Answer:
False.
Explanation:
Construction costs can be defined as the overall costs associated with the development of a built asset, project or property. The construction costs is classified into two (2) main categories and these are;
1. Operational costs: these include the costs on daily basis during the construction process such as rent, wages, sales, utility bills, maintenance and repair fees etc.
2. Capital costs: these include the costs incurred in the acquisition of the property such as commissions, insurance, property acquisition, materials, inflation, fittings, equipment, labor etc.
Hence, when a company constructs a building, the cost of the building includes materials and labor as well as the design fees, building permits, or insurance during construction.
Ultimate Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard for each radio is 0.9 hours. The standard direct labor cost per hour is $7.20. During the month of August, Zanny's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708. This resulted in the production of 6,900 water ski radios for August. What is Zanny's labor rate variance for August?
a. $2,808 Unfavorable
b. $1,188 Unfavorable
c. $972 Favorable
d. $2,160 Favorable
Answer:
Direct labor rate variance= $594 unfavorable
Explanation:
Giving the following information:
The standard direct labor cost per hour is $7.20.
During August, Zanny's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708.
To calculate the direct labor rate variance, we need to use the following formula:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 48,078/6,600= $7.29
Direct labor rate variance= (7.20 - 7.29)*6,600
Direct labor rate variance= $594 unfavorable
Fuji film was also able to succeed in the US due to their history of catering to a sophisticated Japanese photo market in their native market. Which aspect of the diamond of national competitive advantage does this draw from
Answer:
Option B. Demand conditions
Explanation:
The demand conditioning is the domestic demand of the product that forms greater impact on the demand and innovation of the product in its domestic market. This great domestic demand of Fuji film products stipulated greater innovation which not only differentiated the product but also increased the demand in other markets like US and Europe.
This increased Demand conditions enabled the company to gain competitive advantage.
explain the procedure of inducting a new technology on a given business
The correct answer to this open question is the following.
Although the question does not provide a specific reference, we can say the following.
A general procedure of inducting a new technology on a given business would be like this.
First, really search for the technological necessities in your company. Take people's opinions. Once you have identified your priority, proceed informing every single one of the employees the reason and purpose of this new piece of technology or software. Remember that the benefit of it must be for all the areas in some way. Then give the specifics reasons for how this new technology will help employees' work. This novelty should be seen as an advantage, not an excuse for delaying work under the argument that "it is complicated."
Provide the proper training so everybody can get familiar with the technology.
Give the proper time so everybody is on the same page.
Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.15 direct labor-hours. The direct labor rate is $7.00 per direct labor-hour. The production budget calls for producing 6,500 units in April and 6,200 units in May. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?
Answer:
$13,335
Explanation:
Required production in units for April and May are 6,500 units and 6,200 units respectively.
Direct labor hours needed is 0.15 for both months.
Total direct labor hours needed for each month would be;
April
= 6,500 units × 0.15
= 975
May
=6,200 units × 0.15
= 930
Direct labor rate per hour for each months is $7
Total direct labor cost for April would be;
= $7 × 975
= $6,825
Total direct labor cost for May would be;
= $7 × 930
= $6,510
Therefore, total direct labor cost for both months April and May would be;
= $6,825 + $6,510
= $13,335
To: HR Department
From: Jill Best, Manager
Re: Lost Performance Appraisal Form
Six weeks ago when our offices were being remodeled, one of the janitors accidentally threw away a small stack of papers. Included in the stack was a performance appraisal form which I had just completed on one of my subordinates, Karen Whitmore. I know you need this form, but it is gone, What should I do?
Answer with its Explanation:
The performance Appraisal form are very important when we are interested in appraising the performance of employees. It not only helps to keep the employees motivated but also helps to highlights the underperforming employees. The corrective action plan to motivate the underperforming employees can then be formulated. It also helps in deciding which employee will be valuable asset for the company and thus must be promoted.
The corrective action would be that the manager must try to reassess the performance of the employees and submit his findings in the form of Performance Appraisal Form. The manager must also have backup of his findings and that he can mail the performance appraisal form by an email.
Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 23 years to maturity that is quoted at 103 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually. a. What is the company’s pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the tax rate is 21 percent, what is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
Viserion, Inc.
Cost of debt:
Premium on Debt = 3% (103 - 100%)
Amortization of the premium = 3%/23 = 0.13%
Interest cost = 6%
Cost of debt (pretax) = 6% - 0.13% = 5.87%
Explanation:
The cost of debt is the difference between the interest expense in percentage that Viserion, Inc. pays annually and the premium on the debt that must be amortized over the life of the debt. Since Viserion, Inc. pays 6% annually or 3% semiannually on the debt and amortizes 0.13% of the debt premium, the amortization rate is taken away from the annual interest to get the cost of debts in percentage terms.
work cell at Chris Ellis Commercial Laundry has a workstation with two machines, and each unit produced at the station needs to be processed by both of the machines. (The same unit cannot be worked on by both machines simultaneously.) Each machine has a production capacity of 5 units per hour. The throughput time of the work cell=nothing minutes per unit (enter your response as a whole number).
What is the process time of the work cell in minutes per unit?
Answer:
24 minutes
Explanation:
The computation of the process time of the work cell is shown below:
Throughput time is the time that is needed to produced a finished good product. It involves the manufacturing process time and the time for converting the raw material into a finished product
Therefore
Throughput time = [1 unit × (60 min ÷ 5 units)] × 2
= 24 minutes
When units produced are greater than units sold under variable costing, fixed overhead is an expense and results in___________(lower, higher) net income than under absorption costing.
Answer: lower
Explanation:
Variable costing is a method used in accounting whereby the manufacturing overhead will be incurred at the particular period when the product is produced.
In the absorption costing method, the indirect expenses which are the overheads and the direct costs are taken into consideration.
The variable costing helps to solve the issue regarding absorption costing which allows for an increase in income as there is am increase in production.
Nissan’s all-electric car, the Leaf, has a base price of $32,780 in the United States, but it is eligible for a $7500 federal tax credit. A consulting engineering company wants to evaluate the purchase or lease of one of the vehicles for use by its employees traveling to job sites in the local area. The cost for leasing the vehicle will be $4200 per year (payable at the end of each year) after an initialization charge of $2500 paid now. If the company purchases the vehicle, it will also purchase a home charging station for $2200 that will be partially offset by a 50% tax credit. If the company expects to be able to sell the car and charging station for 40% of the base price of the car alone at the end of 3 years, should the company purchase or lease the car? Use an interest rate of 10% per year and annual worth analysis.
Answer:
Nissan's all-electric car, the Leaf
PV cost of Leaf Purchase = $16,529
PV cost of Leasing = $12,944.78
The company should lease the car.
Explanation:
a) Costs incurred to purchase the Leaf:
Base price $32,780
less Federal tax credit ($7,500)
Charging station 2,200
less 50% tax credit (1,100)
Cash paid $26,380
Sales value after 3 yrs (9,851) ( $26,380 - 40% of base discounted to PV)
Net PV Investment $16,529
b) Calculation of Discounted Present Values of Payments under Leasing, using online financial calculator:
PV (Present Value) $12,944.78
N (Number of Periods) 3.000
I/Y (Interest Rate) 10.000%
PMT (Periodic Payment) $4,200.00
Starting Investment $2,500.00
Total Principal $15,100.00
Total Interest $2,129.50
c) The purchase of the Leaf would involve a present value cost of $26,380 after deducting all the savings from tax. The 40% sales value of the car at the end of 3 years = $13,112 ($32,780 x 40%). When this sales value is discounted to PV of $9,851, the PV of the car investments becomes $16,529 ($26,380 - $9,851). On the other hand, leasing will cost in PV the sum of $12,944.78
.
Currently Baldwin is paying a dividend of $19.69 (per share). If this dividend were raised by $3.64, given its current stock price what would be the Dividend Yield?
Answer:
$23.33
Explanation:
Calculation for the Dividend yield for Baldwin
Using this formula
Dividend yield = Dividend per share + Increase in Dividend
Let plug in the formula
Dividend yield = $19.69+$3.64
Dividend yield =$23.22
Therefore the Dividend yield will be $23.22
The following data relate to factory overhead cost for the production of 10,000 computers:
Actual: Variable factory overhead $262,000
Fixed factory overhead 90,000
Standard: 14,000 hrs. at $25 350,000
If productive capacity of 100% was 15,000 hours and the total factory overhead cost budgeted at the level of 14,000 standard hours was $356,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $6.00 per hour.
Answer:
1.-4,000 Favorable
2.6,000 Unfavorable
3.$2,000 Unfavorable
Explanation:
1.Preparation to determine variable factory overhead Controllable variance
Using this formula
Variable factory overhead Controllable variance=Standard hours * rate- Fixed factory overhead rate
Let plug in the formula
Variable factory overhead Controllable variance=14,000 * 25.00- 6.00= 266,000
Variable factory overhead Controllable variance = 262,000- 266,000
Variable factory overhead Controllable variance= -4,000 Favorable
2. Preparation to determine fixed factory overhead volume variance .
First step is to deduct Productive capacity hours from total factory overhead cost standard hours
15,000 hours -14,000 hours =1,000 hrs
Second step is to find the fixed factory overhead volume variance
Using this formula
Fixed factory overhead volume variance=Un-used Numbers of hrs*Fixed factory overhead rate
Let plug in the formula
Fixed factory overhead volume variance=1,000 hrs*$6.00
Fixed factory overhead volume variance= 6,000 Unfavorable
3. Preparation to Determine total factory overhead cost variance
Variable Factory Overhead Controllable Variance $4,000 Favorable
Fixed Factory Overhead Volume Variance $6,000 Unfavorable
Factory Overhead Cost Variance$2,000 Unfavorable
"What will be the results if two monopolistic competitors both launch successful advertising campaigns targeting its competitors consumers in order to draw them away from the other firm
Answer: a. These two competitor firms will negate each other's efforts.
Explanation:
The advertising campaigns that both monopolistic competitors was said to be successful which means that they were both able to draw their competitor's customers away from the other firm.
The net effect of this would be that both of them negated each other's efforts because when Firm A gained some of Firm B's customers it also lost some of its customers to Firm B which is evidently also what happened to Firm B.
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $2,200,000 at 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021:
$9,000,000, 10% bonds
$6,000,000, 8% long-term note
Construction expenditures incurred during 2021 were as follows:
January 1 $900,000
March 31 1,500,000
June 30 1,160,000
September 30 900,000
December 31 700,000
Required:
Calculate the amount of interest capitalized for 2016 using the specific interest method.
Answer:
$255,960
Explanation:
Weighted average expenses:
January 1, $900,000 x 12/12 = $900,000March 31, $1,500,000 x 9/12 = $1,125,000June 30, $1,160,000 x 6/12 = $580,000September 30, $900,000 x 3/12 = $225,000December 31, $700,000 x 0/12 = $0total $2,830,000average interest rate for general debt = ($9,000,000 x 10%) + ($6,000,000 x 8%) = $1,380,000
$1,380,000/$15,000,000 = 9.2%
interest expense:
specific debt = $2,200,000 x 9% = $198,000
general debt = $630,000 x 9.2% = $57,960
total capitalized interest = $255,960
Construction Exp
Jan 900,000 1 900,000
Mar 1,500,000 0.75 1,125,000
June 1,160,000 0.5 580,000
Sept 900,000 0.25 225,000
Dec 700,000 0 -
5,160,000 2,830,000
Weighted avg
900,000
480,000
1,380,000
interest on difference interest on construction
9.20% 8.0%
630,000 2,200,000
57,960 176,000.0
Amount capitalized 233,960.0
Chester has negotiated a new labor contract for the next round that will affect the cost for their product Camp. Labor costs will go from $3.79 to $4.39 per unit. Assume all period and other variable costs remain the same. If Chester were to absorb the new labor costs without passing them on in the form of higher prices, how many units of product Camp would need to be sold next round to break even on the product?
Complete Question:
Chester has been selling widgets for $10, total variable costs are $4.40 and fixed costs are $100,000.
Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cid. Labor costs will go from $2.79 to $3.39 per unit. Assume all period and other variable costs remain the same.
If Chester were to absorb the new labor costs without passing them on in the form of higher prices, how many units of product Cid would need to be sold next round to break even on the product?
Answer:
Chester
Break-even point = Fixed costs/Contribution margin per unit
= $100,000 / $5
= 20,000 units
Explanation:
a) Data and Calculations:
Selling price = $10
Old variable cost = $4.40
Additional variable cost = $0.60
New variable costs = $5 ($4.40 + $0.60)
Contribution per unit = Selling price minus variable cost per unit
= $5 ($10 - $5)
Fixed costs = $100,000
b) Chester's Break-even point (in units) is the number of units of a product Camp that Chester requires to sell in order to recover her fixed costs. The information provided by break-even analysis guides Chester in making decisions for the production of Camps and its marketing. Without identifying the units of Camp to be produced and sold in order to remain in business, all things being equal, Chester might short-produce or short-sell Camps and run the business unprofitably.
A(n) _____ gives managers access to large amounts of data and the processing power to convert the data into high-quality information quickly and efficiently.
Answer:
decision support system.
Explanation:
A decision support system can be defined as a technological program used by organizations to assist in decision making.
This system works by analyzing essential data for decision making, such as sales reports, revenues, operations and projections, and after the analysis, it gathers the most important information, which will help a manager to find relevant standards and make an important decision of more quickly and effectively.
This system guarantees the analysis of a high volume of information and synthesizes it in a flexible and easy way, allowing the analysis of data from graphs, for example, which facilitates decision making. Because it is an intelligent computer system, it can be developed to deliver better performance and assist in organizational decision making.
Which of the following determine(s) the level of real interest rates? I) The supply of savings by households and business firms II) The demand for investment funds III) The government's net supply and/or demand for funds
Answer:
I II & III - All of the above.
Explanation:
Real interest rate is an interest rate that shows actual cost of funds to a borrower having taken into consideration the effects of inflation while also reflecting actual gain to the lender. It shows how purchasing power has value on interest paid on a loan.
With regards to the above, determinants of real interest rates are; the supply of savings by household and business firms, the demand for investment funds and the government's net supply/and or demand for funds.
Excellent Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 12 million pages.
For 2018 Excellent Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis:
Cost pool Manufacturing overhead costs Activity level
Design changes $ 120,000 300 design changes
Setups 640,000 5,000 setups
Inspections 80,000 8,000 inspections
Total manufacturing overhead costs $840,000
During 2018, two customers, Money Managers and Hospital Systems, are expected to use the following printing services:
Activity Money Managers Hospital Systems
Pages 60,000 76,000
Design changes 10 0
Setups 20 10
Inspections 30 38
When costs are assigned using the single cost driver, number of pages printed, then:__________.
A. Money Managers will likely seek to do business with competitors
B. Money Managers is grossly under billed for the job, while other jobs will be unfairly over billed
C. Excellent Printers will want to retain this highly profitable customer
D. Money Managers is unfairly over billed for its use of printing resources
Answer:
B. Money Managers is grossly under billed for the job, while other jobs will be unfairly over billed
Explanation:
The single overhead rate would be $ 0.07 per page
Overhead Rate = $ 840,000/ 12 million pages = 0.07 per page.
The other rates are
design changes rate = $ 120,000/300= $ 400 per design
Inspections rate = $ 80,000/8000= $ 10 per inspection
Setups rate = $ 640,000/5000= $ 128 per setup
Money managers will be under billed for the job as the overhead rates for other costs are higher than the single overhead rate which is $ 0.07 per page.
And if other overhead rates are used other jobs will be over billed.
Using a single overhead rate for 60,000 pages for Money Managers would mean 60,000 * $ 0.07 = $ 4200
Where as if the same job is billed using other overhead rates it would cost
Money Managers $ 6860 = $ 4000 + $ 2560 + $ 300
Design = $400 * 10 = $ 4000
Setups = $ 128 * 20 = $ 2560
Inspections $ 10 * 30 = $ 300
So it is under billed and other jobs over billed.
You have just recieved notification that you have won the $2 million first prize in the centennial lottery. However, the prize will be awarded on your 100th birthday, 76 years from now.
Requried:
What is the present value of your windfall if the appropriate discount rate is 8%?
Answer:
$5,765.35
Explanation:
Preparation of the present value of your windfall if the appropriate discount rate is 8%
To find the present value we are going to use this formula
PV = FV / (1 + r)^t
Where,
FV=$2,000,000
r=8%
t=76
Let plug in the formula
PV = 2,000,000 / (1 + .08)^⁷⁶
PV = $2,000,000 / (1.98)^⁷⁶
PV=$2,000,000/346.90
PV=$5,765.35
Therefore the present value will be $5,765.35
During the Great Recession, the U.S. budget deficit worsened as tax collections fell and payments to the poor rose. In other words, the deficit worsened as a result of _________ in the federal budget.
g Delta of a call option is 0.85. How many units of the underlying stock should you hold to hedge a short position in 100 call option contracts
Answer: a.85,000
Explanation:
When using Delta to determine how many units of the underlying stock one should hold to hedge a short position, the following formula is used;
= Delta * No. of positions
= 0.85 * ( 100 * 100)
= 8,500
8,500 units of the underlying stock should be held to hedge a short position in 100 call option contracts with a contract multiplier of 100.
If you take $100 out of your piggy bank and deposit it in your checking account, how did M1 change? Did M2 change? Assuming that there are no new loans created from the deposit.\
Answer:
Neither changed
Explanation:
Based on the information given, if you decide to take the amount of $100 out of your piggy bank and deposit the amount in your checking account this means that neither M1 nor M2 changed, what only changed was the form of M1, therefore based on these you will have less availability of money or cash but have a larger checking account which allows you to make withdrawals and as well as deposits.
Mario transferred real estate with an adjusted basis of $140,000 for similar real estate with a fair market value of $160,000. The exchange qualified as a like-kind exchange. The realized gain on the exchange was $
Answer:
$20,000
Explanation:
Calculation for th e realized gain on the exchange
Using this formula
Realized gain=Fair market value - Adjusted basis
Let plug in the formula
Realized gain=$160,000-$140,0000
Realized gain=$20,000
Therefore the realized gain on the exchange was $ 20,000
On the first day of the fiscal year, a company issues a $2,600,000, 7%, 6-year bond that pays semiannual interest of $91,000 ($2,600,000 × 7% × ½), receiving cash of $2,477,994. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
Answer:
Dr interest expense( 10,167.17+91,000) $ 101,167.17
Cr cash $91,000.00
Cr discount on bonds payable $ 10,167.17
Explanation:
The discount on bond issuance is the difference between the cash proceeds received and the face value of the bonds.
discount on bonds payable=$2,600,000-$2,477,994=$122,006.00
amortization of discount=discount/number of semiannual interest payable
in 6 years,12 semiannual coupons are payable
amortization of discount=$122,006.00 /12=$10,167.17
Chocoheaven processes cocoa beans into cocoa powder at a processing cost of $ 10,100 per batch. Chocoheaven can sell the cocoa powder as is, or it can process the cocoa powder further into chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would result in the following sales revenue:
Has the president made the right or wrong decision? Explain your answer. Be sure to include the correct financial analysis in your response.
Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (For amounts with a value of $0, make sure to enter "O" in the appropriate input box.)
Sell as Sell as Sell as Boxed
Cocoa Chocolate Assorted
Powder Syrup Chocolates
Revenue
Less: Additional processing costs
Net benefit
Cocoa powder $ 14,000
Chocolate syrup 104,000
Boxed assorted chocolates 202,000
The cost of transforming the cocoa powder into chocolate syrup would be $70,000. Likewise, the company would incur a cost of $176,000 to transform the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates due to its high sales value and to the fact that the cocoa bean processing cost of S9,500 eats up most of the cocoa powder profits.
Answer:
No, it is not the right decision. The best decision that will bring maximum profit to the company is to sell chocolate syrup.
Explanation:
Profit = Sales revenue - Processing Cost
1-The Cocoa powder result in $3,900 profit ($14,000 - $10100) to the Choco Heaven company
2- If the company makes Chocolates syrup it will get profit of $34,000 ($104,000 - $70,000)
3- f the company makes Boxed assorted Chocolates it will get profit of $26,000 ($202,000 - $176,000)
"An economy is based on three sectorsdashagriculture, manufacturing, and services. For each unit of output, agriculture requires inputs of 0.20 unit from agriculture, 0.40 unit from manufacturing, and 0.20 unit from services. For each unit of output, manufacturing requires inputs of 0.30 unit from agriculture, 0.20 unit from manufacturing, and 0.20 unit from services. For each unit of output, services requires 0.20 unit from agriculture, 0.30 unit from manufacturing, and 0.30 unit from services. Determine the production levels needed to satisfy a final demand of 0 units for agriculture, 40 units for manufacturing, and 0 units for services. The production level needed from the agricultural sector is 40.00 units."
Answer:
Required Production to fullfil a Demand for 40 industry units
Agriculture 54.4
Industry 83.2
Services 51.2
Explanation:
Input Agricuilture Industrial Service
Agriculture 0.2 0.3 0.2
Industrial 0.4 0.2 0.3
Service 0.2 0.2 0.3
We require X input to generate a demand of 0 agriculture 40 industry and 0 services
The previous matrix will be the input we solve for the output
Output Agricuilture Industrial Service
Agriculture 0.8 -0.7 -0.8
Industrial -0.6 0.8 -0.7
Service -0.8 -0.8 0.7
We now reverse the matrix using excel:
Output Agricuilture Industrial Service
Agriculture 2 1.36 0.96
Industrial 1 2.08 0.88
Service 1 1.28 2.08
Now we multiply this by our desired outcome of
0
40
0
Agriculture 54.4
Industry 83.2
Services 51.2
Tobitzu TV produces wall mounts for flat panel television sets. The forecasted income statement for 2015 is as follows:
TOBITZU TV Budgeted Income Statement For the Year 2015
Sales ($49 per unit) $4,900,000
Cost of good sold ($32 per unit) (3,200,000)
Gross profit 1,700,000
Selling expenses ($4 per unit) (400,000)
Net income $1,300,000
Additional Information:
a. Of the production costs and selling expenses, $600,000 and $100,000, respectively, are fixed.
b. Tobitzu TV received a special order from a hospital supply company offering to buy 12,000 wall mounts for $30. If it accepts the order, there will be no additional selling expenses, and there is currently sufficient excess capacity to fill the order. The company's sales manager argues for rejecting the order because "we are not in the business of paying $32 to make a product to sell for $30."
Required:
Calculate the net benefit (cost) of accepting the special order.
Answer:
$48,000 net benefit
Explanation:
For computing the net benefit or net cost for accepting the special order first we need to find out the variable cost of goods sold per unit which is shown below:
The variable cost of goods sold is
= total cost of goods sold - fixed production costs
= $3,200,000 - $600,000
= $2,600,000.
Now
Total units produced is
= Total revenue ÷ selling price per unit
= $4900000 ÷ 49
= 1,00,000 units.
So, variable cost of goods sold per unit is
= $2,600,000 ÷ 1,00,000
= $26 per unit.
Therefore the net benefit or cost arises is
= (Revenue generated from the special order) - (variable cost of goods sold)
= (12,000 × $30) - (12,000 × $26)
= $48,000 net benefit
a food worker is frying donuts in the deep fyer what is the food worker requied to wear to keep food safe
Answer:
Gloves and a hair net
Explanation:
A stock has an expected return of 11.85 percent, its beta is 1.24, and the expected return on the market is 10.2 percent. What must the risk-free rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
The risk free rate is 3.325%
Explanation:
The required rate of return or cost of equity of a stock can be calculated using the CAPM. The CAPM estimates the required rate of return of a stock based on three factors- risk free rate, stock's beta and the market risk premium. The equation of required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free raterM is the return on market(rM - rRF) gives us the risk premium of marketWe already have the values for r, Beta and rM. Plugging in these values in the formula, we calculate the rRF to be,
Let rRF be x.
0.1185 = x + 1.24 * (0.102 - x)
0.1185 = x + 0.12648 - 1.24x
1.24x - x = 0.12648 - 0.1185
0.24x = 0.00798
x = 0.00798/0.24
x = 0.03325 or 3.325%
Which of the following statements is false about Activity-based management?
A. While useful, activity-based management and Activity-Based Costing information is not always cost efficient to obtain
B. The information needed for activity-based management is a direct byproduct of Activity-Based Costing
C. Activity-based management is an activity that is similar to Activity-Based Costing but requires a very different set of information
D. Activity-based management is designed to help management know which activities add the most value to goods and services
Answer:
C. Activity-based management is an activity that is similar to Activity-Based Costing but requires a very different set of information
Explanation:
Activity based management is the process by which a business identifies activities that contributes more to profitability of the business. These activities are retained.
While activities whose cost does not justify the profit they generate are discarded.
Activity based costing is used to allocate cost of a product based on level of activity of a particular process.
Activity based management uses information from activity based costing to identify processes that contribute more to profitability.
So the statement - Activity-based management is an activity that is similar to Activity-Based Costing but requires a very different set of information. - Is false
Activity-based management (ABM) is a way of identifying and assessing activities that a firm conducts, as well as doing a value chain analysis or a re-engineering exercise to enhance strategic and operational decisions in an organization, utilizing activity-based costing.
So, option C is correct as this is the only false statement about activity based management.
The other options are incorrect as:
Option A is incorrect as yes activity-based management and activity-based costing are not always cost-efficient.
Option B is incorrect as yes activity-based management and activity-based costing have many similarities but they need different information.
Option D is incorrect as yes activity-based management analysis every good and services provided by company and help organization know which of them add more value to organization.
Thus every statement is correct only statement C is untrue.
For more information about activity-based management refer to the link:
https://brainly.com/question/17192507
Which one of the following categories provides a common approach and frame of reference for conducting project management activities within an organization?
a. Business alignment
b. Resource integration
c. Technical support
d. Practice management
Answer:
The correct answer is the option A: Business alignment.
Explanation:
To begin with, the concept known as "Business Alignment" refers to the process by which the managers of a company tend to use the information technology in order to obtain certain business objectives inside the organization that are the goals that they looked for. In addition, this process sometimes tend to focus more on the financial improvement of the company as well as its marketplace competitiveness. Therefore that this type of term gives a good approach and frame of reference for the managers who are looking for conduct project management activities inside the company.