Why might a company issue a product recall
Answer:
The product is defective
Explanation:
Answer:
A product is defective
Explanation:
Product recalls occur as a result of safety or quality concerns related to a manufacturing or design defect in a product that may harm its users. Recalls may negatively affect a company's stock as they are expensive and can damage a firm's reputation, leading to declining sales.
The following information is available for the Silver Company for the 3 months ended March 31, year 2. Merchandise inventory, January 1, year 2 $900,000 Purchases 3,400,000 Freight-in 200,000 Sales 4,800,000 The gross margin recorded was 25% of sales. What should be the merchandise inventory at March 31, year 2
Answer:
$900,000
Explanation:
The computation of the ending merchandise inventory is shown below:
= Cost of goods available for sale - Cost of goods sold
= Beginning inventory + Purchase made + direct expenses
= $900,000 + $3,400,000 + $200,000
= $4,500,000
And, the cost of goods sold is
= Sales - gross profit
= $4,800,000 - (25% of $4,800,000)
= $3,600,000
Now the ending merchandise inventory is
= $4,500,000 - $3,600,000
= $900,000
Why do you think Starbucks has been so concerned with social responsibility in its overall corporate strategy
Answer: See explanation
Explanation:
Social responsibility simply means that companies should do thing that benefit the society at large and look out for the welfare of the people in the society.
Starbucks has been so concerned with social responsibility in its overall corporate strategy because social responsibility will help to bolster the image of the company. Also, this will be required to help the company continue building its brand, improve customers satisfaction and also organization's productivity.
Good faith in collective bargaining between a union and an employer does not include:_____.
a. being willing to compromise.
b. negotiating with the belief that an agreement is possible.
c. bargaining with the authority to enter into an agreement.
d. rejecting a proposal without offering a counterproposal.
Answer:
Good faith in collective bargaining between a union and an employer does not include:_____.
d. rejecting a proposal without offering a counterproposal.
Explanation:
Good faith bargaining involves a negotiation in which the employer and the union work amicably to achieve a reasonable agreement because they both have positive attitudes for positive outcomes. Therefore, for employers and workers’ unions to bargain in good faith always, they need to meet at reasonable intervals to reach agreements with respect to wages, hours, and others employment terms and conditions. Whenever a stalemate occurs, because unions and employers cannot agree without rancor, the unions may file unfair labor practice charges, wherein they allege that employers are not bargaining in good faith.
Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash operating expenses by $100,000 per year. The equipment would cost $400,000 and have a 5-year life with no salvage value. The simple rate of return on the investment is closest to ________.
Answer:
17.5%
Explanation:
Calculation for The simple rate of return on the investment
First step is to calculate the Depreciation
Depreciation =$400,000/5 years
Depreciation = $ 80,000
Second step is to calculate the annual incremental net operating income
Sales Revenue $250,000
Less Cash Operating Expenses ($100,000)
Less Depreciation ($80,000)
Annual incremental net operating income $70,000
($250,000-$100,000-$80,000)
Last step is to calculate the simple rate of return on the investment using this formula
Simple rate of return=Annual incremental net operating income/Initial investment
Let plug in the formula
Simple rate of return=$70,000/$400,000
Simple rate of return=0.175*100
Simple rate of return=17.5%
The simple rate of return on the investment is closest to 17.5%
Variance analysis is important to the management because:_____.
A. It helps management determine the reasons that actual costs varied from budgeted costs.
B. It helps management determine which department operated most efficiently.
C. It helps management determine the bottleneck of the production line.
D. All of the answers are correct.
Answer:
D. All of the answers are correct.
Explanation:
Given that Variance Analysis is a form of measuring and controlling methods used by a business management team to maintain and monitor the firm's planned cost and sales with the eventual outcome of cost spent and sales generated.
To achieve this, the process helps in determining the disparity between the actual costs of budgeted costs.
It also helps them to know which department is more productive and
It also helps to discover where the problems or difficulties exist in the production process
Hence, in this case, the correct answer is option D, All of the above. Because the option A to C satisfies the answer.
An employee earned $42,900 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $128,400 maximum per year and the rate for FICA Medicare 1.45%. The employer's total FICA payroll tax for this employee is:A. $0, since the FICA tax is only deducted from an employee's pay.B. $2,659.80.C. $622.05.D. $6,563.70.E. $3,281.85.
Answer:
E. $3,281.85
Explanation:
The following are given in the question:
Employee earnings in the current year = $42,900
FICA Social Security = 6.2%
FICA Medicare = 1.45%
Since the employee earning is still below $128,400 maximum per year, the employer's total FICA payroll tax for this employee can be calculated as follows:
Total FICA payroll tax = Employee earnings in the current year * (FICA Social Security + FICA Medicare) .................... (1)
Substituting the values into equation (1), we have:
Total FICA payroll tax = $42,900 * (6.2% + 1.45%)
Total FICA payroll tax = $42,900 * 7.65%
Total FICA payroll tax = $3,281.85
Therefore, the correct option is E. $3,281.85.
Microsoft is weighing setting up an R&D facility in India to develop new software applications. Should it staff the new facility with Microsoft employees? Indian employees? Or should it subcontract with an Indian firm? Explain your answer and some of the potential challenges in implementing it.
Answer:
staff the new facility with Indian employees
Explanation:
This would be a good option considering the fact that this would be a new market environment they've not operated in before. By staffing the new facility with natives of the country who understand the Indian business environment better, such as
the ideal management styleunique business communication stylethe unique challenges to overcome.Additionally, Microsoft Corporation would be better positioned to carry out the needed research and development activities if conducts periodic training programs using expatriates.
Pelcher Company maintains a $480 petty cash fundOn January 31, the fund is replenishedThe accumulated receipts on that date represent $126 for office supplies172 for merchandise inventory, and for miscellaneous expensesThere is a cash overage of 6The journal entry to replenish the fund on January
Answer:
110$ is the answer of this question
When asset specificity is very high and there is market uncertainty, then it is best for a firm to:_______.
a) vertically integrate
b) use a short-term contract
c) engage in a strategic alliance
d) buy in the open market
Answer: vertically integrate
Explanation:
When asset specificity is very high and there is market uncertainty, then it is best for a firm to vertically integrate.
Vertical integration is simply when an organization or a particular business controls its suppliers. This will be beneficial as it'll help by improving efficiencies and in the reduction of costs.
Dennisport Corporation has an acid-test ratio of 1.7. It has current liabilities of $56,000 and noncurrent assets of $87,000. The corporation's current assets consist of cash, marketable securities, accounts receivable, prepaid expenses, and inventory. Of Dennis Port current ratio is 2.3, its inventory and prepaid expenses must be:
Answer: $33600
Explanation:
Current liabilities = $56,000
Noncurrent assets = $87,000
First and foremost, we should note that:
Acid-test ratio = Current Assets / Current liabilities
Therefore,
1.7 = Current Assets / $56,000
Current assets = $56000 × 1.7
= $95,200
Also,
Current ratio = Current Assets / Current liabilities
Therefore,
2.3 = Current Assets / $56,000
Current assets = $56,000 × 2.3
= $128,800
Then, the inventory and prepaid expenses will be:
= $128,800 - $95,200
= $33,600
Give the definition of ethics.
Answer:
Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and wrong behavior". The field of ethics, along with aesthetics, concerns matters of value, and thus comprises the branch of philosophy called axiology.
Explanation:
You purchased 240 shares of stock at a price of $37.92 per share. Over the last year, you have received total dividend income of $255. What is the dividend yield
Answer: 2.8%
Explanation:
Dividend yield is calculated as dividend per share divided by the price per share.
Dividend per share = 255/240 = $1.0625
Dividend yield = 1.0625/ 37.92
= 2.8%
Answer each of the following questions based on this scenario:
A decrease in the supply of in building materials (shortage) means that construction companies cannot get enough materials to complete all their projects. The owners of construction companies in Fiction Town have a choice between these two options:
To lay off (temporarily fire) 10% of their least experienced workers.
To reduce the hours of all employees by 5 hours a week, meaning they will be paid for 5 fewer hours of work.
What happens to the average income of people who are employed as construction workers?
The owners of the companies make profit from the payments made on their construction projects. What happens to the income of the owners?
Assume that construction workers are counted as part of the average income in all of Fiction Town. What happens to the average income of people there? Why?
What happens to the average income of people who are employed as construction workers is reduced by 10 percent.
The owners of the companies make profit from the payments made on their construction projects. What happens to the income of the owners is a balance on the income of the owners of the companies and by extension, the owners have or experience an increase in the profit.
Assume that construction workers are counted as part of the average income in all of Fiction Town. What happens to the average income of people there is that there would be a reduction in the average income of the people of Fiction Town.
This is because, if the construction workers were fired, then there will be lesser workers to be counted as part of the average income. in the same vein, if the hours of all employees were to be reduced, then, their earnings will also be reduced and therefore will affect the average income of all Fiction Town.
What happens when hours of employees are reduced?When hours of employees are reduced, it decreases one's expenses and increases profits. Nevertheless, it may could result to lost sales or an exodus of employees. Reduction of workers' hours may resulted into a lost "opportunity cost" of lost sales. With reduction of employees' working hour, one may lose a potential sale to a competitor, especially provided the business climate suddenly improves.
Therefore, the correct answer are as given above. When hours of employees are reduced, it lowers one's operating expenses and raises profits.
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Identify and explain the components of management compensation and the tradeoffs that compensation designers make.
Incorrect/Incomplete question: Complete question read;
Which of the following statements correctly describes management compensation options?
A) Managers do not receive fixed salaries; instead their compensation is based on bonuses and incentives.
B) Perks (perquisites) were eliminated as part of the Sarbanes-Oxley Act.
C) Bonuses are typically awarded for meeting or achieving specific goals.
D) Stock options and awards are part of fixed salary compensation.
Answer:
C) Bonuses are typically awarded for meeting or achieving specific goals.
Explanation:
All the options above with the exception of option C rightly describes management compensation plans. Remember, the term compensation includes both cash and non-cash payments an employee may receive for performing their duties well.
Hence, managers may award certain bonuses (eg 5% salary bonuses, etc) to their employees for working diligently to meet specific goals (like meeting a sales target, new customer acquisition targets, etc).
Patek Phillippe is a prestigious brand of watch that is sold as a luxury product. It has a reputation based on quality and attention to detail. When the company introduces new timepieces, it can count on an existing, well-established market for its new products due to _______. a. perceptual generalization b. stimulus generalization c. selective distortion d. stimulus discrimination
Answer:
b. stimulus generalization
Explanation:
This reaction from the overall market population is due to stimulus generalization. Since potential customers that have been in the market have already seen the products that Patek Phillippe has already introduced and saw them as high-end luxury products, then the market automatically places any future product that Patek Phillippe releases as in the same category. They do this without doing any research or analyzing the product, instead, they solely categorize new products as luxury due to Patek Phillipe's brand.
Willis Company made a $280,000 investment in new machinery. Assuming the company's margin is 7%, what income will be earned if the investment generates $570,000 in additional sales
Answer:
the income earned is $39,900
Explanation:
The computation of the income earned is shown below:
As we know that
Margin (%) = Income earned ÷ Sales revenue
Therefore,
Income earned = Additional sales Margin percentage
= $570,000 × 7%
= $39,900
hence, the income earned is $39,900
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Suppose the money supply in Country X is $44,000 and the nominal GDP is $88,000. Calculate the velocity of money. Round your answer to the nearest hundredth.
Answer:
Velocity of money = 2 unit
Explanation:
Given:
Supply in country X = $44,000
Nominal GDP = $88,000
Find:
Velocity of money
Computation:
Velocity of money = Nominal GDP / Money supply in country
Velocity of money = $88,000 / $44,000
Velocity of money = 2 unit
During 20X1, Eleanor earns $146,000 in wages as an employee of an accounting firm. She also earns $26,000 in gross income from an outside consulting service she operates. Deductible expenses paid in connection with the consulting service amount to $6,000. Eleanor also has a recognized long-term capital gain of $1,000 from the sale of a stock investment. She must pay a self-employment tax on:________
a. $145,000.
b. $144,000.
c. $31,000.
d. $30,000.
e. $24,000.
Answer:
$20,000
Explanation:
Calculation for self-employment tax payment
Using this formula
Self-employment tax=Gross income-Deductible expenses paid in
Let plug in the formula
Self-employment tax= $26,000-$6,000
Self-employment tax=$20,000
Therefore She must pay on self-employment tax on:$20,000
A company has net income of $225,000 and declares and pays dividends in the amount of $75,000. What is the net impact on retained earnings
Answer: Increase of $150,000
Explanation:
Net income = $225,000
Dividend = $75000
Retained earnings will be:
= Net income - Dividend
= $225,000 - $75,000
= $150,000
Based on the calculation above, the net impact on retained earnings is an increase of $150,000.
On January 1, 2022, Above Co. purchased a 30% interest in Below Co. An acquisition differential of $50,000 was identified and allocated to equipment, which had an estimated remaining useful life of 10 years. During 2022, Below Co. sold merchandise it had purchased for $60,000 to Above Co. for $100,000. At the end of 2022, Above Co. held 50% of this merchandise in its inventory. For 2022, Below Co. reported net income of $100,000 and paid dividends of $20,000. Both companies are subject to 40% tax rates.
If Above Co. uses the equity method to account for its investment in Below Co., how much investment income will it report in 2022?
Multiple Choice
o $13,000
o $17,000
o $21,400 - Need explanation for this answer. Thanks.
o $22,600
When Above Co. uses the equity method to account for its investment in Below Co., the investment income will it report in 2022 is C. $21,400.
What is equity method?With the equity method of accounting, the investment is initially recorded at cost and later modified to reflect changes in the investor's portion of the investee's net assets following the acquisition. By recording a portion of the earnings based on its ownership interest, an investor who uses the equity method merely acknowledges its share of the investee's gains and losses.
The value will be:
Net income = 100000 × 30% = 30000
Less: amortization = 50000/10 = 5000
Less: Holdback of unrealized profit = 3600
Investment = 21400
Therefore, the correct option is C.
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what things get selling more than another’s and why ?
Answer:
Either because they are in high demand or are advertised well
Explanation:
Webster Corporation's monthly projected general and administrative expenses include $4,100 administrative salaries, $1,500 of other cash administrative expenses, $2,300 of depreciation expense on the administrative equipment, and .5% monthly interest on an outstanding bank loan of $29,000. Compute the total budgeted general and administrative expenses budget per month.
Answer:
$7,900
Explanation:
Computation for the total budgeted general and administrative expenses budget per month.
Monthly projected general and administrative expenses :
Arministrative salaries $4,100
Other cash administrative expenses $1,500
Depreciation expense on the administrative Equipment $2,300
Total budgeted general and administrative expenses budget per month $7,900
($4,100+$1,500+$2,300)
Therefore the total budgeted general and administrative expenses budget per month will be $7,900
What do you understand by the term stakeholder?
Explanation:
stakeholder is a party that has an interest in a company and can either affect or be affected by the business. The primary stakeholders in a typical corporation are its investors, employees, customers, and suppliers, i hope this answer your question.
Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit.
A. What is the desired profit per unit?
B. In order to meet the new target cost, how much will the company have to cut costs per unit, if any?
C. What is the target cost of the company's product?
D. If the company cannot cut costs any lower than they already are, what would the profit margin on sales be to meet the market selling price?
Market selling price = $48 per unit
Cost price = $44
Profit = 48 - 44 = $4
Profit margin = profit/selling price x 100 4/48 x 100 = 8.333%
To obtain a 12.5% profit margin the costs would have to be cut to $42 or the selling price would have to rise to $50.29
Profit margin = profit/selling price
= (selling price - cost price)/(selling price)
12.5% = 6 / 48
= 48 - 42 / 48
= 0.125 12.5% =
6.29 / 50.29 = 50.29 - 44 / 50.29 = 0.12507
GLE specializes in planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet their clients' needs and wants. It also specializes in delivering transportation services for their clients. Due to GLE's efficiency in these areas, many firms outsource their core physical distribution activities to GLE. GLE is most likely to be a(n):________
a. manufacturers' agent
b. industrial distributor
c. third-party logistics firm (3PL)
d. freight forwarder
e. megacarrier
Answer:
C) third-party logistics firm (3PL)
Explanation:
From the question, we were informed about GLE who specializes in planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet their clients' needs and wants. It also specializes in delivering transportation services for their clients. Due to GLE's efficiency in these areas, many firms outsource their core physical distribution activities to GLE. In this case GLE is most likely to be a third-party logistics firm (3PL). third-party logistics firm (3PL) . Third-party logistics (3PL) is engaged in ogistics as well as supply chain management, It entails the utilization of a third party business in the outsourcing ecommerce as well logistics process such as warehousing, distribution services as well as fulfilment of retail order.
Coronado Industries has $16000 of ending finished goods inventory as of December 31, 2013. If beginning finished goods inventory was $11000 and cost of goods sold was $46000, how much would Coronado report for cost of goods manufactured
Answer:
$51,000
Explanation:
Coronado industries has $16,000 of ending finished goods
The beginning finished goods inventory is $11,000
Cost of goods sold is $46,000
Therefore the cost of goods manufactured for Corona report can be calculated as follows
=$46,000+($16,000-$11,000)
= $46,000+$5,000
= $51,000
Therefore the cost of goods manufactured is $51,000
In your review of ABC Company's financials, you note that Receivables have increased approximately 200% from the previous year, while Cash has declined. Further investigation reveals that 70% of ABC's receivables were booked within 7 days of the end of the quarter. If financial statement fraud is involved, which type is most likely
Answer:
Fictitious revenues
Explanation:
The fictitious revenue is a revenue that do not belong to the organization but it would be added to the revenue section intentionally.
Therefore as per the given situation, in the case when the fraud is involved in the financial statement so this is a type of fictitious revnenues
hence, the same is to be considered
3. Activities that help an organization to influence an target market is called....
Activities that help an organization influence a target market are called marketing strategies.
It is not the only job of a company to produce goods and services. They must also find out their probable buyers and promote their goods and services to the target market.
For this promotion, a marketing strategy is very much required. A marketing strategy refers to the process of understanding the group of buyers who would be interested in the product and then promoting it to them through commercials, newspaper advertisements, and free merchandise.
In the world of high monopolistic competition, companies spend millions only on these marketing strategies to get a hold of their customers and make a name for the brand in the market.
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Higher fixed costs are associated with:_____.
1. higher operating leverage.
2. lower operating leverage.
3. increased risk.
4. lower risk.
a. 1 and 3.
b. 1 and 4.
c. 2 and 3.
d. 2 and 4.
Answer:
a. 1 and 3.
Explanation:
Given that the operating leverage of a business firm is a sum of its fixed cost and variable cost about the way the firm's cost of business is attributed.
In this case, when a business firm has a high fixed cost, it normally requires a high number of sales to earn more profits. This is termed as "higher operating leverage." This thereby leads such business firms to have "increased risk."
Hence, It is practically correct that in business operation that when a business firm has Higher fixed costs it is associated with "higher operating leverage and increased risk"