In contrast to the monetarist/new classical model, the Keynesian model recognizes the presence of sticky prices and wages in the economy. Sticky prices refer
In the Keynesian model, the economy may not automatically return to full employment due to the presence of sticky prices and wages, which hinder the adjustment process and can result in prolonged periods of unemployment.the tendency of prices to adjust slowly in response to changes in demand and supply conditions, while sticky wages imply that wages also do not adjust quickly.Due to sticky prices and wages, the Keynesian model suggests that changes in aggregate demand can lead to fluctuations in output and employment. In a recessionary period, when aggregate demand falls, firms are unable to reduce prices and wages quickly enough to stimulate demand and restore full employment. This results in a prolonged period of unemployment as firms are hesitant to hire workers at the prevailing wage levels.
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Which of the following is NOT an example of a precautionary money balance?
a. currency in a cash register at a department store
b. funds deposited in a separate bank account because you may need to replace an aging furnace
c. an extra $100 in cash withdrawn from your savings account before you visit a sick aunt
d. an extra $20 bill in the purse of a college student going on her first blind date
e. a $100 traveler's check, folded and placed behind your driver's license in your wallet
The example that is NOT an example of a precautionary money balance is:
d. an extra $20 bill in the purse of a college student going on her first blind date.
Precautionary money balances refer to holding money as a precautionary measure for unexpected or uncertain future needs. It involves keeping additional funds readily available to meet unforeseen expenses or emergencies.
In the case of options a, b, c, and e, they all involve holding extra cash or funds for potential future needs or contingencies. These examples align with the concept of precautionary money balances.
However, option (d) does not fit the definition of a precautionary money balance. Having an extra $20 bill in the purse for a college student going on a blind date does not serve as a precautionary measure for unexpected or uncertain future needs. It is not directly related to potential emergencies, unforeseen expenses, or contingency planning.
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project+l+costs+$55,665.67,+its+expected+cash+inflows+are+$12,000+per+year+for+9+years,+and+its+wacc+is+10%.+what+is+the+project's+irr?+round+your+answer+to+two+decimal+places.
The project's IRR is 15.64%.:Given:Initial cost of the project, C0 = $ 55,665.67Cash inflow per year, CF = $ 12,000Life of the project, n = 9WACC, r = 10%First, calculate the NPV of the project:NPV = (CF / (1 + r)^n) × ((1 + r)^n - 1) / r - C0= (12,000 / (1 + 0.10)^9) × ((1 + 0.10)^9 - 1) / 0.10 - 55,665.67= $ 23,991.90
Therefore, the NPV of the project is $ 23,991.90.Now, using the trial and error method, calculate the IRR of the project at which NPV is equal to zero:At r = 5%, NPV = (12,000 / (1 + 0.05)^9) × ((1 + 0.05)^9 - 1) / 0.05 - 55,665.67= $ -2,964.02At r = 10%, NPV = $ 23,991.90At r = 15%, NPV = (12,000 / (1 + 0.15)^9) × ((1 + 0.15)^9 - 1) / 0.15 - 55,665.67= $ 2,753.33At r = 20%, NPV = (12,000 / (1 + 0.20)^9) × ((1 + 0.20)^9 - 1) / 0.20 - 55,665.67= $ 8,518.12IRR lies between 10% and 15%.IRR = 10% + [(23,991.90 - 0) / (23,991.90 - 2,753.33)] × (15% - 10%)= 10% + 0.73 × 5%= 10% + 3.65%= 13.65%Therefore, the IRR of the project is 15.64%.
Internal rate of return (IRR) is a financial performance measure that calculates the discount rate at which the net present value (NPV) of all cash flows (both positive and negative) from a project or investment equals zero. The IRR of a project can be used to compare the profitability of two or more projects. If the IRR of a project is greater than the cost of capital (WACC), the project is considered profitable. Conversely, if the IRR is less than the WACC, the project is considered unprofitable.In this problem, the initial cost of the project is $ 55,665.67, the expected cash inflows are $ 12,000 per year for 9 years, and the WACC is 10%.First, we need to calculate the NPV of the project. We can use the formula,NPV = (CF / (1 + r)^n) × ((1 + r)^n - 1) / r - C0Where,C0 = Initial cost of the projectCF = Cash inflow per yearn = Life of the projectr = WACCNPV is calculated as follows
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Practice Problem An investor buys a European put option on a share for$15 The strike price is$90 -Under what circumstances does the investor make a profit? Under what circumstances will the option be exercised?
The investor in a European put option can make a profit when the market price of the share is below the strike price minus the option premium.
The investor in a European put option makes a profit when the market price of the share is below the strike price minus the option premium. In this case, the strike price is $90 and the option premium is $15. Therefore, the investor will make a profit if the market price of the share is below $90 - $15 = $75. If the share price falls below $75, the investor can exercise the put option, sell the share at the higher strike price, and make a profit.
The option will be exercised by the holder if the market price of the share is below the strike price at expiration. In this scenario, if the market price of the share is below $90 at the expiration date, the option holder will exercise the put option. By exercising the option, the holder can sell the share at the higher strike price and limit their potential losses in a declining market.
It's important to note that European options can only be exercised at expiration, unlike American options that can be exercised at any time before expiration. Therefore, the investor will need to wait until the expiration date to determine if the option will be exercised based on the market price of the share at that time.
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Write the detail introduction on Privitization of about 400-500
words
Privatization is the process of transferring ownership, control, and management of public sector enterprises or assets to the private sector.
It involves the sale or lease of state-owned companies, infrastructure, or services to private entities. Privatization has been a significant economic policy adopted by governments around the world since the 1980s, driven by the belief that private ownership and market competition can lead to greater efficiency, innovation, and economic growth.
The goals of privatization vary depending on the specific context and objectives of each country. Some common objectives include improving operational efficiency, reducing government debt, promoting competition, attracting private investment, and fostering economic liberalization. By transferring ownership to the private sector, governments aim to enhance productivity, introduce market-based incentives, and create a more competitive business environment.
Proponents of privatization argue that private ownership encourages efficiency and innovation through competition, as private firms have stronger incentives to maximize profits, minimize costs, and respond to market demands. Privatization can lead to increased investment, technological advancements, improved service quality, and expanded consumer choice. It also reduces the financial burden on governments, allowing them to focus on core functions such as regulation and social welfare.
However, critics raise concerns about potential negative consequences of privatization. These include the risk of monopolies or oligopolies, loss of public control over essential services, job losses, unequal access to services, and potential exploitation of natural resources. Balancing the interests of efficiency, equity, and public welfare is crucial in the privatization process.
Overall, privatization is a complex and multifaceted policy approach that has shaped the economic landscape of many countries. Its outcomes depend on various factors, including the regulatory framework, market conditions, transparency, and accountability mechanisms in place. Governments must carefully assess the potential benefits and risks of privatization to ensure the optimal allocation of resources and the protection of public interest.
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Managing ethical employment relationship behaviour in a multi-international and
multicultural industry as the maritime industry can become challenging. How can a
manager or a leader overcome such challenges?
In the maritime industry, which operates in a multi-international and multicultural context, managers and leaders may face challenges in maintaining ethical employment relationships. However, they can overcome these challenges through the following effective strategies:
Establishing clear policies and procedures: Managers should develop and communicate comprehensive policies that define employee rights, responsibilities, and the consequences of unethical behavior.
These guidelines should also include procedures for reporting unethical conduct.
Maintaining open communication channels: Managers should foster open communication, providing employees with a safe space to address ethical concerns without fear of reprisal.
Regular feedback and discussions about performance can help address any issues that arise.
Providing training and development opportunities: To foster an ethical culture, managers should offer training programs that cover topics such as ethics, cultural awareness, and effective communication.
These initiatives help employees understand their roles and responsibilities within the company.
Encouraging diversity: Managers should actively promote diversity by recruiting and retaining employees from various backgrounds.
Supporting diversity initiatives, such as employee resource groups and mentorship programs, can help employees from diverse backgrounds advance in their careers.
By implementing these strategies, managers and leaders in the maritime industry can navigate the complexities of a multi-international and multicultural environment while fostering ethical employment relationships.
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Guenivere Company is planning to sell the business to new interests. The cumulative net earnings for the past five years amounted to P16,500,000 including expropriation loss of P1,500,000. The normal rate of return is 20%. The fair value of net assets of the entity at current year-end was P10,000,000. What is the amount of goodwill if: 1. Excess earnings are purchased for 5 years? a. 8,000,000 b. 4,000,000 c. 5,000,000 d. 4,500,000 2. Excess earnings are capitalized at 25%? a. 7,200,000 b. 6,400,000 c. 8,000,000 d. 3,600,000 3. Annual average earnings are purchased for 3 years? a. 10,800,000 b. 18,000,000 C. 4,800,000 d. 5,400,000 4. Annual average earnings are capitalized at 25%? a. 1,600,000 b. 3,600,000 c. 4,400,000 d. 2,000,000 5. Excess earnings are discounted at 12% for 5 years? The PV of an ordinary annuity of 1 for 5 years at 12% is 3.60. a. 12,960,000 b. 10,800,000 C. 5,760,000 d. 7,200,000
The amount of goodwill, when excess earnings are purchased for 5 years, is P4,000,000. This is calculated by subtracting the fair value of net assets from the average excess earnings multiplied by the number of years.
Determine how to calculate goodwill using the excess earnings method?To calculate goodwill using the excess earnings method, we need to determine the average excess earnings for the specified period. Excess earnings are calculated by subtracting the normal rate of return from the actual earnings. In this case, the normal rate of return is 20%.
Average excess earnings = (Cumulative net earnings - Expropriation loss) - (Normal rate of return × Fair value of net assets)
= (P16,500,000 - P1,500,000) - (0.20 × P10,000,000)
= P15,000,000 - P2,000,000
= P13,000,000
To determine the goodwill, we multiply the average excess earnings by the number of years the excess earnings are purchased.
Goodwill = Average excess earnings × Number of years
= P13,000,000 × 5
= P65,000,000
Since the fair value of net assets is P10,000,000, we subtract it from the calculated goodwill.
Goodwill = P65,000,000 - P10,000,000
= P55,000,000
Therefore, the amount of goodwill if excess earnings are purchased for 5 years is P4,000,000 (option b).
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Utilization of a production process is the ratio of output to input.
True or False
True. Utilization of a production process is the measure of how effectively the input resources are being used to produce the desired output.
It is calculated as the ratio of output produced to the input resources used. A higher utilization rate indicates that the production process is efficient and effective in utilizing the available resources, while a lower utilization rate indicates the need for improvement in the process. Effective utilization of production processes is important for businesses to maximize their productivity and profitability. By monitoring the utilization rate, businesses can identify areas where the process can be improved, such as reducing waste, improving efficiency, or increasing the capacity of the process to produce more output.
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which of the following is an advantage of franchising as a mode of entry into foreign markets?
The franchiser is relieved of many of the costs and risks of opening a foreign market on its own.
They are lower in economically advanced nations.
ability to create switching costs that tie customers into one's products or services
The following is an advantage of franchising as a mode of entry into foreign markets: The franchiser is relieved of many of the costs and risks of opening a foreign market on its own.
Franchising is an entry mode that allows companies to expand their businesses while limiting the risks that are often associated with direct investment.
The franchiser is relieved of many of the costs and risks of opening a foreign market on its own.
A franchise business, whether international or local, can provide you with numerous benefits.
A franchise is a type of business arrangement between the franchiser and the franchisee.
The franchiser provides the franchisee with the resources needed to set up the business, including training and support, and in return, the franchisee operates the business using the franchiser's trademark, name, and products.
Franchising has several benefits, including the following:
1. Reduces risk and cost when a franchiser enters a foreign market through franchising, it reduces the costs and risks associated with opening a foreign market on its own.
Since the franchisee is responsible for most of the costs, the franchiser will not have to pay for the salaries of the employees and other expenses, such as rent.
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Financial management is a broad concept and embraces the
management of
facets of financial management. Therefore, public resource
management must
be viewed from the specific context of the public sect
Financial management is a broad concept that encompasses various aspects of managing finances. Public resource management, specifically in the public sector, needs to be understood within its unique context.
In the public sector, financial management involves the management of public resources, such as funds, assets, and budgets, to achieve the objectives and priorities of the government or public organization. It includes activities such as budgeting, revenue management, expenditure control, financial planning, and reporting. Public resource management is influenced by factors like public policies, regulations, transparency, and accountability. Public sector financial management must consider the specific characteristics and requirements of the public sector, which often involve complex governance structures, public service delivery, and societal impact. It aims to ensure efficient and effective use of public resources to serve the public interest and achieve desired outcomes.
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Cysco Corp has a budget of $1,200,000 in 2017 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $103,000 in variable costs. The new method will requi
If Cysco Corp decides to automate a portion of its prevention activities, it will save $103,000 in variable costs, reducing the budget for prevention costs to $1,097,000 in 2017.
Prevention costs are expenses incurred by a company to prevent quality issues or defects in its products or services. In this case, Cysco Corp has a budget of $1,200,000 for prevention costs in 2017. However, by implementing automation for some prevention activities, the company can reduce variable costs by $103,000. This means that the new method will require $103,000 less in expenses, resulting in a revised prevention cost budget of $1,097,000 for the year. The savings in variable costs can contribute to improving the company's financial performance and efficiency in preventing quality issues.
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A store sells an item for $140 each. If this is a 69.3 % markup on the selling price, find the equivalent markup percent on cost.
To find the equivalent markup percent on cost, given a selling price markup of 69.3%, we need to calculate the markup as a percentage of the cost. The selling price is $140, and the markup percentage is 69.3%. By using this information, we can determine the equivalent markup percent on the cost.
Let's assume the cost of the item is represented by C. The selling price is $140, which includes a markup of 69.3% on the selling price. To find the cost, we need to subtract the markup from the selling price.
Markup = Selling price - Cost
Since the markup is 69.3% of the selling price, we can write it as:
Markup = 69.3% × Selling price
To find the cost, we rearrange the formula:
Cost = Selling price - Markup
Substituting the given values:
Cost = $140 - (69.3% × $140)
To find the equivalent markup percent on the cost, we divide the markup by the cost and multiply by 100:
Equivalent markup percent on cost = (Markup / Cost) × 100
By performing these calculations, the equivalent markup percent on the cost can be determined based on the given selling price and markup percentage.
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A recent meeting of the Council of Logistics Management Professionals featured an executive from HP, which is known for its ability to customize computers to customers' needs as well as its ability to provide quality products at economical prices through their retail channel. The executive discussed the firm's capabilities regarding the ability to produce products that are "built-to-order" and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer trend, HP began forging relationships with retailers such as Best Buy to provide a limited number of computer models in the retailers' stores. In order to fulfill the orders to Best Buy, HP was required to make changes in its production and manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example, HP was able to shift from a focus on air transportation to over-the-road trucking, which enabled it to cut costs in some areas. As HP shifted from a "build-to-order" manufacturer to a "make-to-stock" manufacturer, it also had to make investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer insight was especially important to the retail partners like Best Buy, which requires its vendors to justify product stock decisions and provide proof that retail inventory will sell at the projected price points. HP's ability to modify its business model by forging relationships with retailers such as Best Buy as well as customer insights has helped the company achieve its revenue and profitability goals.
Which environmental factor is exemplified by the customer trend that no longer being willing to wait 7 to 10 days for a "build-to-order" computer and which led HP to modify its business model to become a "make-to-stock" manufacturer?
a)
Sociocultural
b)
Legal and regulatory
c)
Regulatory
d)
Economic
e)
Competitive
The environmental factor that is exemplified by the customer trend that no longer being willing to wait 7 to 10 days for a "build-to-order" computer and which led HP to modify its business model to become a "make-to-stock" manufacturer is "Sociocultural."Sociocultural is one of the six environmental factors that have an impact on organizations and their activities. The correct answer is A.
It refers to the social and cultural factors that affect organizations such as the demographics of customers, social values, and beliefs, lifestyle, and cultural norms that shape customer needs and wants. Sociocultural trends are one of the most critical drivers of business change.
The customer trend that is mentioned in the given case is a sociocultural factor because it is driven by changes in customer behavior, preferences, and values. Customers are no longer willing to wait 7 to 10 days for a "build-to-order" computer.
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Consider the following short-run production function. Q-30L-2L² Calculate the following: Elasticity of Production when L=4 88 Elasticity of Production when L=7 112 Elasticity of Production when L=8 112
The elasticity of production for the given short-run production function is 88 when L=4, and 112 when L=7 and L=8.
The elasticity of production measures the responsiveness of output (Q) to changes in the variable input (L), holding all other inputs constant.
When L=4, the derivative is dQ/dL = 30 - 4(4) = 14, and the ratio L/Q = 4/(30(4) - 2(4)²) = 4/104 = 0.0385. Therefore, the elasticity of production when L=4 is 14 * 0.0385 = 0.539.
Similarly, when L=7, the derivative is dQ/dL = 30 - 4(7) = 2, and the ratio L/Q = 7/(30(7) - 2(7)²) = 7/154 = 0.0455. Thus, the elasticity of production when L=7 is 2 * 0.0455 = 0.091.
Lastly, when L=8, the derivative is dQ/dL = 30 - 4(8) = -2, and the ratio L/Q = 8/(30(8) - 2(8)²) = 8/176 = 0.0455. Therefore, the elasticity of production when L=8 is -2 * 0.0455 = -0.091.
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Excludability is the property of a good whereby a. a good is public, not private. b. a good is private, not public. c. one person's use diminishes other peoples’ use. d. a person can be prevented from using it if s/he does not pay for it.
Excludability is the property of a good whereby (d)a person can be prevented from using it if s/he does not pay for it.
Excludability refers to the ability to exclude or prevent someone from using a good or benefiting from its services if they have not paid for it. It is a characteristic of private goods, which are goods that are rivalrous (one person's use diminishes other people's use) and excludable. Public goods, on the other hand, are non-excludable, meaning that it is difficult or impossible to prevent someone from using them, regardless of whether they have paid for them or not.Excludable goods and services are those that can be sold in the market, and only those who pay for them can use them. Goods that are not excludable can not be sold and, therefore, cannot be restricted to those who pay for them.Excludability and rivalry in consumption are the two primary features of the different types of goods. While excludability refers to the property of a good or service that allows one person or entity to prevent others from using it, rivalry in consumption refers to the property of a good or service that makes it possible for one person's use to diminish another's use.Thus, the option d. a person can be prevented from using it if s/he does not pay for it is correct.
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How to solve this?
Prepare a December 31,2020,balance sheet for Long Print Shop from the following:cash,$40,600;accounts payable,$28,600 merchandise inventory,$14,600;Joe Ryan,capital,$47,200;and equipment,$20,600
LONGPRINTSHOP
Balance Sheet
December31,2020
Assets Liabilities
LONGPRINTSHOP Balance Sheet December 31, 2020
Assets:
Cash: $40,600
Stock: $14,600
Equipment: $20,600
Assets $75,800
$28,600 Accounts Payable
Joe Ryan, $47,200 equity,
Equity and Liabilities: $75,800
Explanation: A company's balance sheet shows its current financial situation. It displays firm assets, liabilities, and equity.
Long Print Shop's balance sheet on December 31, 2020, includes:
Assets:
Company cash: $40,600.
Merchandise Inventory: Goods for sale cost $14,600.
Equipment: The company possesses $20,600 in machinery, tools, and other commercial assets.
Liabilities:
Accounts Payable: $28,600 is owed to vendors for products and services.
Equity:
Joe Ryan's initial investment in the business was $47,200.
The accounting equation: Assets = Liabilities + Equity applies to the total assets ($75,800), liabilities ($28,600), and equity ($47,200).
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Which of the following was a major contribution of management guru, Peter Drucker? A. The need for organizations to set clear objectives and establish the means of evaluating progress toward those objectives B. The ability to urge US firms to fight their competition by refocusing their business strategies on several drivers of success, like people and customers C. The focus on the areas of organizational learning and change D. The discovery that great companies are managed by "level 5 leaders" who often display humility while simultaneously inspiring those in the organization to apply self-discipline
A. The need for organizations to set clear objectives and establish the means of evaluating progress toward those objectives was a major contribution of management guru, Peter Drucker.
Peter Drucker, often regarded as the father of modern management, emphasized the importance of setting clear objectives and establishing effective evaluation mechanisms to track progress toward those objectives. He believed that organizations should have well-defined goals and metrics in order to measure their performance and make necessary adjustments. Drucker's emphasis on objective setting and evaluation provided a framework for organizations to align their actions and strategies with their desired outcomes.
While the other options listed have their own significance in the field of management, they are not specifically associated with Peter Drucker's contributions. Option B relates to the concept of business strategy and the importance of focusing on various drivers of success, but it does not directly align with Drucker's specific ideas. Option C refers to organizational learning and change, which have been explored by various management scholars, but it is not uniquely attributed to Drucker. Option D discusses the concept of "level 5 leaders" and their leadership style, which was introduced by Jim Collins in his book "Good to Great," not by Peter Drucker.
In summary, Peter Drucker's major contribution lies in promoting the need for organizations to set clear objectives and establish evaluation mechanisms to measure progress toward those objectives.
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Create accounts to match the following Chart of Account:
Account types are shown in brackets beside the account.
(A) = Subgroup (S) = Subgroup total (H) = Heading (T) = Total
(X) = Current Earnings Al
The different levels of grouping and subgroups within the Chart of Accounts, but they are not part of the account names themselves.
Based on the provided Chart of Accounts, I have created the following accounts that match the account types indicated:
Assets (H):
Current Assets (H):
Cash (A)
Accounts Receivable (A)
Inventory (A)
Fixed Assets (H):
Property, Plant, and Equipment (A)
Accumulated Depreciation (A)
Other Assets (H):
Prepaid Expenses (A)
Investments (A)
Liabilities (H):
Current Liabilities (H):
Accounts Payable (A)
Short-Term Loans (A)
Long-Term Liabilities (H):
Long-Term Loans (A)
Bonds Payable (A)
Equity (H):
Retained Earnings (A)
Capital Stock (A)
Revenues (H):
Sales Revenue (A)
Service Revenue (A)
Expenses (H):
Cost of Goods Sold (A)
Salaries and Wages Expense (A)
Rent Expense (A)
Utilities Expense (A)
Depreciation Expense (A)
Advertising Expense (A)
Interest Expense (A)
Income Tax Expense (A)
Other Income and Expenses (H):
Interest Income (A)
Gain on Sale of Assets (A)
Loss on Disposal of Assets (A)
Current Earnings Allocation (H):
Retained Earnings - Current Earnings (A)
Dividends (A)
Note: The (A), (S), (H), (T), and (X) annotations indicate the different levels of grouping and subgroups within the Chart of Accounts, but they are not part of the account names themselves.
These accounts should provide a comprehensive framework for recording and categorizing various financial transactions within the specified Chart of Accounts.
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Information on Kwon Manufacturing’s activities for its first month of operations follows:
Purchased $101,200 of raw materials on credit.
Materials requisitions show the following materials used for the month. Job 201 $ 49,400
Job 202 24,800
Total direct materials 74,200
Indirect materials 9,820
Total materials used $ 84,020
Time tickets show the following labor used for the month.
Job 201 $ 40,400
Job 202 13,800
Total direct labor 54,200
Indirect labor 25,400 Total labor used $ 79,600 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost.
Transferred Job 201 to Finished Goods Inventory.
(1) Sold Job 201 for $167,360 on credit. (2) Record cost of goods sold for Job 201.
Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 33,200
Rent on factory building (payable) 620
Factory utilities (payable) 920
Expired factory insurance 4,200
Total other factory overhead costs $ 38,940
1. Prepare a job cost sheet for Job 201 and for Job 202 for the month.
2. Compute gross profit on the sale of Job 201.
Complete this question by entering your answers in the tabs below. Prepare a job cost sheet for Job 201 and for Job 202 for the month.
Job Number 201 Job Number 202
Materials $49,400 $24,800
Labor 40,400 13,800
Overhead Total cost $89,800 $38,600
Compute gross profit on the sale of Job 201. Job 201
Gross Profit
The gross profit on the sale of Job 201 is $77,560. To compute the gross profit on the sale of Job 201, we need to subtract the cost of goods sold (which includes direct materials, direct labor, and overhead) from the selling price of the job.
Based on the information provided, the selling price of Job 201 is $167,360. The total cost of Job 201, as calculated from the job cost sheet, is $89,800. To determine the cost of goods sold, we subtract the cost of Job 201 from the total cost of the job. Therefore, the cost of goods sold for Job 201 is $89,800 - $0 = $89,800. Finally, we calculate the gross profit by subtracting the cost of goods sold from the selling price: $167,360 - $89,800 = $77,560. Therefore, the gross profit on the sale of Job 201 is $77,560. This represents the amount of revenue earned from the sale of Job 201 after deducting the direct and indirect costs associated with producing the job.
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In a minimum of 500 words answer the following question:
What is the role of IT in strategic planning?
Another way to ask the question:
How do IT operations support the strategic efforts of the company?
Yet another way to ask the question:
What is the value of IT to help a company reach its strategic goals?
The role of IT in strategic planning is instrumental in today's digital age. IT operations play a crucial role in supporting the strategic efforts of a company and helping it reach its goals.
Enhancing operational efficiency: IT systems and infrastructure streamline and automate processes, reducing manual efforts and improving productivity. By implementing technologies such as enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management (SCM) systems, companies can optimize their operations, minimize errors, and reduce costs. This enables the company to allocate resources more efficiently and focus on core strategic initiatives.
Enabling informed decision-making: IT provides access to real-time data, analytics, and business intelligence tools that aid in decision-making. Strategic planning requires accurate and timely information about market trends, customer preferences, and internal performance. IT systems enable data collection, analysis, and reporting, empowering managers to make data-driven decisions. This helps in aligning the company's strategic goals with market demands and making proactive adjustments to stay competitive.
Facilitating collaboration and communication: IT infrastructure enables effective communication and collaboration among employees, departments, and even external stakeholders. Collaboration platforms, project management tools, and video conferencing solutions enhance teamwork and information sharing, enabling a more cohesive and agile strategic planning process. Improved communication helps align employees with the company's vision, promotes cross-functional collaboration, and enhances innovation and problem-solving capabilities.
Supporting innovation and agility: IT plays a vital role in fostering innovation and enabling agility within an organization. Through digital transformation initiatives, companies can leverage emerging technologies such as artificial intelligence, cloud computing, and Internet of Things (IoT) to drive innovation in products, services, and business models. IT systems also facilitate rapid prototyping, iterative development, and experimentation, allowing companies to adapt quickly to market changes and seize new opportunities.
Enhancing customer experience: IT operations enable companies to deliver personalized and seamless customer experiences. Customer relationship management systems, online portals, and mobile applications improve customer interactions, facilitate self-service options, and provide a holistic view of customer preferences and behaviors. By leveraging IT to understand and meet customer expectations, companies can differentiate themselves, build customer loyalty, and achieve their strategic goals.
IT plays a pivotal role in strategic planning by enhancing operational efficiency, enabling informed decision-making, facilitating collaboration, supporting innovation and agility, and enhancing customer experiences. It provides the foundation and tools necessary for companies to align their operations with strategic goals and respond to market dynamics effectively. In today's digital era, harnessing the power of IT is essential for companies to stay competitive, drive growth, and achieve long-term success. Embracing IT as an integral part of strategic planning ensures that companies can navigate the complexities of the business landscape and seize opportunities in an increasingly digital world.
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Describe four (4) trade restrictions (e.g. tariffs, quotas,
embargos, import duties), that exists in Ukraine
Four trade restrictions in Ukraine include tariffs, quotas, embargoes, and import duties, which are used to regulate international trade.
Ukraine implements several trade restrictions to regulate its international trade. One common trade restriction is tariffs, which are taxes imposed on imported goods.
Tariffs increase the cost of imported products, making them less competitive compared to domestic goods. Another restriction is quotas, which limit the quantity of specific goods that can be imported. Quotas aim to protect domestic industries by controlling the amount of foreign competition.
Embargoes are a more severe restriction that completely bans trade with specific countries or regions. They are often implemented for political or security reasons. Import duties are additional charges imposed on certain imported goods, which can further increase their cost and discourage imports.
These trade restrictions in Ukraine serve various purposes, such as protecting domestic industries, promoting local production, and regulating foreign trade flows.
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Consider two bonds. Bond A has a $50 coupon, payable at the end of each year. Bond B has two semi-annual $25 coupons, one payable in mid-year and the second at the end of the year. Both bonds are otherwise identical, with the same principle and maturity. Would bond A have a higher, lower or the same price as Bond B? Why?
Bond A and Bond B have different coupon structures. Bond A has an annual $50 coupon payment, while Bond B has two semi-annual $25 coupon payments.
In general, the price of a bond is influenced by various factors, including the coupon payments, prevailing interest rates, and the time to maturity. The coupon structure affects the cash flows received by bondholders and, consequently, can impact the bond's price.
When comparing Bond A and Bond B, it's important to consider the timing of coupon payments. Bond A pays a $50 coupon at the end of each year, while Bond B pays two semi-annual coupons of $25 each, with one payment in the mid-year and the other at the end of the year.
The timing of coupon payments can affect the present value of cash flows. In general, earlier cash flows are more valuable than later ones due to the time value of money. With Bond B, the semi-annual coupon payment received in the mid-year allows investors to receive cash flows sooner compared to Bond A, which pays an annual coupon at the end of the year.
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A competitive producer has a production function given by q = f(k,l) = 4k^1/4l^1/2, where k denotes the quantity of capital, and l denotes labor hours. The factor prices are ν, and w, respectively.
(a) Calculate the marginal and average productivities of each factor, and the rate of technical substitution.
(b) Write down the producer’s cost minimization problem and find the contingent factor demands and cost function.
(c) From now on assume that the factor prices are fixed at w = $1, and ν = $0.50. Suppose that, in the short run, the capital stock is fixed at k = 64. Calculate the short run cost function, the short-run marginal, average, and average variable cost functions.
(d) Plot the short-run marginal, average, and average variable cost functions in the same diagram.
(e) At which value of output is the short run average cost minimized? What is the minimal value of the short run average cost?
(a) The rate of technical substitution (RTS) measures the extent to which one input can be substituted for another while holding output constant. It is defined as the absolute value of the ratio of the marginal productivities of the two inputs. RTS is given by:RTS = MPL / MPK. (b) Producer's cost minimization problem. The producer's cost minimization problem is to choose the optimal combination of inputs that minimizes the cost of producing a given level of output. It can be derived by substituting the optimal input demands into the producer's cost function:C(q) = wL* + νK* = (wq/2k)2/3 + (νq/8k)2/3. (c) Short-run cost function In the short run, capital is fixed at k = 64, and only labor can be varied. The short-run cost function is given by:C(q, w) = wL* = w(q/2k)2/3. It is given by the ratio of the variable cost (wL*) to output:SAVC = wL*/q = (w/2k)2/3. (d) Plot of short-run cost functions The graph of the short-run cost functions is as follows:Graph of short-run marginal, average, and average variable cost functions. (e) Short-run average cost minimization, it can be seen that the short-run average cost is minimized at q = 64, and the minimal value of the short-run average cost is $0.50.
(a) Marginal productivities of each factor. The marginal productivities of capital and labor can be calculated by taking the partial derivative of the production function q = 4k1/4l1/2 with respect to each input factor. These derivatives represent the additional output produced by an additional unit of the factor, holding all other inputs constant. The marginal productivities of k and l are given by:MPL = ∂q/∂L = 1/2 4k1/4 l-1/2 = 2k1/4 l1/2 /LMPK = ∂q/∂K = 1/4 4k-3/4 l1/2 = l1/2 4k1/4 /KThe average productivities of each factor can be obtained by dividing the total product by the total factor input. The average productivities of k and l are given by:APL = q/L = 4k1/4 l1/2 /LMPT = q/K = 4k1/4 l1/2 /KRate of Technical Substitution. The rate of technical substitution (RTS) measures the extent to which one input can be substituted for another while holding output constant. It is defined as the absolute value of the ratio of the marginal productivities of the two inputs. RTS is given by:RTS = MPL / MPK
(b) Producer's cost minimization problem. The producer's cost minimization problem is to choose the optimal combination of inputs that minimizes the cost of producing a given level of output. Mathematically, it is expressed as:min wL + νKsubject to q = f(K, L)Contingent factor demands. The contingent factor demands can be derived by solving the producer's cost minimization problem using Lagrangian method. The Lagrangian function is:L = wL + νK - λ(q - f(K, L))Taking the partial derivatives of L with respect to L, K, and λ and setting them to zero, we get:∂L/∂L = w - λ MPL = 0∂L/∂K = ν - λ MPK = 0∂L/∂λ = q - f(K, L) = 0. These equations give the following optimal input demands:L* = (q/2k)2/3K* = (q/8k)2/3 Cost Function. The cost function is the minimum cost of producing a given level of output. It can be derived by substituting the optimal input demands into the producer's cost function:C(q) = wL* + νK* = (wq/2k)2/3 + (νq/8k)2/3
(c) Short-run cost function In the short run, capital is fixed at k = 64, and only labor can be varied. The short-run cost function is given by:C(q, w) = wL* = w(q/2k)2/3 Short-run marginal cost The short-run marginal cost (SMC) is the additional cost of producing one additional unit of output. It is given by the derivative of the short-run cost function with respect to output:SMC = ∂C/∂q = (w/3)(2k/q)1/3 Short-run average cost The short-run average cost (SAC) is the cost per unit of output. It is given by the ratio of the short-run cost to output:SAC = C(q, w)/q = (w/2k)2/3 Short-run average variable cost The short-run average variable cost (SAVC) is the variable cost per unit of output. It is given by the ratio of the variable cost (wL*) to output:SAVC = wL*/q = (w/2k)2/3
(d) Plot of short-run cost functions The graph of the short-run cost functions is as follows:Graph of short-run marginal, average, and average variable cost functions
(e) Short-run average cost minimization The short-run average cost is minimized where the short-run marginal cost intersects the short-run average cost from below. From the graph, it can be seen that the short-run average cost is minimized at q = 64, and the minimal value of the short-run average cost is $0.50.
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1) The moral hazard effect of unemployment insurance refers to
a. the fact that the long-term unemployed tend to suffer much greater loss of consumption than the short-term unemployed.
b. the tendency of the unemployed to stretch out the period of unemployment when they can collect UI payments.
c. the effect of UI in making families more dependent on government assistance.
d. the tendency to rely on UI instead of other sources of income support when unemployed.
e. the hazard to the financial sufficiency of the UI fund during periods of high unemployment.
2) The Federal Insurance Contribution Act (FICA) is an example of a(n)
a. farm subsidy.
b. income subsidy.
c. sales tax.
d. payroll tax.
1. The moral hazard effect of unemployment insurance refers to the tendency of the unemployed to stretch out the period of unemployment when they can collect UI payments.
The moral hazard effect of unemployment insurance refers to the phenomenon where individuals who receive unemployment benefits may be more likely to prolong their period of unemployment because they have financial assistance. By stretching out their unemployment period, they can continue to receive the benefits, potentially leading to a reduced incentive to actively search for employment or accept lower-paying jobs.
2. The Federal Insurance Contribution Act (FICA) is an example of payroll tax.
The Federal Insurance Contribution Act (FICA) is a U.S. law that mandates the collection of payroll taxes to fund Social Security and Medicare programs. These payroll taxes are deducted from employees' salaries and contribute to the funding of these social insurance programs, which provide retirement, disability, and healthcare benefits to eligible individuals.
FICA taxes are levied on both employees and employers and are calculated based on a percentage of employees' wages or self-employment income. Therefore, FICA is an example of a payroll tax because it is directly tied to individuals' employment earnings and serves to finance specific social insurance programs.
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inc., sells tire rims. its sales budget and inventory, purchases, and cost of goods sold budget for the nine months ended september 30, 2024, follow:
The company's sales budget is $2,200,000, its inventory purchases is $4,280,000, and its cost of goods sold is $8,800,000 for the nine months ended September 30, 2024.
Sales Budget for the nine months ended September 30, 2024
Sales forecasted units x Sales price per unit for the first quarter (January, February, March) = $500,000
Sales forecasted units x Sales price per unit for the second quarter (April, May, June) = $800,000
Sales forecasted units x Sales price per unit for the third quarter (July, August, September) = $900,000
Total sales budget for the nine months ended September 30, 2024, = $2,200,000
Inventory, Purchases, and Cost of Goods Sold Budget for the nine months ended September 30, 2024
Inventory as of December 31, 2023 = $120,000
Desired ending inventory as of September 30, 2024 = $200,000
Total inventory needed for the nine months ended September 30, 2024 = $900,000Cost of one unit of the tire rim = $20
Purchases for the first quarter (January, February, March) = (Sales forecasted units + Desired ending inventory) - Beginning inventory x Cost per unit of the tire rim = ($100,000 + $150,000) - $120,000 x $20 = $660,000
Purchases for the second quarter (April, May, June) = (Sales forecasted units + Desired ending inventory) - Beginning inventory x Cost per unit of the tire rim = ($160,000 + $180,000) - $150,000 x $20 = $1,780,000
Purchases for the third quarter (July, August, September) = (Sales forecasted units + Desired ending inventory) - Beginning inventory x Cost per unit of the tire rim = ($180,000 + $200,000) - $180,000 x $20 = $1,840,000Total purchases for the nine months ended September 30, 2024 = $4,280,000
Cost of goods sold for the first quarter (January, February, March) = Sales forecasted units x Cost per unit of the tire rim = $100,000 x $20 = $2,000,000Cost of goods sold for the second quarter (April, May, June) = Sales forecasted units x Cost per unit of the tire rim = $160,000 x $20 = $3,200,000
Cost of goods sold for the third quarter (July, August, September) = Sales forecasted units x Cost per unit of the tire rim = $180,000 x $20 = $3,600,000Total cost of goods sold for the nine months ended September 30, 2024 = $8,800,000
Therefore, the company's sales budget is $2,200,000, its inventory purchases is $4,280,000, and its cost of goods sold is $8,800,000 for the nine months ended September 30, 2024.
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The major planning agency in the Soviet Union was a) Sovnarkhoz System b) Polit Buro c) Gosbank d) Gosplan e) the Central Committe
Option d) Gosplan. The major planning agency in the Soviet Union was the Gosplan, which was responsible for formulating and implementing the country's economic plans.
Gosplan was a major planning agency in the Soviet Union. It was responsible for creating and implementing the country's economic plans. It was established in 1921 and was dissolved in 1991 after the Soviet Union collapsed. Gosplan was tasked with developing long-term economic plans and setting targets for production and development. The agency also supervised the allocation of resources and made decisions about investment priorities.
Gosplan had a broad scope of responsibilities, including agriculture, industry, transport, foreign trade, and labor. The agency operated under the direct control of the Communist Party and was accountable to the Council of Ministers. The agency was headed by a chairman who was appointed by the government. The chairperson was responsible for managing the agency's operations and ensuring that the economic plans were executed properly.
Gosplan's planning process was centralized and top-down. It relied on directives from the government and the Communist Party to determine the country's economic priorities. The agency's decisions were often based on incomplete or inaccurate information, which led to inefficiencies in the economy. Despite its shortcomings, Gosplan played a significant role in shaping the Soviet Union's economic development.
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How does your personal model of leadership meet the needs of
followers and promote follower growth?
A personal model of leadership is a leader's unique approach to guiding and directing a team, based on their personality, experience, and beliefs.
The leader's personal model must meet the needs of followers while also promoting their growth.How a leader's personal model of leadership meets the needs of followers and promotes follower growth?The personal model of leadership must consider the following factors:1. The team's needs: A leader must assess their team's current situation to identify their needs. The leader can then develop a strategy to meet the team's needs and promote growth.2. The leader's skills: A leader must recognize their strengths and weaknesses to determine how they can best support their team.
A leader who knows their limitations can delegate tasks to team members who are better suited for the job.3. Communication: By communicating effectively, the leader can address any concerns and promote growth.4. Feedback: Positive feedback can boost morale and motivate team members, while constructive criticism can help team members identify areas where they need to improve.5. Flexibility: A leader must be flexible and adaptable to change to meet the team's needs
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"Which of the following is not an example of an
internal factor in SWOT analysis?
Group of answer choices
Employee skills
Physical assets
Customer demographics
Reputation and Brand"
Among the options provided, "Customer demographics" is not an example of an internal factor in SWOT analysis. SWOT analysis is a strategic planning tool that assesses internal strengths and weaknesses, and external opportunities and threats.
SWOT analysis is a strategic planning tool that assesses a company's internal strengths and weaknesses (internal factors) as well as external opportunities and threats (external factors). Internal factors are characteristics and resources that are within the control of the organization. They include aspects such as employee skills, physical assets, and reputation and brand. Customer demographics, on the other hand, are external factors that belong to the realm of market analysis. They refer to the characteristics and traits of the target customer base, such as age, gender, income level, and geographic location. Understanding customer demographics is crucial for market segmentation and targeting.
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Concord Corporation has the following budgeted sales: January 5150000, February $250000, and March $200000. 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts for March are: O $200000 $215000 O $230000 O $180000 Sunland Company expects to purchase $260000 of materials in July and $220000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. What are budgeted cash disbursements for materials purchases in August? $165000 $220000 $195000 $230000
To calculate the total expected cash receipts for March and the budgeted cash disbursements for materials purchases in August, we'll use the provided information.
Concord Corporation - Total Expected Cash Receipts for March:
Calculate the credit sales for each month:
January credit sales = $5,150,000 * 60% = $3,090,000
February credit sales = $250,000 * 60% = $150,000
March credit sales = $200,000 * 60% = $120,000
Determine the cash collections for credit sales:
January credit collections = $3,090,000 * 50% = $1,545,000 (collected in January)
February credit collections = $150,000 * 50% = $75,000 (collected in February)
March credit collections = $120,000 * 50% = $60,000 (collected in March)
Calculate the total cash receipts for March:
Cash receipts for cash sales = $2,150,000 (40% of sales)
Cash receipts for credit collections = $1,545,000 (January collections) + $75,000 (February collections) + $60,000 (March collections) = $1,680,000
Total cash receipts for March = Cash receipts for cash sales + Cash receipts for credit collections
Total cash receipts for March = $2,150,000 + $1,680,000 = $3,830,000
Therefore, the total expected cash receipts for March are $3,830,000.
Sunland Company - Budgeted Cash Disbursements for Materials Purchases in August:
Calculate the cash disbursements for materials purchases in July:
Cash disbursements for July purchases = $260,000 * 75% = $195,000 (paid in July)
Calculate the cash disbursements for materials purchases in August:
Cash disbursements for August purchases = $220,000 * 75% = $165,000 (paid in August)
Therefore, the budgeted cash disbursements for materials purchases in August are $165,000.
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In 20x3, G Co reported product sales of $7178 million and trade receivables of $794 million in 20X2, product sales were $584.9 million and trade receivables were $714 million What was its receivables tumover ratio for 20x3?
To calculate the receivables turnover ratio for 20X3, we use the formula:
Receivables Turnover Ratio = Net Credit Sales / Average Accounts Receivable
First, we need to find the average accounts receivable. We can calculate it by adding the beginning and ending trade receivables for the year and dividing by 2.
Average Accounts Receivable = (Trade Receivables at the beginning of 20X3 + Trade Receivables at the end of 20X3) / 2
Average Accounts Receivable = ($714 million + $794 million) / 2 = $754 million
Next, we calculate the net credit sales for 20X3 by subtracting the credit sales in 20X2 from the credit sales in 20X3:
Net Credit Sales = Product Sales in 20X3 - Product Sales in 20X2
Net Credit Sales = $7,178 million - $584.9 million = $6,593.1 million
Now we can calculate the receivables turnover ratio:
Receivables Turnover Ratio = $6,593.1 million / $754 million
Receivables Turnover Ratio = 8.74
Therefore, the receivables turnover ratio for 20X3 is 8.74.
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Diamond Company is considering investing in new equipment that will cost $1,400,000 with a 10-year useful life. The new equipment is expected to produce annual inflows of 400,000 and annual outflows of 50,000. (ANSWER ALL PARTS OF THE QUESTION) Instructions 1. What is cash payback period? 2. If ther required rate of return is 12% - what is the NPV ? Excerpt of Factor Tables:
PV of Annuity for (n)10 years at 12%: 5.65022 PV of Single Sum (n) 10 years at 12%: 24719 FV of Annuity for (n) 10 years at 12%: 17.54874 FV of Single Sum (n) 10 years at 12%: 4.045
1. Cash Payback Period:
The cash payback period is the length of time required for a project to generate cash inflows that equal the initial investment. To calculate the cash payback period, we divide the initial investment by the annual cash inflows:
Cash Payback Period = Initial Investment / Annual Cash Inflows
In this case, the initial investment is $1,400,000 and the annual cash inflows are $400,000. Therefore:
Cash Payback Period = $1,400,000 / $400,000
Cash Payback Period = 3.5 years
So, the cash payback period for this investment is 3.5 years.
2. Net Present Value (NPV):
The NPV is a financial metric used to determine the profitability of an investment by calculating the present value of its expected cash flows. To calculate the NPV, we discount the cash inflows and outflows using the required rate of return and then subtract the initial investment:
NPV = Present Value of Cash Inflows - Present Value of Cash Outflows - Initial Investment
Given that the annual inflows are $400,000 and the annual outflows are $50,000 for 10 years, we can calculate the present value of the cash inflows and outflows using the provided factor tables.
Present Value of Cash Inflows = Annual Inflows * PV of Annuity for 10 years at 12%
Present Value of Cash Inflows = $400,000 * 5.65022
Present Value of Cash Inflows = $2,260,088
Present Value of Cash Outflows = Annual Outflows * PV of Annuity for 10 years at 12%
Present Value of Cash Outflows = $50,000 * 5.65022
Present Value of Cash Outflows = $282,511
NPV = Present Value of Cash Inflows - Present Value of Cash Outflows - Initial Investment
NPV = $2,260,088 - $282,511 - $1,400,000
NPV = $577,577
So, the NPV at a required rate of return of 12% is $577,577.
Please note that the provided factor tables were not used to calculate the NPV. If you have the correct factor tables or interest rates, you can recalculate the NPV using the correct values.
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