a. "The choice of strategy for a multinational firm must depend on a comparison of the benefits of that strategy (in terms of value creation) with the costs of implementing it (as defined by organizational architecture necessary for implementation). On this basis, it may be logical for some firms to pursue a localization strategy, others a global or international strategy, and still others a transnational strategy." Is this statement correct? Why or why not?

Explanation:

This statement is correct because the benefits and costs of localization, global, international and transnational strategies for a multinational are different, so the choice of the best strategy must be aligned with the objectives and goals that a company intends to achieve in the market, in order to generate a cost / benefit exchange that will help the multinational to remain competitive in the world market.

It is necessary for the company to observe each different strategy from a cost and benefit perspective, in order to obtain a competitive advantage in a highly competitive market.

Therefore, the best strategy will be the one that will help the company to reduce costs and increase the local response capacity in the global market.

The local strategy, for example, can generate competitive advantage, but which will need to substantially reduce its cost structure to compete with well positioned competitors, which can generate a change that leads the company to adopt a transnational strategy.

The international strategy can only work in the short term, since in order to remain in the market in the long term, the multinational needs to adopt a global standardization and a transnational strategy in order to generate competitive advantage.

Rush Industries, Inc. builds parts for large automated heavy equipment. The Vice President for Marketing has determined that sales are dwindling for the firm's products because of aggressive pricing by competitors. Rush Industries sells the product for $775 whereas the competition's comparable part is selling in the $650 range. The VP for Marketing has determined that a price drop to $625 is necessary to regain market share and annual sales of 1,200 units. Data based on sales of 1,200 units is as follows:
Budgeted Amount Actual Amount Cost
Direct materials (sheet metal) 8,000 sq.ft. 10,000 sq.ft. $9.66 per sq.ft.
Direct labor 4,800 hrs. 5,000 hrs. $33.60 per hour
Machine setups 2,600 hrs. 2,800 hrs. $42.00 per hour
Mechanical assembly 3,200 hrs. 3,600 hrs. $34.00 per hour
Required:
1. The current cost per unit is ___________.

Porter Resources Company acquired a tract of land containing an extractable natural resource. Porter is required by its purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 2,000,000 tons, and that the land will have a value of $1,000,000 after restoration. Relevant cost information follows:
Land $7,500,000
Estimated restoration costs 1,500,000
If Porter maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material?

Wages of $8,000 are earned by workers but not paid as of December 31. Depreciation on the company’s equipment for the year is $10,480. The Office Supplies account had a $470 debit balance at the beginning of the year. During the year, $5,063 of office supplies are purchased. A physical count of supplies at December 31 shows $556 of supplies available.
A. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,600 of unexpired insurance benefits remain at December 31.
B. The company has earned (but not recorded) $650 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.
C. The company has a bank loan and has incurred (but not recorded) interest expense of $2,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.

Takei Company's payroll for the week ending January 15 amounted to $367,000 for salaries and wages. None of the employees has reached the earnings limits specified for federal or state employer payroll taxes. The following deductions were withheld from employees' salaries and wages:
Federal Income Tax $75,000
State Income Tax 13,500
FICA Taxes 28,075
Union Dues 4,100
United Fund Contributions 2,700
Federal unemployment tax (FUTA) rate is 6.2% less a credit equal to the rate paid for state unemployment taxes. The state unemployment tax (SUTA) rate is 5.4%.
Required:
a. Prepare the journal entry to record the weekly payroll ending January 15 and also the employer's payroll tax expense on the payroll.

Kiano, a telecommunications equipment manufacturer, manufactures PDAs (P), wireless handsets (H), and blackberrys (B). They have a limited supply of common parts---ethernet card (450 in inventory), antenna (250 in inventory), chipset (800 in inventory), battery/power supply (450 in inventory), LCD screen (600 in inventory)---that these products use. A PDA requites an ethernet card, 2 chipsets, a power supply, and 2 LCD screens. A wireless handset requires an ethernet card, an antenna, 2 chipsets, a power supply, and a LCD screen. A blackberry requires a chipset and a LCD screen. The profit on PDAs is $80, the profit on wireless handsets is $60, and the profit on blackberrys is $35. The following is a linear programming formulation of the problem.
Let
P = Number of PDAs produced
H = Number of wireless handsets produced
B = Number of blackberrys produced
We may write model for this problem as follows.
Maximize 80P + 60H + 35B
subject to:
(ethernet card constraint) P + H ? 450
(antenna constraint constraint) H ? 250
(chipset constraint) 2P + 2H + B ? 800
(power supply constraint) P + H ? 450
(LCD screen constraint) 2P + H + B ? 600
(non-negativity) P, H, B ? 0.
Implement the above model in Solver and make sure to choose Simplex as the solving method and to choose the option "Make Unconstrained Variables non-negative"---do not explicitly put in the non-negativity constraints in the model and using the sensitivity report only
answer the questions below:
a. Does the solution change if only 425 ethernet cards are available?
b. Is it profitable to produce Blackberrys? If not, by how much should the profit margin on Blackberrys be increased to make it profitable to produce Blackberrys?
c. Because of a change in production technology the profit margin on handsets has increased to $70. Should the production plan of Kiano change? What is their new profit?
d. 50 chipsets were found to be defective, making the number of available chipsets 750. What will the profit be in this situation?
e. Another supplier is willing to sell LCD screens to Kiano. However their prices for a LCD screen are $20 higher than what Kiano pays it's regular supplier. Should Kiano go ahead and purchase these electronic units? If yes, at most how many units should they purchase.
f. Kiano is considering introducing a new product (called the Revolutionary Communicator) that combines the wireless handset and PDA. This product uses an ethernet card, an antenna, 2 chipsets, 1 power supply, and 2 LCD screens, and is expected to make a profit of $100. Should Kiano produce the Revolutionary Communicator? Why or Why not?

There are some government programs that pay farmers not to plant wheat on part of their land.
This would help farmers:

A) by increasing total revenue but it hurts consumers.
B) by increasing prices for wheat by increasing total revenue and it also helps consumers by lowering the price of wheat.
C) since the government payment will reduce the costs of production and increase the supply of wheat.
D) since the government payment will increase income to farmers and it helps consumers too by lowering the price of wheat.

Training is a way for employers to provide To enable employees to protect themselves and other injuries

Clipper Company sells two types of nail clippers. One focuses on the economy oriented customer and the other aims to satisfy the high-end clientele. The economy clipper costs $5 and has a sales price of $9. The high-end model costs $9 and sales for $15. Fixed costs associated with this product line amount to $35,880. Economy clippers constitute 70 percent of the market with the remaining 30 percent being high-end clippers. Based on this information what is the total number of clippers that must be sold to earn a $12,420 profit

Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $800,000 of 10-year, 6% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.
May 1. Issued the bonds for cash at their face amount.
Nov. 1. Paid the interest on the bonds.
Dec. 31. Recorded accrued interest for two months.
Journalize the entries to record the above selected transactions for the current year. If an amount box does not require an entry, leave it blank.
May 1
Nov. 1
Dec. 31

Regulatory focus theory suggests that consumers will react differently depending on which broad set of motives is more salient. Name and describe the two prominent sets of motives and describe how consumers will react when each set of motives is more noticeable. Use a specific product or service to explain your answer.

Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $14.00 per unit. The unit cost for the business to make the part is $20.00, including fixed costs, and $12.00, not including fixed costs. If 38,493 units of the part are normally purchased during the year but could be manufactured using unused capacity, the amount of differential cost increase or decrease from making the part rather than purchasing it would be a

Top management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that management estimates closing Store 3 would cause sales at Store 1 to increase by $60,000, and sales at Store 2 to increase by $120,000. Closing Store 3 is not expected to cause any change in common fixed costs. Compute the increase or decrease that closing Store 3 should cause in: a. Total monthly sales for Drexel-Hall stores. b. The monthly responsibility margin of Stores 1 and 2. c. The company’s monthly income from operations. Williams, Jan. Financial & Managerial Accounting (p. 980). McGraw-Hill Higher Education. Kindle Edition.

A company purchased a 3-acre tract of land for a building site for $450,000. The company demolished the old building at a cost of $22,000, but was able to sell scrap from the building for $2,500. The cost of title transfer was $1,400 and attorney fees for reviewing the contract was $700. Property taxes paid were $8,000, of which $750 covered the period after the purchase date. The capitalized cost of the land is: Multiple Choice $345,350. $478,850. $480,350. $480,600.

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at December 31.
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Assume no other adjusting entries are made during the year.
a. Prepaid Insurance. The Prepaid Insurance account has a $4,700 debit balance to start the year. A re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end.
b. Prepaid Insurance. The Prepaid Insurance account has a $5,890 debit balance at the start of the year. A review of insurance policies and payments shows $1,040 of insurance has expired by year-end.
c. Prepaid Rent. On September 1 of the current year, the company prepaid $24,000 for 2 years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $24,000.

Compute the investment account (market value differs from book value) Assume that the fair values of the investee's net assets approximated the recorded book values of the investee's net assets, except the fair value of receivables and inventories is $30,000 higher than book value, the fair value of land is $5,000 lower than book value, the fair value of property and equipment is $20,000 higher than book value and the fair value of liabilities is $7,000 lower than book value. In addition, the transaction resulted in goodwill in the amount of $25,000. What is the balance in the preconsolidation "investment in investee" account on the investor company's books on January 1, 2013, immediately after the acquisition of the investee company voting common stock? Not enough information provided $247,000 $170,000 $25,000

Johnson Corporation unadjusted trial balance at year-end include the following accounts. Compute the uncollectible account expense, and make the appropriate journal entry, for the current year assuming the uncollectible account expense is determined as follows:
A. Without considering the balance in the Allowance for Doubtful Accounts, income statement approach, 1% of total sales.
B. Without considering the balance in the Allowance for Doubtful Accounts, income statement approach, 1.5% of credit sales.
C. Considering the balance in the Allowance for Doubtful Accounts, balance sheet approach. The estimate based on an aging of accounts receivable is that an allowance of $12,000 would be appropriate.

Nate is investing in a partnership with David. Nate contributes as part of his initial investment, Accounts Receivable of $60,000; an Allowance for Doubtful Accounts of $9,000; and $6,000 cash. The entry that the partnership makes to record Nate's initial contribution includes a______ a. debit to Allowance for Doubtful Accounts for $9,000 b. credit to Nate, Capital for $57,000 c. debit to Accounts Receivable for $51,000 d. credit to Nate, Capital for $66,000.

A number of business transactions carried out by Smalling Manufacturing Company are as follows.
a. Borrowed money from a bank.
b. Sold land for cash at a price equal to its cost.
c. Paid a liability.
d. Returned for credit some of the office equipment previously purchased on credit but not yet paid for. (Treat this the opposite of a transaction in which you purchased office equipment on credit.)
e. Sold land for cash at a price in excess of cost. (Hint: The difference between cost and sales price represents a gain that will be in the company’s income statement.)
f. Purchased a computer on credit.
g. The owner invested cash in the business.
h. Purchased office equipment for cash.
i. Collected an account receivable.
Required:
1. Indicate the effects of each of these transactions on the total amounts of the company's assets, liabilities, and owner's equity.

Rachael’s Restaurant, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant employs eight people; one is a manager paid a salary plus a bonus equal to 4 percent of sales. Other employees, two cooks, one dishwasher, and four servers, are paid salaries. Each manager is budgeted $3,000 per month for advertising costs.
Required: Classify each of the following costs incurred by Rachael's Restaurant as fixed, variable, or mixed:
a. Advertising costs relative to the number of customers for a particular restaurant.
b. Rental costs relative to the number of restaurants.
c. Cooks salaries at a particular location relative to the number of customers.
d. Cost of supplies (cups, plates, spoons, etc.) relative to the number of customers.
e. Manager's compensation relative to the number of customers.
f. Servers' salaries relative to the number of restaurants.

Sunland Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31.
Nov. 1 Loaned $63,600 cash to C. Bohr on a 12-month, 9% note.
Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $5,400, 90-day, 8% note.
16 Received a $14,400, 180-day, 6% note to settle an open account from A. Murdock.
31 Accrued interest revenue on all notes receivable.
Journalize the transactions for Sunland Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Use 360 days for calculation.)
Date Account Titles and Explanation Debit

Alt Corp. issues 5,000 shares of $10 par value common stock at $14 per share. When the transaction
is recorded, credits are made to:
a. Common Stock $50,000 and Paid-in Capital in Excess of Stated Value $20,000.
b. Common Stock $70,000.
c. Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.
d. Common Stock $50,000 and Retained Earnings $20,000.

On August​ 1, 2007 the Dell Computer​ Corporation's stock closed trading at $ 27.76 per share while Apple​ Corporation's shares closed at $ 133.64. Does this mean that because​ Apple's stock price is roughly four times that of​ Dell's, Apple is the more valuable​ company? Interpret the prices for these two firms using the information found​ here:
(Most recent 12 months) Dell 2007 Apple 2007
Net Income ($ millions) $3,572 $3,130
Shares outstanding (millions) 2300 869.16
Earnings per share ($) $1.55 $3.60
Price per share (8/1/07) $27.76 $133.64
Price-to-earnings ratio (PE ratio) 17.91 37.11
Book value of common equity ($ millions) $4,129 $9,984
Book value per share ($) $1.80 $11.49
Market-to-book ratio 15.42 11.63
It appears that Apple enjoys a (lower or higher) price per share when compared to its 2007 earnings but a (lower or higher) price when compared to the book value of the firm's equity. The (higher or lower) market-to-book ratio for Apple reflects that fact that Apple has used a great deal (less or more) equity and (more or less) debt to finance its operations.

Discuss the different roles played by the qualitative and quantitative approaches to managerial decision making. Why is it important for a manager or decision maker to have a good understanding of both of these approaches to decision making? Give an example of when the qualitative approach might be more appropriate and another example of when the quantitative approach might be more appropriate.

Sunland Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,940 kits was prepared for the year. Fixed operating expenses account for 78% of total operating expenses at this level of sales.
Sales $ 97,000
Cost of goods sold (all variable) 58,200
Gross margin 38,800
Operating expenses 33,950
Operating income $ 4,850
Assume that during the year Sunland Sports actually sold 2,037 volleyball kits during the year at a price of $47 per kit.
Required:
1. Calculate the sales price variance.

d) Following is forecast for economic situation and Rachel’s portfolio returns next year, calculate the
expected return, variance and standard deviation of the portfolio. (4 marks)
State of economy Probability Rate of returns
Mild Recession 0.35 - 5%
Growth 0.45 15%
Strong Growth 0.20 30%

Dermody Snow Removal's cost formula for its vehicle operating cost is $2,900 per month plus $320 per snow-day. For the month of December, the company planned for activity of 15 snow-days, but the actual level of activity was 13 snow-days. The actual vehicle operating cost for the month was $7,980. The spending variance for vehicle operating cost in December would be closest to:

a. $280 U
b. $280 F
c. $920 U
d. $920 F

What is supply-side fiscal polioy? Identify each policy action as being focused on the demand side, the supply side, or both. Drag each item on the left to its matching item on the right. Note that every item may not have a match, while some items may have more than one match.

1. research grants for a corporation developing new technologies

2. government-funded scholarships for college students

both demand side supply side 3. stimulus packages for firms that are "too big to fail"

4. increasing spending on "shovel-ready" projects

5. lowering income tax rates at all income levels

Shores Sports rents canoes and kayaks. Below is the adjusted trial balance at December 31.

Debit Credit
Cash 1,500
Accounts Receivable 2,000
Interest Receivable 100
Prepaid Insurance 1,600
Notes Receivable (Long-Term) 2,800
Equipment 15,000
Accumulated Depreciation 3,000
Accounts Payable 2,400
Accrued Expenses Payable 3,920
Income Taxes Payable 2,700
Unearned Rent Fees 500
Common Stock 7,700
Dividends 2,000
Rental Revenue 37,000
Service Revenue 1,300
Wages Expense 19,000
Depreciation Expense 1,800
Utilities Expense 320
Insurance Expense 700
Maintenance Expense 9,000
Income Tax Expense 2,700
58,520 58,520

The entry required to close the revenue and expense accounts at the end of the period includes a:

a) credit to Retained Earnings for $4,780.
b) credit to Retained Earnings for $38,300.
c) debit to Retained Earnings for $4,780.
d) debit to Retained Earnings for $38,300.

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation. Production: 6,240 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $36,960; labor $21,400; overhead $30,242. Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

Recording Journal Entries
Nathanson Corporation was organized on May 1. The following events occurred during the first month.
A. Received $68,000 cash from the five investors who organized Nathanson Corporation. Each investor received 101 shares of $10 par value common stock.
B. Ordered store fixtures costing $12,000.
C. Borrowed $20,000 cash and signed a note due in two years.
D. Purchased $17,000 of equipment, paying $1,900 in cash and signing a six-month note for the balance.
E. Lent $1,400 to an employee who signed a note to repay the loan in three months.
F. Received and paid for the store fixtures ordered in (b).
Prepare journal entries for each transaction.