Answer:
As a liability for the minimum amount of $170,000 along with disclosure of the range
Explanation:
Based on the information given Higgins should report this litigation as a LIABILITY for the amount of $170,000 along with disclosure of the range reason been that we were told he will settle the lawsuit with an amount in the range of $170,000 to $270,000 in which all the amounts in the range are considered to be both equally likely which therefore means that he will have to record the LIABILITY at the amount of $170,000 which is appear to be the minimum amount in the range.
Therefore Higgins should report this litigation As a liability for the minimum amount of $170,000 along with disclosure of the range.
The management accountant at Lang Manufacturing Co. collected the following data in preparation for a life-cycle analysis on one of its products, a leaf blower: Item This Year Change Over Last Year Average Annual Change Over the Last Four Years Annual sales $2,700,000 1.8% 23.5% Unit sales price 450 2.4% 8.3% Unit profit 100 -1.0% 3.0% Total profit 600,000 -1.2% 30.0% The stage of the sales life cycle the product is in is: Withdrawal. Introduction. Decline. Maturity. Growth.
Answer: Decline stage
Explanation:
The stage of the sales life cycle the product is in the Decline stage of the product cycle. We can see that the average performance of the product over its past life is higher than that of its last year's performance.
Under the decline stage, there will be a reduction in the quantity of goods that's sold thereby leading to a reduction in profits until it gets to a point that producing the goods will not be profitable anymore.
Refer to the portions of the 2018 and 2019 balance sheets provided below. Calculate the change in net working capital during the year 2019. 2018 2019 2018 2019 Cash $360 $710 Notes Payable $510 $550 Accts. Receivable $1,190 $1,070 Accounts Payable $720 $830 Inventory $840 $930 Long Term Debt $1,180 $1,090
Answer:
$1,330
Explanation:
Change in net working capital during the year 2019 is computed as
= Current assets - Current liabilities
Current assets 2019 = Cash $710 + Accounts receivables $1,070 + Inventory $930
Current assets = $2,710
Current liabilities 2019 = Notes payable $550 + Accounts payable $830
Current liabilities = $1,380
Therefore,
Change in net working capital during the year 2019
= $2,710 - $1,330
= $1,330
Pretend you are a project manager employed by a General Contracting firm. Your company is currently serving as a Construction Management at Risk for a project and is requiring all vendors, material suppliers and subcontractors to submit digital design files. Provide 3 strategies you may implement to facilitate interoperability issues. Provide detailed descriptions of each strategy and explain why
Answer:
Three strategies for facilitating interoperability as a Risk Construction Manager are:
1. I'll carry out compatibility tests
2. Ensure that the engineering products used have a common standard and have a common technology
3. Use a system of interaction with common technology and coding language
Explanation:
The ability for a system with various different components to achieve harmony to the end that those different components are able to work together without any hindrances is called Interoperability.
Compatibility checking, using engineering products with a shared specification and using the same hardware, programming language across multiple platforms, if necessary, are aimed at enhancing or achieving interoperability.
Cheers
In previous question, suppose the company intends to go public by selling 3,000,000 new shares. Moreover, assume the company has no debt but has an excess cash of $20 million, and the revenues for next year is estimated to be $25 million. Further assume thad the industry average forward EV-to-Sales multiple is 4, whereas the average trailing EV-to-Sales ratio is 5. What is the estimated IPO stock price
Answer:
A. $3.5 million
B. $120
Explanation:
A. Calculation for What is the post-money valuation for the last round of funding in dollars
First step is to calculate the total value of the company
Total value of the company = (200,000 + 100,000)* (150,000/100,000)
Total value of the company= (200,000 + 100,000)* $1.5
Total value of the company= 300,000 * $1.5 Total value of the company=$450,000
Now let calculate The post money valuation
Post money valuation = (200,000 + 100,000 + 400,000) * (2,000,000/400,000)
Post money valuation= (200,000 + 100,000 + 400,000) * $5
Post money valuation= 700,000 * $5
Post money valuation= $3.5 million
Therefore the post-money valuation for the last round of funding in dollars will be $3.5 million
B) Calculation for What is the estimated IPO stock price
First step is to calculate the EV
EV = $25 million * 5
EV= $100 million
Second step is to calculate the Total number of shares
Total number of shares = 700,000 + 300,000
Total number of shares = 1 million
Third step is to calculate the Equity
Equity = $100 million + $20 million
Equity = $120 million
Now let calculate the value per share
Value per share = $120 million/1 million
Value per share = $120
Therefore the estimated IPO stock price will be $120
Calculate the selling price per unit charged by the outside supplier that would make ABC Company economically indifferent between making and buying the part. Enter your answer with two places after the decimal point (i.e., 78.90).
Question Completion:
ABC Company makes 40,000 units per year of a part it uses in the products it manufactures. The per unit product cost of this part is shown below:
Direct materials = $15.30
Direct labor = 27.40
Variable overhead 2.10
Fixed overhead = 24.70
Total = $69.50
An outside supplier has offered to sell ABC Company 40,000 units of this part a year for $66.10 per unit. If ABC Company accepts this offer, the facilities now being used to make this part could be used to make more units of a product that is in high demand. The additional contribution margin that could be earned on this other product would be $100,000 per year. If ABC Company accepts the outside supplier's offer, $21.90 of the fixed overhead cost being applied to the part would be eliminated. The remaining amount would continue to be incurred and would be allocated to the company's remaining products.
Calculate the selling price per unit charged by the outside supplier that would make ABC Company economically indifferent between making and buying the part. Enter your answer with two | places after the decimal point (i.e., $78.90)
Answer:
ABC Company
The selling price that the outside supplier would charge ABC Company to make it economically indifferent between making and buying the part is:
= $90.50
Explanation:
a) Data and Calculations:
Required annual quantity of the part = 40,000 units
Outside supplier's price per unit = $66.10
Total savings = 24.40
Total price for ABC to be indifferent = $90.50
Savings from outside supply:
Additional contribution ($100,000/40,000) = $2.50
Eliminated fixed costs = $21.90
Total savings = $24.40
b) ABC Company would be indifferent and equally satisfied if the outside supplier charges it $90.50 or it makes the part at a per-unit cost of $69.50 while it loses a benefit or savings (otherwise called opportunity cost) of $24.40.
Fatima is a regional sales manager and has decided that each member of the sales team must increase his or her current sales figures by 80% within two months if they want to remain with the company. Overall, the economy for the industry has dropped dramatically and she has decided this is the best way to motivate her sales team. Which aspect of the marketing objective is Fatima failing to recognize
Answer:
Achievable
Explanation:
Marketing objectives are set to meet up with the goals of the business. Which isnto.ake profit.
The SMART approach to marketing objectives are outline below. The marketing objectives should be;
- Specific, that is a particular objective should be set. In this case Fatima has set 80% increase on current sales figures.
- Measurable, that is the objective should be quantifiable. 80% of the current performance is measurable.
- Achievable, means that the objective should be within a reasonable scope. Targets should not be set too high.
In this case the economy for the industry has dropped dramatically, so setting objective of 80% sales increase on current performance is most likely not achievable.
- Realistic, are there sufficient personel and resources to achieve the goal.
- Time specific, it must be within a defined time period. In this case 2 months was set to achieve the objective.
Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations. a. Amber Corporation donated inventory of clothing (basis of $24,000, fair market value of $30,000) to a qualified charitable organization that operates homeless shelters. $fill in the blank 9a9067069fa000e_1
Answer:
$27,000
Explanation:
Computation for the charitable contribution deduction
Using this formula
Charitable contribution deduction = (Adjusted basis )+[ 50% (Fair Value – Adjusted Basis)]
Let plug in the formula
Charitable contribution deduction= 24,000 + [50% (30,000 – 24,000)]
Charitable contribution deduction= 24,000+ (50%*6,000)
Charitable contribution deduction= 24,000+3,0000
Charitable contribution deduction = 27,000
Therefore the charitable contribution deduction will be $27,000
You are the owner of a winter sporting goods store and recently purchased a shipment of 60 sets of snowboards and snowboard bindings at a total cost of $29,000. (You were unable to purchase separately, and the smallest order was for a set of 60.) The community in which your store is located consists of many different types of snowboarders, ranging from expert to beginners. From historical data, you know that different snowboarders value snowboards and bindings differently. However, you cannot profitably price discriminate because you cannot prevent resale (arbitrage). Market research shows there are about 20 advanced snowboarders who value snowboards at $350 and bindings at $250, 20 intermediate snowboards who value snowboards at $250 and bindings at $275, and 20 beginning snowboarders who value snowboards at $175 and bindings at $325. Compare the profits earned under the following two pricing strategies: Selling snowboards and bindings separately at the profit-maximizing prices Bundling snowboards and bindings and selling for one price
Answer:
Profits Comparison:
Sold Separately Bundled
Revenue $32,500 $30,000
Costs 29,000 29,000
Profits $3,500 $1,000
The calculations show that it is far better to sell the snowboards and bindings separately at the profit-maximizing prices than bundling them and selling for one price.
This is because, if the single price is more than $500, the beginners might not buy the items and they will remain unsold.
Explanation:
a) Data and Calculations
Cost of purchase of 60 sets of snowboards and snowboard bindings = $29,000
Unit cost of a set of snowboard and binding = $483.33 ($29,000/60)
Snowboarders Advanced Intermediate Beginners Average
Number 20 20 20
Snowboards $350 $250 $175 $258.33
Bindings 250 275 325 $283.33
Total $600 $525 $500 $541.66
Total revenue: Total
when sold separately $12,000 $10,500 $10,000 $32,500
Total revenue:
when bundled at a price (for example $500 for each) = $30,000 ($500 * 60)
Sold Separately Bundled
Revenue $32,500 $30,000
Costs 29,000 29,000
Profits $3,500 $1,000
Please help ASAP!
Zeke had great fun as a kid running a lemonade stand, and his ideas helped his class reach their fundraising goal for the class trip last year. What career cluster might Zeke be interested in?
A. Information Technology
B. Human Services
C. Science, Technology, Engineering, and Mathematics
D. Marketing, Sales, and Service
Answer: the correct answer is d
Explanation:check for yourself
What is the purpose of a relational database?
It stores data in multiple tables.
It checks information for accuracy.
It identifies charts for displaying data.
It prevents users from accessing a database.
Answer:
A relational database organizes data into tables which can be linked—or related—based on data common to each. This capability enables you to retrieve an entirely new table from data in one or more tables with a single query.
Answer:
It stores data in multiple tables.
Explanation:
A partnership begins its first year with the following capital balances: Alfred, Capital $ 48,000 Bernard, Capital 58,000 Collins, Capital 68,000 The articles of partnership stipulate that profits and losses be assigned in the following manner: Each partner is allocated interest equal to 10 percent of the beginning capital balance. Bernard is allocated compensation of $16,000 per year. Any remaining profits and losses are allocated on a 3:3:4 basis, respectively. Each partner is allowed to withdraw up to $4,000 cash per year. Assuming that the net income is $58,000 and that each partner withdraws the maximum amount allowed, what is the balance in Collins capital account at the end of that year
Answer:
The balance in Collins capital account at the end of that year is:
$80,640.
Explanation:
a) Data and Calculations:
Alfred Bernard Collins Total
Capital balances $48,000 $58,000 $68,000 $174,000
Profit sharing: $58,000
Interest on capital (10%) $4,800 $5,800 $6,800 ($17,400)
Compensation 16,000 ($16,000)
Allocation of balance 7,380 7,380 9,840 ($24,600)
Drawings (4,000) (4,000) (4,000) ($12,000)
Balances $56,180 $83,180 $80,640
Are marketing and sales the same in marketing
Answer:
marketing is building awareness of your organization and brand to potential customers. Sales is turning that viewership into a profit, by converting those potential customers into actual ones.
Explanation:
AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in a crucible, then poured into molds to produce the castings. On May 1, there were 230 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 230 pounds was $32,844, determined as follows:
Direct materials (230 x $132)$30,360
Conversion (230 x 60% x $18)2,484 $32,844
During May, the Casting Department was charged $350,000 for 2,500 pounds of alloy and $19,840 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,530 pounds of finished castings to the Machining Department. The May 31 inventory in process was 44% complete as to conversion.
a. Prepare the following May journal entries for the Casting Department:
1. The materials charged to production
2. The conversion costs charged to production
3. The completed production transferred to the Machining Department
b. Determine the Work in Process—Casting Department May 31 balance.
c. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (April).
Answer:
AccuBlade Castings Inc.
Casting Department
a. Journal Entries for:
1. The materials charged to production:
Debit WIP $350,000
Credit Raw materials $350,000
To record the cost of materials charged to production.
2. The conversion costs charged to production:
Debit WIP $49,600
Credit Direct Labor $19,840
Credit Manufacturing overhead $29,760
3. Debit Machining Department $402,827
Credit WIP $402,827
To record the transfer of completed units to the machining department.
b. Work-in-Process - Casting Department balance = $29,616
c. The change in the costs per equivalent unit for direct materials and conversion from April:
Direct Materials Conversion
April cost per equivalent unit $132.00 $18.00
May cost per equivalent unit $139.33 $19.89
Change in cost per equivalent unit $7.33 increase $1.89 increase
The cost per equivalent unit increased in both direct materials and conversion for May when compared to April's.
Explanation:
a) Data and Calculations:
Units
Beginning WIP 230
Started 2,500
Transferred 2,530
Ending WIP 200
Equivalent units of production:
Units Direct Materials Conversion
Transferred 2,530 2,530 (100%) 2,530 (100%)
Ending WIP 200 200 (100%) 88 (44%)
Total equivalent unit 2,730 2,618
Cost of production:
Direct Materials Conversion Total
Beginning WIP$30,360 (230*$132) $2,484 (230*60%*$18) $32,844
Started 350,000 (2,500*$140) 49,600 (2,500*$19.44) 399,600
Total costs $380,360 $52,084 $432,444
Cost per equivalent unit:
Direct Materials Conversion
Total costs $380,360 $52,084
Equivalent units 2,730 2,618
Cost per equivalent unit $139.33 $19.89
Allocation of production costs:
Direct Materials Conversion Total
Units transferred out $352,505(2,530*$139.33) $50,322 (2,530*$19.89) $402,827
Ending WIp 27,866(200*$139.33) $1,750 (88*$19.89) $29,616
Total costs $380,371 $52,072 $432,443
From the following statements, select the one that describes the effect of dividends on equity.
a) Dividends cause assets to increase.
b) Dividends have no effect on equity.
c) Dividends cause equity to increase.
d) Dividends cause equity to decrease.
Answer: d) Dividends cause equity to decrease.
Explanation:
Dividends are payments to shareholders as a way of sharing the profit that the company made with its owners. Net profit is added to the Equity of company.
In other words, dividends cause equity to decrease because they are taken from Retained Earnings (net income) which are added to Equity. By reducing the amount of Retained earnings available therefore, dividends are reducing Equity.
d) Dividends cause equity to decrease.
DividendsA dividend is a payment made by a company to its shareholders from its profits.Dividends are payments provided to shareholders as a means of sharing a company's earnings with its owners. The net profit is added to the company's equity.d) Dividends cause equity to decrease because they are deducted from Retained Earnings (net income), which are then added to Equity. Dividends reduce Equity since they reduce the amount of Retained Earnings available.For more information:
https://brainly.com/question/13535979?referrer=searchResults
You will receive $5,000 one year from now, 6000 three years from now, and 7000 five years from now in real terms. Each payment will be received at the end of the period with the first payment occurring one year from today. The relevant nominal discount rate is 9.625 percent and the inflation rate is 2.3 percent. What are your winnings worth today in real dollars
Answer:
$14,495.56
Explanation:
The value of the earnings today can be determined using a financial calculator.
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = $5,000
Cash flow in year 2 = 0
Cash flow in year 3 = $6,000
Cash flow in year 4 = 0
Cash flow in year 5 = $7,000
I = 7.16%
PV =
According to the fisher equation : (1 + nominal interest rate) = (1 + real interest rate) x (1 + inflation rate)
(1.09625) = (1 + real interest rate) x (1.023)
(1 + real interest rate) = 1.09625 / 1.023
real interest rate = 7.16%
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
When the classical model of decision making is said to be normative, this means: The model is most useful for nonprogrammed decisions The model is best suited for conditions of high uncertainty. The model defines how people actually make decisions, under less than ideal conditions. The model defines how people should ideally make decisions
Answer:
The model defines how people should ideally make decisions.
Explanation:
A positive statement can be defined as any statement that is typically based on empirical evidence and as such can be tested, proven and verified. Also, a positive statement can be amended or rejected based on evidences that are available.
On the other hand, a normative statement can be defined as any statement that can't be tested, proven or verified because it is judgmental and based on opinions.
The classical model of decision making is a strategic process which assumes that managers (decision makers) are well furnished with large amounts of information and as such are able to practically process the information for decision making.
When the classical model of decision making is said to be normative, this means the model defines how people should ideally make decisions.
What are two factors used to determine a credit score? Explain how they indicate good or poor credit. Write in complete
sentences
Answer:
Payment history: Lenders are most concerned about whether or not you pay your bills on time.
Amounts owed: The amount of debt you have in comparison to your credit limits affects your credit. the higher the debt the riskier you seem to a potential creditor.
Length of credit history: Having a longer credit history is favorable because it gives them a more favorable picture that you have built credit over the years with other creditors.
New credit: In general, people who open many new credit accounts in a short amount of are considered a high risk. Too many new accounts can negatively impact your credit score.
Explanation:
Why is it important to select products and services that represent best value for money
Answer:
Too low of a price means you forgo potential profits. The most important factor in product price setting is choosing a price low enough that customers perceive they are getting a good value relative to what your competitors are offering and the prices they are charging -- but yet high enough to generate a profit.
Explanation:
The Harris company has 3 options for a new production process. A Labor-Intensive process (A) would cost $350,000 for equipment and $35 for labor and materials for each item produced. A More Automated process (B) costs $970,000 in equipment but has a labor/material cost of $30 per item produced. A Fully Automated process (C) costs $2,510,000 for equipment and $22 per item produced. Based solely on cost, for what range of production should process B be chosen
Answer:
B is more profitable when the production level is higher than 124,000 units, but lower than 192,500
Explanation:
the difference between B and A per unit = $5
the difference in investment = $970,000 - $350,000 = $620,000
B is more profitable when total output is higher than $620,000 / $5 = 124,000 units
the difference between C and A = $8
the difference in investment = $2,510,000 - $970,000 = $1,540,000
C is more profitable when total output is higher than $1,540,000 / $8 = 192,500 units
What is the main difference between private and government consumer advocacy employers?
a. working directly with consumers
b. who is allowed to work for them
c. funding resources
d. allowance of lobbyism
Answer:
C. funding resources
Your welcome :)
Latvia and Estonia are two countries. Assume that currently there is no trade between them. Each country has 100 units of labor. Latvia produces fish, at a cost of 1 unit of labor per fish, and grain, at a cost of 2 units of labor per bushel. Estonia produces fish at a cost of 2 units of labor per fish, and grain at a cost of 3 units of labor per bushel. Both countries consume both fish and grain.a. True or False, the countries can both benefit if they can trade with each other?b. Circle any and all of the following which hold:i. Latvia will export fish if there is tradeii. Latvia will export grain if there is tradeiii. Estonia will export fish if there is tradeiv. Estonia will export grain if there is tradev. We do not have sufficient information to say what will be exported
Answer:
Assume that currently there is no trade between them. Each country has 100 units of labor. Latvia produces fish, at a cost of 1 unit of labor per fish, and grain.
Explanation:
The benefits or reviewing procedures for ordering products and services
Answer:
They provide more detail and utility than a basic expense record. ...
They're the foundation of a reliable purchasing process. ...
They improve organisation for multiple projects and processes. ...
They provide clear and highly detailed levels of communication to all parties.
Explanation:
3. Aztec Furnishings makes hand-crafted furniture for sale in its retail stores. The furniture maker has recently installed a new assembly process, including a new sander and polisher. With this new system, production has increased to 90 pieces of furniture per day from the previous 60 pieces of furniture per day. The number of defective items produced has dropped from 12 pieces per day to 5 per day. The production facility operates strictly eight hours per day. Evaluate the change in productivity for Aztec using the new assembly process. Please show your work and any formulas utilized.
Answer:
77.08%
Explanation:
Calculation to Evaluate the change in productivity for Aztec using the new assembly process
Using this formula
Change in productivity =[( Increased in production- Dropped in defective items produced)-(Previous pieces of furniture per day-Dropped in defective items produced)]/-(Previous pieces of furniture per day-Dropped in defective items produced)*100
Let plug in the formula
Change in productivity =[(90 pieces per day-5 per day)-(60 pieces per day-12 pieces per day )/(60 pieces per day-12 pieces per day) *100
Change in productivity =(85-48)/48*100
Change in productivity =37/48*100
Change in productivity =0.7708*100
Change in productivity =77.08%
Therefore the change in productivity for Aztec using the new assembly process will be 77.08% Increase in productivity.
Rousey, Inc., had a cash flow to creditors of $16,380 and a cash flow to stockholders of $6,740 over the past year. The company also had net fixed assets of $49,380 at the beginning of the year and $56,740 at the end of the year. Additionally, the company had a depreciation expense of $11,940 and an operating cash flow of $50,265. What was the change in net working capital during the year?
Answer:
$7,845
Explanation:
Calculation for What was the change in net working capital during the year
First step is to calculate the Cash flow from assets
Cash flow from assets = $16,380 + 6,740
Cash flow from assets= $23,120
Second step is to calculate the Net capital spending
Net capital spending = $56,740 − 49,380 + 11,940
Net capital spending = $19,300
Now let calculate the Change in net working capital
Change in net working capital = $50,265 − 19,300 − 23,120
Change in net working capital= $7,845
Therefore the change in net working capital during the year will be $7,845
n the context of competing in the global economy, globalization suggests that: a. an organization's nationality is held strongly in consciousness. b. the world's cultural diversity is of no significance to transnational organizations. c. the world is divided by borders and diverse cultures. d. the world is free from national boundaries and is borderless
Answer:
d. the world is free from national boundaries and is borderless
Explanation:
Globalisation is defined as the increase in connectivity between different nations as a result of increased volume of trade and culture exchange that occurs between the nations.
Such increase in inter connectivity leads to a global economy where national borders do not seem to exist.
Globalisation reduces the cumbersome process of having to pay various charges when transacting between countires
On January 1, year 2, Connor Corporation signed a $100,000 noninterest-bearing note due in three years at a discount rate of 10%. Connor elects to use the fair value option for reporting its financial liabilities. On December 31, year 2, Connor's credit rating and risk factors indicated that the rate of interest applicable to its borrowings was 9%. The present value factors at 10% and 9% are presented below.
PV factor .751 10%, 3 periods
PV factor .826 10%, 2 periods
PV factor .909 10%, 1 periods
PV factor .772 9%, 3 periods
PV factor .842 9%, 2 periods
PV factor .917 9%, 1 periods
At what amount should Connor present the note on the December 31, year 2 balance sheet?
Answer:
the amount that should present the note in year 2 is $84,200
Explanation:
The computation of the amount that should present the note in year 2 is shown below:
= Amount of non-interest bearing note × present value factor for 2 years at 9%
= $100,000 × 0.842
= $84,200
hence, the amount that should present the note in year 2 is $84,200
A retailer is an
example of a(n) *
O
extractor
O producer
O intermediary
O service business
Answer: Service business.
Explanation: Retailers are shop clerks that run a supermarket. Retailers sell goods and services to people in need to the public. They sell it in small quarantines to use or consumption rather than for resale.
In marketing, there are intermediaries between the distribution channel. A retailer is an example of an intermediary
Producers most times do not sell products or services directly to consumers and as such uses these marketing intermediaries to execute an the functions of getting the product to the final consumer.
These intermediaries are called middlemen and they include wholesalers, retailers, agents, and brokers. These intermediaries do enter into longer-term agreement with the producer and make up the marketing channel.Conclusively, retailer acts as middleman to get product to target consumers.
Learn more from
https://brainly.com/question/24648463
Jim and Joan owned a farm which produced fruits and vegetables for sale. The farm was located in a heavily populated area. Every year, hundreds of customers came to buy produce from them at the farm. One day, customers were surprised to see that the farm stand was gone and that Jim and Joan had sold the property for a much higher price than farm land would normally cost. Which principle of value did the appraiser use in determining the value of the property?
Answer:
Highest and best use
Explanation:
The highest and best use principle explains the probable as well as reasonable and legal use of lands that are vacant as well as improved property. This property or land must be financially feasible and be supported appropriately so that the result gives highest value.
Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs.
Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved.
Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. (Round answers to 2 decimal places, e.g. 12.25.)
WATERWAYS CORPORATION
Activity Cost
Pools Cost Drivers Estimated
Overhead Expected
Use of Cost
Drivers per
Activity Actual Use of
Drivers
Irrigation installation Labor cost $1,998,432 12,960 12,941
Machining (all machine use) Machine hours 1,670,400 33,408,000 33,409,000
Customer orders Number of orders 30,636 2,553 2,520
Design Cost per design 820 8 7
Selling Number of sales calls 350,400 21,900 22,100
WATERWAYS CORPORATION
Activity Cost
Pools Activity-
Based
Overhead
Rates Actual
Cost
Assigned
Irrigation installation $
$
Machining (all machine use)
Customer orders
Design
Selling
How would you classify each of the following activities by level—unit level, batch level, product level, or facility level?
Testing of products (if all items are tested)
BatchProductFacilityUnit
Testing of products (if all items are not tested)
BatchFacilityUnitProduct
Designing new products
FacilityUnitBatchProduct
Packaging
BatchProductFacilityUnit
Molding
FacilityUnitProductBatch
Assembling
UnitFacilityBatchProduct
Depreciation
ProductBatchFacilityUnit
Machine maintenance
UnitBatchProductFacility
Advertising
ProductUnitFacilityBatch
Equipment setups
ProductBatchFacilityUnit
Electricity required to run equipment
BatchProductFacilityUnit
Requisitioning materials
UnitProductFacilityBatch
Answer:
WATERWAYS CORPORATION
a.
Activity Cost Overhead Actual Cost
Pools Activity- Rates Assigned
Based
Irrigation installation $ 154.20 $1,995,502.20
Machining (all machine use) $0.05 1,670,450.00
Customer orders $12 30,240.00
Design $102.50 717.50
Selling $16 353,600.00
b. Classification of activities by level:
Activities Levels
Testing of products (if all items are tested) Unit
Testing of products (if all items are not tested) Batch
Designing new products Product
Packaging Unit
Molding Product
Assembling Batch
Depreciation Facility
Machine maintenance Unit
Advertising Product
Equipment setups Batch
Electricity required to run equipment Facility
Requisitioning materials Unit
Explanation:
a) Data and Calculations:
WATERWAYS CORPORATION
Activity Cost Estimated Expected Actual Use
Pools Cost Drivers Overhead Use of Cost of Drivers
Drivers per
Activity
Irrigation installation Labor cost $1,998,432 12,960 12,941
Machining Machine hours 1,670,400 33,408,000 33,409,000
Customer orders No. of orders 30,636 2,553 2,520
Design Cost per design 820 8 7
Selling No. of sales calls 350,400 21,900 22,100
Overhead Rates:
Irrigation $1,998,432/12,960 = $154.20 per DLH
Machining 1,670,400/33,408,000 = $0.05 per machine hour
Customer orders 30,636/2,553 = $12 per order
Design 820/8 = $102.50 per design
Selling 350,400/21,900 = $16 per sales call
Activity Cost Overhead Actual Cost
Pools Activity- Rates Assigned
Based
Irrigation installation $ 154.20 $1,995,502.20 ($154.20*12,941)
Machining (all machine use) $0.05 1,670,450($0.05*33,409,000)
Customer orders $12 30,240 ($12*2,520)
Design $102.50 717.50($102.50*7)
Selling $16 353,600($16*22,100)
b) Levels of Activity:
Unit-level activities: At this level, the costs are concerned with direct materials, direct labor, and machine maintenance.
Product-level activities are specific to a product.
Batch‐level activities require a group (batch) of units to be produced or some processes performed together.
Facility-level activities are support activities required for the development and production of goods and services. They are organization-wide.
Banks use a large percentage of their checkable deposits for the purpose of __________.
A.
paying interest
B.
giving loans
C.
employee salaries
D.
maintaining reserves
the answer is D
Answer:
B. giving loans
Explanation:
The reserve requirement system requires commercial banks to maintain a small fraction of their deposits as a reserve. Only a small percentage of the checkable deposits is required to be held in the banks as reserves. The reserves requirement fractions vary with the monetary policy in place.
The percentage of reserve requirement ranges from 3% to 10%. It would hardly get to 20%. The rest other bigger percentage ( over 80%) is available to be used to create loans.
Answer:
D.) maintaining reserves
Explanation:
got it right on the test review
