Which of the following is not a component of lead time? O A. Supplier transit B. Production rework C. Order processing D. Transport to customer

If the maker of Monster energy drinks decided to promote its product at women's figure skating events, it would be failing to (option) b. create a consistent brand image.

Creating a consistent brand image is essential for companies to establish a strong and recognizable identity in the market. It involves aligning all aspects of the brand, including messaging, marketing strategies, and target audience, to maintain a cohesive and unified image. By promoting its product at women's figure skating events, the maker of Monster energy drinks would deviate from its current brand positioning, which targets young males who love extreme action and motor sports.

The primary target market for Monster energy drinks is young males who are associated with extreme sports and an active lifestyle. By promoting the product at women's figure skating events, the company would be targeting a different demographic, namely female figure skaters and their audience. This would create inconsistency in the brand's messaging and image, potentially confusing consumers and diluting the brand's identity.

Maintaining a consistent brand image is crucial for companies to build brand loyalty, establish a strong market presence, and effectively communicate their value proposition to the target audience. By consistently catering to the preferences and interests of their core target market, companies can develop a distinct and recognizable brand personality. Deviating from this positioning by promoting the product in unrelated events can undermine the brand's identity and weaken its connection with the intended audience.

In summary, if the maker of Monster energy drinks decided to promote its product at women's figure skating events, it would be failing to create a consistent brand image. Consistency in brand positioning and messaging is vital for establishing a strong and recognizable brand identity in the market.

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The pecking order hypothesis states that managers will have a preference to fund investment by using retained earnings, debt, and equity, in that order.

Retained earnings are profits that a company has earned and saved over time. These funds are available for reinvestment in the business, and managers often prefer to use them first because they do not require any additional financing. Debt financing, on the other hand, involves borrowing money from lenders who charge interest on the loan. Managers may choose this option if they do not have enough retained earnings to finance their investments. Finally, equity financing involves issuing new shares of stock to investors, which dilutes the ownership of existing shareholders.
In summary, the pecking order hypothesis states that managers will prefer to fund their investments using retained earnings, followed by debt financing, and will issue equity as a last resort. This order reflects the preference for maintaining control over the company and minimizing the dilution of ownership.

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The pecking order hypothesis states that managers will have a preference to fund investment by using retained earnings, debt, and equity, in that order.

According to the pecking order hypothesis, managers prefer to fund investment projects using internal funds such as retained earnings first, because it avoids the costs of issuing new securities. If internal funds are insufficient, managers will then turn to debt financing, as it is generally less expensive than equity financing. Finally, if neither retained earnings nor debt financing is sufficient, managers will issue new equity as a last resort, because equity financing is generally the most expensive source of funding due to the costs associated with issuing new shares and diluting the ownership of existing shareholders. This hypothesis helps explain why firms tend to have relatively stable debt-to-equity ratios over time, as their financing choices are primarily driven by their investment opportunities and internal funds.

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If we have a downward-sloping IS curve but a horizontal LM curve, then fiscal policy is not effective in reducing unemployment . So the right option is  (b).

This is because a horizontal LM curve means that changes in the money supply do not affect interest rates, and therefore do not stimulate investment or aggregate demand. Monetary policy is also not very effective in this situation because the downward-sloping IS curve suggests that changes in interest rates have little impact on investment or consumption.

Therefore, neither fiscal nor monetary policy is very effective at reducing unemployment. However, monetary policy can still aid fiscal policy in reducing unemployment (option e), by providing liquidity to the banking system and ensuring that interest rates remain low to support government spending.

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If we have a downward-sloping IS curve but a horizontal LM curve, it implies that changes in the money supply do not affect the interest rate and the economy is already at full employment. In such a scenario, neither fiscal nor monetary policy is effective in reducing unemployment.

Fiscal policy involves government spending and taxation, while monetary policy involves changes in the money supply and interest rates. However, since the LM curve is horizontal, changes in the money supply do not affect interest rates, and hence monetary policy cannot be used to reduce unemployment.

However, monetary policy can aid fiscal policy in reducing unemployment if the LM curve is not horizontal. In such a scenario, changes in the money supply would affect interest rates, and monetary policy can be used to stimulate the economy.

Fiscal policy can also be used to reduce unemployment, but it may have a crowding-out effect if interest rates increase as a result of increased government borrowing. Therefore, coordination between fiscal and monetary policy is necessary to effectively reduce unemployment.

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It is true that the majority of DVD titles shipped by Netflix are from back-catalog titles rather than new releases.

Netflix's DVD rental service, known as DVD.com, has been in operation since 1998 and continues to serve a portion of its customer base who prefer physical media over streaming. While the company has shifted its primary focus to streaming content, it still maintains the DVD rental service as an option for subscribers.

The reason behind the prevalence of back-catalog titles in DVD shipments is mainly due to the nature of the service. The availability of new releases on DVD is generally limited during the initial release period, as studios often prioritize digital distribution and streaming deals. This means that new DVD releases may have delayed availability or limited stock.To meet the demand for a wide selection of titles, Netflix heavily relies on its extensive library of back-catalog titles for DVD shipments. These titles encompass a range of movies and TV shows from various genres and time periods, providing subscribers with a diverse selection to choose from.

It's important to note that the DVD rental market and Netflix's strategies may evolve over time, and the balance between back-catalog titles and new releases could change. For the most accurate and up-to-date information, it is recommended to refer to official statements from Netflix or industry reports.

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The cost of equity is the return required by investors to hold the stock. We can use the dividend discount model to calculate the cost of equity. Dividend per share is $2.35 and the growth rate is 5%. Therefore, the expected dividend next year will be $2.47 ($2.35 x 1.05). The dividend discount model equation is (dividend next year/stock price) + growth rate. Substituting the values, we get ($2.47/$44) + 0.05 = 0.108 or 10.8%. Therefore, the company's cost of equity is 10.8%.To calculate the cost of equity for Pierce Co., which issued a dividend of $2.35 per share and has a constant 5 percent dividend growth rate, we can use the Dividend Discount Model (DDM). The formula for DDM is:

Cost of Equity = (Dividend per Share × (1 + Growth Rate)) / Stock Price
In this case:
Dividend per Share = $2.35
Growth Rate = 5% or 0.05
Stock Price = $44

Using the formula:
Cost of Equity = ($2.35 × (1 + 0.05)) / $44
Cost of Equity = $2.4675 / $44
Cost of Equity ≈ 0.0561 or 5.61%
So, the company's cost of equity is approximately 5.61%.

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Portfolio risk diversification in investments in securities (stocks and bonds) refers to the practice of spreading out investments across a variety of different assets, industries, and geographic regions to minimize the overall risk of the portfolio.

This is done to ensure that if one particular investment performs poorly, the negative impact on the overall portfolio is minimized.

Portfolio risk diversification is important because it helps to reduce the potential downside risk of a portfolio. When an investor puts all their money into one or just a few investments, they are taking on a higher degree of risk. If those investments do not perform as expected, the entire portfolio could be negatively impacted.

However, by diversifying the portfolio, investors can reduce their exposure to any one particular asset class or sector. For example, if an investor holds stocks in multiple companies across different industries, they are less likely to be impacted by a downturn in one particular sector. Similarly, if an investor holds bonds from various issuers with different credit ratings, they can minimize the risk of default.

In summary, portfolio risk diversification is an essential strategy for investors looking to mitigate risk in their investments in securities. By spreading out their investments across different assets, industries, and geographic regions, investors can minimize the potential downside risk of their portfolio and increase the likelihood of achieving long-term investment goals.

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Partnerships are businesses owned by three or more people.The statement is False.

False. Partnerships are not necessarily businesses owned by three or more people. They can be owned by two or more individuals or entities. The statement that "partnerships are businesses owned by three or more people" is incorrect.

Partnerships are a type of business structure where two or more individuals come together to carry out a business activity and share in the profits and losses of the business.

The number of partners can vary and there is no minimum requirement for the number of partners in a partnership. It is possible to have a partnership with only two partners or even more than three partners.

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This is because they focus on their own specialization and production processes, and aim to maximize their profits through their pricing strategies.

They may also use capital-intensive means of production and division of labor to achieve their production goals, but the primary factor influencing their pricing decisions is their independence and focus on their own profits. Option A - "use capital-intensive means of production" - is not directly related to the question of setting prices independently, but rather relates to the production methods used by manufacturers. Some manufacturers may indeed use capital-intensive production methods, but others may use labor-intensive methods, or a combination of both.

Option B - "use division of labor and specialization in production" - is also not directly related to the question of price setting, but rather relates to how manufacturers organize their production processes. Many manufacturers do indeed use division of labor and specialization in production to improve efficiency and reduce costs.

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Manufacturers of printers and computers setting prices independently means that they do not consider the negative effect that the high prices have on each other's profit. Option D is the correct answer.

When manufacturers set prices independently, it implies that they are not engaging in price coordination or collusion. Each manufacturer determines its own pricing strategy without considering the impact it may have on the demand for the products or the pricing decisions of their competitors. This lack of coordination allows manufacturers to potentially set higher prices without concern for the competitive market dynamics or the negative effect it may have on their rivals' profitability.

Option D is the correct answer.

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People who gain an understanding for the deep-level diversity among their coworkers do so after multiple and diverse interactions, often leading to an increased degree of empathy.

This is because as individuals interact more frequently and in different settings with people from diverse backgrounds, they are exposed to varying perspectives, values, beliefs, and experiences. Through this exposure, individuals are better able to understand and appreciate the differences and similarities that exist among their coworkers.

As a result, individuals can develop empathy, which is a critical component in understanding and respecting others' unique characteristics, needs, and viewpoints. This increased degree of empathy can lead to improved communication, collaboration, and teamwork among coworkers, ultimately benefiting the organization as a whole. Hence, deep-level diversity is developed among coworkers following diverse interactions which results in empathy.

Note: The question is incomplete. The complete question probably is: people who gain an understanding for the deep-level diversity among their coworkers do so after _______ interactions, often leading to an increased degree of _______.

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True. Negotiation is often seen as a win-win alternative dispute resolution strategy, where both parties aim to achieve a mutually satisfactory outcome.

Negotiation is when two or more parties engage in discussions to reach an agreement or resolve a dispute. It is commonly perceived as a win-win strategy because the goal is to find a solution that satisfies the interests and needs of all parties involved.

Each party presents its positions, interests, and desired outcomes in a negotiation. Through open communication and dialogue, they explore potential trade-offs and options to find common ground. The emphasis is on collaboration and finding mutually beneficial solutions rather than pursuing a win-lose outcome.

Negotiation allows parties to express their concerns, identify shared interests, and work towards a compromise that addresses the needs of both sides. It often involves a give-and-take approach, where concessions may be made by each party to achieve a balanced and satisfactory resolution.

While negotiation does not guarantee that all parties will get everything they want, it aims to create an acceptable and beneficial outcome for all involved. It encourages cooperation, understanding, and the building of relationships for future interactions.

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If potential output is $16 trillion and actual output is $18 trillion, then the actual unemployment rate is likely to be lower than the natural rate of unemployment.

Potential output represents the level of output an economy can sustain in the long run without causing inflationary pressures. It is often associated with full employment, where all available resources are efficiently utilized. When actual output exceeds potential output, it indicates that the economy is operating above its sustainable capacity.

In this scenario, where actual output is $18 trillion and potential output is $16 trillion, it suggests that the economy is producing more goods and services than it can sustain in the long run. This situation typically occurs during periods of economic expansion and can lead to inflationary pressures.

With actual output exceeding potential output, it is likely that the actual unemployment rate is lower than the natural rate of unemployment. The natural rate of unemployment represents the level of unemployment consistent with a stable inflation rate. When the economy operates above its potential, there is usually a higher demand for labor, leading to lower levels of unemployment. However, it's important to note that this analysis considers output and unemployment in isolation, and other factors such as inflation and labor force participation rates can also influence the overall employment situation.

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According to the Planet Money podcast, the United States has been targeting an inflation rate of 0-2% since 1996 so that the correct answer is option (a).

The Federal Reserve, which is responsible for monetary policy in the United States, set this target inflation rate to promote price stability and maintain a healthy economy. A low and stable inflation rate is beneficial as it helps consumers and businesses make better decisions regarding spending and investments. If inflation were to rise significantly, it could lead to decreased purchasing power and reduced economic growth.

Conversely, if inflation were to fall into negative territory (deflation), it could cause consumers and businesses to delay spending and investments, which could further hinder economic growth. By targeting a specific inflation rate, the Federal Reserve aims to strike a balance that fosters economic growth without causing undue harm to consumers and businesses.

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Mutual funds must send financial statements to shareholders at least quarterly. Thus, option D is the correct option.

Mutual funds have up to 60 days after the quarter to declare their holdings, which they are required to do on a quarterly basis. Annual and semi-annual reports must be given to shareholders by mutual funds, ETFs, and registered closed-end funds.

Some variable contracts must typically also give contract holders access to the underlying mutual funds' yearly and semi-annual reports. The annual report covers the complete fiscal year of the fund, while the semiannual report only covers the first six months.

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Ricardo, an accountant, is most likely liable if the audit would have revealed the misconduct.

As an accountant contracted to conduct an audit for Sensei Sushi Restaurants, Ricardo has a professional duty to exercise reasonable care and skill in performing the audit. If Ricardo fails to detect certain misconduct during the audit that would have been discovered through proper procedures, he is likely to be held liable for negligence.

In option (a), Ricardo would be liable if the audit would have revealed the misconduct because it suggests that Ricardo failed to fulfill his duty to detect and report such misconduct. The primary purpose of an audit is to provide assurance regarding the accuracy and reliability of financial statements and to detect material misstatements or fraud. If Ricardo's audit procedures were not conducted with the necessary care and diligence, resulting in the failure to detect misconduct, he may be held responsible for any resulting damages.

Options (b), (c), and (d) are not as likely to absolve Ricardo from liability. While issuing a specifically qualified opinion or generally disclaiming liability may provide some level of protection, they do not necessarily relieve Ricardo from his responsibility to perform the audit with due care. Additionally, if the misconduct was due to Sensei Sushi's negligence, it does not automatically exempt Ricardo from potential liability if he failed to exercise reasonable care in conducting the audit

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If all the world's economies eliminated tariffs, quotas, and other trade restrictions, the consequences would be significant.

One of the biggest benefits would be increased global trade, which would lead to more efficient allocation of resources and greater economic growth. The economies that are most export-oriented would benefit the most, including countries like China and Germany. However, countries that rely on protectionism to support their domestic industries, such as the United States, might experience job losses and a decline in certain industries. Additionally, smaller economies that struggle to compete with larger ones may also face challenges. Ultimately, the long-term effects would depend on how countries adapt and adjust to the changes in the global economy.

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The tax on the mineral, which is added to freshwater bodies to prevent the spread of certain parasites, is aimed at raising revenue for the government. However, it is important to consider its constitutionality. The potential negative impact of the tax on the freshwater commercial fishing industry may raise concerns under the Commerce Clause of the U.S. Constitution, which grants Congress the power to regulate interstate commerce.

If the tax significantly interferes with the interstate commercial fishing industry by reducing the availability of the mineral and, consequently, increasing the risk of parasite infections, it could be argued that the tax is unconstitutional. However, if the tax is deemed necessary and has a reasonable relation to a legitimate government interest, such as raising revenue or protecting public health, it may be considered constitutional. The final determination of the tax's constitutionality would depend on a thorough legal analysis by the federal court in the context of the lawsuit filed by the mineral producers.

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This statement is partially true. While it is possible for a business owner who cannot easily exit an industry to resort to predatory pricing, it is not always the case.

Predatory pricing refers to the practice of selling goods or services at a very low price in order to drive competitors out of business. This strategy is often used by larger, established companies with deep pockets and the ability to sustain losses over a longer period of time. Small businesses, on the other hand, may not have the financial resources to engage in predatory pricing.

Furthermore, it is important to note that predatory pricing is illegal and can result in fines and legal repercussions. Instead of resorting to this tactic, small business owners may choose to diversify their offerings, target a niche market, or find ways to differentiate themselves from competitors.

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The nominal exchange rate between the SGD and USD that would reflect PPP cannot be determined without additional information, such as the cost of a basket of goods and services in each country. However, we can infer that the SGD is currently overvalued relative to the USD based on the cost of the e-book reader.

Purchasing-power parity holds when the exchange rate between two currencies is such that the same basket of goods and services would cost the same amount in each country. In other words, PPP suggests that the exchange rate should reflect the relative purchasing power of the two currencies. To apply PPP to our example, we need to compare the cost of an e-book reader in Singapore and the US.

We know that the reader costs 200 SGD in Singapore and 100 USD in the US. To make a fair comparison, we need to convert these prices to a common currency. Let's convert the SGD price to USD using the current exchange rate of 1 SGD = 0.73 USD (as of September 2021).
200 SGD * 0.73 USD/SGD = 146 USD

Now we can see that the e-book reader costs more in Singapore than in the US (146 USD vs. 100 USD). This suggests that the SGD is overvalued relative to the USD, meaning that it has a higher purchasing power than the USD. To bring the exchange rate in line with PPP, the SGD would need to depreciate against the USD until the cost of the e-book reader is the same in both countries.

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A. To achieve corporate responsibility and/or product stewardship goals and objectives.

Implementing a sustainable supply chain strategy is crucial for firms to align with corporate responsibility and product stewardship goals. By prioritizing sustainability, companies can demonstrate their commitment to ethical business practices and environmental conservation. This approach not only helps in meeting social and environmental objectives but also enhances the overall reputation and brand image of the organization. Sustainable supply chain strategies ensure that the firm's operations are carried out in an environmentally responsible manner, promoting resource efficiency, waste reduction, and ethical sourcing practices. By integrating sustainability into their supply chains, firms can effectively contribute to a greener future and foster long-term success.

In conclusion, a sustainable supply chain strategy is crucial for firms aiming to achieve their corporate responsibility and product stewardship goals. By prioritizing sustainability, companies can enhance their brand image, meet customer expectations, and contribute to a greener future. Embracing sustainable supply chain practices is not only an ethical choice but also a strategic decision that fosters long-term success.

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A union may negotiate limits on workload in order to increase the demand for labor and raise workers' salaries. This practice is known as restrictive labor practices.

Restrictive labor practices involve actions taken by unions to protect their members' interests by limiting the supply of labor or increasing the demand for it. This can include negotiating limits on work hours, workload, or the number of employees assigned to a task.

These practices can help ensure job security for union members, maintain a healthy work-life balance, and protect workers from being overworked or exploited. By controlling the supply of labor and promoting favorable working conditions, unions can create a higher demand for workers, leading to increased wages and better benefits.

However, critics argue that restrictive labor practices can reduce overall productivity, limit flexibility for employers, and create barriers to entry for non-union workers. While these practices can provide important protections for workers, it is essential to strike a balance between safeguarding employees' rights and fostering economic growth and efficiency.

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The purchase of the 470 shares of previously issued common stock for $27 per share, the investor has acquired an asset that is recorded on their balance sheet and has increased their ownership interest in the company.

To record the purchase of 470 shares of previously issued common stock for a price of $27 per share, the accounting entry would be as follows: Debit: Investment in Common Stock - $12,690 (470 shares x $27 per share) Credit: Cash - $12,690 This entry reflects the purchase of the common stock and the payment made for it. The Investment in Common Stock account is a balance sheet account that represents the ownership interest in the company. The cost of the shares is recorded as an asset on the balance sheet until such time as they are sold or disposed of. It's worth noting that the purchase of previously issued common stock does not affect the issuing company's financial statements. The transaction only affects the investor's financial statements. In this case, the investor is increasing their ownership in the company by purchasing additional shares of common stock. In conclusion, by recording the purchase of the 470 shares of previously issued common stock for $27 per share, the investor has acquired an asset that is recorded on their balance sheet and has increased their ownership interest in the company.

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Assuming that the transaction is being recorded in a journal entry, the entry to record the purchase of 470 shares of previously issued common stock for a price of $27 per share would be:

Debit: Treasury Stock $12,690 (470 shares x $27 per share)

Credit: Cash $12,690

This journal entry reflects the purchase of the shares of common stock and the outflow of cash to complete the transaction. The account credited is Cash, reflecting the decrease in cash as a result of the purchase. The account debited is Treasury Stock, which represents shares of the company's stock that have been previously issued and subsequently repurchased by the company.

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The statement that retained earnings that are restricted are unavailable for dividends is True. so correct option is true.

Retained earnings that are restricted are typically set aside for a specific purpose, such as for future investments or debt repayment, and cannot be used for general business operations or distribution as dividends. Restrictions on retained earnings may be imposed by lenders, shareholders, or by laws and regulations.

The amount of retained earnings that are restricted can be found on a company's balance sheet, under the equity section. Retained earnings that are restricted can be used for specific purposes, such as investing in new projects or paying off debt, but they cannot be distributed as dividends to shareholders.

This restriction may be imposed by legal or contractual obligations, or by the company's management as part of their financial strategy. Retained earnings that are not restricted are available for dividends, but the decision to pay dividends is at the discretion of the company's board of directors and may depend on various factors, including the company's financial performance, cash flow, and future growth prospects.

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The statement that many hospitals and healthcare organizations carefully plan operations is true.

Hospitals and healthcare organizations are complex systems that require careful planning to ensure smooth operations and effective delivery of healthcare services. Planning is crucial for various aspects of their operations, including resource allocation, staffing, patient flow management, inventory management, and financial budgeting.

These organizations often engage in strategic planning to set               long-term goals and objectives, as well as operational planning to determine how those goals will be achieved on a day-to-day basis. Planning helps hospitals and healthcare organizations optimize resource utilization, improve efficiency, and enhance patient care. It allows them to anticipate and address challenges, adapt to changes in patient demand, and align their operations with regulatory requirements and quality standards.

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We specify the alternative hypothesis as Ha: ρ < 0 when we want to test if there is a negative correlation between two variables.

The alternative hypothesis, Ha: ρ < 0, is used in hypothesis testing when we want to determine if there is evidence of a negative correlation between two variables. Correlation measures the strength and direction of the cost relationship between two variables, ranging from -1 to 1. A negative correlation indicates that as one variable increases, the other variable tends to decrease.

By specifying Ha: ρ < 0, we are stating that we are interested in testing if the correlation coefficient (ρ) is significantly less than zero, indicating a negative correlation. This means that we expect the variables to move in opposite directions. For example, as one variable increases, the other variable is expected to decrease.

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To minimize cost, each batch of sub-assemblies should be 11,666.75 units.

The optimal batch size for the sub-assemblies in order to minimize cost is 11,666.75 units. This can be calculated using the economic order quantity (EOQ) formula, which takes into account the annual demand, setup cost, and carrying cost. EOQ = sqrt((2 * annual demand * setup cost) / carrying cost). Substituting the given values, we find EOQ = sqrt((2 * 75,000 * 85) / 0.16) ≈ 11,666.75 units.

The economic order quantity (EOQ) formula is commonly used in inventory management to determine the optimal batch size for minimizing costs. By considering factors such as demand, setup cost, and carrying cost, the EOQ formula provides a balance between the cost of holding inventory and the cost of ordering or setting up new batches. It helps companies make informed decisions about the quantity and frequency of their orders, ensuring efficient inventory management.

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That statement is true.

In the event of a bank failure and liquidation, capital notes, debentures, and subordinated debt instruments rank lower in priority of claim than bank deposits. Depositors would get paid out first before holders of those subordinate debt instruments.

So the correct choice is:

True

The given statement, "In the event of bank failure, capital notes and debentures are subordinate to bank deposits" is true because this means that bank depositors have a higher priority in the repayment hierarchy and will be paid before capital notes and debenture holders.

In the event of bank failure, capital notes and debentures are considered to be subordinate to bank deposits, which means that they are lower in priority for repayment than bank deposits. Bank deposits are usually insured by deposit insurance programs, which provide protection to depositors in the event of bank failure.

Capital notes and debentures are forms of debt securities that are issued by banks to raise capital. While they may provide a higher yield than bank deposits, they are also riskier, as they are not guaranteed or insured in the same way that bank deposits are.

In the event of bank failure, the proceeds from the liquidation of the bank's assets would first be used to repay depositors, and any remaining funds would then be used to repay other creditors, including holders of capital notes and debentures.

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When inventory costs are increasing, the FIFO costing method will generally yield a cost of goods sold that is:

A. lower than cost of goods sold under the LIFO method.

FIFO (First In, First Out)  Is a method of inventory valuation where the first items purchased or produced are the first ones to be sold or used this means that the cost of the oldest inventory is assigned to the cost of goods sold while the cost of the newest inventory is assigned to ending inventory

In a period of rising inventory costs the earliest costs assigned to inventory by FIFO  are lower and the later costs assigned to cost of goods sold are higher resulting in a lower cost of goods sold and a higher ending inventory value compared to LIFO

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True. The fsgo (Federal Sentencing Guidelines for Organizations) provides guidelines for judges to consider when sentencing organizations for criminal offenses.

One of the factors that judges are encouraged to consider is the presence and effectiveness of a company's compliance program. The fsgo recognizes that organizations with strong compliance programs that make diligent efforts to follow ethical and legal standards are less likely to engage in criminal behavior. Therefore, judges may be more lenient in their sentencing of these organizations, potentially reducing or eliminating fines. However, it's important to note that the presence of a compliance program does not guarantee immunity from punishment. The effectiveness and implementation of the program will be evaluated by the court in determining the appropriate sentence.

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There are three separate transactions that need to be recorded and adjusted for in ABC's accounting records. These include the rent revenue earned from XYZ, the wages payable to employees, and the accrued interest on the note payable to American National Bank.

1. Rent Revenue: On December 1, XYZ paid ABC $36,000 in advance for the first three months' rent at a rate of $12,000 per month. However, at the end of December, ABC had only earned one month's worth of rent revenue ($12,000). Therefore, ABC must adjust the unearned rent revenue account to reflect the amount earned as of 12/31/14. The journal entry for this adjustment would be:

Dr Unearned rent revenue $24,000
Cr Rent revenue $24,000

This entry recognizes the $12,000 in rent revenue earned in December and reduces the unearned rent revenue account by the same amount.

2. Wages Payable: From the last payroll date through December 31, 2014, ABC's employees worked a total of 250 hours at an average wage expense of $51 per hour. Therefore, the total wages payable at the end of December is $12,750 (250 hours x $51 per hour). The journal entry to record this liability would be:

Dr Wage expense $12,750
Cr Wages payable $12,750

This entry recognizes the amount owed to employees for work performed through December 31, 2014, and creates a liability for wages payable on the balance sheet.

3. Accrued Interest: On November 30, 2014, ABC borrowed $235,000 from American National Bank by issuing an interest-bearing note payable. This loan is to be repaid in three months on February 28, 2015, along with interest computed at an annual rate of 6%. Since the note was issued on November 30, 2014, ABC must accrue interest expense for the month of December. The interest expense for one month is calculated as:

Interest expense = Principal x Rate x Time
Time = 1/12 (since there are 12 months in a year)

Interest expense = $235,000 x 6% x 1/12 = $1,175

The journal entry to record this accrued interest would be:

Dr Interest expense $1,175
Cr Interest payable $1,175

This entry recognizes the interest expense for December and creates a liability for interest payable on the balance sheet.

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TRUE. Asset turnover is a financial ratio that is used to measure a company's efficiency in utilizing its assets to generate revenue. It is computed by dividing the company's net sales by its average total assets. The higher the asset turnover ratio, the more efficiently the company is utilizing its assets to generate revenue.

Net sales refer to the total amount of sales revenue that a company generates after deducting any returns, discounts, and allowances. Average total assets, on the other hand, refer to the average value of a company's total assets over a specific period of time. This is usually computed by adding the beginning and ending values of the total assets and dividing the sum by two.

Asset turnover is an important ratio that is used by investors, creditors, and analysts to evaluate a company's performance and efficiency. A high asset turnover ratio indicates that the company is able to generate a significant amount of revenue using a relatively small amount of assets. This can be an indication of good management and operational efficiency.

In conclusion, it is true that asset turnover is computed by dividing net sales by average total assets. This ratio is an important indicator of a company's efficiency in utilizing its assets to generate revenue, and can be used by investors and analysts to evaluate its performance. True is the correct answer.

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