Depreciation is c. the wearing out of capital over time. It is an essential concept in accounting and finance that reflects the decline in the value of a tangible asset, such as machinery, buildings, or vehicles, as they are used over time. This decline in value occurs due to factors such as wear and tear, obsolescence, or age.
Depreciation helps businesses allocate the cost of an asset over its useful life, which is the period during which the asset is expected to generate revenue or contribute to the business's operations. By accounting for depreciation, businesses can more accurately assess their financial performance and make informed decisions about future investments.
It is important to note that depreciation is not the same as the decline of output over time (e), reduction of investment over time (d), or what happens when technology does not advance (b). These concepts are related to broader macroeconomic issues and differ from the specific process of allocating an asset's cost over its useful life.
In summary, depreciation is a critical concept that allows businesses to account for the wearing out of capital assets over time, ensuring an accurate representation of their financial health and enabling informed decision-making. Hence, C is the correct option.
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f. Calculate own price elasticity of demand for coffee when the price increases from £64 to £72 (hint: |e|=%∆Q/%∆P). Use the midpoint formula). Is it price elastic, inelastic, or unit elastic?
The answer to your question is that the own price elasticity of demand for coffee when the price increases from £64 to £72 can be calculated using the midpoint formula as follows:
|e| = ((Q2 - Q1) / ((Q1 + Q2) / 2)) / ((P2 - P1) / ((P1 + P2) / 2))
where Q1 is the initial quantity demanded, Q2 is the new quantity demanded, P1 is the initial price, and P2 is the new price.
To use the given numbers, let's assume that Q1 = 100 units, Q2 = 80 units, P1 = £64, and P2 = £72. Then, the calculation would be:
|e| = ((80 - 100) / ((100 + 80) / 2)) / ((£72 - £64) / ((£64 + £72) / 2))
|e| = (-20 / 90) / (8 / 68)
|e| = 0.25
Therefore, the own price elasticity of demand for coffee is 0.25. Since this value is less than 1, the demand for coffee is inelastic. This means that the percentage change in quantity demanded is less than the percentage change in price. In other words, even if the price of coffee increases by a certain percentage, the quantity demanded will decrease by a smaller percentage.
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A salesperson who is contacting possible buyers by mail or phone to assess their level of interest and financial capacity is in the ________ step of the selling process.
A salesperson who is contacting possible buyers by mail or phone to assess their level of interest and financial capacity is in the prospecting step of the selling process.
What is this step?This step involves identifying potential customers and gathering information about their needs and purchasing behaviors.
The goal of prospecting is to create a pool of qualified leads that have the potential to become customers. The salesperson must determine if the prospect is a good fit for the product or service being offered and if they have the financial means to make a purchase.
Once the prospecting step is complete, the salesperson can move on to the next step of the selling process, which is qualifying the lead.
Hence, the answer is prospecting step.
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The most common method that banks and retail credit card issuers use to compute finance charges is the average daily balance (ADB) method. You expect to actively use your card. Which variation of the ADB method will be least expensive for you?
The most common method that banks and retail credit card issuers use to compute finance charges is the average daily balance (ADB) method. If you expect to actively use your card, the variation of the ADB method that will be least expensive for you is the "Adjusted Balance Method."
Following steps :
Step 1: Determine your beginning balance for the billing cycle.
Step 2: Subtract any payments or credits made during the billing cycle.
Step 3: Calculate the remaining balance, which is the adjusted balance.
Step 4: Multiply the adjusted balance by the daily periodic rate (DPR).
Step 5: Multiply the result by the number of days in the billing cycle.
The Adjusted Balance Method does not take into account any new purchases or transactions made during the billing cycle.
As a result, this method is generally considered the least expensive variation of the ADB method for those who actively use their credit cards.
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Margaret is a close friend to Becky, a mother to Andrew, a Sister to Chad and an employer of Wal-Mart. All of these roles and the way she behaves in each is defined as a: A. Symbol B. Rule C. Script D. Repertoire
Margaret's roles and the way she behaves in each are defined as a Repertoire. Therefore, the correct option is D.
A repertoire refers to the range of roles, behaviors, and social positions an individual occupies and navigates in their social life. It is the range of roles and behaviors that is exhibited by people within a group, society, or community. In this case, Margaret's repertoire includes being a close friend to Becky, a mother to Andrew, a sister to Chad, and an employer of Wal-Mart. These different roles require her to engage in specific behaviors and interactions based on each social position.
Hence, the correct answer to the different roles and behavior exhibited by Margaret is option D: Repertoire.
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. What part would you be acting on if you gave one of your employees permission to set his or her own goals and develop a schedule to accomplish them
If you give one of your employees permission to set his or her own goals and develop a schedule to accomplish them, you would be acting on the part of a manager who is empowering their employees.
Empowerment is the process of giving employees the authority, responsibility, and resources to make decisions and take action to improve their performance and contribute to the success of the organization.By allowing an employee to set their own goals and develop a schedule to accomplish them, you are giving them the autonomy and authority to take ownership of their work and contribute their own ideas and perspectives to the organization.
Empowerment can also help to build trust and collaboration between managers and employees, as well as foster a culture of continuous improvement and innovation within the organization. As a manager, empowering your employees can ultimately lead to a more motivated and effective team, and contribute to the overall success of the organization.
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The book value per share is based off of ________ data, while the market value per share is based off of_________ data. Multiple Choice short term; long term future; historical historical; future long term; short term
The book value per share is based off of historical data, while the market value per share is based off of future data. The book value per share is calculated by dividing the total shareholder equity by the number of outstanding shares.
This value is based on historical financial statements and represents the value of the company's assets that would be left over for shareholders if all liabilities were paid off.
On the other hand, the market value per share is determined by the current market demand for the company's stock and is based on future expectations of the company's performance. This value can be influenced by factors such as market trends, industry competition, and company growth potential.
Overall, both book value per share and market value per share provide important insights into a company's financial health and prospects for future growth.
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Wayne Co. had a decrease in deferred tax liability of $25 million, a decrease in deferred tax assets of $15 million, and an increase in tax payable of $105 million. The company is subject to a tax rate of 25%. The total income tax expense for the year was:
The company is subject to a tax rate of 25%. The total income tax expense for Wayne Co. for the year is $2.5 million.
Based on the information provided, we can calculate the total income tax expense for Wayne Co. for the year. First, we need to determine the change in taxable income.
The decrease in deferred tax liability of $25 million and the decrease in deferred tax assets of $15 million both result in an increase in taxable income. This is because deferred tax liabilities and assets are recognized for tax purposes in a different period than for accounting purposes, resulting in a temporary difference that affects taxable income.
Therefore, the change in taxable income is:
$25 million (decrease in deferred tax liability) + $15 million (decrease in deferred tax assets) = $10 million increase in taxable income
Next, we need to calculate the income tax payable for the year. The increase in tax payable of $105 million represents the amount of tax that is owed to the government for the year.
To calculate the total income tax expense, we need to multiply the taxable income by the tax rate of 25%.
$10 million (change in taxable income) x 25% (tax rate) = $2.5 million
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Suppose pollution is initially unregulated. If the City Council imposes a tax of $91 per day on each ton of smoke emitted, then total emissions will fall to ______ tons of smoke per day.
The introduction of a pollution tax will generally lead to a decrease in the overall amount of pollution generated as businesses make changes to minimize their costs.
When pollution is initially unregulated, there is no financial incentive for businesses to limit their emissions. Introducing a tax, like the $91 per day proposed by the City Council, creates an economic disincentive to pollute, encouraging businesses to reduce their emissions in order to minimize their tax burden. The tax imposition will force businesses to consider the costs associated with their pollution and assess whether it is more cost-effective to invest in cleaner technologies, adopt more environmentally-friendly practices, or continue polluting and pay the tax. As a result of the $91 per day tax on each ton of smoke emitted, total emissions will fall to a lower level. The exact number of tons of smoke per day that emissions will decrease to depends on the responsiveness of businesses to the tax and the available alternatives for reducing emissions. Without specific information about the initial level of pollution, the number of businesses affected, or their responsiveness to the tax, it is not possible to determine the exact reduction in emissions.
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Bankruptcy should never be used as a strategy. can be an effective type of retrenchment strategy. should only be used for small, private firms. should only be used for large firms. should be used only when one is legally forced to do so.
Bankruptcy can be an effective retrenchment strategy for a struggling company, allowing it to restructure its operations, reduce costs, and eliminate unprofitable business segments.
It can also provide protection from creditors and legal action while the firm reorganizes. However, it should not be used as a strategic option in all situations, as it can have serious negative consequences such as job losses, reputational damage, and financial losses for shareholders.
Therefore, a firm should carefully evaluate the costs and benefits of bankruptcy and explore other options before deciding to file. It is important to note that bankruptcy is not limited to small or large firms and should not only be used when legally forced to do so.
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_____ is the strategy of setting a low price for a new product. The main purpose of setting a low price is to build market share quickly to encourage product trial by the target market and discourage competitors from entering the market.
Penetration pricing is the strategy of setting a low price for a new product. This approach is used by companies to quickly establish a foothold in a new market and gain market share.
By setting a low price, businesses can attract new customers who are more price-sensitive and willing to try new products. The main goal of penetration pricing is to encourage product trial by the target market, which can help create brand awareness and generate positive word-of-mouth advertising.
One of the benefits of penetration pricing is that it can help discourage competitors from entering the market. A low price can make it difficult for new entrants to compete and achieve profitability.
This is because the low price may not cover the cost of production and distribution, and it can be challenging for new companies to establish economies of scale and cost advantages.
However, there are also risks associated with penetration pricing. If the company cannot maintain the low price, customers may switch to other products or brands. Additionally, competitors may eventually match or undercut the low price, which can erode profitability.
Overall, penetration pricing can be an effective strategy for companies introducing new products to the market. It allows them to quickly gain market share and establish a competitive position. However, businesses should carefully consider the risks and benefits of this approach before implementing it.
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If a lot front is 150 feet, street paving costs are $20.00 per running foot, and the city will pay 30% of the paving costs, what will be the special assessment to the property owner?
Therefore, the special assessment to the property owner will be $2,100.00.
To calculate the special assessment to the property owner, we need to first determine the total cost of the street paving and then subtract the amount that the city will pay.
The lot front is 150 feet, so the total length of the street to be paved is also 150 feet.
The cost of street paving is $20.00 per running foot, so the total cost of paving the 150-foot street would be:
150 feet x $20.00/foot = $3,000.00
The city will pay 30% of the paving costs, so the amount the property owner will be assessed is:
$3,000.00 - (30% x $3,000.00) = $2,100.00
Therefore, the special assessment to the property owner will be $2,100.00.
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Four Seasons Hotels sell private residences in several of their properties and send direct mail to prospective residents asking them to request additional information on the telephone or through a website. In terms of direct marketing, this is known as Multiple Choice lead generation. telemarketing. personal selling. paid search. direct orders.
Lead generation is the correct answer. The direct marketing strategy used by Four Seasons Hotels to sell private residences in several of their properties by sending direct mail to prospective residents.
Asking them to request additional information on the telephone or through a website is an example of lead generation. Lead generation is a marketing process of identifying and cultivating potential customers for a business's products or services.
Direct marketing involves identifying potential customers, generating interest in a product or service, and soliciting a direct response from the consumer. Four Seasons Hotels' direct mail campaign aims to generate leads for their private residences by prompting interested consumers to request more information. This approach allows the company to gather valuable data on potential buyers and follow up with targeted marketing efforts.
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Cognitive dissonance tends to be experienced during ___________ stage of consumer purchase decision making process.
Cognitive dissonance tends to be experienced during the post-purchase evaluation stage of the consumer purchase decision-making process. This is when the consumer reflects on their purchase and may experience discomfort or uncertainty due to conflicting beliefs or attitudes about the product.
Cognitive dissonance is a psychological concept that refers to the feeling of discomfort or tension that occurs when a person holds two or more conflicting beliefs, attitudes, or values.
In the context of consumer behavior, cognitive dissonance tends to be experienced during the post-purchase evaluation stage of the consumer purchase decision-making process. This is the stage where the consumer evaluates the product or service they have purchased and compares it to their expectations and past experiences.Cognitive dissonance can occur if the consumer perceives a discrepancy between their expectations and the actual product or service they received. For example, if a consumer purchases a new smartphone and expects it to have a long battery life but finds that the battery drains quickly, they may experience cognitive dissonance. This is because their expectation of the product does not align with their actual experience, and they may feel uncertain or conflicted about their decision to purchase the product.During the post-purchase evaluation stage, consumers may also seek out information that confirms their decision to purchase the product or service, while ignoring or discounting information that contradicts their decision. This is known as confirmation bias and can exacerbate feelings of cognitive dissonance.Know more about the Cognitive dissonance
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Garrett has a deferred tax asset of $20,000. At the end of the year, Garrett has determined that it is more likely than not that $4,000 of the deferred tax asset will not be realized. The deferred tax asset should be reported in the balance sheet at
Garrett should adjust the carrying value of the deferred tax asset to $16,000 and report it as a reduction of income tax receivable or an increase in income tax expense on the balance sheet.
When a deferred tax asset is recorded on the balance sheet, it represents a future tax benefit that the company will receive. However, if it is deemed more likely than not that a portion of the deferred tax asset will not be realized, the company must adjust the carrying value of the asset.
In the scenario presented, Garrett has a deferred tax asset of $20,000, but it is more likely than not that $4,000 of this asset will not be realized. Therefore, Garrett must adjust the carrying value of the deferred tax asset to reflect this expectation. The revised carrying value of the deferred tax asset will be $16,000 ($20,000 - $4,000).
The adjusted amount of the deferred tax asset of $16,000 should be reported on the balance sheet as a reduction of income tax receivable or as an increase in income tax expense. This adjustment is necessary to ensure that the financial statements accurately reflect the expected future tax benefits and the impact on the company's financial position.
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Project L costs $35,000, its expected cash inflows are $10,000 per year for 8 years, and its WACC is 9%. What is the project's discounted payback
The discounted payback period (DPP) is the length of time it takes for a project to generate enough cash flows to recover the initial investment, discounted at the project's weighted average cost of capital (WACC). In this case, Project L costs $35,000 and has an expected cash inflow of $10,000 per year for 8 years. The WACC is 9%.
To calculate the DPP, we need to discount each year's cash inflow using the WACC. The formula is as follows:
Discounted cash inflow = Cash inflow / (1 + WACC)^n
Where n is the year of the cash inflow.
Year 1 cash inflow: $10,000 / (1 + 0.09)^1 = $9,174.31
Year 2 cash inflow: $10,000 / (1 + 0.09)^2 = $8,416.90
Year 3 cash inflow: $10,000 / (1 + 0.09)^3 = $7,709.49
Year 4 cash inflow: $10,000 / (1 + 0.09)^4 = $7,048.52
Year 5 cash inflow: $10,000 / (1 + 0.09)^5 = $6,430.23
Year 6 cash inflow: $10,000 / (1 + 0.09)^6 = $5,851.32
Year 7 cash inflow: $10,000 / (1 + 0.09)^7 = $5,308.07
Year 8 cash inflow: $10,000 / (1 + 0.09)^8 = $4,797.25
We then calculate the cumulative discounted cash inflow for each year:
Year 1: $9,174.31
Year 2: $17,591.21 ($9,174.31 + $8,416.90)
Year 3: $25,300.70 ($17,591.21 + $7,709.49)
Year 4: $32,349.22 ($25,300.70 + $7,048.52)
Year 5: $38,779.45 ($32,349.22 + $6,430.23)
Year 6: $44,630.77 ($38,779.45 + $5,851.32)
Year 7: $49,938.84 ($44,630.77 + $5,308.07)
Year 8: $54,736.09 ($49,938.84 + $4,797.25)
We can see that the cumulative discounted cash inflow surpasses the initial investment of $35,000 in year 7, so the discounted payback period is 7 years. This means that it will take 7 years to recover the initial investment, discounted at the project's WACC.
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The __________ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong. Group of answer choices ethical climate span of control distribution policy legal responsibility strategic objective
The term that best fits the blank in the question is "ethical climate". The ethical climate of an organization is the prevailing moral atmosphere within it, which reflects the shared values, beliefs, and norms of its members. This climate shapes the way decisions are evaluated and made, and influences the behaviors and actions of individuals within the organization.
In an ethical climate, decisions are evaluated based on principles of right and wrong, rather than just on the basis of expediency or self-interest. Leaders and employees are expected to act with integrity, honesty, and transparency, and to consider the impacts of their decisions on stakeholders. The ethical climate also promotes open communication, collaboration, and respect for diversity. A strong ethical climate can help an organization to build trust, enhance its reputation, and attract and retain employees and customers. It can also foster a sense of purpose and meaning among employees, and contribute to their overall job satisfaction and well-being. Therefore, it is important for leaders to create and maintain an ethical climate within their organizations, and to ensure that decisions are made in accordance with ethical principles and values.
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Assume that there is an initial increase in investment, leading to an increase in aggregate demand (AD). Additional increases in aggregate demand (AD) will
Additional increases in aggregate demand (AD) will lead to higher output levels and potentially inflationary pressures in the economy.
When investment increases, it leads to an increase in AD, which can cause businesses to produce more output to meet the higher demand.
However, if AD continues to increase beyond the economy's productive capacity, it can result in inflationary pressures such as rising prices, wages, and interest rates.
Therefore, policymakers must monitor AD levels to ensure that they are consistent with the economy's productive capacity to avoid inflationary pressures.
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Employees who must be paid both minimum wage and overtime as required by the Fair Labor Standards Act are referred to as _________ employees.
Employees who must be paid both minimum wage and overtime as required by the Fair Labor Standards Act (FLSA) are referred to as non-exempt employees.
Non-exempt employees are generally paid on an hourly basis and are eligible for overtime pay if they work more than 40 hours in a workweek. Under the FLSA, overtime pay is calculated at one and a half times the employee's regular rate of pay for any hours worked beyond the standard 40-hour workweek. Employers must adhere to the federal minimum wage regulations, as well as any applicable state or local minimum wage laws, when compensating non-exempt employees.In contrast, exempt employees are not subject to the minimum wage and overtime requirements of the FLSA. These employees typically hold professional, administrative, or executive positions and are paid a salary rather than an hourly wage. Exempt employees must meet specific salary and job duty requirements to be classified as exempt under the FLSA.
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Emmy Lucent, Inc. has an expected dividend next year of $5.60 per share, a growth rate of dividends of 10 percent, and a required return of 20 percent. The value of a share of Emmy Lucent, Inc.'s common stock is ________.
Answer:
Value of Stock = Dividend next year / (Required return - Growth rate)
Value of Stock = $5.60 / (0.20 - 0.10) = $56
Therefore, the value of a share of Emmy Lucent, Inc.'s common stock is $56.
The cost of equity capital in the form of new common stock will be higher than the cost of retained earnings because of Multiple Choice the existence of taxes. the existence of flotation costs. investors' unwillingness to purchase additional shares of common stock. the existence of financial leverage.
The correct answer is the existence of flotation costs. Flotation costs refer to the expenses incurred by a company when issuing new stocks or bonds in the market.
These costs include underwriting fees, legal fees, accounting fees, and other expenses that the company must pay to sell its securities. Since these costs reduce the net proceeds of the new stock issuance, the cost of equity capital for the company increases. In contrast, retained earnings are already available within the company, and no flotation costs are incurred to use them. Thus, the cost of equity capital through retained earnings is lower than that of issuing new common stock. Taxes and financial leverage also affect the cost of equity capital, but they are not the primary reasons for the cost difference between retained earnings and new common stock. Overall, companies need to consider the cost-benefit analysis of using either retained earnings or new common stock to finance their operations and growth, depending on their financial goals and market conditions.
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(c) Verify that the mix of sales units to be sold at the break-even point for each product line will generate a zero net income. Tiger Golf Accessories CVP Income Statament $ 소 $ 1 + e $ e Textbook and Media Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Pairs of Shoes $104 60 $44 Pairs of Gloves $29 10 Unit sales price Unit variable costs Unit contribution margin Sales mix Range- Finder $245 204 $41 $19 36 % 45 % 19 % Fixed costs are $659,690.
To verify that the mix of sales units to be sold at the break-even point for each product line will generate a zero net income, we need to calculate the break-even point for each product line. The break-even point is the level of sales at which the total costs equal total revenues, resulting in zero net income.
Using the given unit sales price, unit variable costs, and fixed costs, we can calculate the contribution margin per unit for each product line. The contribution margin is the amount of revenue that contributes towards covering the fixed costs and generating profit.
Once we have calculated the contribution margin per unit, we can use it to calculate the break-even point in units for each product line. The break-even point in units is the number of units that need to be sold to cover the fixed costs and generate zero net income.
By verifying that the mix of sales units to be sold at the break-even point for each product line will generate a zero net income, we can ensure that the company is not operating at a loss and is able to cover its costs. This analysis can also help the company make informed decisions about pricing, sales mix, and cost management to achieve profitability.
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Jatara, a human resource manager, wants to move her company towards blind hiring practices. Which suggestion might she make to the management team
Jatara can suggest removing identifying information such as names, addresses, and photos from resumes during the initial screening process to eliminate unconscious bias.
Blind hiring is a recruitment practice that focuses on eliminating biases that can arise from conscious or unconscious preferences in the hiring process.
By removing personal information such as names, addresses, and photos from resumes during the initial screening process, the hiring team can focus on the candidate's qualifications and skills rather than their personal background.
This approach can improve diversity and inclusion within the company, as it helps to reduce the impact of unconscious biases on the hiring process.
Jatara can also suggest using skills-based assessments and interviews to further minimize biases and ensure that the best candidates are selected based on their abilities and potential to contribute to the company's success.
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The risk that financial problems could spread among financial institutions and across financial markets, causing a collapse of the financial system, is known as:
The risk that financial problems could spread among financial institutions and across financial markets, causing a collapse of the financial system, is known as systemic risk.
Systemic risk arises due to the interconnectedness of financial institutions and the financial markets. When one institution or market experiences financial distress, it can trigger a chain reaction that spreads across the entire financial system. The failure of one institution can lead to a domino effect that can bring down other institutions and disrupt the functioning of the financial system as a whole. The impact of systemic risk can be severe, resulting in widespread economic disruption and financial losses. The 2008 financial crisis is a prime example of systemic risk, where the failure of a few large financial institutions led to a widespread financial meltdown that impacted economies across the globe. To mitigate systemic risk, regulators have implemented measures such as capital requirements, stress testing, and regulations on financial institutions. These measures aim to ensure that financial institutions have enough capital to absorb losses and are resilient enough to withstand shocks to the financial system.
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g Both net profit and general overhead come out of the gross profit. Therefore, the _________________ the general overhead costs, the _______________________ will be the net profit.
Both net profit and general overhead come out of the gross profit. Therefore, the lower the general overhead costs, the higher the net profit will be.
General overhead costs are indirect costs that cannot be directly attributed to a specific product or service, such as rent, utilities, administrative expenses, and salaries of support staff. These costs are deducted from the gross profit to arrive at the net profit. Reducing general overhead costs can have a significant impact on the net profit of a company. By reducing overhead expenses, a company can increase its profitability without having to increase its revenue. This is why businesses often try to find ways to reduce overhead costs by improving efficiency, outsourcing non-core activities, and using technology to streamline processes.
The relationship between general overhead costs and net profit is inverse, meaning that as general overhead costs decrease, net profit increases. This is because general overhead costs are expenses that are not directly tied to the production or sale of a specific product or service, but rather represent the overall costs of running the business. When general overhead costs are high, they can reduce the gross profit margin of a company, which is the difference between revenue and the direct costs of producing or delivering goods or services. If the gross profit margin is too low, it may not be enough to cover the general overhead costs, resulting in a negative net profit
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Baker Mfg Inc. wishes to compare its inventory turnover to those of industry leaders, who have a turnover of about 13 times per year and 8% of their assets invested in inventory.
Net Revenue = $27,500
Cost of Sales = $20,310
Inventory = $1,220
Total assets = $16, 870
a. What is Baker's inventory turnover?
b. What is Baker's percent of assets committed to inventory?
c. How does Baker's performance compare to the industry leaders?
Baker's inventory turnover is 16.64 times per year, where percent of assets committed to inventory is 7.23%
Baker's inventory turnover can be calculated as follows:
Inventory turnover = Cost of Sales / Average Inventory
where Average Inventory = (Beginning Inventory + Ending Inventory) / 2
Beginning Inventory is not given, so we assume that it is equal to the Ending Inventory. Therefore, the Average Inventory can be calculated as:
Average Inventory = ($1,220 + $1,220) / 2 = $1,220
Inventory turnover = $20,310 / $1,220 = 16.64 times per year
b. Baker's percent of assets committed to inventory can be calculated as follows:
Percent of assets committed to inventory = (Inventory / Total assets) x 100
Percent of assets committed to inventory = ($1,220 / $16,870) x 100 = 7.23%
c. Baker's inventory turnover of 16.64 times per year is higher than the industry leaders' turnover of 13 times per year, indicating that Baker is more efficient in managing its inventory. However, Baker's percent of assets committed to inventory of 7.23% is lower than the industry leaders' 8%, indicating that Baker has a lower investment in inventory relative to its total assets compared to the industry leaders. Overall, Baker's performance is mixed when compared to the industry leaders.
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Valuing assets at their fair value rather than at their cost is inconsistent with the Group of answer choices economic entity assumption. historical cost principle. periodicity assumption. full disclosure principle.
Valuing assets at their fair value rather than at their cost is inconsistent with the historical cost principle.
The historical cost principle requires that assets are recorded on the balance sheet at their original cost, which is the amount paid for them at the time of acquisition. This principle assumes that the cost of an asset is a reliable and objective measure of its value. On the other hand, fair value accounting requires that assets are reported at their current market value, which may be higher or lower than their original cost. This approach assumes that market value is a more relevant and reliable measure of an asset's value than its historical cost. The economic entity assumption, periodicity assumption, and full disclosure principle are not directly related to the choice between historical cost and fair value accounting. The economic entity assumption assumes that the business and its owners are separate entities, the periodicity assumption assumes that financial statements are prepared at regular intervals, and the full disclosure principle requires that companies provide all material information about their financial position and performance in their financial statements.
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Evelyn had to buy a lot of equipment to open her beauty salon. She bought most of it on credit. The amounts of money that she owes her creditors are called
The amounts of money that she owes her creditors are known as accounts payable.
Evelyn's situation of buying equipment for her beauty salon on credit means that she owes her creditors a certain amount of money. In accounting terms, accounts payable refers to the amount of money that a business owes to its creditors for goods or services that have been received but not yet paid for.
In Evelyn's case, her creditors may include the suppliers of her beauty equipment, the companies that she purchased her salon supplies from, and any other parties that she has made purchases from on credit. The amount of money that she owes these parties will be recorded as accounts payable on her balance sheet until she makes the necessary payments to clear her debts.
Accounts payable are an essential component of a business's financial management as they represent the outstanding debts that a business needs to pay off. Monitoring accounts payable is important to ensure that a business has sufficient cash flow to meet its financial obligations and avoid any negative consequences such as late fees, interest charges, or damage to the business's credit rating.
In conclusion, Evelyn's debts to her creditors for the equipment she purchased for her beauty salon are called accounts payable. These represent her outstanding debts that she needs to pay off to maintain a healthy financial position for her business.
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Maura wants to visit family for the holidays, but Ruth wants to take a vacation. They decide to spend three days with family and three days on vacation. This decision is which form of conflict management
The decision to spend three days with family and three days on vacation is an example of compromise as a form of conflict management. Compromise involves both parties making concessions in order to reach a mutually acceptable agreement.
In this situation, Maura and Ruth had different preferences for how to spend their time during the holidays. Rather than continuing to argue or avoid the issue, they were able to find a solution that allowed them both to have some of what they wanted. Maura gets to spend some time with family, while Ruth gets to go on vacation. Compromise can be an effective form of conflict management because it allows both parties to feel heard and valued, while also finding a way to move forward. It requires both parties to be willing to listen to each other's needs and desires, and to be open to finding a solution that is not necessarily their first choice. Overall, the decision to split their time between family and vacation demonstrates a successful use of compromise as a form of conflict management.
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Aggregate Supply ECO 221 1. For each of the following situations show the effects on Short-Run Aggregate Supply: a. A hot, dry summer results in a poor harvests throughout the Midwest. b. The government increases the subsidies paid to farmers affected by foreign tariffs. c. A sharp increase in the cost of oil is caused by unrest in the Middle East. d. Improved production techniques have increased labor and capital productivity.
Poor harvests and increased oil costs would likely decrease short-run aggregate supply, while government subsidies and improved production techniques would likely increase it.
a. A hot, dry summer resulting in a poor harvest throughout the Midwest would lead to a decrease in short-run aggregate supply. This is because the supply of agricultural products, such as corn and wheat, would decrease, which would result in a decrease in output and an increase in the cost of production.
b. The government increasing subsidies paid to farmers affected by foreign tariffs would have a positive effect on short-run aggregate supply. This is because the increase in subsidies would lead to an increase in production and output, resulting in a higher aggregate supply.
c. A sharp increase in the cost of oil caused by unrest in the Middle East would lead to a decrease in short-run aggregate supply. This is because the increase in oil prices would lead to an increase in production costs for many businesses, resulting in a decrease in output and a decrease in aggregate supply.
d. Improved production techniques that have increased labor and capital productivity would have a positive effect on short-run aggregate supply. This is because the increase in productivity would lead to an increase in output, resulting in a higher aggregate supply. Additionally, the increase in productivity would also lead to a decrease in production costs for businesses, which would further increase aggregate supply.
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As a regional manager, Maria's performance is evaluated on the difference between her region's sales revenues and the cost of making the goods and services sold. Maria is being evaluated using a(n) _______ budget approach.
As a regional manager, Maria's performance is evaluated on the difference between her region's sales revenues and the cost of making the goods and services sold. Maria is being evaluated using "profit" budget approach.
The sales revenues refers to the income which is the business generates from the product or service sales.
Basically, the revenues are four types sales, rent revenue, dividend revenue and interest revenue.
The profit budget approach refers to increase profits by controlling the revenue and expenses of the company.
This approach considers the difference between the revenues and the costs that is associated with producing and selling product or services.
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