research and development team, or the timing of the company' s product introductions. Gene Electronics Inc. has been protected from losing its competitive advantage as a result of

Answers

Answer:

Causal Ambiguity

Explanation:

In this specific scenario, it can be said that they have been protected from losing its competitive advantage as a result of Causal Ambiguity. This term refers to a situation where it is hard or even impossible to relate the consequences or effects of a phenomenon to its initial states or causes. This is the case because Gene Electonics Inc's success (phenomenon) cannot be traced back to an initial cause, which makes it impossible to replicate. Therefore, no other company can compete.

CompuTop Company sells toy laptop computers for $30 each. If the variable cost for each laptop is $20 and fixed costs total $25,000, how many laptops must CompuTop sell to generate a target income of $66,667?

Answers

Answer:

$9,166.70

Explanation:

The computation of the number of laptop need to sell is shown below:

= (Fixed expenses + target profit) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit  

= $30 - $20

= $10

And, the fixed cost is $25,000 + profit is $66,667

Now putting these values to the above formula

So, the number of laptops sells is

= ($25,000 + $66,667) ÷ ($10 per unit)

= $9,166.70

Business Solutions's second-quarter 2018 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable expenses for desks and $18,000 in variable expenses for chairs, as well as $30,000 fixed expenses. The actual expenses include $31,000 fixed expenses. List fixed and variable expenses separately.
Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income from operations Fixed Budget Actual Results Variances 144 150 72 80 $180,000 $186,000 $6,000 F 36,000 41,200 5,200 F 156,000 163,880 7,880 U $ 60,000 $ 63,320 $3,320 F
Prepare a flexible budget performance report that shows any variances between budgeted results and actual results.

Answers

Answer:

Explanation:

                                               Desk                      Chairs         Total

Sales                                       187,500                40,000       227,500

Fixed sales /fixed sales unit  

Desk    

180000/144  = 1250

150 units = 1250*150                  

Chair

36,000/72= 500

80 units 500*80 =40,000

Variable expenses            112,500

Desk

Budgeted variable expenses /Budgeted units

108,000/144 = 750

150 units = 750*150=          112,500                       20,000      132,500

Chairs

18000/72 =250

250*80=20,000

               

Flexible performance report

                            Flexible budget    Actual result    variance

Desk Sales               187,500               186,000         1,500 U

Chairs                        40,000                  41,200         1,200 F

Variable Exp            ( 132,500  )           (  132,880 )      380 U

Contribution              95,000                  94,320          680 U

Fixed Exp.                  (30,000)                (  31,000 )      1,000 U

Income                        65,000                  63,320         1,680 U

_ are best described as the ethical standards and norms that govern the behavior of individuals within a firm. Organizational core values Corrective controls Job descriptions Customs duties

Answers

Answer:

organisational core values

5. True or False: Section 508 only effects employees who work with technology and procurement, not employees such as meeting coordinators, content authors, or professional disaster response employees.

Answers

Answer:

False

Explanation:

Section 508 applies to all employees. There is no discrimination i the law on the basis of job role and job descriptions. Even small businesses require section 508 compliance for their employees. It is better to comply with all the applicable laws to avoid any penalty or punishment for the organization.

The given statement is false.

The following information should be considered:

Section 508 should be applied to all types of employees. Here there should not be any discrimination.Every small business needed section 508 for complying with respect to the employees so that the penalty or punishment should be avoided.

Therefore, we can conclude that the given statement is false.

Learn more: brainly.com/question/6201432

When a single firm can supply a product to an entire market at a lower cost than could two or more firms, the industry is called a a. resource industry. b. exclusive industry. c. government monopoly. d. natural monopoly.

Answers

Answer:

D. Natural Monopoly

Explanation:

Natural Monopoly occurs when a single firm can supply a product to an entire market at a lower cost than could two or more firms. A natural monopoly is based on economies of scale.

Economies of scale act as a barrier to entry because one large firm can produce the market output at a lower average cost than several small firms.

A natural monopoly is created by substantial economies of scale.

Natural monopoly is a type of monopoly that exists due to the high starts-up cost or powerful economies of scale.

Boards of directors have responded to financial crises, corporate scandals, regulator obligations, and investor requests for structural changes. In looking at the 2011 Harvard Business Review study of the changes in configuration of boards since 1987, which change has been brought about by government legislation?

Answers

Answer: Percentage of the directors that are independent has increased.

Explanation: The response from board of directors, regarding financial crises, corporate scandals and regular obligations. brought about an increase in the percentage of board of directors who are independent. This has been due to government laid down legislations. This independent board of directors are not executive directors, but directors who hold shares of the organization.

Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the employer's total payroll tax expense for the first week of January?

Answers

Answer:

$2,061

Explanation:

DATA:

Number of employees = 15 employees

Number of hours worked = 40 hours

Earning per hour = $30

Tax Rate = 15%

Unemployment tax rate = 3.8%

FICA tax rate = 7.65%

Solution

Employer's total payroll tax expense can be calculated by adding the FICA tax and unemployment tax from the employee's Basic pay.

Calculation

Basic Pay (15x40x30)                            = $18,000

FICA (18,000 x 7.65%)                            = $1,377

Unemployment tax ( 18,000 x 3.8%)     = $684

Employer's total payroll tax expense    = $2,061

If the predetermined overhead allocation rate is 250% of direct labor cost and the Finishing Department's direct labor cost for the reporting period is $20,000, the following entry would record the allocation of overhead to the products processed in this department:
Work in Process Inventory, Finishing Dept 50,000 Factory Overhead 50,000
a) True
b) False

Answers

Answer:

a) True

Explanation:

The following entry would be recorded to allocate the overhead to the products processed

Date          Account&Explanation                             Debit        Credit

          Work in progress, Finishing department     $50,000

          ($20,000 * 250%)

          Factory Overhead                                                          $50,000

          (To allocate the overhead)

Explanation: Work in process account would be debited to accumulate the manufacturing overhead to the cost of the product

And, factory overhead would be credited to charge such expenses to the product

Conclusion: The given journal entry is correct.

A poultry farmer is debating whether to acquire Rhode Island Reds or Buff Orpingtons to lay the eggs he wants to sell. The fixed costs for the Buffs would be $7500 and the variable costs per egg would be a dime per egg. The Reds would have a fixed cost of $6000 and a variable cost of fifteen cents. At what level of egg production would the poultry farmer be indifferent between Rhode Island Reds and Buff Orpingtons

Answers

Answer:

30,000

Explanation:

$7500 + 0.1x = $6000 + 0.15x

collect like terms and solve for x

$7500 - $6000 = 0.05x

x = 30,000

Mark and Parveen are the parents of three young children. Mark is a store manager in a local supermarket. His gross salary is $75,000 per year. Parveen is a full-time stay-at-home mom. Use the easy method to estimate the family’s life insurance needs.

Answers

Answer:

$367,500

Explanation:

Estimation of the family’s life insurance needs

Using the easy method

Based on the information given we were told that Mark gross salary is $75,000 while is wife

Parveen is a stay-at-home mom this means that we would be using the easy method to estimate the family’s life insurance needs based on Mark gross salary of $75,000 because he is the only one that earn on a monthly basis.

Insurance need =$75,000 x 7 years x 70%

Insurance need = $367,500

Therefore the family’s life insurance needs will be $367,500

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