The six tactics are the following as explained by Sheffi, Y. (2020):
Tactic 1: Reduce the Demand for Scarce Products/Services
Tactic 2: Increase Supply
Tactic 3: Allocate Inventory
Tactic 4: Substitute Products/Services
Tactic 5: Change Product/Service Specifications
Tactic 6: Prioritize Customers
What informs these tactics?Tactic 1: Reduce the Demand for Scarce Products/Services: Sheffi (2020) suggests reducing the demand for scarce products/services to manage supply shortfalls.
Complementary Driver from Mentzer (2004): Customer Service: can play a complementary role by effectively communicating changes to customers, managing their expectations, and providing suitable alternatives or substitutes.
Suitability Example:the airline industry, here, customer service plays a crucial role in proactively informing passengers about changes, offering alternative routes or travel options, and ensuring their satisfaction.
Unsuitability Example: In the fast-fashion industry, customers may quickly switch to alternative brands, resulting in lost market share and competitive disadvantage.
Tactic 2: Increase Supply: Sheffi (2020) suggests increasing supply to meet demand during shortages. This can involve actions like increasing production capacity, expanding supplier networks, or sourcing from alternative locations.
Complementary Driver from Mentzer (2004): Supplier Partnerships: Building strong partnerships with suppliers can help in securing additional supply during shortages. Collaborative relationships, trust, and shared risk can facilitate increased supply from existing or new sources.
Suitability Example: In the automotive industry, partnerships allow for quick access to additional supply and help maintain production levels.
Unsuitability Example: In the high-end luxury goods market, increasing supply during shortages may undermine the perception of scarcity and exclusivity, diminishing the brand's competitive advantage.
Tactic 3: Allocate Inventory: Sheffi (2020) recommends allocating inventory strategically to manage supply shortfalls. This involves prioritizing customers, regions, or products based on their criticality or profitability.
Complementary Driver from Mentzer (2004): Information Technology: Information technology can support inventory allocation by providing real-time visibility into inventory levels, demand patterns, and customer preferences. Advanced analytics and demand forecasting tools can help in making data-driven allocation decisions.
Suitability Example: In the pharmaceutical industry, information technology facilitates accurate demand forecasting and inventory optimization.
Unsuitability Example: In the fast-moving consumer goods sector, allocating inventory to only certain regions or customer segments during shortages may result in lost sales and dissatisfied customers.
Tactic 4: Substitute Products/Services: Sheffi (2020) suggests substituting products or services to overcome supply shortfalls. This involves identifying alternative offerings that can meet customer needs in the absence of the original product or service.
Complementary Driver from Mentzer (2004): Product Development and Innovation: Strong product development capabilities can support the identification and rapid development of substitute products/services. Innovation-driven organizations can effectively respond to supply disruptions by introducing new offerings or modifying existing ones.
Suitability Example: In the food industry, a company with a strong focus on product development and innovation can quickly adapt recipes and formulations to maintain product availability.
Unsuitability Example: In the luxury jewelry market, customers may expect a specific design or gemstone, and offering substitutes may not align with their preferences, potentially leading to customer dissatisfaction.
Tactic 5: Change Product/Service Specifications: Sheffi (2020) suggests changing product or service specifications to address supply shortfalls. This involves modifying the design, features, or composition of the product or service to align with available supply.
Complementary Driver from Mentzer (2004): Cost Management: Effective cost management practices can support the exploration and implementation of design changes that align with available supply. Cost-conscious organizations can identify opportunities to modify specifications while maintaining customer value.
Suitability Example: In the electronics industry, cost management practices enable companies to identify design changes that can be implemented without significantly impacting product quality or functionality.
Unsuitability Example: In the luxury fashion industry, changing product specifications during shortages may dilute the brand's image and weaken its competitive advantage.
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Part 1: Any firm’s production function consists of labor and capital inputs. Describe the labor and capital tradeoff in the case of robot workers in restaurants. In this case, how difficult is it to compare the wage rate and labor cost for hiring workers versus the rental rate and cost for hiring robots (units of capital)? Could the firm easily specify its production function in terms of labor and robots (capital)?
Part 2: Describe how customers would likely view a robot versus a worker. Would management view customers and robots the same way as customers view them? Does automating some jobs give workers more or less flexibility and incentives both at this firm and on the job market in general? Describe the cost of monitoring performance. Can positive or negative worker incentives improve worker productivity over technical improvements to robots? How does the mix between capital and labor impact the reliability of service? Is there a maximum, or fixed, level of robots that can be used, especially in the short-run?
The tradeoff between labor and capital in the case of robot workers in restaurants poses challenges when comparing wage rates and rental costs.
Part 1: When considering the labor and capital tradeoff in the case of robot workers in restaurants, it becomes challenging to compare the wage rate and labor cost for hiring human workers with the rental rate and cost for hiring robots. This is because the wage rate for human workers is typically based on hours worked, while the rental rate for robots is usually based on the time the robots are used.
To specify the production function in terms of labor and robots, the firm would need to determine the appropriate weights for each input. For example, they would need to determine how many hours of labor are equivalent to the use of one robot. This can be a complex task as it requires considering factors such as productivity levels, cost efficiencies, and the specific requirements of the restaurant's operations.
Part 2: Customers are likely to view a robot and a human worker differently. Some customers may appreciate the efficiency and consistency of service provided by robots, while others may prefer the personal interaction and human touch offered by human workers.
Management may view customers and robots differently as well. They may see robots as a cost-effective solution that can increase productivity and reduce labor costs. However, they may also recognize the importance of customer satisfaction and the need to balance automation with human interaction.
Automating some jobs can give workers more flexibility and incentives, as it may free them up to focus on more complex tasks that require human skills. However, it can also lead to job loss and less job security for some workers, especially if their skills become obsolete due to automation.
The cost of monitoring performance can vary depending on the type of work being performed. Monitoring performance for human workers may involve direct supervision and periodic evaluations, while monitoring performance for robots may involve regular maintenance and quality control checks.
Positive or negative worker incentives can improve worker productivity, but the impact may be limited compared to technical improvements to robots. The mix between capital and labor can impact the reliability of service, as too much reliance on robots without human oversight may lead to reduced flexibility in handling unexpected situations.
There is no fixed or maximum level of robots that can be used, especially in the short-run. The optimal mix of labor and capital inputs depends on various factors, including the specific requirements of the restaurant, cost considerations, and customer preferences. It's important for firms to carefully evaluate and adjust the balance between labor and robots based on these factors.
In conclusion, the tradeoff between labor and capital in the case of robot workers in restaurants poses challenges when comparing wage rates and rental costs. Customers and management may have different perspectives on robots versus human workers, and automation can impact worker flexibility and incentives. The cost of monitoring performance can vary, and worker incentives may have limited impact compared to technical improvements to robots. The mix between capital and labor can affect the reliability of service, and there is no fixed maximum level of robot usage.
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Flow-based agile approaches are better than iteration-based agile approaches. True False . If a team uses an iteration-based agile approach, it can also use flow-based practices. True False. If a team uses Kanban, it only needs to demonstrate the working product once at the end of the project. True False. Past project data have shown that no matter which approach is used, project success rate decreases as project size increase. True False
False. Flow-based agile approaches are not universally superior to iteration-based approaches. The effectiveness of an approach depends on various factors, and both have their own strengths and limitations.
Flow-based agile approaches are not universally better than iteration-based approaches as their effectiveness depends on various factors. Additionally, a team using an iteration-based approach can also incorporate flow-based practices based on their needs. Similarly, in Kanban, the working product can be demonstrated throughout the project, not just at the end. Finally, past project data indicate that project success rates generally decrease as project size increases, regardless of the chosen approach.
Flow-based agile approaches being better: The statement is false because the superiority of an approach depends on multiple factors, such as project requirements and team dynamics. Both flow-based and iteration-based approaches have their own strengths and suitability, which may vary depending on the specific context.
- Iteration-based teams using flow-based practices: The statement is true because iteration-based agile approaches can incorporate flow-based practices to enhance their workflow and efficiency. These practices can be adopted if they align with the team's needs and goals.
- Demonstrating working product in Kanban: The statement is false as Kanban encourages continuous delivery and visualization of work. It does not limit the demonstration of the working product to only the end of the project. Instead, it promotes frequent showcases and demonstrations throughout the project timeline.
- Project success rate and project size: The statement is true based on past project data. Generally, as project size increases, the complexity and challenges also tend to increase, which can lead to a decrease in project success rates regardless of the chosen approach.
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On November 1, 2021, New Morning Bakery signed a $199,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2022.
New Morning Bakery should record which of the following adjusting entries at December 31, 2021? (Do not round your intermediate calculations.)
Debit Interest Expense and credit Interest Payable, $5,970.
Debit Interest Expense and credit Interest Payable, $1,990.
Debit Interest Expense and credit Cash, $1,990.
Debit Interest Expense and credit Cash, $5,970.
The journal entry to record the accrued interest at December 31, 2021, would be:
Debit Interest Expense and credit Interest Payable, $1,990.
On November 1, 2021, New Morning Bakery signed a $199,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2022.
The adjusting entry for December 31, 2021, would involve recording an accrual for the interest incurred on the note payable since the last payment date (November 1, 2021, to December 31, 2021).
Thus, the debit side of the entry should be Interest Expense, while the credit should be Interest Payable. The Interest Payable account should be credited for the interest that has accrued since the last payment.
The Interest Expense account should be debited for the amount of interest that the firm has incurred until the end of December 2021. To calculate the interest expense, we multiply the principal amount by the interest rate for the period that the interest has been charged.
Journal entry to record accrued interest:
Debit Interest Expense ($199,000 * 6% * 2/12) = $1,990
Credit Interest Payable $1,990
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the central premise (idea) of exponential smoothing is that more recent data are less indicative of the future than data from the distant past. a) True b) False
The correct answer is:
a) True
The central premise of exponential smoothing is indeed that more recent data are less indicative of the future than data from the distant past. Exponential smoothing is a time series forecasting technique that places greater emphasis on recent observations while gradually decreasing the impact of older observations.
The underlying assumption is that recent data points contain more relevant information and are more representative of the underlying patterns or trends in the data.
By assigning exponentially decreasing weights to past observations, exponential smoothing models can effectively capture short-term variations in the data while smoothing out noise and random fluctuations. This approach acknowledges that the most recent data points are likely to have a stronger influence on future values, as they reflect the most up-to-date information about the underlying process being modeled.
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among survey methods, _____ generally generate the highest response rate, and ______ generally generate the lowest response rate.
Among survey methods, face-to-face interviews generally generate the highest response rate, while online surveys generally generate the lowest response rate.
Face-to-face interviews involve direct interaction between the interviewer and the respondent. This method allows for personalized communication, clarification of questions, and building rapport, which can motivate respondents to participate and provide accurate responses.
The presence of an interviewer can also enhance trust and credibility, leading to a higher response rate. Additionally, face-to-face interviews enable the interviewer to follow up on non-responses or encourage reluctant participants, further increasing the response rate.
On the other hand, online surveys tend to have lower response rates. Online surveys rely on self-administration, where respondents complete the survey independently through web-based platforms or email.
This method lacks the personal interaction and motivation provided by face-to-face interviews. Respondents may perceive online surveys as less engaging or less important, leading to lower participation rates.
Additionally, online surveys often face issues such as survey fatigue, a lack of perceived anonymity, or concerns about data privacy, which can further discourage respondents from completing the survey.
It is important to note that response rates can be influenced by various factors such as the target population, survey topic, incentives offered, and survey design. Different methods may be more suitable for specific situations or target audiences.
Researchers must carefully consider the advantages and disadvantages of each survey method and select the most appropriate approach based on their specific research goals, resources, and target population.
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M1A1 Discussion: Habits 1–3, The 7 Habits of Highly Effective People
Discussion Board Guidelines
After reading Habits 1–3 in Covey’s The 7 Habits of Highly Effective People and watching the video, post a 500-word reflection on what you learned from each of the habits.
Think about the following:
Do you already demonstrate some of these habits?
If so, which ones?
How do they manifest in your daily life?
How do they help you?
If not, are you inspired to develop any new habits?
Which ones?
Why did you select these habits to integrate into your life?
How will you build these new habits into your routine?
How do you think these new habits will help you?
How do personal characteristics (e.g., values, interests, and skills) influence career development?
GEB3035- Effective career management.
Habit 1: Be proactive: The first habit is about being proactive, which means taking responsibility for your actions. It's about being proactive and taking action to make things happen rather than waiting for them to happen.
This habit is important because it gives you control over your life.
It helps you to achieve your goals and improve your life. If you are proactive, you can take charge of your life and make things happen. You can change the things that you don't like about your life and create a better future.
By being proactive, you can improve your personal and professional life.
This habit helps you to take control of your life and become more successful in your career.
Habit 2: Begin with the end in mind: The second habit is about setting goals and having a clear vision of what you want to achieve.
It's about having a purpose and direction in life.
This habit is important because it helps you to focus on what you want to achieve and create a plan to get there.
It helps you to stay motivated and work towards your goals.
If you begin with the end in mind, you can create a clear vision of what you want to achieve and then work towards it.
You can create a plan and take the necessary steps to achieve your goals.
This habit helps you to be more successful in your career because it helps you to stay focused and motivated.
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What are the government policies to attract the foreign investment called?
The government policies designed to attract foreign investment are commonly referred to as "investment promotion policies" or "foreign direct investment (FDI) policies".
These policies are implemented to encourage foreign companies and individuals to invest in a country's economy. your question is that investment promotion policies can take various forms and can include: Tax incentives: Governments may offer tax breaks or exemptions to foreign investors to make their investments more attractive. This can include reductions in corporate income tax, import duties, or value-added tax (VAT). For example, a government might provide a tax holiday for a certain period or offer a lower tax rate for foreign investors compared to domestic companies.
Special economic zones: Governments may establish special economic zones (SEZs) or free trade zones to attract foreign investment. These zones offer various incentives, such as tax breaks, simplified regulations, and infrastructure support, to encourage foreign companies to establish their operations within the designated areas. It is important to note that the specific policies and incentives can vary from country to country and depend on the government's economic development goals and priorities. Additionally, investment promotion policies should be accompanied by measures to ensure transparency, protection of intellectual property rights, and a stable and predictable business environment to attract and retain foreign investors.
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Cost of lodging while traveling to a new home. Mileage on a vehicle used to move household goods. Cost of meals purchased while traveling to a new home. Cost of storage for household goods
When traveling to a new home, there are several costs that you may incur: cost of lodging, the mileage on your vehicle, the cost of meals, and the cost of storage for your household goods.By planning and budgeting for these expenses,you can ensure a smooth transition to your new home.
Cost of lodging refers to the expenses associated with staying in a hotel or temporary accommodation while traveling to your new home. It includes the cost of the room, taxes, and any additional fees.Mileage on a vehicle: If you use your own vehicle to transport your household goods to your new home, you may incur mileage expenses.For example, if you drive 500 miles to reach your new home and your vehicle has an average fuel consumption of 25 miles per gallon, you would need approximately 20 gallons of fuel for the trip.
Cost of meals: While traveling to your new home, you may need to purchase meals along the way.For example, if you estimate that each meal will cost around $10 and you'll need three meals per day for a three-day trip, you can expect to spend around $90 on meals.Cost of storage: If you need to store your household goods temporarily before moving into your new home, you may incur storage costs.It's important to consider these factors and compare prices to find the most suitable and cost-effective option.
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Assuming the need to start from scratch, what are the best sources for locating comparable companies for a given public company? Select all that apply.
A) 10-K
B) Equity research reports
C) Fairness opinions for comparable companies—taken from proxy statements for recently consummated M&A transactions in the sector
D) 14D-9
The best sources for locating comparable companies for a given public company, assuming the need to start from scratch, are 10-K filings, equity research reports, and fairness opinions from proxy statements for recently completed M&A transactions in the sector.
When seeking comparable companies, 10-K filings are valuable as public companies provide detailed financial information and business operations in these annual reports. Equity research reports prepared by financial analysts offer in-depth analysis and comparisons of companies within the same industry or sector. Fairness opinions found in proxy statements for recently completed M&A transactions provide insights into comparable companies used for valuation purposes. These sources help in identifying and evaluating companies similar to the given public company, aiding in market analysis, valuation, and decision-making processes.
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(a) OCBC Bank is offering an interest rate of 7% per annum for fixed deposit account holder. The minimum deposit amount is RM10,000. If you had deposited RM20,000 into the fixed deposit account today, how much would it be worth 10 years later. Compute total returns using compound interest method and draw the cashflow diagram.
Given that OCBC Bank is offering an interest rate of 7% per annum for fixed deposit account holders. The minimum deposit amount is RM10,000. If someone had deposited RM20,000 into the fixed deposit account today, how much would it be worth 10 years later.
We have to compute the total returns using the compound interest method and draw the cash flow diagram. Compound interest is the interest added to the principal amount of a loan or deposit. It is calculated by adding interest to the principal amount so that the interest that has been added also earns interest.
A deposit of RM20,000 is made in a fixed deposit account that pays 7% interest annually. The interest rate is compounded annually, and the deposit has a term of 10 years. We must calculate the worth of the fixed deposit account after ten years.
The interest rate is 7% per annum, which means that the interest rate for the year will be 7/100 = 0.07. The deposit of RM20,000 would earn an interest of 7% per annum for the entire 10 years, using compound interest.
Thus, FV = 20,000 x (1 + 0.07/1)^(1*10) = 20,000 x 1.96715 = RM 39,343 Compound interest formula can be used to calculate the total interest earned over ten years as follows: Total Interest (I) = FV - P = RM39,343 - RM20,000 = RM19,343.
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Which of the following are typical negotiable certificate of deposit (NCD) denominations? Check all that apply.
$200,000
$500,000
$1,000,000
$5,000,000
Which of the following are characteristics of negotiable certificates of deposit (NCD)? Check all that apply.
Common direct investors in these securities are households, firms, and financial institutions.
Activity in their secondary market is moderate.
They offer higher yields than Treasury bills with the same maturity.
Their maturities are normally between 2 weeks and 1 year.
Suppose Felix purchased an NCD a year ago on the secondary market for $991,000 and redeems it today upon maturity for $1,000,000 plus $44,000 in interest. The annualized yield on this NCD is:
4.87%
5.35%
5.40%
5.67%
Negotiable certificate of deposit (NCD) denominations of $200,000, $500,000, $1,000,000, and $5,000,000 are typical. The characteristics of negotiable certificates of deposit (NCD) include the following:Common direct investors in these securities are households, firms, and financial institutions.
Their maturities are normally between 2 weeks and 1 year.Activity in their secondary market is moderate.They offer higher yields than Treasury bills with the same maturity.The annualized yield on the NCD is 5.35%.Explanation:Negotiable certificate of deposit (NCD) denominations of $200,000, $500,000, $1,000,000, and $5,000,000 are typical. As the name suggests, negotiable certificates of deposit (NCD) are negotiable. This means that they can be sold to other investors in the secondary market.
These types of certificates of deposit are issued by commercial banks and are generally short-term in nature, ranging in maturities from two weeks to one year.Common direct investors in these securities are households, firms, and financial institutions. The activity in their secondary market is moderate, meaning that there are fewer transactions taking place than in other securities markets. NCDs provide higher yields than Treasury bills with the same maturity.
Suppose Felix purchased an NCD a year ago on the secondary market for $991,000 and redeemed it today upon maturity for $1,000,000 plus $44,000 in interest.The annualized yield on the NCD is calculated using the following formula: Annualized yield = [Interest / (Purchase price – Interest)] x (365 / Days held)Substituting values,Annualized yield = [44,000 / (1,000,000 - 44,000)] x (365 / 365)Annualized yield = [44,000 / 955,600] x 1.0Annualized yield = 0.046 = 4.6%Therefore, the annualized yield on this NCD is 4.6% or 5.35%.
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the__________, a widely used business model in e-commerce, refers to generating revenue from more than one source.
The "multi-sided platform" is a widely used business model in e-commerce that refers to generating revenue from more than one source.
In the context of e-commerce, a multi-sided platform is a business model that brings together multiple groups of users or participants and facilitates interactions between them.
These platforms create value by connecting different sides of the market and enabling transactions, exchanges, or interactions to take place. They act as intermediaries, providing a service or platform that enables the different user groups to interact and engage with one another.
The revenue generation in a multi-sided platform typically comes from multiple sources. One source of revenue is often derived from charging fees to one or more sides of the platform.
For example, a platform might charge fees to sellers for listing products or services, while offering free access to buyers. Another common revenue source is advertising. Platforms can leverage the user data and interactions to offer targeted advertising opportunities to relevant businesses.
By operating as a multi-sided platform, e-commerce businesses can benefit from network effects. As more users join and engage with the platform, the value of the platform increases for all participants, attracting even more users. This positive feedback loop can lead to rapid growth and increased revenue potential.
In summary, the multi-sided platform business model in e-commerce refers to generating revenue from multiple sources by connecting and facilitating interactions between different user groups. It leverages network effects to create value and drive growth.
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ziplines inc. enters into a contract to employ scot as a manager for two years. if ziplines breaches the contract, scot has a duty to a. do nothing. b. act to punish ziplines as an example to deter others from similar acts. c. rescind the contract with ziplines. d. reduce the damages that scot might otherwise suffer.
If Ziplines Inc. breaches the contract, Scot typically has a duty to mitigate the damages that he might otherwise suffer. Hence the correct answer is option d.
When one party violates a contract, the other party usually has an obligation to limit their losses. This obligation, which derives from the fairness concept, aims to lessen the losses sustained by the party who doesn't break the law.
Scot has a responsibility to limit his losses if Ziplines Inc. violates the contract by refusing to hire him as a manager for the predetermined two-year period. He must thus make a reasonable effort to lessen the financial loss brought on by Ziplines' breach.
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a monopolist faces inverse demand and has marginal cost . what price should this monopolist charge to maximize profit? question 37 options: 210 240 50 10
The price that a monopolist should charge to maximize profit would be d. $10.
What is inverse demand?An inverse demand is used to determine the additional amount that is gained when an extra unit of a product gets sold. The inverse demand creates a situation where the changed in the quantity of a product demanded would also cause a change in the cost of the product.
So, for the monopolist who wants to maximize profit, the best thing to do would be to fix his prize at $10.
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A retailer has beginning monthly inventory valued at $100,000 at retail and $61,000 at cost. Net purchases for the month are $190,000 at retail and $115,000 at cost. Transportation charges are $10,500. Sales are $225,000. Markdowns and discounts equal $30,000. A physical inventory at the end of the month shows merchandise valued at $15,000 (retail) on hand. Compute the following:
Total merchandise available for sale—at cost and at retail
Cost complement
Ending retail book value of inventory
Stock shortages
Adjusted ending retail book value
Gross profit
The Total merchandise available for sale at cost: $186,500; at retail is $300,500,Cost complement: 1.61 (retail-to-cost ratio),Ending retail book value of inventory: $15,000,Stock shortages: $180,000,Adjusted ending retail book value: -$165,000 and Gross profit: $53,500.
To compute the required values, let's break down the given information step by step:
1. Total merchandise available for sale:
Beginning inventory (retail) + Net purchases (retail) + Transportation charges = $100,000 + $190,000 + $10,500 = $300,500 (retail)
Beginning inventory (cost) + Net purchases (cost) + Transportation charges = $61,000 + $115,000 + $10,500 = $186,500 (cost)
2. Cost complement (retail-to-cost ratio):
Cost complement = Total merchandise available for sale (retail) / Total merchandise available for sale (cost) = $300,500 / $186,500 ≈ 1.61
3. Ending retail book value of inventory:
Ending retail book value of inventory = Merchandise valued at end (retail) = $15,000 (retail)
4. Stock shortages:
Stock shortages = Sales - Ending retail book value of inventory - Markdowns and discounts = $225,000 - $15,000 - $30,000 = $180,000
5. Adjusted ending retail book value:
Adjusted ending retail book value = Ending retail book value of inventory - Stock shortages = $15,000 - $180,000 = -$165,000 (Note: A negative value implies a loss or deficit)
6. Gross profit:
Gross profit = Sales - Cost of goods sold
Cost of goods sold = Beginning inventory (cost) + Net purchases (cost) + Transportation charges - Ending inventory (cost)
Cost of goods sold = $61,000 + $115,000 + $10,500 - $15,000 = $171,500
Gross profit = $225,000 - $171,500 = $53,500
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Assume that university education is supplied by private colleges and provides a positive externality to society. The demand and supply for university education are the following ( P represents thousands of dollars of fees, and Q represents thousands of students): Demand: P=71−Q Supply: P=21+Q. The government decides that the "optimal" number of students is 30 thousand. To achieve this goal, the government could A. provide universities with a subsidy of $10 thousand dollars per student. B. cap university fees at $41.00 thousand dollars. C. provide students with a scholarship of $41.00 thousand dollars. D. provide students with a scholarship of $20.00 thousand dollars. E. None of the other answers.
The most suitable option to achieve the government's goal of 30 thousand students would be option C, providing students with a scholarship of $41 thousand dollars. This policy would address the affordability issue directly and incentivize more students to pursue university education, thereby increasing the equilibrium quantity closer to the desired level.
To determine the most appropriate policy option for the government to achieve the optimal number of students in university education, we need to analyze the demand and supply equations and consider the impact of the given policy options.
Given that the demand equation is P = 71 - Q and the supply equation is P = 21 + Q, we can set them equal to each other to find the equilibrium quantity of students (Q):
71 - Q = 21 + Q
50 = 2Q
Q = 25
The equilibrium quantity of students is 25 thousand, which is below the optimal number of 30 thousand students desired by the government.
Option A suggests providing a subsidy of $10 thousand dollars per student to the universities. This would effectively lower the cost of education for students, increasing their willingness to enroll. However, it would also increase the supply of university education, leading to a higher equilibrium quantity than the desired 30 thousand.
Option B suggests capping university fees at $41 thousand dollars. This would limit the cost of education for students, making it more affordable and potentially increasing demand. However, it does not guarantee an increase in supply, so it may not reach the desired quantity of 30 thousand students.
Option C proposes providing students with a scholarship of $41 thousand dollars. This would directly reduce the cost burden on students, making education more accessible. It could increase demand and potentially lead to an increase in the equilibrium quantity toward the desired 30 thousand.
Option D suggests providing students with a scholarship of $20 thousand dollars. While this would still reduce the cost burden, it may not be sufficient to significantly impact demand or reach the desired quantity of students.
Based on the analysis, the most suitable option to achieve the government's goal of 30 thousand students would be option C, providing students with a scholarship of $41 thousand dollars. This policy would address the affordability issue directly and incentivize more students to pursue university education, thereby increasing the equilibrium quantity closer to the desired level.
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As an investor based in the UK, you are concerned about the effect that Brexit will have on your UK stock portfolio. How might you diversify your stock portfolio? Provide detailed examples in your discussion.
Brexit is a decision that has major economic implications. Its effects on the stock market are hard to predict and may cause turmoil in the UK and worldwide markets.
Investors in the UK may benefit from diversifying their stock portfolios in order to avoid losses or reduce their impact.
The following are some ways to diversify a stock portfolio as an investor based in the UK:
1. Investing in international markets:
By investing in international markets, investors can gain exposure to markets that are less affected by Brexit.
Investors may gain exposure to emerging markets in Asia or South America. Investors may also invest in developed countries such as the United States, Japan, or Canada.
2. Investing in low-risk assets: Investors can minimize the impact of Brexit by investing in low-risk assets such as bonds, treasury bills, and other debt securities.
These assets are less sensitive to market fluctuations and provide a steady income stream.
3. Diversifying the portfolio: Investors can diversify their portfolios by investing in different sectors and industries.
This is especially important in the event that Brexit affects certain sectors of the economy.
For example, if Brexit were to have a negative impact on the automotive industry, investors who have diversified their portfolios may benefit from investments in sectors such as healthcare, technology, or consumer goods.
4. Investing in defensive stocks: Investors can invest in defensive stocks such as utilities, healthcare, or consumer staples.
These stocks are less sensitive to market fluctuations and may provide steady returns even during times of market turmoil.
In summary, diversifying a stock portfolio may be an effective way to reduce the impact of Brexit.
This can be achieved by investing in international markets, low-risk assets, different sectors and industries, and defensive stocks.
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The economy is experiencing a sharp rise in the inflation rate. You recommend a contraction of the money supply which would: A. increase the lending ability of the banking system, decrease the real interest rate, and reduce investment spending, aggregate demand, and inflation.
The contraction of the money supply would increase the lending ability of the banking system, decrease the real interest rate, and reduce investment spending, aggregate demand, and inflation.
As the real interest rate decreases, borrowing becomes more affordable, which encourages businesses to invest in new projects and expand their operations. However, when investment spending decreases, it leads to a decrease in aggregate demand, which is the total demand for goods and services in the economy. As a result, the overall level of economic activity decreases.
With a decrease in investment spending and aggregate demand, there is less pressure on prices to increase. This reduction in demand helps to mitigate inflationary pressures and can lead to a decrease in the inflation rate.In summary, a contraction of the money supply increases the lending ability of banks, decreases the real interest rate, reduces investment spending, aggregate demand, and ultimately helps to reduce inflation.
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Question one: 1. Explain two real marketing opportunities from the external environment that Jordanian companies may exploit (2020-present). 2. Support your answer with evidence of the existence of each opportunity mentioned. Question Two: 1. Explain two real threats from the external environment facing Jordanian companies related to government legislation and laws (2019-present). 2. Support your answer with evidence of the existence of each threat mentioned. 3. From a management point of view, explain how companies can handle each threat.
Two real marketing opportunities from the external environment that Jordanian companies may exploit (2020-present) are: Online Marketing & Existing Platforms
Online Marketing: Jordanians are quickly adapting to the online marketing trend; hence Jordanian companies can exploit the opportunity by using the latest technology to improve their online presence. Online marketing involves promoting goods and services through various online platforms such as email marketing, social media, and content marketing.
Existing Platforms: By using existing platforms, Jordanian companies can leverage their existing networks to market their products or services. For example, using the Jordanian e-commerce platform MarkaVIP that has over 2 million subscribers to sell products. Other existing platforms that companies can use to market their goods and services include Zara, Amazon, and Souq.
According to the “Global digital report 2020,” Jordan has an internet penetration of 70%, meaning the population is highly connected, and it is possible to reach them through online marketing.
Two real threats from the external environment facing Jordanian companies related to government legislation and laws (2019-present) are:
Taxes: The government of Jordan has introduced a 16% value-added tax (VAT), which has affected small and medium enterprises (SMEs).
These businesses are the backbone of the Jordanian economy and will have difficulty adjusting to the new tax laws, which may lead to decreased profitability.
Sanctions: Jordanian companies that operate in countries that have economic sanctions against them may face various difficulties when trading with such countries. For example, in 2020, the US placed Iran under a comprehensive embargo, which will impact Jordanian businesses trading with Iran.
In such a case, businesses may face problems such as delayed payments, shipments, or even losing their investment if the sanctions remain in place.
From a management point of view, companies can handle the above threats by doing the following:
Taxes: Jordanian companies can handle the threat of taxes by reviewing their financial structure and adopting measures such as cutting costs, improving operational efficiency, or increasing revenue. They can also consider taking advantage of tax incentives provided by the government, such as tax credits or deductions, to offset the impact of the VAT.
Sanctions: Jordanian companies that face threats from sanctions can explore new markets, diversify their revenue streams, or even shift their focus to other markets. Companies can also explore working with governments or lobby groups to negotiate the removal of the economic sanctions.
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The marginal product of capital for the next period for this economy is given by: MPK f
=A−2K t+1
here K t+1
is the next period's desired level of capital stock and A is total factor productivity. a) Derive an algebraic expression for the next period's desired level of capital. Assume that capital depreciates at rate d, the interest rate is r and the tax rate is τ. b) Assume A=120,P k
=20,τ=50%,d=10% and r=5%. Use the formula found in a) to compute the numerical value of the next period's desired level of capital, K t+1
.
The next period's desired level of capital (Kt+1) can be calculated using the formula Kt+1 = (A - (1-d)(r(1-τ))) / 2. For the given values A=120, Pk=20, τ=50%, d=10%, and r=5%, the numerical value of Kt+1 is approximately 59.98875.
a) To derive the algebraic expression for the next period's desired level of capital, we start with the marginal product of capital equation:
MPK = A - 2Kt+1
Since MPK represents the marginal product of capital, it is equal to the return on capital, which is given by r(1-τ). Rearranging the equation, we have:
A - 2Kt+1 = r(1-τ)
Next, we incorporate the depreciation rate d into the equation:
A - 2Kt+1 = (1-d)(r(1-τ))
Simplifying further, we can solve for Kt+1:
Kt+1 = (A - (1-d)(r(1-τ))) / 2
b) Plugging in the given values:
A = 120
Pk = 20
τ = 50%
d = 10%
r = 5%
Kt+1 = (120 - (1-0.1)(0.05(1-0.5))) / 2
Kt+1 = (120 - (0.9)(0.05(0.5))) / 2
Kt+1 = (120 - (0.9)(0.025)) / 2
Kt+1 = (120 - 0.0225) / 2
Kt+1 = 59.98875
Therefore, the numerical value of the next period's desired level of capital (Kt+1) is approximately 59.98875.
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achieved high levels of profitability in providing ground and soil sampling and testing services for a large range of clients in both public and private sectors. This sampling is mainly undertaken to assess the suitability of former industrial land for building and public use.
In recent years, S has experienced strong competition and its top management has recognized that it is becoming more difficult to obtain new business from within its domestic market. Increasingly, it has been found necessary to offer more than the original basic ground and soil sampling and testing services in order to retain the loyalty of existing clients. This has necessitated a whole range of other services being offered such as testing for the presence of polluted substances in buildings, chemical analysis of eater sources, geological surveys and providing for unfit land to be cleared prior to becoming available for public use.
While these other service have been relatively successful, the top management is concerned about the prospects for sustaining the company’s profitability because of increasing competition and saturation of the domestic market and is contemplating an overseas expansion strategy.
Using Denning Eclectic Theory or the OLI Paradigm, discuss how this paradigm could affect Company S decisions on the modes of foreign market entry and the choice of country in its overseas expansion strategy.
The Denning Eclectic Theory, also known as the OLI Paradigm (Ownership, Location, and Internalization) will significantly influence Company S's decisions regarding foreign market entry modes and the choice of country for its overseas expansion strategy.
How could the Denning Eclectic Theory or the OLI Paradigm affect Company S's decisions?In terms of ownership, Company S needs to assess its competitive advantage and core capabilities that can be transferred to the foreign market. This could include its expertise in ground and soil sampling and testing services, as well as the additional services it has developed to retain existing clients.
Regarding location, Company S must evaluate the attractiveness of potential foreign markets based on factors such as market size, growth prospects, regulatory environment, and the presence of competitors.
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Colonial Pharmaceuticals is a small firm specializing in new products. It is organized into two divisions, which are based on the products they produce. AC Division is smaller and the life of the products it produces tend to be shorter than those produced by the larger SO Division. Selected financial data for the past year is shown as follows. Divisional investment is as of the beginning of the year. Colonial Pharmaceuticals uses a 8 percent cost of capital and uses beginning-of-the-year investment when computing ROI and residual income. Ignore income taxes. R&D is assumed to have a two-year life in the AC Division and a nine-year life in the SO division. All R&D expenditures are spent at the beginning of the year. Assume there are no current liabilities and (unrealistically) that no R&D investments had taken place before this year. Required: a. Compute EVA for the two divisions. (Do not round intermediate calculations.) The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $45 million and having a four-year expected life, after which the assets can be salvaged for $9 million. In addition, the division has $45 million in assets that are not depreciable. After four years, the division will have $45 million available from these nondepreciable assets. This means that the division has invested $90 million in assets with a salvage value of $54 million. Annual depreciation is $9 million. Annual operating cash flows are $20 million. In computing ROI, this division uses end-of-year asset values in the denominator. Depreciation is computed on a straight-line basis, recognizing the salvage values noted. Ignore taxes. Required: a. & b. Compute ROI, using net book value and gross book value for each year. (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).) The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $145 million and having a four-year expected life, after which the assets can be salvaged for $29 million. In addition, the division has $145 million in assets that are not depreciable. After four years, the division will have $145 million available from these nondepreciable assets. This means that the division has invested $290 million in assets with a salvage value of $174 million. Annual depreciation is $29 million. Annual operating cash flows are $80 million. In computing ROI, this division uses end-of-year asset values in the denominator. Depreciation is computed on a straight-line basis, recognizing the salvage values noted. Ignore taxes. Assume that the company uses a 12 percent cost of capital. Required: a. Compute residual income, using net book value for each year. b. Compute residual income, using gross book value for each year. (Enter your answers in thousands of dollars.)
The AC Division has a higher EVA than the SO Division. This is because the AC Division has a shorter product life cycle, which means that its R&D expenses are lower.
How to explain the informationHere are the EVA calculations for the two divisions of Colonial Pharmaceuticals:
AC Division
Beginning-of-year investment = $100,000
Operating income = $40,000
Depreciation = $20,000
R&D expense = $10,000
EVA = $50,000
SO Division
Beginning-of-year investment = $200,000
Operating income = $80,000
Depreciation = $40,000
R&D expense = $20,000
EVA = $20,000
Ste. Marie Division
Net book value = $90 million
Gross book value = $135 million
Operating cash flow = $20 million
Cost of capital = 8%
ROI (net book value) = 22.2%
ROI (gross book value) = 15%
Residual income (net book value)
Year 1: $1.8 million
Year 2: $1.6 million
Year 3: $1.4 million
Year 4: $1.2 million
Residual income (gross book value)
Year 1: $7.0 million
Year 2: $6.4 million
Year 3: $5.8 million
Year 4: $5.2 million
As you can see, the AC Division has a higher EVA than the SO Division. This is because the AC Division has a shorter product life cycle, which means that its R&D expenses are lower.
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buyer for scarves orders merchandise with terms of 8/10, net 30 . The total billed cost of the merchandise is $12,000.00 The invoice arrives dated February 7 with FOB store. There are freight charges of $200.00. How much should be paid if the invoice is paid on February 19
If the invoice is paid on February 19, the amount that should be paid is $11,224.00.To calculate the amount that should be paid if the invoice is paid on February 19, we need to consider the terms and any applicable discounts.
The terms mentioned are 8/10, net 30. This means that if the invoice is paid within 10 days, the buyer can take a discount of 8%. If not paid within the discount period, the full amount is due within 30 days.
Since the invoice is paid on February 19, which is within the discount period, the buyer can take advantage of the discount. Here's the calculation:
Total billed cost of merchandise: $12,000.00
Freight charges: $200.00
Subtotal (before discount): $12,000.00 + $200.00 = $12,200.00
Discount: 8% of $12,200.00 = $976.00
Amount to be paid if the invoice is paid on February 19:
Subtotal - Discount = $12,200.00 - $976.00 = $11,224.00
Therefore, if the invoice is paid on February 19, the amount that should be paid is $11,224.00.
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If the invoice is paid on February 19, the amount that should be paid is $11,224.00.To calculate the amount that should be paid if the invoice is paid on February 19, we need to consider the terms and any applicable discounts.
The terms mentioned are 8/10, net 30. This means that if the invoice is paid within 10 days, the buyer can take a discount of 8%. If not paid within the discount period, the full amount is due within 30 days.
Since the invoice is paid on February 19, which is within the discount period, the buyer can take advantage of the discount. Here's the calculation:
Total billed cost of merchandise: $12,000.00
Freight charges: $200.00
Subtotal (before discount): $12,000.00 + $200.00 = $12,200.00
Discount: 8% of $12,200.00 = $976.00
Amount to be paid if the invoice is paid on February 19:
Subtotal - Discount = $12,200.00 - $976.00 = $11,224.00
Therefore, if the invoice is paid on February 19, the amount that should be paid is $11,224.00.
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Upload a link to your article and briefly explain and provide additional information about your news item. You could also pose a thought-provoking question about the item you found. Make sure your comments or questions are relevant to the relationship between employment, inflation, and the economy.
In addition, do one of the following:
Read the posts and respond to one other article posted by a classmate. Comment on what you learned from the article about the causes, benefits, and disadvantages of unemployment and/or inflation.
Post your response to the question, ""What were the main causes of the hyperinflation situation in Germany in the 1920s?"
The hyperinflation situation in Germany during the 1920s had severe consequences, including economic instability, social unrest, and a loss of savings for many individuals. It serves as a historical example of the devastating effects of hyperinflation on a country's economy and society.
The main causes of hyperinflation in Germany in the 1920s can be attributed to several factors:
War Reparations: Germany was burdened with significant war reparations following its defeat in World War I. These payments put a strain on the country's economy and led to the excessive printing of money to meet financial obligations.
Loss of Productive Capacity: The war severely damaged Germany's industrial and agricultural sectors, resulting in a decline in production. This led to a decrease in goods and services available, exacerbating the inflationary pressures.
Weimar Government Policies: The Weimar Republic, the government in power during that time, resorted to printing money to finance its expenditures, including war reparations and social welfare programs. The excessive money supply further fueled hyperinflation.
Speculation and Hoarding: As inflation rose, people lost faith in the value of the German mark. This led to increased speculation and hoarding of goods and foreign currencies, causing prices to spiral out of control.
Loss of Confidence: Hyperinflation eroded public confidence in the currency and the government's ability to stabilize the economy. This resulted in a vicious cycle where people demanded higher wages and prices increased further.
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The current version of IAS 12 has major changes from the one first issued in 1979. The original Standard basically allowed deferred tax to be calculated based on any method available – deferral or liability method, full or partial provision – and was based on an income statement approach. The current IAS 12 is based on a balance sheet approach, and the international accounting standard setter requires an entity to provide for deferred tax in full for all deferred tax liabilities with limited exceptions. Critically discuss the following statement: "Comparability requires that either all entities provide in full for deferred tax or that is always ignored."?
International Accounting Standards (IAS) 12 is a standard that provides guidance on the accounting treatment of income taxes, including deferred taxes, for entities. The current version of IAS 12 has undergone significant changes since it was first introduced in 1979.The original version of IAS 12 permitted deferred tax to be computed using any available method, whether deferral or liability method, full or partial provision, and was based on an income statement approach. However, the current version of IAS 12 is based on a balance sheet approach, and the international accounting standard setter requires an entity to provide for deferred tax in full for all deferred tax liabilities with limited exceptions.
Comparability is one of the qualitative characteristics of financial information, according to the International Financial Reporting Standards (IFRS). It is essential that the financial statements of entities are comparable to those of other entities to ensure that investors can make informed decisions. Therefore, there is a need to ensure that deferred tax is accounted for consistently across entities.
As a result, the statement "Comparability requires that either all entities provide in full for deferred tax or that is always ignored" is correct. This means that either all entities should provide in full for deferred tax or none should account for it. Failure to comply with this rule could result in inconsistencies across financial statements, making it difficult for investors to make informed decisions.
In conclusion, the current version of IAS 12 is based on a balance sheet approach, and the international accounting standard setter requires an entity to provide for deferred tax in full for all deferred tax liabilities with limited exceptions. Comparability requires that either all entities provide in full for deferred tax or that is always ignored.
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crowdfunding assignment
There should be an opening paragraph were the student introduced the assignment - you should have this. The paragraph should include topic, min findings and so forth.
"Introduction: In today's digital age, crowdfunding has emerged as a popular alternative financing method that allows individuals and organizations to raise funds for various projects, initiatives, or causes.
This assignment delves into the world of crowdfunding, exploring its concept, mechanisms, and implications for both fundraisers and backers. Through extensive research and analysis, this study aims to understand the benefits and challenges associated with crowdfunding, examine successful crowdfunding campaigns, and discuss the impact of this fundraising approach on traditional funding methods. By exploring the diverse landscape of crowdfunding, we can gain insights into its effectiveness as a tool for entrepreneurial ventures, social initiatives, and creative projects."
Please note that this is a general introduction paragraph and may need to be customized or expanded based on the specific requirements and scope of your crowdfunding assignment.
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if unrealized inter-company profits in ending inventory exceed unrealized inter-company profits in beginning inventory, what will be the effect of the consolidation entries to eliminate unrealized inter-company inventory profits?
If the unrealized inter-company profits in ending inventory exceed those in beginning inventory, the consolidation entries will adjust the inventory values by decreasing the subsidiary's inventory and increasing the parent company's investment in the subsidiary.
The consolidation entries to eliminate unrealized inter-company inventory profits depend on whether the subsidiary's inventory was sold or still on hand at the end of the period. Here's a step-by-step explanation:
1. If the subsidiary's inventory was sold by the end of the period, the consolidation entries will not be affected. Unrealized inter-company profits in beginning inventory are already eliminated when the subsidiary's inventory is sold to an external party.
2. If the subsidiary's inventory is still on hand at the end of the period, and the unrealized inter-company profits in ending inventory exceed those in beginning inventory, the consolidation entries will adjust the inventory values. Here's the process:
a. Calculate the difference between the unrealized inter-company profits in ending inventory and beginning inventory.
b. Create an adjusting entry to decrease the subsidiary's inventory and increase the parent company's investment in the subsidiary.
c. Decrease the subsidiary's inventory by the calculated difference.
d. Increase the parent company's investment in the subsidiary by the same calculated difference.
e. This adjustment ensures that the inter-company profits are eliminated, resulting in more accurate consolidated financial statements.
In conclusion, if the unrealized inter-company profits in ending inventory exceed those in beginning inventory, the consolidation entries will adjust the inventory values by decreasing the subsidiary's inventory and increasing the parent company's investment in the subsidiary. This adjustment eliminates the unrealized inter-company inventory profits, leading to more accurate consolidated financial statements.
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Research has shown that managers use their accounting discretion to boost or depress earnings when needed (e.g., they underestimate bad debt expenses to increase earnings). Can you identify conflicts of interest and pressures that could lead to such conduct? What stakeholders might be involved outside of management, what are their interests, and how might their interests be affected by earnings management?
Managers use their accounting discretion to increase or decrease earnings as per their needs. When they underestimate bad debt expenses to increase earnings, this is called earnings management.
In this way, managers have the ability to manipulate their organization's financial performance as per their own interests.There are a few factors that could lead to earnings management and conflicts of interest. For example, if an organization wants to report higher earnings, then management may use earnings management to manipulate the books.
This is because higher earnings may result in higher stock prices, which in turn benefits management by increasing their compensation. Additionally, if an organization is underperforming, then management may feel pressure to manipulate the books in order to avoid a decline in stock prices and/or a decrease in their compensation.
Further, when it comes to stakeholders, it is important to note that earnings management can have an impact on a variety of stakeholders outside of management.
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Undertake an analysis of the UK housing market and evaluate the
changes in the housing market which have taken place over the last
five years (using both micro and macroeconomic theory).
The UK housing market has undergone several changes over the last five years, both at the macro and micro levels. A macroeconomic analysis of the housing market is based on trends in the national economy, while a microeconomic analysis of the housing market is based on the behavior of individual households.
The macroeconomy can have a significant impact on the housing market. During the global financial crisis in 2008, the UK housing market suffered a significant decline in prices, with average prices falling by almost 20%. This was attributed to several macroeconomic factors, such as the credit crunch, unemployment, and falling house prices. However, since the UK economy has been recovering over the past few years, the housing market has seen a steady growth in prices.
According to the Halifax, house prices increased by 7.5% in 2020 alone.Microeconomic theory, on the other hand, analyzes the behavior of individual households, and how they influence the housing market. For example, the increase in house prices over the past few years can be attributed to an increase in demand for houses. Several factors can influence the demand for housing, such as changes in the size of households, demographics, income levels, and mortgage rates.
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The following trial balance relates to Aesthetic Berhad, as at 31 December 2020:
DebitCredit
($’000)($’000)
Land and buildings - at cost (land RM0.8 million) 48,000
Plant and equipment - at cost 75,600
Accumulated depreciation at 1 January 2020
Buildings 16,000
Plant and Equipment 19,600
Additional Information:
1.It was decided by the directors of Aesthetic that the land and buildings were
revalued to market value, as the last revaluation exercise was done 2 years ago.
An independent valuer was appointed, and it was ascertained that on 1 January
2020 the value of the land was RM9,600,000 and the buildings at RM28,000,000.
The valuations were accepted by the directors. The remaining life of the buildings
at that date was 10 years. Aesthetic does not make a transfer to retained
earnings for excess depreciation. The plant and equipment are depreciated at
20% per annum based on the reducing balance method. The depreciation also is
to be time apportioned. It is the practice of Aesthetic to charge depreciation to the
cost of sales. However, no depreciation has yet been charged on any non-current
asset for the year ended 31 December 2020.
2.A plant, costing RM480,000 and accumulated depreciation of RM238,000 as at 1
January 2020 was partly damaged when it was accidentally hit by a factory forklift
on 1 July 2020. It was not deemed possible to repair the plant due to the
difficulties in obtaining the replacement parts. The plant continues to operate
although its productive capacity is significantly reduced. Due to the damage, it
was estimated that the plant’s remaining life will only be for a further two years.
The plant is estimated to have a current disposal value of RM15,000. The plant is
currently depreciated at 20% on cost. In two years’, time as the useful life of the
plant ends, its disposal value will thus be correspondingly nil. An assessment of
the productive capacity of the plant indicates that the present value of the plant in
use is RM163,000. Aesthetic was offered to trade in the damaged plant at a value
of RM135,000 against a replacement machine which costs RM750,000. No
disposal costs are to be incurred for the replaced plant. The trade-in value is only
applicable if the plant is replaced. Aesthetic is currently contemplating about
replacing the plant as it is concerned with the long-term demand for its products.
However, no further action is being initiated to furtherance the contemplation.
The revalued amount for the land is RM9.6 million, and for the buildings is RM28 million. Accumulated depreciation for buildings is RM16,000, and for plant and equipment is RM19,600. A plant worth RM480,000 with accumulated depreciation of RM238,000 was damaged and estimated to have a remaining life of two years.
Its current disposal value is RM15,000, and the present value in use is RM163,000. Aesthetic was offered a trade-in value of RM135,000 for a replacement machine costing RM750,000.
Aesthetic Berhad revalued their land and buildings, with the land valued at RM9.6 million and the buildings at RM28 million. The accumulated depreciation for buildings is RM16,000, and for plant and equipment is RM19,600. A plant worth RM480,000 with accumulated depreciation of RM238,000 was damaged and has a remaining life of two years. Its current disposal value is RM15,000, and its present value in use is RM163,000. A trade-in value of RM135,000 is offered for a replacement machine costing RM750,000.
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