Case :
"Dear Mr. President—Please Cancel our Project!": The Honolulu Elevated Rail Project

This case is a great current example of a very expensive project that was kicked off because of an assumed need—to relieve congestion in downtown Honolulu through an elevated urban rail system. Critics argue that in addition to having a ballooning cost, the actual planning was poorly conceived, leaving Honolulu with an intrusive and ugly rail system through the downtown area, ruining panoramic views, and impeding traffic. Additionally, advocates underestimated the power needs for the rail system, requiring the transport authority to renegotiate electricity fees for the system. Finally, the original costs that were assumed for the project were calculated during an economic downturn and with the economy booming again, the costs of the project have gone up dramatically. All of these elements points to a state Governor who is anxious to be rid of the project and hoping that President Trump will deny additional federal funding, in which case the project will likely be cancelled.

Required:
a. Why are public works projects like the Honolulu Rail project nearly impossible to stop once they have been approved, even if later cost estimates skyrocket?
b. Project Management researchers have charged that many large infrastructure projects, like this one, suffer from "delusion" and "deception" on the parts of their advocates. Explain how "delusion" might be a cause of ballooning budgets in this project. How does "deception" affect the final project budget overruns?

Answer:

a.The project has been approved and it has been proved necessary.

b. They often choose the cheapest budget and do not forecast any problems  in to make the project more viable.

Explanation:

a.There's an extensive process to approve a project like this, since it has so many filters before being approved, canceling it would be saying these filters failed. These filters exist to prove that these projects are necessary and if they're necessary they need to be done, no matter the cost.

b. THe people in charge of setting these projects going often choose the cheapest options to make the projects viable, when doing so the cost will eventually rise and, when the government has already approved it they will continue to spend money on the project.

Item7 Item 7 Boccardi Inc., has invested in new pasta manufacturing equipment at a cost of $48,000. The equipment has an estimated useful life of eight years. Estimated annual sales and operating expenses related to the pasta equipment follow: Annual sales $ 88,000 Labor costs (72,000 ) Depreciation of equipment (6,000 ) Operating income $ 10,000 Income taxes (4,000 ) Net income $ 6,000 The estimated accounting rate of return is:

A job was budgeted to require 3 hours of labor per unit at $11.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $269,500. What is the direct labor efficiency variance

BigHomes is a construction company that operates in Busiland. It specializes in
building large residential homes for wealthy families. BigHomes is concerned about pressure groups and tries to be as ethical as possible in all its operations. They think of becoming a multinational in the future.
a.)Identify and explain two ways in which BigHomes might operate ethically.

When you ask the controller to look into federal reimbursements to see if he can find the cause of the reduction, how might he respond? (Select all that apply) Federal reimbursements are not part of the revenue cycle, the problem lies in revenue. Since federal reimbursements are part of the revenue cycle, we might find the problem there. The problem lies in revenue so it’s possible that charges are not being generated. The problem lies in revenue so there could be a problem in claims.

example of business proposal​

Recycling is Primarily an example of a issue facing businessess.
a. human resource
b. natural resource
c. ethical
d. social

Year Nominal GDP Real GDP GDP Deflator (Dollars) (Base year 2016, dollars) 2016 2017 2018 From 2017 to 2018, nominal GDP , and real GDP. The inflation rate in 2018 was.
Why is real GDP a more accurate measure of an economy's production than nominal GDP?

Adjani is hearing more complaints from his employees about headaches and breathing difficulties. A consultant found that the air quality in his building was poor and recommended all of the following EXCEPT:________.
A. Install new carpeting.
B. Reduce the use of automatic air fresheners.
C. Clean air ducts regularly.
D. Use cleaning supplies that do not emit irritation fumes.
E. Check office equipment for airborne contaminants.

Hollyfield Corporation sold a piece of equipment on September 30, 2018 for $201,000 cash. The equipment had been purchased on January 1, 2012 for $450,000. It had an estimated useful life of 10 years and a $50,000 residual value. Hollyfield Corp. has been using the straight-line method of depreciation and has a year-end of December 31st. Compute the gain or loss on disposal.

On a recent shopping trip to a Target store, Kim went from aisle to aisle selecting the products he needed. Interestingly, the only person Kim encountered in the store was the employee at the checkout counter. The employee is an example of a(n):______.
a. Inside salesperson
b. Sales support staff
c. Order getter
d. Key account manager
e. Missionary salesperson

Regardless of his income and regardless of prices, Smedley always spends 25% of his income on housing, 10% on clothing, 30% on food, 15% on transportation, and 20% on recreation. This behavior is consistent with which of the following?
a. All goods are perfect substitutes.
b. Smedley's demands for commodities do not change when their prices change.
c. Smedley consumes all goods in fixed proportions.
d. Smedley has a Cobb-Douglas utility function.
e. More than one of the above.

On April 2, Rolex SA sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $24,000 of sales was received on April 8 and the remaining payment on $16,000 of sales was received on April 27. Assuming Rolex uses the net method of accounting for sales discounts, the entry recorded on April 27 would include a:_____.
a. Debit to cash for $15,840.
b. Debit to revenue for $40,000.
c. Credit to sales discounts forfeited for $160.
d. Debit to accounts receivable for $400.

Hiram is a debtor to Central Credit Union, a secured party. If Hiram fails to maintain insurance on the collateral, he has likely a. attached the security agreement. b. perfected the security agreement. c. terminated the security agreement. d. defaulted on the security agreement.

Margaret Moore started her own consulting firm, Carla Vista Consulting, on May 1, 2020. The following transactions occurred during the month of May.

May:
1 Trixie invested $7,600 cash in the business.
2 Paid $950 for office rent for the month.
3 Purchased $600 of supplies on account.
5 Paid $160 to advertise in the County News.
9 Received $4,500 cash for services performed.
12 Withdrew $1,200 cash for personal use.
15 Performed $5,600 of services on account.
17 Paid $2,000 for employee salaries.
20 Made a partial payment of $400 for the supplies purchased on account on May 3.
23 Received a cash payment of $3,600 for services performed on account on May 15.
26 Borrowed $5,500 from the bank on a note payable.
29 Purchased equipment for $4,000 on account.
30 Paid $350 for utilities.

Required:
Show the effects of the previous transactions on the accounting equation.

A preliminary survey of the purchasing function indicates that
Department managers initiate purchase requests that must be approved by the plant superintendent,
Purchase orders are typed by the purchasing department using prenumbered and controlled forms,
Buyers regularly update the official vendor listing as new sources of supply become known,
Rush orders can be placed with a vendor by telephone but must be followed by a written purchase order before delivery can be accepted, and
Vendor invoice payment requests must be accompanied by a purchase order and receiving report.
One possible fault of this system is that:________

Compare a market operating at a quantity lower than equilibrium (ie. a price floor) with the same market operating at the equilibrium quantity. Which of the following statements are true?

a. A price floor will increase the producer and total surplus.
b. It is unclear if the consumer surplus is greater or less at the market operating below equilibrium.
c. A market operating below equilibrium will transfer some producer surplus to consumers
d. A market operating below equilibrium will transfer some consumer surplus to producers.

The demand rate for raw material A is normally distributed with an average of 300 pints per day. The standard deviation of daily demand is 15 pints. If the lead time for this material is 4 days, what is the standard deviation of demand during the 4-day lead time

Actual fixed overhead is $33,300 (12,000 machine hours) and fixed overhead was estimated at $34,000 when the predetermined rate of $3.00 per machine hour was set. If 11,500 standard hours were allowed for actual production, applied fixed overhead is:____.
a. 33,300.b. 34,000.c. 34,500.d. not determinable without knowing the actual numbers of units produced.

Suppose that XTel currently is selling at $60 per share. You buy 1,000 shares using $48,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%.

Required:
What is the percentage increase in the net worth of your brokerage account if the price of XTel immediatelychanges to (a) S66: (b) $60; (c) S54?

Zoey Bella Company has a payroll of $6,200 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. Journalize the adjusting entry required on December 31, assuming the year ends on a Thursday.

Your boss wants to set safety stock levels correctly to ensure an 87.9% service level. She needs your answer right away. What should the safety stock level be given that you know: * Average replenishment cycle is 10 days * Standard deviation of daily demand is 12 units * Average daily demand is 100 units * Standard deviation of the replenishment cycle is 3 days Group of answer choices

4. Social responsibility is an area of business with issues that
A. are easy to resolve.
B. change constantly in response to society's demands.
C. stay constant due to consistent societal demands.
D. change occasionally in response to society's demands.

The Fish House is expected to pay annual dividends of $1.23 and $1.25 at the end of the next two years, respectively. After that, the company expects to pay a constant dividend of $1.35 a share. What is the value of this stock at a required return of 16.4 percent?a. $6.07b. $8.55c. $8.05d. $11.08e. $8.23

Rodger's Cabinet Manufacturers uses flexible budgets that are based on the following manufacturing data for the month of July:
Direct materials $8 per unit
Direct labor $5 per unit
Electric power (variable) $0.30 per unit
Electric power (fixed) $4,000 per month
Supervisor salaries $25,000 per month
Property taxes on factory $4,000 per month
Straight-line depreciation $2,900 per month
Prepare a flexible budget for Rodger's based on production of 10,000, 15,000, and 20,000 units.
Rodger's Cabinet Manufacturers Flexible Manufacturing Budget For the Month Ended July 31

Which of the following is an example of​ investment? A. the purchase of a new assembly line by Ford B. a person money adding money to his retirement fund C. a student increasing his human capital by attending college D. a person depositing $ 100 a week to her savings account

For those wishing to purchase a franchise, the Federal Trade Commission acts as a guardian ensuring that the business idea is sound and that the information in the Franchise Disclosure Document is accurate.

a. True
b. False

The Browns plan to fly to their vacation spot and then drive through the mountains. They arranged to rent a sedan for $37.45 per day with no charge for mileage. What will it cost the Browns to rent a car for 10 days if they spend $78 for gasoline and $16.75 for miscellaneous items

Your mayor just announced that the local unemployment rate dropped from 10.5% to 10.4% from the prior month. Evaluate the unemployment rate drop and discuss whether there is enough information to determine significance. Support your response with specific examples. In replies to peers, discuss whether you agree or disagree with their assessments and justify your response

Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.) Answer is not complete. OSCAR'S RED CARPET STORE Bank Reconciliation February 28, 2021 Bank's Cash Balance Company's Cash Balance Per bank statement $ 11,770 Per general ledger Deposits outstanding 1,500 Company error Checks outstanding 2,000 % $ 7,150 (650) Bank balance per reconciliation Company balance per reconciliation Oscar's Red Carpet Store maintains a checking account with Academy Bank. Oscar's sells carpet each day but makes bank deposits only once per week. The following provides information from the company's cash ledger for the month ending February 28, 2021. Deposits: Date 2/4 2/11 2/18 2/25 2/26-2/28 Amount $ 2,600 Checks: 2,200 3, 100 4,000 1,500 $ 13, 400 No. 321 322 323 324 325 326 327 Date 2/2 2/8 2/12 2/19 2/27 2/28 2/28 Amount $ 4,600 650 2,400 2,100 450 950 1,800 $ 12,950 Cash receipts: Balance on February 1 Receipts Disbursements Balance on February 28 $ 6,700 13,400 (12,950) $ 7,150 Information from February's bank statement and company records reveals the following additional information:
a. The ending cash balance recorded in the bank statement is $11,770.
b. Cash receipts of $1,500 from 2/26-2/28 are outstanding.
c. Checks 325 and 327 are outstanding.
d. The deposit on 2/11 includes a customer's check for $450 that did not clear the bank (NSF check).
e. Check 323 was written for $2,800 for advertising in February. The bank properly recorded the check for this amount.
f. An automatic withdrawal for Oscar's February rent was made on February 4 for $1,300.
g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $190.
h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,800 from Oscar. On February 24, Titanic paid $5,950 ($5,800 borrowed amount plus $150 interest) directly to Academy Bank in payment for January's borrowing.
i. Academy Bank charged service fees of $120 to Oscar's for the month.

Complete the following data taken from the condensed income statements for merchandising Companies X, Y, and Z. Enter net loss with a minus sign.

Company X Company Y Company Z
Net income/(net loss) $30 $________ $(20)
Sales ___________ 1,270 970
Gross profit 245 __________ 525
Operating expenses __________ 525 ___________
Cost of goods sold 330 790 ____________