A recession, which is a period of weak economic growth, can lead to cyclical unemployment. A economic cycle downturn in which the demand for goods and services gradually declines can also result in cyclical unemployment.
Recession causing frictional unemployment?Frictional unemployment does not rise more than other types of unemployment during a downturn in the economy. On the other hand, during a recession, it usually decreases because workers become more anxious about their job security because there are less job possibilities on the market.
What are structural unemployment and cyclical unemployment?There will be cycles when unemployment is higher and cycles where it is lower. Economic changes that are structural. Depending on the situation, you can require more or fewer employees. An employment transition that involves leaving one job but knowing you can find another is frictional.
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true/false. some economists have suggested incorporating a measurement of happiness iron gdp. identify two specific measurements that could be used to computer happiness in gdp
The given statement "some economists have suggested incorporating a measurement of happiness iron GDP" is true because some economists have suggested incorporating a measurement of happiness, or subjective well-being, alongside traditional economic measures like GDP.
Two specific measurements that could be used to compute happiness in GDP are:
Life satisfaction: This can be measured through surveys that ask people to rate their overall level of satisfaction with their lives. This measure provides an indication of how people perceive their well-being and can be used to track changes in overall happiness over time.Positive affect: This measures the frequency and intensity of positive emotions such as happiness, joy, and contentment. It can be assessed through surveys that ask people to report on their experiences over a certain period of time, such as the past day or week. Tracking changes in positive affect can provide insight into how changes in economic conditions impact people's emotional well-being.You can learn more about GDP at
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start by explaining what happens to supply/demand and then explain what happens to the price and quantity: a cold snap hits florida and damages much of the orange crop
Florida has a cold snap, and as a result, crops there are impacted by the freezing weather. The orange harvest in Florida is also impacted by the cold weather, which results in less oranges available in supermarkets. Oranges are thus in low supply on the market. There will be less demand for orange juice as the price increases.
What is the cost when a cold wave hits Florida?Answer & explanation: a. Orange juice costs more in supermarkets around the nation when a cold front approaches Florida. The price of materials has caused a decline in supply.
What occurs to the orange juice business when a cold front reaches Florida?
Orange supplies would fall if Florida had a frost. Orange prices would rise as a result of this reduction in supply, which would also boost orange juice prices. There will be less demand for orange juice as the price increases.
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Complete question:
Paula has applied for a representative position with Great Sky Securities, a broker-dealer firm and FINRA member. While in college, she was a bit of a trouble maker. Since completing her education four years ago, she's been a model citizen. Which of the following issues from her past may result in her disqualification from becoming a registered representative?
A)
A conviction eight years ago for misdemeanor larceny for selling her classmates an interest in the Bay Bridge
B)
A conviction seven years ago for misdemeanor assault for hitting a guy with a pool cue
C)
Her history of multiple speeding tickets
D)
A charge six years ago of grand theft auto for the time she went joyriding in the dean’s car in celebration of making the dean’s list
Six years ago, she was charged with grand theft auto after taking the dean's automobile for a joyride in honor of making the dean's list. So, the right answer is (D).
What is meant by Representative Democracy ?In contrast to direct democracy, which elects individuals to represent an entire group of people, representative democracy elects individuals to represent a group of people.
Nearly all contemporary Western-style democracies, such as the United Kingdom (a unitary parliamentary constitutional monarchy), Germany (a federal parliamentary republic), France (a unitary semi-presidential republic), and the United States, operate as some sort of representative democracy (a federal presidential republic)
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Licensee Gwen and her buyer client Marcus are writing up an offer on Clayton's property. Gwen will need to use an additional provision in the offer. Which of the following reasons for using an additional provision apply?O It's Jamie's responsibility to disclose the information, even if Florence doesn't want to.O Marcus is requesting that all mechanical system and appliance warranties transfer to him.O The inclusion of numerous contingencies makes it less likely that the buyer's offer will be accepted.
A knowledgeable real estate lawyer will decide the case if the seller contests the buyer's right to submit a claim.
Is it possible to withdraw a verbal offer?Until you have a contract of employment, a job offer, whether oral or written, has no legal weight because any party may revoke it.
Is a verbal offer something you have to accept right away?In short, a verbal agreement is legitimately enforceable. While making a verbal offer, you must also provide a written offer for the position. Candidate must take the job when they accept the verbal offer. The equation can be altered, though, by a lot of tiny details.
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True or False : The cost of an inventory item includes its invoice cost minus any discount, plus any incidental costs (such as import duties, freight, storage, insurance, etc...)
The statement The cost of an inventory item includes its invoice cost minus any discount, plus any incidental costs is true. The cost of an inventory item is the invoice cost, less any discounts, plus any additional costs or incidentals required to prepare the item for sale.
Import taxes, freight, storage, and insurance are examples of incidental expenses that are frequently included in the cost of inventory. Only the invoice cost—the sum paid to the supplier for transporting the inventory to its current location and state—would be included in the cost of inventory. The cost of insurance and storage would be included in the profit and loss statement rather than being used to determine recorded cost.
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The people in a company who block access to key personnel in the buying process are called goalkeepers.
a. True
b. False
The statement is True. The people in a company who block access to key personnel in the buying process are called goalkeepers.
The goalkeeper is the individual in the price of intercepting or preventing the ball earlier than it crosses the final line that is in aim and consequently saves the opponent from scoring an intention. As they are saying in football parlance, it's miles the lifeline of the groups.
The phrase "purpose-keeper" appeared within the Sheffield policies of 1867, however, the time period did no longer discuss with a designated player, but as a substitute to "that player on the protecting aspect who for the time being is nearest to his own purpose".A top Goalkeeper desires to be courageous, a notable communicator, centered, decided, and inclined to bear the criticisms and disappointments that include the task. The very high-quality Keepers aren't most effectively prepared with the know-how and right attitude — however additionally the health and electricity stages required as a footballer.
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TRUE/FALSE. countries high in power distance respond positively to appraisal systems where lower level employees give feedback to their managers.
The mention statement is TRUE.A countries is a distinct region of the world, also referred to as a state, a nation, or another form of political organisation.
It could be a part of a larger state or an independent entity. [1] For instance, Japan is an autonomous sovereign state, whereas Wales is a component countries of the United Kingdom, a multi-part sovereign state. A region can be a country if it has historically exercised sovereignty (like Korea), if it does so today and has a single administration (like Senegal), or if it is not sovereign but has significantly unique political, racial, or cultural traits (such as the Basque Country).The definition of "country" is broad, and it has many different uses. The Economist highlighted in 2010 that "any attempt
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Evaluate the pros and cons of Mozambique’s economic progress as discussed in the case study. (10 marks)
Even though the case study is not added, Mozambique, like any other developing country, has made significant progress in its economic development over the past few decades. below are pros and cons of Mozambique's economic progress:
What is the article about Mozambique's economic progress?
Pros:
Economic Growth: Mozambique has achieved impressive economic growth over the past few years. The country's GDP growth rate has averaged around 7% over the last decade.
Natural resources: Mozambique has vast reserves of natural resources such as coal, natural gas, and other minerals, which have become an important source of revenue for the country.
Strategic location: Mozambique's location provides it with access to some of the world's busiest shipping lanes, which is essential for the country's trade and economic development.
Infrastructure development: Mozambique has invested significantly in developing its infrastructure, including transportation, communication, and energy.
Tourism potential: Mozambique has vast potential for tourism development, thanks to its natural beauty, diverse cultures, and historical heritage.
Cons:
Poverty: Despite the country's economic growth, Mozambique remains one of the poorest countries globally, with a high poverty rate of around 50%.
Income inequality: The country has one of the highest income inequality rates globally, with a small percentage of the population controlling the majority of the country's wealth.
Dependence on natural resources: Mozambique's economy is heavily dependent on natural resources, making it vulnerable to external factors such as commodity price fluctuations.
Corruption: Mozambique has a high level of corruption, which has hampered economic development and undermined the country's governance.
Economic diversification: Mozambique needs to diversify its economy to reduce its dependence on a few industries and create more employment opportunities for its citizens.
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Suppose Martha and Julia both work at a bakery making bread and muffins. In an hour, Martha can either make 10 loaves of bread or 40 muffins, while Julia can either make 12 loaves of bread or 60 muffins. Both Martha and Julia work 8 hours a day.
a. Draw Martha's daily PPC.
Instructions: Use the tool provided to draw Martha's PPC curve. Plot only the endpoints and locate these endpoints on the axes of the diagram.
b. Draw Julia's daily PPC.
Instructions: Use the tool provided to draw Julia's PPC curve. Plot only the endpoints and locate these endpoints on the axes of the diagram.
c. What is the opportunity cost to each of making one loaf of bread?
Martha's opportunity cost of making a loaf of bread: muffins
Julia's opportunity cost of making a loaf of bread: muffins
d. What is the opportunity cost to each of making one muffin?
Instructions: Enter your responses rounded to two decimal places.
Martha's opportunity cost of making a muffin: loaves of bread
Julia's opportunity cost of making a muffin: loaves of bread
e. Who has the comparative advantage in making bread?
Neither
Julia
Martha
f. Who has the absolute advantage in making bread?
Julia
Neither
Martha
g. Suppose you are the owner of the bakery. If Julia and Martha are currently both spending all of their time making muffins, then which of them should you ask to start making bread?
Martha because her opportunity cost of making bread is higher than Julia's.
Julia because her opportunity cost of making bread is lower than Martha's.
Martha because her opportunity cost of making bread is lower than Julia's.
If Julia and Martha are currently both spending all of their time making the muffins, then Martha because her opportunity cost of making the bread is higher than Julia's.
What is opportunity cost?Opportunity cost is the value of the next best alternative that must be foregone in order to pursue a certain action or decision. In other words, it is the cost of what is given up in order to obtain something else. For example, if a person decides to spend money on a vacation, the opportunity cost would be the other things they could have done with that money, such as investing or saving it. Opportunity cost is an important concept in economics, as it helps individuals and businesses make informed decisions by weighing the benefits and drawbacks of different options. It is also a reminder that resources are scarce and every choice comes with a trade-off.
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The net income of Novis Corporation is $85,000. The company has 25,000 outstanding shares and a 100% payout policy. The expected value of the firm one year from now is $1,725,000. The appropriate discount rate for Novis is 12%, and the dividend tax rate is 0. What is the current value of the firm assuming the current dividend has not yet been paid? What is the ex-dividend price of Novis's stock if the board follows its current policy? At the dividend declaration meeting, several board members claimed that the dividend is too meager and is probably depressing Novis's price. They proposed that Novis sell enough new shares to finance a $4.60 dividend. Comment on the claim that the low dividend is depressing the stock price. Support your argument with calculations. If the proposal is adopted, at what price will the new shares sell? How many will be sold?
The number of new shares sold will depend on how much Novis needs to raise to pay the proposed dividend of $4.60 per share. Current price and ex-dividend price are terms used in the context of stock dividends.
To find the current value of the firm, we can use the dividend discount model: Current value of the firm = (Net income / (1 - payout ratio)) / discount rate - expected value of the firm, where the payout ratio is 100% (as stated in the problem).
Plugging in the given values, we get:
Current value of the firm = ($85,000 / (1 - 1)) / 0.12 - $1,725,000 = -$625,000
This means that the current value of the firm is negative, which indicates that the company is not generating sufficient cash flows to meet its dividend obligations and grow the firm.
The ex-dividend price of Novis's stock can be calculated using the following formula:
Ex-dividend price = Current price - Dividend amount
Since the payout ratio is 100%, the dividend amount is equal to the net income per share, which is $85,000 / 25,000 = $3.40.
Assuming the current price of Novis's stock is positive, we can calculate the ex-dividend price:
Ex-dividend price = Current price - $3.40
The claim that the low dividend is depressing the stock price may or may not be true, depending on the investor's preferences. Some investors prefer high dividends, while others prefer companies that reinvest their earnings to grow the business. However, the proposal to sell new shares to finance a higher dividend is likely to be negative for the stock price. To see why, let's assume Novis sells x new shares at a price of p per share to raise enough funds to pay the proposed dividend of $4.60 per share. The amount raised will be xp, and the total dividend payment will be $4.60x. The new number of outstanding shares will be 25,000 + x, and the new dividend per share will be ($85,000 + $4.60x) / (25,000 + x). Assuming the expected value of the firm remains the same, we can use the dividend discount model to find the ex-rights stock price (i.e., the price of the stock after the new shares are issued):
Ex-rights stock price = (Net income + New dividend amount) / (1 - payout ratio) / Discount rate - Expected value of the firm
Plugging in the given values, we get:
p = (($85,000 + $4.60x) / (25,000 + x) + $85,000 / 25,000) / (1 - 1) / 0.12 - $1,725,000
Simplifying this expression, we get:
p = (0.012x + 45.4) / (25,000 + x) - $67.50
To maximize the stock price, Novis should aim to set p as high as possible. However, the price sensitivity of demand for new shares is likely to limit how high the price can be. Furthermore, the dilution of earnings resulting from the new shares is likely to put downward pressure on the stock price. In conclusion, the claim that the low dividend is depressing the stock price may or may not be true, depending on the investor's preferences. However, the proposed solution of selling new shares to finance a higher dividend is likely to be negative for the stock price, as it increases the number of outstanding shares and dilutes earnings per share. The price of the new shares will depend on the price sensitivity of demand, but it is likely to be lower than the current price of Novis's stock.
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the little shop on the corner had $243,000 in taxable income. assuming that corporations face marginal tax rates, use these rates to calculate its income tax.
Since corporations pay marginal tax rates using these rates, the little shop on the corner had $243,000 in taxable revenue. Its income tax was $78,020.78
What is considered taxable income?Wages, salaries, bonuses, and tips are all considered forms of taxable income, along with the income from investments and various unearned sources. The basis on which an income tax system levies tax is referred to as taxable income. Alternatively put, the amount of income that was subject to taxation. In most cases, it consists of all or a portion of the income and is lessened by expenses and other deductions. Even though some tax breaks and exemptions are not included in the calculation of taxable income, all income is nevertheless regarded as taxable. This rule applies to everyone, including individuals, businesses, Hindu Undivided Families (HUF), local government entities, and other groups of people.
How can I reduce my taxable income?Contributing to a retirement account via an employer-sponsored plan or an IRA is a practical approach to lower taxable income (IRA). During the tax years in which contributions are made, both flexible and health spending accounts help lower taxable income.
Taxes = 0.15($50,000) + 0.25($24,999) + 0.34($24,999) + 0.39($143,002) = $78,020.78
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international accounting standards are effective only if adopted by national regulatory bodies. why is it true?
accounting standards provide guidance on accounting for all type of transaction .why is it false?
Accounting standards advance straightforwardness, responsibility, and effectiveness in monetary business sectors all over the planet.
What are international accounting standards ?International accounting standards are a bunch of rules for budget summaries by IFRS and have consequently been taken on by most major monetary business sectors all over the planet.
This empowers financial backers and other market members to settle on informed monetary conclusions about speculation open doors and dangers and works on capital portion.
Accounting standards guarantee the budget summaries from numerous organizations are equivalent. Since all elements observe similar guidelines, accounting standards offer the monetary expressions valid and take into consideration more financial choices in view of exact and steady data.
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Identify the following items as creating a temporary book–tax difference, a permanent book–tax difference, or no book–tax difference.
Reserve for Warranties Accrued Pension Liability Goodwill not amortized for tax purposes but subject to impairment under ASC Topic 350 Nondeductible Meal Expenses Life Insurance Proceeds Net Capital Loss Carryover Nondeductible Fines and Penalties Accrued Vacation Pay Liability paid within the first two and one-half months of the next tax year
There are eight distinctions: one passing difference, two passing differences, three passing differences, four permanent differences, five permanent differences, and six permanent differences.
What is the tax difference described?Tax Difference is an amount that must be refunded (set off) from the taxpayer's budget when filing a tax return in accordance with the procedures provided in the tax law.
Which one of the three tax classifications are they?One who imposes an income tax that is higher for high-income groups than for low-income ones is said to be using a progressive tax. Under a proportional system, a tax is taken as an equal amount of the income from each income category. Taxes with a higher percentage of revenue taken from low-income groups .
The following question is incomplete the complete question is as follows:Identify the following items as creating a temporary difference, permanent difference, or no difference.
1. Reserve for warranties
2. Accrued pension liability
3. Goodwill not amortized for tax purposes but subject to impairment under ASC 350
4. Meal and entertainment expenses
5. Life insurance proceeds
6. Net capital loss carryover
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your next decision is to select the backpack's special features. different features will appeal to different market segments. while features help our backpacks standout in the market, they also add to the production cost, so any of your choices should keep in mind impacts on the cost of production and feature desirability. which of the following combination of special features is the least expensive?
Cartoon Graphic and Laptop Sleeve are combination of special features is the least expensive when different features will appeal to different market segments.
Market segments: what are they?A marketing approach known as market segmentation involves identifying specific customer groups in order to promote particular items or product lines to them in a way that appeals to their interests.
Market segmentation is a technique used in marketing that involves breaking up a large consumer or corporate market into smaller groups of consumers based on shared traits. Typically, this procedure involves existing and future clients. Although the four primary categories of market segmentation are thought to be geographic, demographic, psychographic, and behavioural, there are many more approaches you can take, as well as many variants on the four primary types. You might want to investigate the following other techniques.
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cameron, a broker with a firm in little rock, is reconciling his property management trust account and is about to perform the monthly trust account reconciliation required by the arkansas real estate commission. to complete the reconciliation, he needs to gather his bank statement, his journal of security deposits, and
His ledger of transactions for the trust account. Once Cameron has gathered these documents, he will need to compare the transactions recorded in his journal of security deposits and ledger with those reflected in his bank statement.
He should ensure that all deposits, withdrawals, and fees recorded in his ledger and journal match the corresponding entries in his bank statement. If there are any discrepancies, Cameron will need to investigate and determine the cause of the discrepancy. He may need to review his records, contact his bank or clients, or seek the assistance of his firm's accounting department. After reconciling the trust account, Cameron should prepare a trust account reconciliation report, which includes a summary of the account's activities for the month, a list of outstanding deposits and withdrawals, a list of fees, and any other pertinent information. This report should be retained in his files and made available for review by the Arkansas Real Estate Commission, if requested. It's important for brokers like Cameron to perform regular trust account reconciliations to ensure that their clients' funds are properly managed and accounted for. Failing to do so can result in serious consequences, including fines, license suspension or revocation, and even criminal charges.
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Suppose Veronica sells teapots in the perfectly competitive teapot market. Her output per day and her costs are as follows: Output per Day Total Cost 0 $20 1 32 2 37 3 48 4 61 5 75 6 92 7 113 8 136 Suppose the current equilibrium price in the teapot market is $15. To maximize profit, how many teapots will Veronica produce, what price will she charge, and how much profit (or loss) will she make? Draw a graph to illustrate your answer. Your graph should include Veronica's demand, ATC, AVC, MC, and MR curves, the price she is charging, the quantity she is producing, and the area representing her profit (or loss).
To maximize profit, Veronica should produce the level of output where her marginal cost equals the market price, and then charge that same market price for her teapots.
What is meant by profit maximization?Profit maximization is a process that businesses go through in order to achieve the best output and price levels in order to maximize their returns. The firm adjusts influential factors such as sale price, production cost, and output levels in order to achieve its profit goals.
Calculate Veronica's marginal cost of production by finding the change in total cost as output increases by one unit. This gives the following table:
Given
Output per Day Total Cost Marginal Cost
0 $20
1 32 $12
2 37 $5
3 48 $11
4 61 $13
5 75 $14
6 92 $17
7 113 $21
8 136 $23
The market price for teapots is given as $15, which means that this is the price that Veronica should charge for her teapots.
From the table above, we can see that Veronica's marginal cost is less than the market price for output levels 1, 2, and 3. However, her marginal cost exceeds the market price for all higher output levels. This means that Veronica should produce and sell 3 teapots per day to maximize her profit.
At an output level of 3 teapots per day, Veronica's total cost is $48, which gives an average cost of $16 per teapot. However, since she is charging $15 per teapot, she will make a loss of $1 per teapot. Therefore, her total loss will be $3 per day, which is equal to the difference between her total cost of $48 and her total revenue of $45 (which is the price of $15 multiplied by 3 teapots sold per day.
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Marketers considering operations and trade with a specific country must consider whether or not the country belongs to a trading bloc. A trading bloc is a group of countries that have established a formal agreement to manage trade activities. using the same currency. with similar cultural shopping patterns. located next to each other. with similar political views.
In a common market, nations permit unrestricted trade as well as internal movement of labor, capital, and people.
In order to achieve the economic objectives of the European Union, all member states of the European Union participate in Economic and Monetary Union (EMU). Estonia is a part of the EU as a result. The member states of the European Union that have chosen to use the euro as their official currency make up the European Union. A regional collection of nations having a single external tariff, no internal tariffs, and coordinated policies to encourage trade among members is referred to as a common market or trading bloc. A group of governments that have signed a legal agreement and implemented a single external tariff constitute a common market.
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Consider the market for new higher-end televisions____________. When income increases, the demand for new televisions Therefore new televisions are goods__________. Select the correct answer below: increases; inferior decreases; inferior increases; normal
Consider the market for new higher-end televisions increases. When income increases, the demand for new televisions Therefore new televisions are goods normal.
The demand for all goods rises together with an increase in income.A typical good is one whose demand rises as consumer spending increases. In other words, as incomes rise, so does demand for common goods, whereas incomes fall and employment levels rise, respectively.
When income rises, demand for the good will rise, and when income declines, demand for the good will fall.The amount of a good that a consumer is willing and able to purchase typically has a positive (direct) relationship with their income. In other words, demand for these commodities will rise in line with income increases and fall in line with income decreases.
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mintzberg concluded that managers play three broad types of roles: interpersonal, analytical, and critical.T/F
False, Mintzberg concluded that managers play three broad types of roles: interpersonal, informational, and decisional.
The foundation of Mintzberg's managerial theory is the notion that managers play ten roles that can be grouped into three main categories: interpersonal, informational, and decisional.
Roles that involve interacting with coworkers and other stakeholders fall under the category of interpersonal roles. The manager is able to accomplish organizational objectives through these interactions. The figurehead, leader, and liaison managerial positions are included in this group.
Informational roles are the category that describes circumstances in which a manager generates, receives, or shares knowledge with subordinates and superiors to achieve goals. The managerial positions that fall under this heading are spokesperson, disseminator, and monitor.
Decisional roles are the category that outlines a manager's obligation to make business and strategic decisions based on the information they learn. Entrepreneur, disturbance-handler, resource-allocator, and negotiator are examples of managerial roles that fall under this category.
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a decrease in both demand and supply will cause a(n) _____ equilibrium price and a(n) _____ equilibrium quantity.
a. decrease in; uncertain effect on b. uncertain effect on; decrease in c. increase in; decrease in d. increase in; uncertain effect on
A decline in supply and demand will have an ambiguous impact on the equilibrium price as well as a negative impact on equilibrium quantity.
As demand declines and supply remains constant, what happens to the equilibrium price and quantity?Demand falls while supply stays the same, creating a surplus and a lower equilibrium price. A surplus results in a lower equilibrium price if supply grows while demand stays the same.
What causes an equilibrium price change?The equilibrium price and quantity change as the supply or demand curves change. Demand growth raises the equilibrium price and quantity. The equilibrium price and quantity both fall as demand declines. Equilibrium price declines and quantity rises as supply grows.
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kaskin, inc., stock has a beta of 1.2 and quinn, inc., stock has a beta of .6. which of the following statements is most accurate? a. the expected rate of return will be higher for the stock of kaskin, inc., than that of quinn, inc. b. the stock of kaskin, inc., has more total risk than quinn, inc.
The assumption is correct since Quinn, Inc.'s Beta is 0.6 and Kaskin, Inc.'s Beta is 1.2.
What does a company's stock mean?An investment that represents ownership in a piece of the issuing corporation is referred to as a stock, which is also known as equity. Shares, commonly referred to as units of stock, provide its owners a proportionate part of the firm's assets and earnings based on the number of shareholdings they own.
What is a stock in everyday language?Definition. A sort of asset known as a stock represents a small portion of a company's ownership. A share, a fractional ownership stake in a company, is yours if you purchase its stock. Investors purchase stock in companies they anticipate growing in value.
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The questions are in the images. The categories provided are: Cash, Accounts Receivable, Office Equipment, Office Furniture, Accounts Payable, Randy Guttery Capital, Randy Guttery Drawing, Fees Income, Rent Expense, Utilities Expense, Salaries Expense, Telephone Expense, and Miscellaneous Expense.
A collection of financial records that employ double-entry accounting is referred to informally as a T-account.
What is T- Account ?The phrase defines how the bookkeeping entries appear. On a page, a huge letter T is first drawn.The account name is then written above the top horizontal line and split by the bottom horizontal line., and below that, split by the vertical T of the letter, debits are reported on the left and credits are recorded on the right.
Every financial transaction is taken into account to have an impact on at least two of a company's accounts in double-entry bookkeeping, a common accounting technique. Each transaction will be recorded in one account as a debit entry and in the other as a credit entry.
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Q1. A manufacturing firm has discontinued production of a certain unprofitable product
line. This created considerable excess production capacity. Management is considering to
devote this excess capacity to one or more of three product 1,2 and 3. The available capacity
on the machines which might limit output are given below:
Machine type Available time
(in machine hours per week)
Milling
machine
250
Lathe 150
Grinder 50
The number of machine hours required for each units of the respective product is given
below;
Machine type Productivity (in machine hours/unit)
Product 1 Product 2 Product 3
Milling 8 2 3
Lathe 4 3 0
Grinder 2 0 1
The unit profit would be 20 birr, 6 birr and 8 birr for products 1,2 and 3. Find how much of
each product the firm should produce in order to maximise profit ? Solve the problem by
simplex method.
The simplex method is a linear programming technique used to find the maximum value of a linear objective function subject to constraints represented by linear equations or inequalities.
How do we use this method?Here's how you can solve this problem using the simplex method:
Formulate the problem as a linear program:
The objective is to maximize the total profit, which is given by 20x1 + 6x2 + 8x3, where x1, x2, and x3 are the number of units of products 1, 2, and 3, respectively. The constraints are the available machine time, which are:
8x1 + 4x2 + 2x3 <= 250 (milling machine)
3x1 + 3x2 <= 150 (lathe)
x3 <= 50 (grinder)
Create a simplex tableau:
The simplex tableau is a matrix used to keep track of the variables and the coefficients of the objective function and the constraints. The first row of the tableau is the objective function, the rest of the rows are the constraints. The last column is called the "result" column and contains the values of the variables and the objective function.
Choose a basic variable:
In the first iteration, we will choose x1 as the basic variable, since it is the only non-negative variable in the objective function. We will write x1 in terms of x2 and x3 using the first constraint:
x1 = (250 - 4x2 - 2x3)/8
Update the simplex tableau:
Substitute x1 in the objective function and in the rest of the constraints:
20 * (250 - 4x2 - 2x3)/8 + 6x2 + 8x3
3x2 <= 150
x3 <= 50
Check for optimality:
Check if all the coefficients in the objective function are non-negative. If so, the current solution is optimal and the problem is solved. If not, choose the next basic variable and repeat steps 3 and 4.
Repeat steps 3 to 5 until optimality is reached:
In the second iteration, we will choose x2 as the basic variable. Substitute x2 in the objective function and in the rest of the constraints, and check for optimality. Repeat this process until the coefficients in the objective function are non-negative, indicating that the solution is optimal.
The final solution will give the number of units of each product that the firm should produce in order to maximize profit.
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Economic cooperation mechanism for the whole ASEAN +3
The ASEAN's ten member states as well as their eight foreign partners are referred to as participating in economic interdependence.
What is ASEAN ?ASEAN stands for Association of Southeast Asian Nations aimed to encourage financial and political growth in the country in order to develop infrastructure and standard of living of people.
ASEAN is incorporated into the global economy with a focus on the Multilateral mechanism through Free Trade Agreements (FTA) and Closer Economic Partnership (CEP).
Even with tariffs on imported goods being reduced or perhaps abolished, it enables nations in the region to engage in more commerce for goods and services.
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True or False: When firms in a purely competitive firm are earning profits below normal, the supply of the product will tend to decrease in the long run.
rimas Corporation reported pretax book income of $1,000,000. Included in the computation were favorable temporary differences of $200,000, unfavorable temporary differences of $50,000, and favorable permanent differences of $100,000. Compute the company’s book equivalent of taxable income. Use this number to compute the company’s total income tax provision or benefit.
The company’s total income tax provision or benefit is $306,000.
What is income tax provision?A tax provision is the estimated amount of income tax that a company must pay to the IRS for the current fiscal year. It is just one type of provision set aside by corporate finance departments to cover a possible future expense.
Assuming That the Tax Rate is 34%, the computation of total income tax benefits taken under the tax rate of 34% is as follows:
Pre-Tax Book Income = $1,00,000
Favorable Temporary Differences = $200,000
Unfavorable Temporary Differences = $50,000
Favorable Permanent Differences = $100,000
Equivalent Book of Income Tax
= Pre-Tax Book Income - Favorable Permanent Differences
= $1,000,000 - $100,000
Equivalent Book of Income Tax = $900,000
Overall Tax Provision = Equivalent Book of Income Tax × 34%
= $900,000× 34%
= $306,000
Therefore, the total tax Provision of rimas Corporation is $384,200.
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A company assigns overhead based on direct labor costs. The predetermined overhead rate is $3.00 per direct labor dollar. A job that used a total of 20 direct labor hours ($400 in total direct labor costs) would be assigned $ 60 total overhead. (Enter your answer as a whole number). Correct Answer 1200
If the company assigns overhead based on direct labor costs, and the predetermined overhead rate is $3.00 per direct labor dollar. The total overhead is : $1200.
How to find the total overhead?Using this formula to determine the total overhead?
Total overhead = Predetermined overhead rate x Total direct labor cost
Let plug in the formula
Total overhead = $3.00 per direct labor dollar x $400 in total direct labor costs
Total overhead = $1,200
Therefore the overhead is $1200.
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Based on the industry-low, industry-average, and industry-high values for the benchmarked data in each issue of the FIR, which of the following is an unconvincing or untrustworthy indication that one or more elements of your company's costs are too high relative to the costs of rival companies?
a. The reject rates for branded shoe production at one or more of your company's plants are well above the industry average.
b. Your company's operating profits per pair sold in all 4 geographic regions of the wholesale segment for branded footwear are below the industry-high values.
c. Your company's marketing expenses per pair sold in both the Internet and wholesale segments are the highest in the industry.
d. Your company's labor costs per pair produced at one or more plants are 20% or more above the industry-average number.
e. Your company's warehouse expenses per pair sold in both the wholesale and Internet segments are above the industry average.
Your company's warehouse expenses per pair sold in both the wholesale and Internet segments are above the industry average is an unconvincing or untrustworthy indication that one or more elements of your company's costs are too high relative to the costs of rival companies.
What is a rival company?Based on the industry-low, industry-average, and industry-high values for the benchmarked data in each issue of the FIR, option (a) is an unconvincing or untrustworthy indication that one or more elements of your company's costs are too high relative to the costs of rival companies.
Although reject rates for branded shoe production that are well above the industry average could suggest that your company's production processes are inefficient, this alone does not provide a reliable basis for comparison with other companies.
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Fill in the Blank The tax deductibility of expenses __________ their after tax cost (assume a tax paying firm)
Increases
decreases
has no effect on
has an undetermined effect on
either increases or decreases, depending on whether it is for a sole proprietorship or a corporation
The tax deductibility of expenses Decreases their after tax cost (assume a tax paying firm). Because When a business incurs an expense, this amount is subtracted from the business's taxable income. So, the correct answer is b).
The tax deductibility of expenses decreases their after-tax cost for a tax-paying firm. When a firm incurs an expense that is tax-deductible, it reduces the taxable income of the firm. This reduction in taxable income leads to a decrease in the amount of tax paid by the firm.
Therefore, the firm can effectively reduce its expenses by the amount of tax savings due to the tax deduction. For example, if a firm has $100 of tax-deductible expenses and a tax rate of 30%, then the tax savings will be $30. Thus, the actual cost of the expense to the firm will be reduced to $70. The correct option is b).
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In analyzing the differences among Theories X, Y, and Z managers, it is appropriate to assess that:
Theory Z managers believe that getting the employees more involved in the work-related decisions will generally increase productivity.
Simply put, Theory Z can be understood as a management strategy that combines American and Japanese management concepts, among others: employment stability, consensus politics, delays in evaluation and promotion processes, and intra-group ownership.
A manager is someone who is responsible for a part of the company, i.e., who "runs" the company. A manager can be accountable to the department and the people who work there. In some cases, managers are responsible for the company as a whole.
A manager is a person who primarily performs administrative functions. They must have the authority to hire, terminate, discipline, evaluate performance, and monitor attendance.
They also need permissions to authorize overtime and authorize time off. He or she is her boss.
A manager's tasks also include managing employees or parts of the company in their daily work.
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Complete question:
In analyzing the differences among Theories X, Y, and Z managers, it is appropriate to determine that Multiple Choice Theory Z managers believe that employees prefer to be directed. Theory Z managers understand that workers prefer to work by themselves, and will do their best work individually rather than with a team. Theory Z managers believe that getting employees more involved in work-related decisions will generally increase productivity. Theory Z managers believe that decision making is not part of an employee's responsibilities.