Question 9 9 pts CWB Inc.'s standard cost card for direct labor and variable manufacturing overhead are as follows: Standard Standard Price Direct Costs Quantity (unit: (unit:$ per hours) hour) Direct Labor 0.1 10 Manufacturing 0.1 7 Overhead Actual results were as follows: • The number of units sold and produced was 12000 units. The variable overhead cost was $5000 for 1000 hours. I Calculate the following variances. Use "U" to indicate "Unfavorable" and "F" to indicate "Favorable". For example, input "30000" for $3,000 unfavorable variance and "3000F" for $3,000 favorable variance. Do not use a thousand separator"," and do not leave space between the number and the letter U/F in your answer. Variable overhead rate variance. Variable overhead efficiency variance.
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The variable overhead rate variance is $500 F and the variable overhead efficiency variance is $2000 U.
Variable overhead rate variance: Variable overhead rate variance indicates the effect of the difference between the actual and expected variable overhead rate per hour on the total variable overhead costs. The formula for variable overhead rate variance is as follows:
Variable overhead rate variance = (Actual variable overhead rate - Standard variable overhead rate) × Actual hours worked Variable overhead rate variance = ($5000 / 1000 hours - $0.1 / hour) × 1000 hours Variable overhead rate variance = $500 F Variable overhead efficiency variance:
Variable overhead efficiency variance shows the impact of the difference between the actual hours worked and the standard hours allowed on the total variable overhead costs.
The formula for variable overhead efficiency variance is as follows: Variable overhead efficiency variance = (Actual hours worked - Standard hours allowed) × Standard variable overhead rate .
Variable overhead efficiency variance = (1000 hours - 12000 hours × 7 hours per unit) × $0.1 per hourVariable overhead efficiency variance = $2000 U Therefore, the variable overhead rate variance is $500 F and the variable overhead efficiency variance is $2000 U.
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Related Questions
i will give 100 points please help
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what are the disadvantages of alloys
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Cost-volume-profit analysis helps managers predict how changes in and levels affect income.
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cost-volume-profit (CVP) analysis, helps managers predict how changes in costs and sales levels affect profit. In its basic form, CVP analysis involves computing the sales level at which a company neither earns an income nor incurs a loss, called the break-even point.
Core paper. Cost-Volume-Profit (CVP) analysis is a method of examining how changes in variable and fixed costs affect a company's profits. A company can use his CVP to see the break-even point (covering all costs) or the number of units that need to be sold to meet a certain minimum profit margin.
CVP analysis helps determine the level of all costs involved. This concept helps eliminate unnecessary information that can complicate management's decision-making process. For example, businesses use costs associated with management to determine whether new decisions are economical.
The main CVP formula is: Profit = Revenue – Cost. Of course, to use this formula, you must know how to calculate sales: (Retail Price x Quantity). You also need to know how to calculate the cost: fixed cost + (variable price x number of units).
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Oriole Company began using dollar-value LIFO for costing its inventory two years ago. The ending inventory for the past two years in end-of-year dollars was $282000 and $463000 and the year-end price indices were 1.0 and 1.2, respectively. Assuming the current inventory at end of year prices equals $647000 and the index for the current year is 1.25, what is the ending inventory using dollar-value LIFO? (Round intermediate calculations and final answer to 0 decimal places, e.g. 10,000.)
$537559.
$564259.
$575059.
$571309.
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the ending inventory using dollar-value LIFO, none of the given options match the calculated value. based on the calculations, the closest option would be $537,559.
To calculate the ending inventory using dollar-value LIFO, we need to follow these steps:
1. Calculate the base-year inventory value:
Base-year inventory value = Ending inventory in end-of-year dollars / Year-end price index
For the first year, the base-year inventory value = $282,000 / 1.0 = $282,000
For the second year, the base-year inventory value = $463,000 / 1.2 = $385,833.33 (rounded to 2 decimal places)
2. Calculate the current-year inventory value:
Current-year inventory value = Current inventory at end-of-year prices / Year-end price index
Current-year inventory value = $647,000 / 1.25 = $517,600
3. Calculate the LIFO layer increment:
LIFO layer increment = Current-year inventory value - Base-year inventory value
LIFO layer increment = $517,600 - $385,833.33 = $131,766.67 (rounded to 2 decimal places)
4. Calculate the ending inventory using dollar-value LIFO:
Ending inventory = Base-year inventory value + LIFO layer increment
Ending inventory = $385,833.33 + $131,766.67 = $517,600
Therefore, the ending inventory using dollar-value LIFO is $517,600.
None of the given options match the calculated value. However, based on the calculations, the closest option would be $537,559.
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the acronym cem in services marketing stands for __________.
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The acronym CEM in services marketing stands for Customer Experience Management. In services marketing, the acronym CEM stands for Customer Experience Management.
Customer Experience Management is the process of strategically managing a customer's entire experience with a company or brand, from initial contact through to post-purchase interactions and support. It involves understanding the customer's journey, identifying pain points and opportunities for improvement, and designing and delivering exceptional experiences that meet or exceed customer expectations. Effective CEM can help businesses build stronger customer relationships, enhance loyalty, and drive long-term growth.
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five years ago, you purchased nine corporate bonds that each pay 6.90 percent annual interest. each bond has a face value of $1,000. how much interest do you earn on the nine bonds each year?
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you earn $621 in interest on the nine bonds each year.
What is an interest?
Interest is the cost of borrowing money. It is the amount charged by a lender to a borrower for the use of money, usually expressed as a percentage of the amount borrowed or the amount still owed.
Each bond pays 6.90% interest annually on its face value of $1,000. So the annual interest earned on one bond is:
$1,000 x 0.069 = $69
Since you purchased nine such bonds, the total annual interest earned on all the bonds is:
$69 x 9 = $621
Therefore, you earn $621 in interest on the nine bonds each year.
Interest can be applied to various financial products, including loans, credit cards, savings accounts, and bonds. The amount of interest charged can vary depending on factors such as the borrower's creditworthiness, the amount borrowed, and the length of the loan.
What are the bonds?
Bonds are debt securities that are issued by corporations, municipalities, and governments to raise capital. When an entity issues a bond, they are borrowing money from investors who purchase the bond. In return for lending money to the entity, the bondholder receives periodic interest payments over the life of the bond and the return of the principal when the bond matures.
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2. Remodel the outpatient recovery rooms so that some of the Phase II space could be used for Phase I recovery. This would cost $2,000 per day and enable the outpatient surgery center to perform 40 surgeries per day. They would then send 20 patients to the hospital's regular operating rooms.
Answers
Answer:
Hello your question has some missing information attached below is the missing part
University Hospital has two separate units that are part of the hospital but are two separate facilities. The first is the main hospital that performs emergency room functions, surgeries, and recovery. Separate from the main hospital is an outpatient surgery center. In an effort to control costs, some of the patients that need minor surgeries are routed to the outpatient surgery center. The outpatient surgery center treats patients in three activity centers: (1) Surgery, (2) Phase I recovery, where patients recover while the patients are still asleep, (3) Phase II recovery, where patients recover while they are awake. Phase II recovery ends when the patients go home. Daily capacities and production levels are as follows.
surgery phase i recovery phase ii recovery
Daily Capacity (surgeries) 40 30 60
Daily Production (surgeries) 30 30 30
The hospital receives an average of $1,000 per surgery. (The surgeon’s fee and the anesthesiologist’s fee are billed separately.) The variable cost per surgery is $300. There is sufficient demand for surgeries that the hospital could perform 60 surgeries per day. Surgeries not performed by the outpatient surgery center are sent to the main hospital’s regular surgery rooms. The variable cost per surgery for regular surgery in the main hospital is $700, while the hospital still receives $1,000 per surgery. The hospital management is considering the following alternatives:
answer : $32000
Explanation:
When we remodel the problem we have to make two(2) calculations
Outpatient surgery center
Revenue from surgery = 40 * $1000 = $40000
variable cost per surgery = 40 * $300 = $12000
contribution = ( revenue - variable cost ) = $28000
cost incurred = $2000
Total = contribution - cost incurred = $26000
Regular surgery room
Revenue form surgery = 20 * $1000 = $20000
Variable cost per surgery = 20*$700 = $14000
contribution = ( revenue - variable cost ) = $6000
Therefore the Total income made by remodeling the outpatient recovery
= $26000 + $6000
= $32000
define ecommerce in business with example
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Answer:
See below
Explanation:
eCommerce refers to business transactions conducted via internment. eCommerce is the short form of electronic commerce. It is the selling and buying of products and services through the internet platform. eCommerce includes other commercial transactions conducted online such as online/internet banking, online money transfers, online auctions, ticketing, and payments.
An example of eCommerce is the online retail stores where shoppers pick and select merchandise on the retail store's website and pay online. The retail store then organizes for the items to be delivered to the customer's premises.
Explain the impact of strikes as a socio-economic issue on businesses.
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Employment relationships between both parties could become strained and this could affect teamwork and profitability. Businesses suffer production and financial losses and consumer confidence is adversely affected.
Gilley, Inc., sells a single product. The company's most recent income statement is given below. Sales (4,000 units) $120,000 Less variable expenses (68,000) Contribution margin 52,000 Less fixed expenses (40,000) Net income $ 12,000 Required: a. Contribution margin per unit is $ ________ per unit b. If sales are doubled to $240,000, total variable costs will equal $ ________ c. If sales are doubled to $240,000, total fixed costs will equal $ ________ d. If 10 more units are sold, profits will increase by $ ________ e. Compute how many units must be sold to break even. # ________ f. Compute how many units must be sold to achieve profits of $20,000. # ________
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Contribution margin per unit is $13 per unit , total variable costs will equal $136,000, total fixed costs will equal $40,000. If 10 more units are sold, profits will increase by $130, The number of units to break-even is 7,111. The number of units required to achieve a profit of $20,000 is 5,538.
Given that Sales (4,000 units) $120,000Less variable expenses (68,000)
Contribution margin 52,000Less fixed expenses (40,000)Net income $ 12,000a)
Calculation of contribution margin per unit
Contribution margin per unit is calculated by dividing the total contribution margin by total number of units.
Contribution margin per unit =$52,000/4,000 units= $13 per unit
Calculation of total variable costs Total variable cost is calculated as follows:
Contribution margin = Sales - Variable cost ⇒ $52,000 = $120,000 - Variable cost⇒
Variable cost = $120,000 - $52,000 = $68,000
Total variable costs for sales of $240,000 = $240,000 × ($68,000 ÷ $120,000) = $136,000
Calculation of total fixed costs
Total fixed costs for sales of $240,000 = $40,000 (remains the same)
Calculation of profits increase
If 10 more units are sold, profits will increase by $130 = 10 × $13 (contribution margin per unit)
Calculation of break-even point
Break-even point is the point where total sales equals total expenses and the net income is zero.
Contribution margin ratio = Contribution margin / Sales ⇒ $52,000 / $120,000 ⇒ 0.433 or 43.3%
Fixed expenses / Contribution margin ratio = $40,000 / 0.433 ⇒ $92,355 (rounded to nearest dollar)
Total units to break-even = Total fixed cost / Contribution margin per unit ⇒ $92,355 / $13 per unit = 7,111 (rounded to nearest whole unit)
Calculation of the number of units needed to achieve a profit of $20,000
Units required to achieve a profit of $20,000 = (Fixed costs + Operating income) / Contribution
margin per unit = ($40,000 + $20,000) / $13 per unit
= 4,000 units + 1,538 units = 5,538 units (rounded to nearest whole unit)
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M1 refers to: Group of answer choices the smallest of the money-supply definitions. currency held by the public plus checking account balances. all of these. the most narrowly defined money supply definition.
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Answer:
all the options are correct
Explanation:
M1 is the money supply that includes currency, coin, demand deposits, travelers' checks, other checkable deposits, and negotiable order of withdrawal (NOW) accounts. M1 is the most liquid portions of the money supply because it contains currency and assets that either are or can be quickly converted to cash.
how long does it take to be an immigration lawyer and what’s the average salary?
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time: and 10-15 years (also depends where)
pearl sands is a resort in the town of willington. it attracts the maximum number of customers in the summer. in the spring, pearl sands sponsors shows on tv and puts up billboards in willington and the surrounding towns. the billboards advertise pearl sands as an ideal holiday spot, whether for a weekend getaway in the summer heat or for a family vacation. this is an example of a strategy.
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The Pasir Mutiara Resort is advertised on billboards and sponsored TV programs to let people know that it is a great place for families to visit. This is an illustration of a marketing strategy.
What is a marketing strategy?Marketing strategy is a way to achieve company goals by developing a sustainable competitive advantage through the market entered, and the marketing program used to serve the target market.
The purpose of marketing is to be able to recognize and understand the desires and expectations of customers so that the products or facilities provided will be in accordance with what is desired by the community.
The marketing concept has 4 main elements known as the 7P marketing concept, namely Product, Price, Place, Promotion, People, Process, and Physical Evidence.
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mcdonald's placement of a small toy in each happy meal as a reward for coming to the fast-food restaurant and ordering its food is based on which theory of learning?
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The McDonald's placement of a small toy in each happy meal as a reward for coming to the fast-food restaurant and ordering its food is based on the Operant Conditioning theory of learning.
This theory states that behaviors that are rewarded are more likely to be repeated than behaviors that are not. Thus, the toy in each happy meal serves as a positive reinforcement, making children more likely to want to return to McDonald's and request a happy meal.
According to Operant Conditioning, the most important factors that shape human behavior are positive and negative reinforcement and punishment. In McDonald's case, the toy serves as positive reinforcement, encouraging children to want to return to the fast-food restaurant and order food.
As children receive the happy meals and toys, they develop an association between eating at McDonald's and getting a toy. This association makes them more likely to want to return to the fast-food restaurant, and the cycle continues. Moreover, this theory of learning has been utilized by numerous other organizations, including schools and workplaces, to encourage the development of specific behaviors.
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Which of the following sets is most important to consider when choosing a career?
(A) needs and demographics
(B) hobbies and friends
(C) diversity and interests
(D) personal values and work values
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The sets that is most important to consider when choosing a career is (C) diversity and interests.
What is a career ?Career can be described as the occupation that ios been undertaken for a significant period whgich one can focus on, through ouut hios or her life with opportunities for progress.
It should be noted that when choosing ba career one should be able to seek for the things that interest you about tyhe field because ythis will help you when the journey is getting tough because to get to the peak of the career can not be seen as one that ios easy.
Therefore, option C is correct.
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Learning Task No. 3 Direction: Write the advantages ang disadvantages of the following packaging materials. Write your answer on a separate sheet of paper. Types of packaging Materials Advantage/s Disadvantage/s 1. Leaves 2. Vegetable Fibers 3. Wooden Crate 4. Paper 5. Earthenware 6. Glass 7. Plastic 8. Metal
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To identify the advantages and disadvantages of packaging materials it is necessary to analyze the purpose, durability and protection of the product.
What is the best packaging for a product?It will be one that protects the characteristics of the product, is durable and sustainable. Leaves, for example, are safe biodegradable materials for packaging some foods, but they still need more technological development for scale production.
Another example is that vegetable fibers are also sustainable materials but are also being used experimentally in the sustainability awareness phase.
Therefore, the ideal packaging will be one that protects the necessary characteristics of the product and is ecologically sustainable for the protection of the environment.
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2. Show that the sum of Marginal Propensity To Consume (MPC) and Marginal Propensity To Save (MPS) is equal to 1, and that Average Propensity To Consume (APC) and Average Propensity To Save (APS) is equal to 1.
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The sum of average propensity to consume and marginal propensity to consume is never equal to one because APC refers to Average Propensity to Consume, which defines the amount of consumption in every 1 rupee of income for all levels of income, whereas MPC refers to the percentage change in consumption when the level of income changes.
The average proclivity to consume (APC) is the ratio of consumption expenditure (C) to income (Y), indicating the average proportion of income spent on consumption.
It may be stated algebraically as APC=YC.
The average propensity to save (APS) is the ratio of saving (S) to income (Y), which expresses the average proportion of income saved.
It is stated algebraically as APS=YS.
Because revenue is either spent or saved, the total of APC and APS is assumed to be one.
As a result, the greater the APC, the lower the APS, and vice versa. However, the value of APC might be larger than one if consumption exceeds income, which occurs at very low-income levels.
In this situation, the savings are used to fulfill the autonomous consumption requirements, resulting in an APC value larger than 1.
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You are in charge of purchasing supplies for a lighting company and need to buy 125 feet of electrical wire. A local supplier sells the wire for $1.25 per foot, plus 5% sales tax. An online company sells the wire for $1.75 per foot. The online company also offers a rebate of 10% for the whole order and charges no additional sales tax. If you choose the better of the two prices, how much will you pay for the 125 feet of wire?
Answers
Answer:
$164.06 for the 125 feet
Explanation:
total costs from brick and mortar store = ($1.25 x 1.05) x 125 feet = $164.06
total costs from online store = $1.75 x (1 - 10%) x 125 feet = $196.88
after you compute the total costs per store, you should purchase the electrical wire from the brick and mortar store
as managers plan for the future, it is important to handle unexpected circumstances. by developing backup plans with alternative courses of action defined in case conditions change, managers are conducting planning.
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By developing backup plans with alternative courses of action defined in case conditions change, managers are conducting scenario planning.
What is scenario planning?Scenario planning can be defined as the strategy used by companies to predict future event or unforeseen event that may likely to happen and how to combat the event by making use of some preventive measure.
This scenario best illustrate what is known as scenario planning which is why the manager is trying to defined a strategic problem that may occur and the ways to overcome the problems.
Therefore we can conclude that the manager is making use of scenario planning.
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Making a list of the advantages and disadvantages is a good strategy to help you compare your choices.
True or False
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Answer: True
Explanation: it helps you see the advantages and disadvantages and compare them
It is accurate to say that making a list of benefits and drawbacks is an excellent way to compare your options.
What is a strategy?A general plan to accomplish one or more long-term or overall goals in the face of uncertainty is known as a strategy. The term was first used in the 6th century C.E. in Eastern Roman terminology, and it wasn't until the 18th century that it was translated into Western vernacular languages in the sense of the "art of the general," which included several sections of skills such as military tactics, siegecraft, logistics, etc.
From that point forward, and up to the 20th century, the term "strategy" grew to mean "a comprehensive means to try to attain political aims, including the threat or real use of force, in a dialogue of wills" in a military battle, in which both opponents interact. Strategy is crucial because there are typically few resources available to accomplish goals.
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Suppose that a firm in a competitive market has the following cost curves the firm should exit if the market price is:_______
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Suppose that a firm in a competitive market has the following cost curves: the firm should exit if the market price is below its average variable cost (AVC).
In a competitive market, a firm will make a decision to exit or stay based on its short-run and long-run costs. The short-run costs include fixed costs (FC), which the firm has to pay regardless of its production level, and variable costs (VC), which vary depending on the firm's production output.
A firm will compare the market price to its average total cost (ATC) and average variable cost (AVC) to determine whether to exit the market. If the market price is below the firm's AVC, it would be unable to cover its variable costs and will experience a loss on each unit produced. In this situation, it is more beneficial for the firm to exit the market and minimize its losses.
If the market price is between the firm's AVC and ATC, it can cover its variable costs but not its fixed costs, resulting in a short-term loss. However, the firm may choose to continue operating in the market, hoping for an improvement in market conditions.
Lastly, if the market price is above the firm's ATC, it will cover both its variable and fixed costs and earn a profit. In this case, the firm will continue operating in the market.
In summary, a firm in a competitive market with specific cost curves should exit the market if the market price is below its average variable cost.
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Julie and Kristen are partners in a local sporting good store. They needed $51,000 to start the
business. They invested in the ratio of 3:10 respectively. How much money did each invest?
What percent is owned by Kristen?
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3eyy1ggh mi y
1uj gyrju3hxif2 2x ce I I b I 6x9
3/10=x/51000
X=15,300, Julie
51,000-15,300
35,700, Kristen
70% is owned by Kristen
A company's static budget estimate of total shipping cost was 100,000 based on the assumption that 10,000 units would be produced and sold. The company estimates that 30% of this amount is variable and the remainder is fixed. What would be the total shipping cost if 12,000 units were produced and sold? a. 96,000 b. 100,000 c. 106,000 d. 116,000
Answers
106,000 be the total shipping cost if 12,000 units were produced and sold.
Variable cost for 10,000 units = (100,000*30%) =30,000
Per unit = 3
Fixed cost = (100,000-30,000) = 7,0000
Total shipping cost for 12,000 units
= (12,000*3) + 70,000
= 106,000.
Ideally, the seller pays the freight to the main port or other destination and the buyer pays the freight from the warehouse to the store or supplier.
Shipping cost means shipping and related transportation costs to receive the package from the carrier to the end user. This fee includes surcharges, fuel charges, and other costs associated with travel distance and selected delivery date.
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amanda and steve smith are married and file jointly. during 2020 they paid state property taxes of $15,000 and state income taxes of $2,000. if they decided to itemize their deductions what amount of combined property and state income taxes can amanda and steve claim on their schedule a - itemized deductions?
Answers
Property taxes and state and local income taxes are only eligible for a $10,000 deduction.
However, if a married couple files separately, the deduction is $5,000.
What is called deduction?
An expense that can be deducted from a taxpayer's gross income to lower the amount of income that is subject to taxation is known as a deduction. If a taxpayer chooses to itemise their deductions, they must record each one on Schedule A of Form 1040. Since the Tax Cuts and Jobs Act was passed in 2017, the standard tax deductions have steadily increased.
For instance, if you earn $50,000 a year and give $1,000 to charity in that same year, you are qualified to claim a charitable deduction, which lowers your taxable income to $49,000. A deduction is frequently referred to as an acceptable deduction by the Internal Revenue Service (IRS).
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an account manager is creating their first search ad. they want to create an inviting and relevant ad to which potential customers will respond favorably. what are two ways that the account manager can create an ad that will motivate users to click on it? (choose two.) select 2 correct responses list the ad at the bottom of the search results. feature a relevant headline. include a current promotion. increase the font size. next
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As an account manager creating a search ad, it is important to create an inviting and relevant ad that will motivate users to click on it. There are two ways to achieve this: 1. Feature a relevant headline - The headline of the ad should be catchy and relevant to the user's search query. It should clearly convey the message of what the user can expect from clicking on the ad. A relevant headline will not only grab the user's attention but also increase the chances of them clicking on the ad.
Option A is correct
2. Include a current promotion - Users are always looking for ways to save money. By including a current promotion in the ad, the account manager can motivate users to click on the ad. The promotion could be a discount, free trial, or any other incentive that would encourage users to take action. Listing the ad at the bottom of the search results or increasing the font size may not necessarily motivate users to click on the ad. The placement of the ad on the search results page does not matter as much as the relevance and value it provides to the user. Similarly, increasing the font size may make the ad more visible but it does not guarantee that users will click on it.
In summary, featuring a relevant headline and including a current promotion are two effective ways for the account manager to create an ad that will motivate users to click on it.
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Which non-income factor for a potential job would influence a person who values easy access to entertainment and culture?
- job security
- working hours
- location
- availability of benefits
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Which non-income factor for a potential job would influence a person who values easy access to entertainment and culture?
- LocationThe most important number to forecast in preparing the master budget is the number ________ . (Enter only one word.)
Answers
The most important number to forecast in preparing the master budget is the number "sales" or "revenue."
Sales or revenue serves as the foundation for many other budget components and influences various aspects of a company's operations. By accurately forecasting sales, a company can effectively plan and allocate resources to achieve its financial goals and objectives. Here are a few reasons why sales is the most critical number in the master budget:
Basis for Production Levels: Sales forecasts help determine the expected demand for products or services, which, in turn, influences the production levels required to meet that demand. By aligning production with sales forecasts, companies can avoid overproduction or underproduction, optimizing inventory levels and minimizing costs.
Cost Planning: Sales forecasts are vital for estimating the cost of goods sold (COGS). COGS includes expenses directly related to production, such as raw materials, direct labor, and manufacturing overhead. Accurate sales forecasts enable companies to project the associated production costs and plan their budget accordingly.
Expense Allocation: Sales forecasts provide insights into the resources required to support the sales activities, such as marketing and advertising expenses, sales commissions, and customer support. By accurately forecasting sales, companies can allocate budgets appropriately to these areas, ensuring adequate support for the expected revenue generation.
Profitability Analysis: Sales forecasts are essential for analyzing the profitability of the business. By comparing projected sales with estimated costs and expenses, companies can assess their expected profit margins. This information is crucial for making strategic decisions, setting pricing strategies, and identifying areas for improvement.
Cash Flow Planning: Sales forecasts play a significant role in cash flow planning. By estimating the timing and amount of sales, companies can project their incoming cash flow and plan for any potential cash shortfalls or surpluses. This information is essential for managing working capital, meeting financial obligations, and making investment decisions.
In summary, sales or revenue forecasts are crucial for various aspects of the master budget, including production planning, cost estimation, expense allocation, profitability analysis, and cash flow planning. Accurate sales forecasts serve as the cornerstone for effective financial planning and decision-making within an organization.
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Is the accounting profession responded in a timely, comprehensive, and effective manner to stakeholders and business current challenges? Explain
Answers
Yes the accounting profession is responded in the way that it wwould take care of current business challenges.
What is the accounting profession?This is the profession where financial analysis and other functions such as auditing are carried out.
The institution today is being structured in a way that it would still be able to meet the goals of the times that we are in.
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What can a boosted post help an advertiser achieve?
Answers
A boosted post helps an adviser to connect with the audience and gain trust.
Boosted post is a kind of post that is used on social media platforms in order to enhance the page of the platform and to attract audience to the page. Boosted post can help better communication with the audience along with the increase in a greater number of messages, calls and texts. Boosted posts help for better advertisements of the product. For example, A Chocolate brand may use Boosted posts to gain audience as well as consumers. Boosted posts helps an adviser to be discovered among people, to establish a benchmark in the market and to gain more and more customers. It's a kind of marketing strategy used for publicity purpose.
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B3. The following information relates to three possible capital expenditure projects. Because of capital rationing, only one project can be accepted. Project A B C Initial Cost £200 000 £230 000 £180 000 Expected Life 5 years 5 years 4 years Scrap value £10 000 £15 000 £8000 Expected (£) (£) (£) Cash Inflows End Year 1 80 000 100 000 55 000 End Year 2 70 000 70 000 65 000 End Year 3 65 000 50 000 95 000 expected vorap vande 210 210 Expected (£) (£) (£) End Year 1 80 000 100 000 55 000 End Year 2 70 000 70 000 65 000 End Year 3 65 000 50 000 95 000 End Year 4 60 000 50 000 100 000 End Year 5 55 000 50 000 Depreciation is charged on a straight line basis over the economic life of each project. Depreciation is the only adjustment difference between accounting profit and cash flows for each project. The company estimates its cost of capital as 18 per cent. The discount factors (p.a.) for 18% discount rate are as follow: expected Cash Inflows Do 200 MANG2014 W1 Year 0 1 2 3 4 5 6 1 0.847 0.718 0.609 0.516 0.437 0.370 Calculate for each project a) the pay back period. b) the accounting rate of return. c) the net present value. [10 marks] Which project should be accepted - give reasons. [5 marks] Explain how investment decisions, in practice, affect the maximisation of shareholders wealth. [5 marks] Required (i) (ii)
Answers
The tasks involve calculating the payback period, accounting rate of return, and net present value for each project, and determining which project should be accepted based on the results.
What tasks are involved in the paragraph?
The paragraph describes three capital expenditure projects (A, B, and C) with their respective costs, expected cash inflows, and scrap values. Depreciation is accounted for using straight-line basis. The cost of capital is estimated at 18%.
The discount factors for a discount rate of 18% are also provided. The tasks are to calculate the payback period, accounting rate of return, and net present value for each project, and then determine which project should be accepted based on the results. Additionally, an explanation is required on how investment decisions affect the maximization of shareholders' wealth.
To calculate the payback period, the cumulative cash inflows for each year are determined until the initial investment is recovered. The accounting rate of return is calculated by dividing the average annual accounting profit by the initial investment and expressing it as a percentage.
The net present value is calculated by discounting the expected cash inflows using the provided discount factors and subtracting the initial investment.
The project with the shortest payback period, highest accounting rate of return, and positive net present value should be accepted.
The explanation of how investment decisions affect the maximization of shareholders' wealth should discuss how selecting projects that generate higher returns and positive net present values contribute to increasing the value of the company, benefiting its shareholders.
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