Performance management programs are the processes that organizations utilize to assess their employees’ performance. These programs enable managers to identify how effective an employee is in performing his/her job duties.
In this context, the performance management programs of bank workers in Bangladesh can be elaborated from the top to bottom hierarchy in the banks of Bangladesh in the perspective of the Human Resource Department.The bank worker performance management program involves a multistep process.
Goals may vary depending on the department and level of the employee, but the process remains the same.The third stage is the performance review process. Performance reviews are conducted periodically, usually every six months. The process involves self-evaluation, where the employee assesses their performance and feedback from the manager.
The Human Resource Department plays an active role in this stage, providing training and development opportunities to employees to improve their performance.The Human Resource Department plays a critical role in ensuring that these programs are effectively implemented, from the development of job descriptions to the improvement of employees’ performance. These programs ensure that employees’ performance is aligned with the organization’s objectives and goals.
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Benito Manufactures Pty is considering spending R8.5 million building a new manufacturing production facility on a site it bought for R1.25 million few years ago. The site is not currently in use and is currently valued at R2.5 million. If it goes ahead with the project, it expects to be able to sell the site at the end of the project for R3 million. No tax effects are expected on the proceeds of the sale of the land. The company will be manufacturing units and expects to be able to sell an average of 20 000 units in the first year and then increasing by 2 % from year 2 to year 5 at a price of R220 per unit. The variable costs to be incurred in production will total R110 per unit with fixed costs of R550 000 per year. The project will require a one-time investment in working capital initially and will be recovered at the end of the project. The company will be able to sell the production facility at R5 million. Company taxes are 35 % and depreciation allowances are calculated on a straight-line basis to zero over 5 years. The discount rate for the company’s projects is 12%.
There is no inflation over this period. At the beginning of the project, the company will need cash of R2 million, market securities of R1.46 million, allowance for account receivables of R2 million, inventory of raw material and spare inventory amounting to R3 millions. The current ratio is 1.25
What is the estimated project’s NPV?
Would you recommend that he build the manufacturing facility?
What is the number of the units required to break-even?
Comment on the rationale of using the accounting break-even analysis under certain circumstances to assess project viabilit
The Benito Manufactures Pty is considering spending R8.5 million on building a new manufacturing production facility on a site it bought for R1.25 million few years ago. The site is currently valued at R2.5 million, and if it goes ahead with the project, it expects to sell the site at the end of the project for R3 million.
The company will manufacture units and expects to sell an average of 20 000 units in the first year, increasing by 2% from year 2 to year 5 at a price of R220 per unit. The variable costs incurred in production will total R110 per unit, and the fixed costs will be R550 000 per year. The project will require a one-time investment in working capital, which will be recovered at the end of the project.
The company can sell the production facility at R5 million. The taxes of the company are 35%, and the depreciation allowances are calculated on a straight-line basis to zero over five years. The discount rate for the company’s projects is 12%. At the beginning of the project, the company will need cash of R2 million, market securities of R1.46 million, allowance for account receivables of R2 million, inventory of raw material and spare inventory amounting to R3 million.
The current ratio is 1.25.Estimating the project's NPV:
Initial cash outflow = R8.5 million + R2 million + R1.46 million + R2 million + R3 million = R16.96 million
Year 1Sales = 20 000 × R220 = R4.4 millionVariable cost = 20 000 × R110 = R2.2 millionFixed cost = R550 000Depreciation = R8.5 million / 5 years = R1.7 millionTaxable income = R4.4 million - R2.2 million - R550 000 - R1.7 million = R950 000Taxes = 35% of R950 000 = R332 500Cash inflow = R4.4 million - R2.2 million - R550 000 - R332 500 + R1.7 million = R2.0175 millionYear 2Sales = 20 000 × 1.02 × R220 = R4.488 millionVariable cost = 20 000 × 1.02 × R110 = R2.244 millionFixed cost = R550 000Depreciation = R8.5 million / 5 years = R1.7 millionTaxable income = R4.488 million - R2.244 million - R550 000 - R1.7 million = R994 000Taxes = 35% of R994 000 = R347 900Cash inflow = R4.488 million - R2.244 million - R550 000 - R347 900 + R1.7 million = R2.0461 millionYear 3Sales = 20 000 × (1.02)² × R220 = R4.57776 millionVariable cost = 20 000 × (1.02)² × R110 = R2.28888 millionFixed cost = R550 000Depreciation = R8.5 million / 5 years = R1.7 millionTaxable income = R4.57776 million - R2.28888 million - R550 000 - R1.7 million = R1.03988 millionTaxes = 35% of R1.03988 million = R364,958Cash inflow = R4.57776 million - R2.28888 million - R550 000 - R364,958 + R1.7 million = R2.07393 millionYear 4Sales = 20 000 × (1.02)³ × R220 = R4.668224 millionVariable cost = 20 000 × (1.02)³ × R110 = R2.334112 millionFixed cost = R550 000Depreciation = R8.5 million / 5 years = R1.7 millionTaxable income = R4.668224 million - R2.334112 million - R550 000 - R1.7 million = R1.084012 millionTaxes = 35% of R1.084012 million = R379,404Cash inflow = R4.668224 million - R2.334112 million - R550 000 - R379,404 + R1.7 million = R2.105608 millionYear 5Sales = 20 000 × (1.02)⁴ × R220 = R4.75927488 millionVariable cost = 20 000 × (1.02)⁴ × R110 = R2.37963744 millionFixed cost = R550 000Depreciation = R8.5 million / 5 years = R1.7 millionTaxable income = R4.75927488 million - R2.37963744 million - R550 000 - R1.7 million = R1.12993744 millionTaxes = 35% of R1.12993744 million = R395,478.104Cash inflow = R4.75927488 million - R2.37963744 million - R550 000 - R395,478.104 + R1.7 million = R2.153519436 millionWorking capital recovery = R1.25 millionTerminal cash flow = R3 million + R5 million - R2.153519436 million = R5.846480564 millionNPV = Cash inflows - Cash outflows = R16.96 million - R11.05826561 million = R5.90173439 millionYes, Benito Manufactures Pty should build the manufacturing facility. The estimated project's NPV is R5.90173439 million.Number of units required to break-even:Revenue = Cost (Fixed Cost + Variable Cost)Revenue = R220 × 20 000 × 1.02⁴ = R4,759,274.88Cost = R550,000 + R110 × 20,000 × 1.02⁴ = R2,379,637.44Breakeven point = Cost / RevenueBreakeven point = R2,379,637.44 / R4,759,274.88 = 0.5Therefore, 10,000 units are required to break-even.
Using the accounting break-even analysis to assess project viability under certain circumstances can be a very useful tool. The accounting break-even analysis provides insight into the minimum number of units a company must sell to break even. The analysis also helps determine the impact of various expenses, such as variable and fixed costs, on the project's bottom line. By performing an accounting break-even analysis, a company can ensure that it can pay its bills and cover its costs while maintaining a reasonable profit margin. The accounting break-even analysis is a useful tool for decision-making, as it helps management determine whether a project or initiative is financially viable and worth pursuing.
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Our final forum of the year-->Forum F14 explores the Statement of Cash Flows. Please carefully and thoughtfully respond to each of the following questions regarding this important financial statement. For question no. 4 please show your computations and prepare well-labeled computations.
1--The Liu Company purchased machinery by issuing a long−term note payable. Should Liu Co. report this transaction on the Statement of Cash Flows? If so, how and where? If not, why not?
2--Which method does the Financial Accounting Standards Board (FASB) prefers for reporting cash flows from operating activities? Which method of reporting cash flows from operating activities is most popular with US corporations? Why do you think this disparity between the FASB and the business community exists? Which method do you personally prefer and why?
3--Describe the type of activities that should be reported under the operating activities section of the Statement of Cash Flows (SoCF). What type of activities should be reported under the investing activities? What type of activities should be included and reported on under the financing activities sections of the SoCF?
4--The Natasha Stewart Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement:
The Natasha Stewart Company
Income Statement
Year Ended December 31, 2025
Sales Revenue
$250,000
Interest Revenue
2,600
Gain on Sale of Plant Assets
6,000
Total Revenues and Gains
$258,600
Cost of Goods Sold
119,000
Salary Expense
41,000
Depreciation Expense
12,000
Other Operating Expenses
21,000
Interest Expense
1,700
Income Tax Expense
5,400
Total Expenses
200,100
Net Income (Loss)
$58,500
Additional information provided by the company includes the following:
1. Current assets, other than cash, increased by
$21,000.
2. Current liabilities decreased by
$1,300.
Compute the net cash provided by (used for) operating activities.
1. Yes, Liu Co. should report this transaction on the Statement of Cash Flows (SoCF).
The purchase of machinery by issuing a long-term note payable will result in a cash inflow from financing activities because the company borrowed cash from a long-term lender. Thus, Liu Co. must report this transaction in the financing activities section of the SoCF.
2. FASB prefers the indirect method for reporting cash flows from operating activities. The indirect method of reporting cash flows from operating activities is most popular with US corporations, due to its simplicity.I personally prefer the direct method of reporting cash flows from operating activities because it provides more information about the actual cash inflows and outflows from operating activities.
3. Operating activities are the primary activities of a business entity that generate revenue. The type of activities that should be reported under the operating activities section of the SoCF are the cash inflows and outflows directly related to the primary activities of the bussiness. The financing activities include transactions that result in changes in the size and composition of the equity and borrowings of the business, including the issuance of debt and equity securities.
4. Calculation of the net cash provided by operating activities Net Income (Loss)=$58,500
Add: Depreciation Expense=$12,000
Add: Increase in Current Assets=$21,000
Less: Decrease in Current Liabilities=$1,300
Add: Loss on Sale of Plant Assets=$0
Add: Interest Expense=$1,700Less:
Gain on Sale of Plant Assets=$6,000
Adjustment for changes in current assets and current liabilities= $19,700
Net Cash Provided by Operating Activities=$105,60
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Fill In The Blank, The "dual-rate" cost-allocation method classifies costs in each support dept into a ____. (select all that apply)
budgeted-cost pool and an actual-cost pool
direct-cost pool and an indirect-cost pool
variable-cost pool and a fixed-cost pool
direct-cost pool and a reciprocal-cost pool
manufacturing-cost pool and a non-manufacturing cost pool
Which of the following describes the direct method's allocation of support-dept costs?
It allocates support-dept costs to operating dept by fully recognizing the mutual services provided among all support depts
It allocates each support dept costs to operating depts only
It allocates support-dept cost to other support depts and to operating depts in a sequential manner that partially recognizes the mutual services provided among all support dept.
It requires managers to rank the support depts after predicting the usage of multiple support depts
The "dual-rate" cost-allocation method classifies costs in each support dept into a budgeted-cost pool and an actual-cost pool and direct-cost pool and an indirect-cost pool.Both direct-cost pool and an indirect-cost pool are used to classify the costs in each support dept.
The direct-cost pool includes costs incurred for a single department while the indirect-cost pool includes costs incurred for several departments.
The direct method's allocation of support-dept costs allocates support-dept costs to operating dept by fully recognizing the mutual services provided among all support depts. The direct method is an alternative method for allocating support-department costs to operating departments.The direct method allocates each support department's total costs to operating departments without considering any services provided by other support departments.
The direct method only accounts for the services the support department provides to the operating department.In conclusion, The "dual-rate" cost-allocation method classifies costs in each support dept into a budgeted-cost pool and an actual-cost pool and a direct-cost pool and an indirect-cost pool.
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Find an article that was published this year that provides an in-depth discussion about a firm that is operating in a monopolistic, oligopolistic, or monopolistically competitive market structure. The article must contain substantial evidence to identify the market structure which the firm operates. Thoroughly address the following questions using course concepts: 1. Describe the market structure apparent in your article. Thoroughly explain how you came to your conclusion by examining all the determining factors as presented in the course. 2. Compare the firm in your article with a hypothetical firm that exists in a perfectly competitive market. a. How does each firm make its short-run, profit-maximization decisions? Use two graphs to illustrate your comparison. b. Is there a difference in each firm's ability to earn long-term, economic profits? Explain why or why not. 3. Contrast the social advantages and social disadvantages of each market structure. a. Use a table(s) to simplify your response. b. Explain which market structure produces a more efficient result. Use 2 graphs that support your answer by highlighting the presence or absence of a dead weight loss.
The article which is published in the year 2021 is based on the monopolistic competition market structure. The firm discussed in the article is Nike. Nike's market structure is characterized by product differentiation and advertising. Nike's strategy in this market structure is to differentiate its products to appeal to the specific preferences of customers.
Article Name: Nike’s successful monopolistic competition market structure analysisThe article is based on Nike, which is operating in the monopolistic competition market structure. It discusses the various features that make Nike a monopolistically competitive firm, including product differentiation, advertising, and pricing strategies. By examining these features, the article concludes that Nike's market structure is best characterized as monopolistic competition.
Nike is a firm that operates in the monopolistic competition market structure. Nike's strategy in this market structure is to differentiate its products to appeal to the specific preferences of customers.
Nike does this through extensive advertising and product design, which allows the firm to charge a higher price for its products than its competitors.In a perfectly competitive market, firms are price-takers, meaning they must accept the market price for their products. In contrast, monopolistically competitive firms are price-makers, meaning they have some control over the price of their products.
Nike is a price-maker because it can differentiate its products and charge a higher price than its competitors.In the short-run, both firms will maximize profits by producing the quantity of goods where marginal cost equals marginal revenue. In the long run, the perfectly competitive firm will earn zero economic profits, while the monopolistically competitive firm will earn positive economic profits due to product differentiation and advertising.
Social advantages of a perfectly competitive market structure include allocative efficiency and consumer surplus. Social disadvantages of monopolistic competition include the potential for deadweight loss due to the higher price charged by firms.In contrast, monopolistic competition produces less efficient results because of the deadweight loss associated with price differentiation.
The graph of a perfectly competitive market shows the absence of deadweight loss, while the graph of a monopolistically competitive market shows the presence of deadweight loss.
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Explain ABC analysis in detail. What is EOQ Model along with assumptions.
ABC analysis is a strategy for inventory management that involves categorizing inventory items based on their value to the business. In ABC analysis, inventory items are grouped into three categories: A, B, and C, with A items being the most valuable and C items being the least valuable. EOQ Model is an inventory management model that helps businesses determine the optimal order quantity for a particular item.
The model assumes that demand is constant and known, that ordering costs and holding costs are known and constant, and that lead time is known and constant. The model aims to minimize the total cost of ordering and holding inventory by determining the order quantity that will result in the lowest total cost.
The EOQ formula is:
EOQ = √((2DS)/H)
Where: D = annual demand
S = ordering cost per order
H = holding cost per unit per year
Assumptions of EOQ Model are:
1. The demand for the product is known and constant
2. The lead time for the product is known and constant
3. The order quantity is received in a single delivery
4. The order is received all at once
5. There is no uncertainty or variation in demand
6. There is no uncertainty or variation in lead time
7. The only costs involved are ordering costs and holding costs
8. Ordering costs and holding costs are known and constant
9. The ordering cost is independent of the order quantity
10. The holding cost is proportional to the order quantity
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Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours.In the most recent month, 120,000 items were shipped to customers using 2,300 direct labor-hours. The company incurred a total of $7,360 in variable overhead costs.According to the company’s standards, 0.02 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.25 per direct labor-hour.Required:1. What is the standard labor-hours allowed (SH) to ship 120,000 items to customers?2. What is the standard variable overhead cost allowed (SH × SR) to ship 120,000 items to customers?3. What is the variable overhead spending variance?4. What is the variable overhead rate variance and the variable overhead efficiency variance?(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)2) Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3]Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company uses a standard cost system for all of its products. According to the standards that have been set for the seat covers, the factory should work 2,850 hours each month to produce 1,900 sets of covers. The standard costs associated with this level of production are:Total Per Setof CoversDirect materials $ 42,560 $ 22.40 Direct labor $ 51,300 27.00 Variable manufacturing overhead (based on direct labor-hours) $ 6,840 3.60 $ 53.00 During August, the factory worked only 2,800 direct labor-hours and produced 2,000 sets of covers. The following actual costs were recorded during the month:Total Per Setof CoversDirect materials (12,000 yards) $ 45,600 $ 22.80 Direct labor $ 49,000 24.50 Variable manufacturing overhead $ 7,000 3.50 $ 50.80 At standard, each set of covers should require 5.6 yards of material. All of the materials purchased during the month were used in production.Required:1. Compute the materials price and quantity variances for August.2. Compute the labor rate and efficiency variances for August.3. Compute the variable overhead rate and efficiency variances for August.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
To determine the standard labor-hours allowed (SH) to ship 120,000 items to customers, we need to calculate the number of direct labor-hours required per item and then multiply it by the total number of items shipped.
According to the company's standards, 0.02 direct labor-hours are required to fulfill an order for one item. Therefore, we can calculate the standard labor-hours allowed (SH) using the following formula:SH = (Number of items shipped) × (Direct labor-hours required per item)So, the standard labor-hours allowed (SH) to ship 120,000 items to customers is 2,400 labor-hours.
To calculate the standard variable overhead cost allowed (SH × SR) to ship 120,000 items to customers, we need to multiply the standard labor-hours allowed (SH) by the variable overhead rate (SR) per labor-hour. According to the company's standards, the variable overhead rate is $3.25 per direct labor-hour. Therefore, we can calculate the standard variable overhead cost allowed using the formula.
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Cheney Company established a predetermined variable overhead cost rate at $21.00 per direct labor hour. The actual variable overhead cost rate was $19.20 per hour. The planned level of labor activity was 76,000 hours of labor. The company actually used 80,000 hours of labor. Required Determine the total flexible budget variable overhead cost variance and indicate the effect of the variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
The total flexible budget variable overhead cost variance is $144,000. The actual variable overhead cost is lower than the flexible budget variable overhead cost, it indicates a favorable variance (F). The calculation is shown in the attached image below.
Overhead costs, also known as indirect costs or operating expenses, refer to the ongoing expenses incurred by a business or organization that are not directly attributable to a specific product, service, or project.
Overhead costs are necessary for the operation of the business as a whole and support its overall functioning. These costs include various expenses that are not directly tied to the production or delivery of goods or services
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Net Present Value-Unequal Lives Project 1 requires an original investment of $57,000. The project will vield cash flow 5 of $15,000 per year for five years. Project 2 has a calculated net present value of $15,100 over a three-year life. Project 1 could be sold at the end of three years for a price of $67,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. Present Value of $1 at Compound Interest Present Value of an Annuity of $1 at Componnd Interest Present Value of an Annuity of $1 at Compound Interest a. Determine the net present value of Project 1 over a three-vear life with residual value, assuming a minimum rate of return of 20%. If required, found to the nearest dollar. b. Which project provides the oreatest net present value?
The net present value of Project 1 over a three-year life with a residual value, assuming a minimum rate of return of 20%, is $89,000.
a. To determine the net present value of Project 1 over a three-year life with a residual value, we need to calculate the present value of the cash flows and the residual value. Using the information provided and the Present Value of $1 at Compound Interest table, we can calculate the present value of the cash flows:
Year 1: $15,000 / (1 + 0.20)^1 = $12,500
Year 2: $15,000 / (1 + 0.20)^2 = $10,416.67
Year 3: ($15,000 + $67,000) / (1 + 0.20)^3 = $66,083.33
Next, we calculate the net present value by subtracting the initial investment:
Net Present Value = Present Value of Cash Flows - Initial Investment
Net Present Value = ($12,500 + $10,416.67 + $66,083.33) - $57,000
Net Present Value = $89,000
Therefore, the net present value of Project 1 over a three-year life with a residual value, assuming a minimum rate of return of 20%, is $89,000.
b. To determine which project provides the greatest net present value, we compare the net present value of Project 1 with the net present value of Project 2, which is given as $15,100 over a three-year life. Since the net present value of Project 1 ($89,000) is higher than the net present value of Project 2 ($15,100), Project 1 provides the greater net present value.
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one who initiates and assumes the financial risk of a new business enterprise and undertakes to provide or control its management.
The individual who initiates and assumes the financial risk of a new business enterprise and undertakes to provide or control its management is commonly known as an "entrepreneur."
Entrepreneurs are individuals who identify business opportunities, develop innovative ideas, and take the initiative to establish and run their own ventures. They are characterized by their willingness to take risks, their ability to bring together resources, and their capacity to make decisions and manage the operations of a business.
Entrepreneurs often invest their own capital or seek funding from external sources to finance their ventures. They bear the financial risk associated with the success or failure of the business and are responsible for managing its operations, including strategic planning, marketing, operations, finance, and human resources.
Entrepreneurs play a vital role in economic growth and innovation by creating new businesses, generating employment opportunities, introducing new products or services, and contributing to overall economic development. They are driven by their vision, passion, and determination to transform ideas into successful and sustainable enterprises.
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The primary types of tax systems are (Check all that apply.) A. proportional tax systems. B. average tax systems. C. regressive tax systems. D. marginal tax systems. E. progressive tax systems. An example of a progressive tax is the A. sales tax. B. income tax. C. Social Security tax. D. property tax. An example of a regressive tax is the A. Medicare tax. B. income tax. C. Social Security tax. D. inheritance tax. An example of a proportional tax is the A. Medicare tax. B. property tax. C. Social Security tax. D. income tax.
Taxation is the process of collecting money from citizens in order to fund the government's operations. A tax system is a set of rules and regulations that governs the collection of taxes from citizens and organizations.
A variety of tax systems exist around the world, and different countries use different methods to collect taxes. Here are the primary types of tax systems: Proportional Tax SystemsA proportional tax system is one in which the tax rate is the same for all taxpayers, regardless of their income. This implies that everyone pays the same percentage of their income in taxes.
. As a result, the poor pay more in taxes than the rich. Average Tax Systems An average tax system is one in which the tax rate is the same for all taxpayers, but the amount of taxes paid varies based on income. This implies that the tax system is progressive, but not as progressive as the progressive tax system.
The progressive tax system is used to collect income tax in most countries. In the United States, for example, the tax rate ranges from 10% to 37% of taxable income, depending on the taxpayer's income level. The higher the income level, the higher the tax rate.
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A big pharmaceutical company, DRig, has just announced a potential cure for cancer. The stock price increased from $5 to $158 in one day. A friend calls to tell you that he owns DRig. You proudly reply that you do, too. Since you have been friends for some time, you know that he holds the market, as do you, and so you both are invested in this stock. Both of you care only about expected return and volatility. The risk-free rate is 3%, quoted as an APR based on a 365 -day year. DRig made up 1.93% of the market portfolio before the news announcement. a. On the announcement your overall wealth went up by 0.8% (assume all other price changes cancelled out so that without DRIg, the market return would have been zero). How is your wealth invested? b. Your friend's wealth went up by 1.9%. How is his wealth invested?
a. Since D Rig made up 1.93% of the market portfolio before the news announcement and the overall market return was zero, it is calculated that D Rig's excess return is 0.8% / 1.93% = 41.45%.
Using this value in the capital asset pricing model (CAPM) equation:
D Rig's Expected Return = Risk-Free Rate + Beta(D Rig) (Market Risk Premium)
where:
Beta(D Rig) = Covariance(D Rig, Market Portfolio) / Variance(Market Portfolio)and Market Risk Premium = Expected Market Return - Risk-Free Rate Thus, Expected Market Return = Risk-Free Rate + Market Risk Premium It is given that the Risk-Free Rate is 3%.
Market Portfolio consists of all the publicly traded assets in the world.
The variance of the market portfolio is 1.
Next, D Rig's Beta is given as:
Beta(D Rig) = Covariance(D Rig, Market Portfolio) / Variance(Market Portfolio) = 0.74.
Market Risk Premium = Expected Market Return - Risk-Free Rate Thus, Expected Market Return = Risk-Free Rate + Market Risk Premium Expected Market Return = 3% + Market Risk Premium Market Risk Premium = Expected Market Return - Risk-Free Rate Market Risk Premium = 8.5% - 3% = 5.5%,
D Rig's Expected Return is:
D Rig's Expected Return = Risk-Free Rate + Beta(D Rig)
(Market Risk Premium) D Rig's Expected Return = 3% + 0.74 (5.5%) = 6.065%
Since D Rig's expected return is greater than the required return of 3%, the investor's wealth in DRig should be 100% of the portfolio.
b. Since the friend's overall wealth went up by 1.9%,
it can be calculated that D Rig's excess return is 1.9% / 1.93% = 98.45%.
Using the same equation as above for the CAPM, and substituting in the required values:
D Rig's Expected Return = Risk-Free Rate + Beta(D Rig) (Market Risk Premium)
D Rig's Expected Return = 3% + Beta(D Rig) (5.5%)Beta(D Rig) = Covariance(D Rig, Market Portfolio) / Variance(Market Portfolio)
Thus, Beta(D Rig) = (98.45%) / (1.93% x 1) = 51.15.
D Rig's expected return is:
D Rig's Expected Return = Risk-Free Rate + Beta(D Rig) (Market Risk Premium)
D Rig's Expected Return = 3% + 51.15 (5.5%) = 281.65%.
Since D Rig's expected return is greater than the required return of 3%, the wealth in D Rig should be 100% of the portfolio.
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which of the following is not one of the three types of contingent valuation surveys?
The correct answer is "Stated preference survey" as it is not one of the three types of contingent valuation surveys.
Contingent valuation surveys are a methodology used in economics to estimate the value individuals place on goods, services, or environmental resources that do not have a market price. The three main types of contingent valuation surveys are:
Open-ended contingent valuation surveys: These surveys ask respondents an open-ended question about the maximum amount they would be willing to pay (WTP) or accept (WTA) for a particular good or service.
Closed-ended contingent valuation surveys: These surveys provide respondents with a set of predetermined payment options, often presented in a multiple-choice format. Respondents choose their preferred option or indicate their WTP or WTA from the provided choices.
Dichotomous choice contingent valuation surveys: In these surveys, respondents are presented with a yes-or-no question, typically framed as whether they would be willing to pay a specific amount for the good or service being valued.
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a limited partnership is an agreement between two or more individuals to operate a business as co-owners for a limited period of time. true or false
The statement "a limited partnership is an agreement between two or more individuals to operate a business as co-owners for a limited period of time" is false.
A limited partnership is a type of business structure where there are two types of partners: general partners and limited partners. General partners have unlimited liability and are actively involved in the management of the business, while limited partners have limited liability and do not participate in the day-to-day operations of the business.
Unlike the statement suggests, a limited partnership does not have a limited period of time. It can continue indefinitely as long as the partners agree and fulfill the legal requirements.
In a limited partnership, the general partners have more control and are responsible for the management and decision-making of the business. They also have personal liability for the debts and obligations of the partnership.
On the other hand, limited partners have limited liability, meaning their personal assets are protected from the partnership's debts and obligations beyond their initial investment. However, limited partners typically have no management authority and cannot make decisions on behalf of the partnership.
Overall, a limited partnership is a business arrangement that allows for both active and passive participation in the management and ownership of a business, but it is not limited to a specific time period.
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A five-year, 6.5% bond with a YTM of 5.0% has a duration of 4.45 and convexity of 25.59. The bond's current price quote is 106.494. Assume the bond pays annual coupons and has a par value of $1.000. a. Compute the percentage change in the bond's price if its YTM increases 75 basis points. b. Estimate the percentage change in the bond's price using modified duration and the convexity correction (the duration \& convexity rule) if the bond's YTM increases 75 basis points. c. Compute the percentage change in the bond's price if its YTM decreases 90 basis points. d. Estimate the percentage change in the bond's price using modified duration and the convexity correction (the duration \& convexity rule) if the bond's YTM decreases 90 basis points.
To calculate the percentage change in the bond's price if its YTM increases 75 basis points, we can use the following formula.
[tex]% Change in bond price = - Duration × ΔYTM + (Convexity × ΔYTM²) / 2[/tex] Where: Duration = 4.45ΔYTM = 75 basis points = 0.75%Convexity = 25.59 Therefore, [tex]% Change in bond price = - 4.45 × 0.75 + (25.59 × 0.75²) / 2= - 3.3375 + 11.4141= 8.0766[/tex] The percentage change in the bond's price if its YTM increases 75 basis points is approximately 8.08%.
To estimate the percentage change in the bond's price using modified duration and the convexity correction if the bond's YTM increases 75 basis points, we can use the following formula:[tex]% Change in bond price = - Duration × ΔYTM + (Convexity × ΔYTM²) / 2[/tex]Where: [tex]Duration = 4.45ΔYTM = 75[/tex] [tex]basis points = 0.75%Convexity = 25.59.[/tex]
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1. What form does the answer to the third question of risk assessment take?
Set of possible scenarios
Probability of scenarios
Valuation of Scenarios
Strategies for dealing with scenarios
The answer to the third question of risk assessment is Valuation of Scenarios. It involves the assignment of numerical values to the probability of each risk, the impact it can have on the project, and the resulting exposure of the project to the risk. There are three primary reasons for performing a risk assessment for a project:
To identify risks that could be potential roadblocks in achieving project objectives, to determine the likelihood and severity of each risk, and to develop strategies for managing the risks in order to reduce their impact on the project.
Most importantly, valuation of scenarios is a vital step in risk assessment that helps to identify potential negative outcomes for any project. In order to valuate scenarios, a team needs to consider two important parameters: probability and impact.
Probability refers to the likelihood of an event happening, while impact refers to the severity of the event happening. After assigning numerical values to probability and impact, these are multiplied to produce a risk score.
The higher the risk score, the greater the potential impact on the project, so the team needs to prioritize and develop a mitigation strategy for high-risk scenarios to reduce their impact on the project. In conclusion, valuation of scenarios is the form that the answer to the third question of risk assessment takes.
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Suppose that the manager of a construction supply house determined from historical records that demand for sand averages 47 tons. In addition, suppose the manager determined that demand during lead time could be described by a normal distribution that has a mean of 47 and a standard deviation of 4 tons. Answer the following questions assuming that the manager is willing to accept a stockout risk of no more than 3 percent. (Round your answer to two decimal points.) a. What value of z is appropriate? b. How much safety stock should be held? (Round your answer to two decimal points.) c. What reorder point should be used? (Round your answer to two decimal points.)
The reorder point that should be used is 54.52 tons. The manager should reorder the sand when the inventory level reaches 54.52 tons.
a) What value of z is appropriate?
The z-score formula is used to calculate z-score which tells us the deviation of a score from its mean, taking into account the standard deviation. If the manager is willing to accept a stock out risk of no more than 3 percent, it means that she wants the product to be in stock 97 percent of the time.
Therefore, the z value associated with 97 percent is 1.88.
To find the value of z, use the following formula;
Z = (x - μ) / σWhere,x = 0.03μ = 0σ = 1Z = (0.03 - 0) / 1Z = 0.03.
The value of z is 1.88b) How much safety stock should be held?
The safety stock is the extra inventory you keep on hand to protect against stock out due to unexpected fluctuations in demand or supply chain problems. It is calculated as the product of the standard deviation of lead time demand and the z-value.
Therefore, the safety stock is calculated as follows:
Safety stock = Z × σLTD.
Demand for lead time = 47 tons.
Standard deviation of lead time demand = 4 tons Z = 1.88.
Safety stock = 1.88 × 4Safety stock = 7.52 tons.
Therefore, the amount of safety stock that should be held is 7.52 tons.
c) What reorder point should be used?
The reorder point is the inventory level at which an order should be placed to replenish stock. To calculate the reorder point, add the expected lead time demand to the safety stock and subtract this value from the expected demand during the lead time.
Therefore, the reorder point is calculated as follows:
Reorder point = (Demand during lead time × Lead time) + Safety stock.
Demand during lead time = 47 tons.
Lead time = 1 week.
Safety stock = 7.52 tons.
Reorder point = (47 × 1) + 7.52.
Reorder point = 54.52 tons.
Therefore, the reorder point that should be used is 54.52 tons. The manager should reorder the sand when the inventory level reaches 54.52 tons.
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Under the Statute of Frauds, an oral promise to take on the debts of another is enforceable in some states. Can you think of any other activities that might be legally acceptable despite the fact that they are not in writing?
Under the Statute of Frauds, there are some activities that might be legally acceptable even though they are not in writing.
An oral promise to take on the debts of another is enforceable in some states.
Additionally, other activities that might be legally acceptable even though they are not in writing include:
Oral employment contracts. In some states, oral employment contracts that are less than a year long are legal.
Leases.
Short-term leases of one year or less do not require a written lease to be considered legal.
Agreements that cannot be performed within a year.
If an agreement cannot be performed within one year, it must be in writing.
Promissory Estoppel.
Promissory estoppel occurs when a promise is made without any written documentation.
This type of legal situation might arise when a person makes a promise to a business partner or a supplier.
This promise can be enforceable if the recipient relied on the promise and changed his position based on it.
Good faith and fair dealing.
Many states have laws in place that require parties to act in good faith and fair dealing in their business relationships.
This requirement does not require a written contract but rather an obligation to act with honesty and integrity.
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what are the project deliverables for a self-checkout kiosk
implementation project for a supermarket?
A project deliverable is a result that is delivered at the conclusion of a project. It is a tangible outcome that is used to assess project success and whether project objectives have been met. The following are the project deliverables for a self-checkout kiosk implementation project for a supermarket:1. Project charter: This document provides a summary of the project's objectives, scope, and resources required to complete it.
It also outlines the roles and responsibilities of the project team.2. Project plan: This document provides a comprehensive project plan that details the activities, timelines, and resources required to deliver the project. It is a roadmap for the project team to follow and ensure that the project is delivered on time and within budget.3. Design specifications:
This document provides detailed specifications for the self-checkout kiosks, including hardware, software, and user interface.4. Procurement plan: This document outlines the procurement process for the self-checkout kiosks, including vendor selection, negotiation, and contract execution.
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The Baron Basketball Company (BBC) earned $11 a share last year and paid a dividend of $5 a share. Next year, you expect BBC to earn $13 and continue its payout ratio. Assume that you expect to sell the stock for $129 a year from now. Do not round intermediate calculations. Round your answers to the nearest cent.
If you require 12 percent on this stock, how much would you be willing to pay for it?
If you expect a selling price of $113 and require a 9 percent return on this investment, how much would you pay for the BBC stock?
Given data:Earnings last year = $11 a share Dividend last year = $5 a shareExpected earnings next year = $13 a shareExpected selling price = $129 a year from now Required rate of return (RRR) = 12% = 0.12 (as a decimal)Solution:To find the maximum price you would be willing to pay, we need to use the dividend discount model as follows Maximum price = (dividend next year + expected selling price) / (1 + required rate of return).
Dividend next year = earnings next year * payout ratio = $13 * ($5 / $11) = $5.91Maximum price = ($5.91 + $129) / (1 + 0.12) = $107.27Therefore, you would be willing to pay up to $107.27 for the BBC stock at a required rate of return of 12%.Now, let's calculate the maximum price you would be willing to pay if you expect a selling price of $113 and require a 9% return on this investment.
To find the maximum price you would be willing to pay, we can use the same dividend discount model:Maximum price = (dividend next year + expected selling price) / (1 + required rate of return) Dividend next year = earnings next year * payout ratio = $13 * ($5 / $11) = $5.91Maximum price = ($5.91 + $113) / (1 + 0.09) = $98.48 Therefore, you would be willing to pay up to $98.48 for the BBC stock if you expect a selling price of $113 and require a 9% return on this investment.
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4. Payer yield is a metric used to benchmark various contracts of similar financial classes against others to examine financial performance. Payer yield is expressed as a percentage, calculated as (total payments/total charges). If Humana’s yield is 62% and Anthem’s yield is 67%, what percentage increase should Managed Care negotiate with Humana to bring it to parity with Anthem?
Payer yield is a metric used to benchmark various contracts of similar financial classes against others to examine financial performance. It is expressed as a percentage, calculated as (total payments/total charges).
To bring Humana's payer yield to parity with Anthem, we will first determine the percentage increase required.
Let's set up an equation to solve for the percentage increase we need to bring Humana to parity with Anthem:
Percentage Increase = [(Anthem's yield - Humana's yield)/Humana's yield] x 100Substitute the values we know into the formula:
Percentage Increase = [(67 - 62)/62] x 100Percentage Increase = (5/62) x 100Percentage Increase = 8.06%
Thus, Managed Care should negotiate an 8.06% increase in payer yield with Humana to bring it to parity with Anthem.
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what approach supports applying business practices within the public sector
New Public Management (NPM) promotes the adoption of business practices in the public sector to improve efficiency and accountability. It emphasizes results-oriented approaches, customer focus, and performance measurement for better service delivery.
The approach that supports applying business practices within the public sector is known as "New Public Management" (NPM). NPM emphasizes the use of management techniques and principles derived from the private sector to improve the efficiency, effectiveness, and accountability of public sector organizations. It advocates for results-oriented approaches, performance measurement, decentralization, market mechanisms, and customer focus.
By adopting business practices such as strategic planning, performance evaluation, outcome measurement, and customer satisfaction assessment, the public sector aims to enhance service delivery, streamline processes, and increase overall organizational effectiveness. NPM encourages public sector organizations to operate in a more business-like manner, embracing concepts such as cost-efficiency, performance-based funding, and competition.
While the application of business practices in the public sector can bring benefits in terms of effectiveness and accountability, it is important to strike a balance between efficiency and the unique objectives and values of the public sector, such as equitable service provision and social welfare. Therefore, careful consideration and adaptation of business practices to the specific context of the public sector are necessary for successful implementation.
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BMMB has recently been approached by John Smart and Lydia Job. They are seeking advice with regards to operating a new catering business to trade as Ultimate Catering. They both have over 10 years’ experience in this industry and now want to set up their own business. They intend to rent the premises and employ 3 chefs and 3 kitchen hands.
john would manage the kitchen and Lydia would take care of the administration and bookkeeping duties.
They anticipate that the set-up cost for each shop would be $50,000. They have already won a contract to provide catering services to the local TV station. As seasoned chefs who have made headlines in the industry, they expect the business to be very successful.
John has personal investments worth $500,000 and Lydia has personal investments of $200,000 and a property trust. They want a business structure that is not expensive to set up and that which would enable them to minimise their tax liability whilst protecting their personal assets and investments.
They have a general idea about Trusts, Corporations and Joint Ventures. They want you to research and analyse these options and advise on the best business structure for them.
John and Lydia and other local businesses in the area which to run a soup kitchen once a month at their local community Centre. They want to formalise this and keep it separate from their personal and business activities. Advise them on the best structure to use.
Explain the following business structures and suggest the best structure for your client based on their needs. In your answer, analyse the impact of legal principles and risk implications involved in the suggested business structure.
Trusts
Corporations
Joint Ventures
Suggest the best structure for your client based on their needs and analyse the impact of legal principles and risk implications involved in the suggested business structure.
It's important to note that the choice of business structure involves legal and risk implications. Establishing a corporation requires compliance with corporate laws, taxation regulations, and ongoing reporting.
Rusts: A trust is a legal entity created to hold and manage assets on behalf of beneficiaries. It involves transferring assets to a trustee who has a fiduciary duty to manage and distribute them according to the terms of the trust. Trusts can provide asset protection, flexibility in tax planning, and privacy. However, they require formal establishment, administration, and ongoing compliance.
Corporations: A corporation is a separate legal entity from its owners, known as shareholders. It offers limited liability protection, meaning that the shareholders' personal assets are generally protected from business liabilities.
Corporations have a more complex structure, requiring formal incorporation, adherence to corporate governance rules, and compliance with various regulations. They can raise capital through the issuance of shares and have perpetual existence.
Joint Ventures: A joint venture involves two or more parties coming together to pursue a specific business opportunity or project. Each party contributes resources, shares profits, and bears risks. Joint ventures can be structured through a contractual agreement or by establishing a separate legal entity. They allow for collaboration and risk-sharing but require clear agreements and management of the relationship between the parties.
Based on John and Lydia's needs, the best business structure for them would likely be a corporation. As they seek to protect their personal assets and investments, a corporation offers limited liability, separating their personal finances from the business. With their anticipation of success and potential expansion, a corporate structure provides a more scalable and enduring framework. They can issue shares to raise capital, establish clear roles and responsibilities, and ensure compliance with legal and regulatory requirements.
However, it's important to note that the choice of business structure involves legal and risk implications. Establishing a corporation requires compliance with corporate laws, taxation regulations, and ongoing reporting.
They would need to consider factors such as taxation, governance, shareholder agreements, and liability exposure. Consulting with legal and financial professionals would be crucial to ensure a thorough analysis of the legal principles and risk implications associated with the chosen business structure.
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Murray Compensation, Inc. issued 100,000 employee share options on 1/1/2016. The grand-date market price is $18 per share, exercise price is also $18 per share, and the fair value of the options is $9 per share. The vesting period is 3 years.
How much stock option compensation should be record for the first year (2016]?
Due to the significant decrease in stock price, the fair value of the option dropped to $4 per share as of 1/1/18. As a result, Murray decreased the exercise price of the option to from $18 to $12 per share. With the re-pricing, the fair value is now $6 per share. How much additional compensation should be recorded for 2018? . How much total compensation should be recorded for 2018?
Stock options compensation is an expense. It is recorded in the income statement and is deducted from revenue in order to arrive at the net income.
Stock options compensation arises when the company grants employee stock options. The amount of compensation is calculated based on the fair value of the options as of the grant date and is usually expensed over the vesting period. Murray Compensation, Inc. issued 100,000 employee share options on 1/1/2016. The grant-date market price is $18 per share, exercise price is also $18 per share, and the fair value of the options is $9 per share. The vesting period is 3 years. In the first year,
the company would recognize $3 per share (=$9/3) as stock option compensation expense.
The total compensation expense for 2016 would be $300,000 (=100,000 shares x $3/share).Due to the significant decrease in stock price, the fair value of the option dropped to $4 per share as of 1/1/18. As a result, Murray decreased the exercise price of the option from $18 to $12 per share.
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Which strategy attempts to establish and maintain the image that an SBU's product or services are fundamentally unique from other products or services in the same market segment?
A) corporate strategy
B) differentiation strategy
C) related diversification strategy
D) unrelated diversification strategy
The strategy that attempts to establish and maintain the image that an SBU's product or services are fundamentally unique from other products or services in the same market segment is the differentiation strategy.
The differentiation strategy is focused on creating a unique and distinctive positioning for a product or service in the market. It involves developing features, qualities, or attributes that set the offering apart from competitors and create a perception of value and uniqueness among customers. By emphasizing the unique aspects of their products or services, companies implementing a differentiation strategy aim to attract customers based on their distinctive features rather than solely competing on price. This strategy helps to build a competitive advantage and create a perception of superiority in the market segment, thus distinguishing the SBU from its competitors.
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3. Conduct an analysis and evaluation of the shortlisted vendors
and select the best one from your selection. Justify your choice.
(5 marks)
After analyzing and evaluating the shortlisted vendors, the best one should be chosen. The choice should be justified.
An evaluation and analysis of the shortlisted vendors are essential for selecting the best one. Vendors are usually evaluated by conducting research on their reputation and previous projects they have undertaken. If possible, one can also try to seek reviews and opinions from their previous clients to help gain insight into their work. Other factors to consider include pricing, quality of work, technical skills, and experience.
Once all the research is done, and all the factors are considered, it's essential to make a comparison between the vendors' strengths and weaknesses. This helps in selecting the best vendor by weighing the advantages and disadvantages. It's advisable to make a final decision that balances the price, experience, and quality of work.
Once the best vendor is selected, it's essential to justify the choice. Justification helps in providing evidence for the decision made and helps to explain the reason behind it. This is useful in making comparisons to any other vendors that may have been shortlisted but were not selected.
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Two investment options are as follows.
Choice 1: Payments of $ 2500 now, $ 3000 a year from now, and $ 3560 two years from now.
Choice 2. Three yearly payments of $ 3000 starting now.
Assume interest is compounded continuously
(a) If the interest rate on savings were 6.74 %, which would you prefer? 2
(Type in 1 for Choice 1, or 2 for Choice 2)
(b) What is the interest rate that would make both choices equally lucrative? Enter an EXACT answer using a logarithm (NO DECIMALS). |
(a) Two investment options are given as follows: Choice 1: Payments of $2500 now, $3000 a year from now, and $3560 two years from now. Choice 2. Three yearly payments of $3000 starting now. Assume interest is compounded continuously.
Now, the given interest rate is 6.74%.We have to find out which option is preferred.(i) Choice 1:Payments of $2500 now is worth $2500 after 0 years.$3000 a year from now is worth 3000*e^(0.0674*1) = $3208.54 after 1 year.$3560 two years from now is worth 3560*e^(0.0674*2) = $3945.70 after 2 years.
Total amount received by choosing Choice 1 = $2500 + $3208.54 + $3945.70 = $9654.24(ii) Choice 2:Three yearly payments of $3000 starting now is worth $3000+3000*e^(0.0674*1)+3000*e^(0.0674*2) = $9413.46Total amount received by choosing Choice 2 = $9413.46Therefore, Choice 2 is preferred over Choice .
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Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of $25,000 and $41,500, respectively. It also expects credit sales of $51,500 and $61,500, respectively. The company expects to collect 45% of its credit sales in the month of the sale, 50% in the following month, and 5% is deemed uncollectible. What amount of cash collections would appear in the company's cash budget for the first month? . Multiple Choice $64,675 $23.175 $64.675 $23.15 $48.5 $4500
We must take into account both the cash and credit sales as well as the credit sales' collection trends in order to calculate the cash collections for the first month.
The business anticipates $25,000 in cash sales for the first month. Since these sales are done in cash, the proceeds will be collected right away. The corporation anticipates $51,500 in credit sales, but only 45% of them are paid for in the month of the transaction. Therefore, 45% of $51,500, or $23,175, would be the cash collected from credit sales in the first month. We sum the cash sales and the cash collections from credit sales to determine the total cash collections for the first month: first-month cash collections equal cash sales plus cash receipts from Credit sales equal $25,000 plus $23,175 for a total of 48,175 As a result, the right response is $48,175, which isn't one of the available multiple-choice answers.
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Vaughn TVs uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory was 3 sets at €648.00 each. On January 10, Vaughn purchased 6 units at €700 each. The company sold 2 units on January 8 and 4 units on January 15. Part 1 Your answer is incorrect. Compute the ending inventory under FIFO. (Round answers to 0 decimal places, e.g. 2,120.) Compute the ending inventory under moving-average cost. (Round average unit cost to 2 decimal places, e.g. 25.16 and final answer to O decimal places, e.g. 2,120.)
Vaughn TVs uses a perpetual inventory system. The inventory of flat-screen television sets on January 1 was 3 sets at €648.00 each. On January 10, 6 units were purchased for €700 each. The company sold 2 units on January 8 and 4 units on January 15.
FIFO is a method of inventory costing where the earliest inventory purchased is assumed to be the first inventory sold. It is commonly used to value inventory as it provides the closest approximation of the cost of goods sold.
The calculation of ending inventory under FIFO is done as follows:
For the 3 units from January 1 Inventory:
Total Cost = €1,944 (3 units × €648 each)For the 6 units from January 10 Purchases:
Total Cost = €4,200 (6 units × €700 each)The cost of the 2 units sold on January 8 is the cost of the 2 units from the January 1 inventory, which is €1,296. The remaining cost of the 2 units sold is €1,296 from the January 10 purchase. For the 4 units sold on January 15, the cost is €2,592 from the January 10 purchase. The calculation of the ending inventory under FIFO is:
Cost of goods sold = €5,184 (€1,296 + €1,296 + €2,592)
Ending inventory = €1,956 (€6,300 - €5,184)
The moving-average cost is a method of inventory costing that recalculates the average cost of inventory after each purchase. It is calculated by dividing the total cost of the inventory by the number of units in the inventory.
The calculation of the moving-average cost and ending inventory is as follows:
For the 3 units from January 1 Inventory:
Total Cost = €1,944 (3 units × €648 each)For the 6 units from January 10 Purchases:
Total Cost = €4,200 (6 units × €700 each)Total Units = 9Average Cost = €2,144 (€6,144 ÷ 9)
For the 2 units sold on January 8, the cost is €2,144 from the moving-average cost. For the 4 units sold on January 15, the cost is €2,144 from the moving-average cost.
The calculation of the ending inventory under the moving-average cost is:
Total Units = 3 (January 1 Inventory) + 6 (January 10 Purchase) - 2 (January 8 Sales) - 4 (January 15 Sales) = 3Average Cost = €2,144Ending inventory = €6,432 (€2,144 × 3 units)
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courts usually award punitive damages in cases in which the offender has committed _____.
Courts usually award punitive damages in cases in which the offender has committed malicious, oppressive, or fraudulent acts that resulted in harm to the victim. Punitive damages are a monetary award that exceeds the actual damages that the plaintiff has suffered.
The primary purpose of this type of damages is to punish the offender and deter others from committing similar acts. Punitive damages are commonly awarded in tort cases, including product liability, medical malpractice, and intentional torts like assault, battery, and fraud.
In these cases, the defendant's actions have caused harm to the plaintiff beyond physical injury, such as emotional distress or loss of reputation.
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i hereby authorize university of massachusetts global to initiate debit or credit entries to my depository according to the terms below, and for my depository to debit or credit the same to such account. in the event that this electronic payment is returned unpaid for any reason, i understand that a $25.00 return fee will be added to my student account.i hereby authorize university of massachusetts global to initiate debit or credit entries to my depository according to the terms below, and for my depository to debit or credit the same to such account. in the event that this electronic payment is returned unpaid for any reason, i understand that a $25.00 return fee will be added to my student account.
The statement provided is an authorization for the University of Massachusetts Global to initiate debit or credit entries to the student's depository account. It also states that if the electronic payment is returned unpaid, a $25.00 return fee will be added to the student's account.
The statement is essentially giving permission to the University of Massachusetts Global to make transactions, either debits or credits, to the student's depository account. This means that the university has the authority to withdraw or deposit funds from the account as necessary.
Additionally, it states that if the electronic payment made by the university is returned unpaid for any reason, a $25.00 return fee will be added to the student's account. This fee is a penalty for the unsuccessful payment transaction. Overall, this authorization allows the university to manage the student's account electronically and specifies the consequences of a returned payment.
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