A project that provides annual cash flows of $15,400 for nine year costs $67,000 today. What is the NPV if the required return is 8 percent? What if its 20 percent? At what discount rate would you be indifferent between accepting the project and rejecting it?
USING EXCEL FORMULA: SHOW PV FORMULA

Assuming Zende Company issues 78,000 shares of $7 par value common stock, the journal entries to record the issuance would be as follows:

If the shares sell for $7 cash per share:

Common Stock (78,000 x $7) $546,000

Cash $546,000

Explanation: The Common Stock account is credited for the total par value of the shares issued, which is calculated by multiplying the par value ($7) by the number of shares (78,000). The Cash account is debited for the total cash received from the issuance of the shares, which is also $546,000.

If the shares sell for $8 cash per share:

Common Stock (78,000 x $7) $546,000

Additional Paid-in Capital $78,000

Cash $624,000

Explanation: The Common Stock account is credited for the total par value of the shares issued, which is $546,000. The Additional Paid-in Capital account is credited for the difference between the cash received per share ($8) and the par value per share ($7), multiplied by the number of shares (78,000), which is $78,000. The Cash account is debited for the total cash received from the issuance of the shares, which is $624,000.

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To calculate the average fixed cost (AFC) and average variable cost (AVC), we need to use the following formulas:

AFC = Total Fixed Cost / Quantity
AVC = Total Variable Cost / Quantity

Given that for 20 bicycles, the total fixed cost is $100 and the total variable cost is $300, we can plug these values into the formulas:

AFC = $100 / 20 = $5
AVC = $300 / 20 = $15

So, the correct answer is:
B. AFC = $5 and AVC = $15

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The correct answer is option B: AFC = $5 and AVC = $15. To find the average fixed cost (AFC) and average variable cost (AVC), we need to use the following formulas:

AFC = Total Fixed Cost / Quantity

AVC = Total Variable Cost / Quantity

Given that the total fixed cost is $100 and the total variable cost is $300 for 20 bicycles, we can calculate the AFC and AVC as follows:

AFC = $100 / 20 = $5

AVC = $300 / 20 = $15

Therefore, the correct answer is option B: AFC = $5 and AVC = $15.

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Can not be determined. The answer is OPTION A.

Future value cannot be determined because the statement makes no reference of an end date. An perpetual annuity is one that never expires. It never ends. A fixed sum is paid over an arbitrary time period. It is an annuity that has no set end date. It is a security that generates an endless stream of revenue.

The main distinction between annuities and perpetuities is that annuities have fixed durations, whereas perpetuities do not. A Perpetuity has no future value as a result since it needs a specified future date. An annuity is a fixed payout made over a fixed period of time. Payments made in advance and received indefinitely are known as perpetuities. The answer is OPTION A.

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If Par, Inc. reduces its sewing and finishing hours by 40 hours, it is likely that the production output of the two products will decrease.

This will result in a decrease in revenue and profits for the company. The exact amount of profit decrease cannot be determined without knowing the current profit margins and production costs for the products.

However, it is safe to assume that reducing production hours will have a negative impact on the company's profitability. In order to maintain or increase profits, Par, Inc. may need to explore other cost-saving measures or increase efficiency in other areas of production.

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The correct option is D) Have expert information on occupations or work as a whole.

One of the main reasons for using supervisors as a source of information in the job analysis process is that they have expert information on occupations or work as a whole. The correct answer is D. Supervisors are often experts in the occupations or work being performed and have in-depth knowledge of the tasks, skills, and abilities required for the job. They can provide valuable insight into the job analysis process and help ensure that accurate and relevant information is collected. However, it's important to note that other sources of information, such as incumbents, peers, and subject matter experts, should also be included in the job analysis process to ensure a comprehensive and accurate understanding of the job.

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In the basic equation of national income accounting, GDP = C + I + G + X – IM, the government directly controls G and influences C and I through fiscal policy. G; C and I is the correct answer.

Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health.

GDP = private consumption + gross private investment + government investment + government spending + (exports – imports)

GDP = C + I + G + (X – IM)

GDP is usually calculated by the national statistical agency of the country following the international standard.

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In the "upper-left" quadrant of the core competence-market matrix, a firm combines its existing core competencies with existing markets.

This quadrant is known as the "leveraging" quadrant, as it involves leveraging existing strengths to maintain and expand existing market positions.

Firms in this quadrant focus on improving efficiency and effectiveness in their operations, developing cost advantages, and enhancing customer relationships.

This involves investing in R&D to enhance existing products and services, streamlining production processes, and improving marketing and sales efforts to deepen relationships with existing customers.

Leveraging existing core competencies to exploit existing market opportunities is a relatively low-risk approach to growth, as it avoids the need for significant investment in new technologies, products, or markets.

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When the Demotion action is selected in the Reduction PAR (Personnel Action Request), the reason that automatically populates is "Reduction in Force (RIF)."

This is because demotion is one of the actions that can be taken during a RIF. A RIF is a process used by employers to reduce the size of their workforce due to a lack of funds or work, reorganization, or other business reasons. During a RIF, employees may be laid off, furloughed, or demoted. Demotion involves the reduction of an employee's position or job level, which may result in a reduction in pay and benefits.

The reason for demotion in a RIF is usually due to the need to streamline operations and reduce costs. It is important for employers to follow proper procedures and guidelines when implementing a RIF to avoid any legal or ethical issues.

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In the 2013 10-K, Tesla anticipates the useful life of workplace furniture, machinery, and equipment to be between 3 and 12 years. answer is option (c).

"Machinery and equipment" refers to: "Industrial fixture" refers to an object fixed to a structure or to a piece of property. Fixtures are categorised as real property, not as personal property, when they are affixed to real estate and become a part of that real estate. The two main tools and implements used in company operations are equipment and machinery (occasionally they are kept in different accounts). These could include computers, copiers, phone systems, and any other electronic equipment for a service business.

From a mechanical perspective, the term "equipment" has a considerably broader definition and is frequently necessary to produce something. (such as a machine). Machines are the finished item.

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Trade diversion: Solar Panels, Computer Chips

Trade creation: Textiles, Sugar

Trade diversion occurs when a country replaces low-cost imports from one country with higher-cost imports from another country after forming a regional trade agreement.

Trade creation occurs when the formation of a regional trade agreement results in the creation of new trade between the participating countries

Trade creation occurs when a regional trade agreement leads to an increase in economic welfare through increased trade among member countries. This typically occurs when member countries shift from higher-cost producers to lower-cost producers within the region.

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Stimuli that do not produce a reflexive response are typically those that do not trigger an automatic, involuntary reaction in our bodies. Reflexive responses are innate and occur without conscious thought, usually as a protective or survival mechanism. Examples of reflexive responses include pulling your hand away from a hot surface, blinking when something comes near your eye, or coughing when your airway is irritated.

Stimuli that do not naturally produce reflexive responses are generally those that require conscious thought or decision-making, such as solving a math problem, planning a vacation, or choosing an outfit to wear. These activities involve higher cognitive processes and do not rely on the automatic, involuntary actions that characterize reflexive responses.

In summary, stimuli that do not produce a reflexive response are those that do not trigger an automatic, involuntary reaction and instead require conscious thought or decision-making. These activities involve higher cognitive processes and differ from the protective or survival mechanisms seen in reflexive responses.

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Stimuli that do not produce a reflexive response are typically those that do not trigger an automatic, involuntary reaction in our bodies. Reflexive responses are innate and occur without conscious thought, usually as a protective or survival mechanism. Examples of reflexive responses include pulling your hand away from a hot surface, blinking when something comes near your eye, or coughing when your airway is irritated.

Stimuli that do not naturally produce reflexive responses are generally those that require conscious thought or decision-making, such as solving a math problem, planning a vacation, or choosing an outfit to wear. These activities involve higher cognitive processes and do not rely on the automatic, involuntary actions that characterize reflexive responses.

In summary, stimuli that do not produce a reflexive response are those that do not trigger an automatic, involuntary reaction and instead require conscious thought or decision-making. These activities involve higher cognitive processes and differ from the protective or survival mechanisms seen in reflexive responses.

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We must utilise the Capital Asset Pricing Model (CAPM), which considers the risk-free rate, market risk premium, and project,Co.'s dollar-denominated debt. The final cost of debt can be calculated by adding the risk premium.

We must first use the CAPM formula to determine the equity cost of capital: Ke is the cost of equity, Rf is the risk-free rate, B is the project's beta, and Rm is the anticipated market return. We can enter the values using the information provided to obtain: Ke = 0.04 + 1.2 (0.10 - 0.04) = 0.112.

The after-tax cost of debt can be determined using the U.S. corporate tax rate because Maximus Co. is a multinational corporation with a U.S. basis..Kd = Rd * (1 - tax rate).where Kd is the debt's after-tax cost, Rd is its nominal cost, and the tax rate is the corporate tax rate in the United States, which is 0.32 percent..Assuming that the risk-free rate plus the risk premium offered by U.S. creditors equals the nominal cost of debt, we can compute it as follows: Risk premium on dollar-denominated debt provided by U.S. creditors plus risk premium equals.

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C. Purchase orders would be an appropriate cost driver for the ordering and receiving activity cost pool.

What is cost driver?

The cost driver is a factor that can accurately measure the cause-and-effect relationship between the cost and the activity. In this case, the ordering and receiving activity cost pool is related to the number of purchase orders placed, and therefore, the number of purchase orders can be used as an appropriate cost driver.

A cost driver is any factor that causes a change in the cost of an activity or process. It is the root cause of the cost of a particular product, service or process. Cost drivers are used to identify and allocate the indirect costs of an activity to the products or services that use them. By understanding the cost drivers, a company can manage and control its costs more effectively. Examples of cost drivers include machine hours, labor hours, number of setups, number of orders, and number of inspections.

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Complete question is:  Purchase orders would be an appropriate cost driver for the ordering and receiving activity cost pool.

The firm that markets a product with no branding information attached to the packaging except a description of its contents is using generic branding.

Generic branding refers to the practice of selling a product without any distinctive branding elements, such as a brand name, logo, or trademark. Instead, the product is identified only by its generic name or description, which indicates its type or category. Generic branding is often used for commodity products that are easily substitutable, such as sugar, flour, or salt. In such cases, the absence of branding allows the firm to compete solely on price and quality, rather than on the strength of its brand image. However, generic branding may also be used strategically by firms that wish to differentiate themselves from their competitors by emphasizing the simplicity, purity, or naturalness of their products. Overall, the choice of branding strategy depends on the firm's marketing objectives, target audience, and competitive environment. While proprietary branding can create strong customer loyalty and premium pricing, generic branding may be more appropriate for cost-conscious consumers who prioritize value over brand identity.

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The concept of potential output refers to the level of economic activity that an economy can sustain in the long run without generating inflationary pressures.

When an economy is operating at its potential output, it means that all of its available resources are being utilized efficiently and effectively. In this state, the only unemployment that exists is structural or frictional, which means that individuals who are unemployed are in between jobs or lack the necessary skills to fill available positions. This type of unemployment is considered to be natural and does not create inflationary pressures in the economy.

However, when the economy is operating above its potential output, there is an increase in demand for goods and services that cannot be met by available resources, resulting in inflation. Conversely, when the economy is operating below its potential output, there is a surplus of available resources that can lead to lower prices and decreased economic activity.

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The Fed, or Federal Reserve, should remain an independent entity rather than becoming a government agency subordinate to Congress and the president.

The Federal Reserve, also known as the central bank of the United States, was created as an independent entity by Congress in 1913. The decision to make the Fed independent was made for several reasons, including the need to insulate monetary policy from short-term political pressures and to provide a stable and predictable environment for economic growth.

Overall, the question of whether the Fed should be independent or a government agency subordinate to Congress and the president is a complex one with no easy answer. Both options have their advantages and disadvantages, and ultimately the decision depends on a variety of political and economic factors. However, most economists and policymakers agree that the independence of the Fed is essential for effective monetary policy and the long-term health of the economy.

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Most frauds are detected by a combination of internal auditors, hotline tips, and forensic accountants. External auditors may also play a role in detecting fraud.

Forensic accountants typically focus more on ensuring the accuracy of financial statements rather than specifically investigating fraud. Internal auditors are responsible for monitoring and evaluating a company's internal controls and identifying potential fraud risks.

Hotline tips can come from employees or other stakeholders who report suspicious activity, most frauds are detected by a group of answer choices internal auditors. hotline tip. forensic accountants. external auditors.

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Three natural barriers to entry are: d. Control of resources, patents and copyright law, and economies of scale are three natural barriers to entry.

Control of resources means that established companies have exclusive access to important resources like land, raw materials, or technology.

Patents and copyright law protect the intellectual property of established companies, making it difficult for newcomers to compete.

Economies of scale refer to the cost advantages that larger companies have over smaller ones due to their ability to produce and distribute goods more efficiently.

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Buffalo were hunted down and killed in Texas after the 1840s so that Texans, such as the Parrkers, could grow more cotton.. As a result the value of buffalo hides dropped by the time of the Civil War. (option b)

The value of the buffalo hides and robes market increased with the arrival of Anglos. As more settlers moved into the region, they had a high demand for these items for their personal use and trade. The increase in demand resulted in a significant rise in the price of buffalo hides and robes. The Comanche people, therefore, began to hunt more buffalos to meet the growing demand and maximize profits.

However, the market for buffalo hides and robes took a different turn after the 1840s when Texans started killing buffalos to grow cotton. This act significantly reduced the population of buffalos in the region, making it challenging for the Comanche to meet the demand. As a result, the value of buffalo hides and robes market dropped significantly by the time of the Civil War.

The drop in the market value of buffalo hides and robes had a massive impact on the Comanche people's way of life. They were forced to rely on other trading items to survive, resulting in a significant shift in their economic activities. The Comanche people had to adapt to the changing market dynamics by either finding new trading items or resorting to raiding other tribes.

Hence the correct option is (b).

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Permanent vesting under ERISA is when an employee becomes the owner of his retirement proceeds, of vesting that allows becoming fully vested in their employer-sponsored retirement.

Buying out refers to an employer offering a lump sum payment to an employee in exchange for giving up their benefits. Mandatory vesting is a requirement under ERISA that employers must offer vesting in their retirement plans within a certain timeframe.
ERISA refers to when an employee becomes the owner of his retirement proceeds. The correct term is "vesting," and in the context of your question, it is specifically Executive vesting is when an employee, usually an executive or high-ranking individual.

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Performance refers to the overall output or achievement of an employee in their designated role within an organization. On the other hand, organizational citizenship behaviors refer to actions taken by employees that go beyond their job requirements and contribute positively to the workplace environment.

To increase someone's performance, it is important to set clear goals and expectations for them, provide regular feedback and coaching, and offer opportunities for development and growth. Additionally, offering incentives and rewards for exceptional performance can be a motivator for employees to strive for better results.

To increase citizenship behaviors, it is important to create a positive work environment that fosters collaboration, communication, and a sense of belonging among employees. Providing opportunities for employee engagement and participation in decision-making processes can also encourage citizenship behaviors. Additionally, recognizing and rewarding employees who exhibit positive citizenship behaviors can further reinforce their importance in the workplace.

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Answer:

Let's break down the problem step by step.

Given Information:

Fixed manufacturing costs: $335,000

Fixed selling and administrative costs: $249,780

Variable manufacturing cost per unit: $60.00

Variable selling and administrative cost per unit: $3.00

Selling price per unit: $83.00

Break-even units: 29,239

Break-even sales: $2,426,837

Calculation of Contribution Margin:

Contribution margin is the selling price per unit minus the variable cost per unit. It represents the amount of each unit's revenue that contributes to covering fixed costs and generating profit.

Contribution margin per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = $83.00 - ($60.00 + $3.00)

Contribution margin per unit = $83.00 - $63.00

Contribution margin per unit = $20.00

Calculation of Profit for Selling 3,500 Units More Than Break-even:

If the company sells 3,500 units more than the break-even units, then the total units sold would be:

Total units sold = Break-even units + Additional units sold

Total units sold = 29,239 + 3,500

Total units sold = 32,739

Profit = (Total units sold) * (Contribution margin per unit) + (Fixed manufacturing costs) + (Fixed selling and administrative costs)

Profit = 32,739 * $20.00 + $335,000 + $249,780

After calculating the above expression, we will get the profit for the company.

Calculation of Selling Price for Not Selling Any Backpacks:

If the manufacturer does not sell any backpacks, the profit would be zero as there would be no revenue. Therefore, the selling price at which the manufacturer is better off not selling any backpacks would be the selling price that covers all the costs but results in zero profit.

Total cost per unit = Fixed manufacturing costs + Fixed selling and administrative costs + Variable manufacturing cost per unit + Variable selling and administrative cost per unit

Total cost per unit = $335,000 + $249,780 + $60.00 + $3.00

Selling price for not selling any backpacks = Total cost per unit

Selling price for not selling any backpacks = $335,000 + $249,780 + $60.00 + $3.00

After calculating the above expression, we will get the selling price at which the manufacturer is better off not selling any backpacks.

Explanation:

The adjusting entries to record depreciation or amortization expense, or to write down assets that have become impaired by reducing the net income. Hence, option B is the correct option.

The income earned by an individual or by a business is referred to as net income. Reducing net income, but have no direct effect on cash balances. When adjusting entries are made to record depreciation or amortization expense or to write down impaired assets, it reduces the net income for the period. However, it does not directly affect the cash balance as these entries only represent the allocation of expenses over time or the recognition of a loss in value of an asset.

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The expected rate of return for NCP's common stock can be calculated using the dividend discount model. Where the expected rate of return will approximately be 13.62%.

To find the expected rate of return for NCP's common stock, we can use the Dividend Discount Model (DDM), which is given by the formula:

Expected Rate of Return = (Dividends per share / Current stock price) + Dividend growth rate

1. Dividends per share: Last year, NCP paid $1.32 in dividends.
2. Current stock price: NCP's current market price is $23.50 per share.
3. Dividend growth rate: Dividends are expected to grow at an 8% annual rate indefinitely.

Now, plug the values into the formula:

Expected Rate of Return = ($1.32 / $23.50) + 0.08

Expected Rate of Return = 0.0562 + 0.08

Expected Rate of Return ≈ 0.1362

To express the expected rate of return as a percentage, multiply by 100:

Expected Rate of Return ≈ 13.62%

Therefore, the expected rate of return for NCP's common stock is approximately 13.62%.

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The risk of the three stock portfolio is ca 0.425 or 0.42 .Based on the given information, we can calculate the risk of the three stock portfolio by using the formula for portfolio variance:

Portfolio Variance = (Weight1^2 x Variance1) + (Weight2^2 x Variance2) + (Weight3^2 x Variance3) + 2 x Weight1 x Weight2 x Covariance1,2 + 2 x Weight1 x Weight3 x Covariance1,3 + 2 x Weight2 x Weight3 x Covariance2,3

Where:
- Variance1, Variance2, and Variance3 are the variances of Asset 1, Asset 2, and Asset 3 respectively
- Covariance1,2, Covariance1,3, and Covariance2,3 are the covariances between Asset 1 and Asset 2, Asset 1 and Asset 3, and Asset 2 and Asset 3 respectively

Using the given data, we can calculate the variances and covariances:

Variance1 = (10% - 0)^2 = 1%
Variance2 = (15% - 0)^2 = 2.25%
Variance3 = (20% - 0)^2 = 4%

Covariance1,2 = Beta1,2 x Variance1 x Variance2 = 3 x 1% x 2.25% = 0.0675%
Covariance1,3 = Beta1,3 x Variance1 x Variance3 = 5 x 1% x 4% = 0.2%
Covariance2,3 = Beta2,3 x Variance2 x Variance3 = 8 x 2.25% x 4% = 0.72%

Now we can plug these values into the formula:

Portfolio Variance = (0.3^2 x 1%) + (0.5^2 x 2.25%) + (0.2^2 x 4%) + 2 x 0.3 x 0.5 x 0.0675% + 2 x 0.3 x 0.2 x 0.2% + 2 x 0.5 x 0.2 x 0.72%
= 0.425%

Therefore, the risk of the three stock portfolio is ca 0.425 or 0.42 (rounded to two decimal places).

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The scenario that best demonstrates how standards of excellence affect team performance is b) Marcus knows that although internal dates for his project can be rescheduled by a few days, the last date must be met.

This scenario shows that Marcus understands the importance of meeting deadlines and that he holds himself and his team accountable to those standards of excellence. This type of mindset and behavior can positively influence the team's performance by promoting a culture of responsibility, accountability, and quality work.

In this scenario, Marcus is aware of the importance of meeting deadlines and maintaining high standards of excellence in his team's performance. By ensuring that the final deadline is met, Marcus and his team demonstrate their commitment to delivering high-quality work on time. This adherence to excellence positively impacts the team's overall performance.

So, the correct answer is option b. Marcus knows that although internal dates for his project can be rescheduled by a few days, the last date must be met.

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In data mining over-fitting results in developing bargaining power too precise a model that will fail to generalize and therefore will have poor predicting power. This statement is True.

The supplied statement, "Apple, a company with a strong product line, probably has weak buyer bargaining power," is untrue because Apple customers have tremendous bargaining power even with a strong product range. This is due to the high price of Apple's products.

Customers can simply move to similar products from rival companies if the price of Apple's products rises too much, which lessens their reliance on Apple products. Additionally, there are other rivals in the technological sector, giving consumers a wide range of possibilities apple's customers are knowledgeable, which increases their negotiating power. They can easily contrast Apple's products with those of rival companies and base their purchases on the perceived value. The variety of Apple's customers also implies that they have a range of preferences, which can impact their ability to negotiate.

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Real GDP per person will be twice what it is in 2018 in the year 2088 .

To answer this question, we need to use the formula for calculating real GDP per person:

Real GDP per person = Real GDP / Population

We know that in 2018, Brazil's real GDP is growing at 1.7% a year and its population is growing at 0.7% a year. This means that:

Real GDP in year t = Real GDP in 2018 x (1 + 0.017)^(t-2018)
Population in year t = Population in 2018 x (1 + 0.007)^(t-2018)

To find the year when Brazil's real GDP per person is twice what it is in 2018, we can set up the following equation:

2 x Real GDP per person in 2018 = Real GDP per person in year t

2 x (Real GDP in 2018 / Population in 2018) = (Real GDP in year t / Population in year t)

Substituting the above formulas for Real GDP and Population in terms of t, we get:

2 x (Real GDP in 2018 / Population in 2018) = [(Real GDP in 2018 x (1 + 0.017)^(t-2018)) / (Population in 2018 x (1 + 0.007)^(t-2018))]

Simplifying this equation, we can cancel out the terms for Real GDP and Population in 2018, and we get:

2 / (1 + 0.007)^(t-2018) = 1 + 0.017

Solving for t, we get:

t - 2018 = log(2) / log(1.007)

t = 2088

Therefore, if these growth rates continue, Brazil's real GDP per person will be twice what it is in 2018 in the year 2088 (option B).

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In 2018​ Brazil's real GDP is growing at 1.7 percent a year and its population is growing at 0.7 percent a year.

If these growth rates​ continue, in what year will​ Brazil's real GDP per person be twice what it is in​ 2018?

If these growth rates​ continue, Brazil's real GDP per person will be twice what it is in 2018 in​ _______.

When standard costs are used, factory overhead is assigned to products with a predetermined standard overhead rate. - True

A variable or flexible budget is so named because it only focuses on variable costs. - False. A variable or flexible budget focuses on both variable and fixed costs.

A flexible budget expresses all costs on a per unit basis, regardless of cost behavior. - False. A flexible budget expresses variable costs on a per unit basis and fixed costs on a total basis.

The usefulness of a flexible budget depends on the valid classification of costs in terms of period and product costs rather than variable and fixed costs. - True

A favorable direct materials price variance might lead to an unfavorable direct materials quantity variance because the company purchased inferior materials. - False. A favorable direct materials price variance would typically lead to a favorable direct materials quantity variance as the company would have paid less for the same amount of materials.

One possible explanation for direct labor rate and efficiency variances is the use of workers with different skill levels. - True

If ending variance account balances are material, they should always be closed directly to Cost of Goods Sold. - True

A volume variance occurs when the company operates at a different capacity level than was expected. - True

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1. No, a standard costing system may not be beneficial in a situation where changes happen daily.

2. Yes, a standard costing system may be beneficial in a situation where inventory is trying to be eliminated.

3. Yes, a standard costing system may be beneficial in a situation where there is a lack of timeliness.

1. In a situation where changes happen daily, a standard costing system may not be useful as it is based on predetermined standards and may not be able to keep up with the frequent changes in the production process or cost structure. It may result in inaccurate cost measurement and budgeting, leading to inefficient decision-making.

2. A standard costing system may be useful in a situation where inventory is trying to be eliminated, as it provides a benchmark against which actual costs can be compared. This helps in identifying areas of inefficiency, cost reduction opportunities, and improving inventory management.

By setting standards for material and labor costs, a company can control and monitor its inventory costs more effectively, leading to better decision-making.

3. In a situation where there is a lack of timeliness, a standard costing system may be beneficial as it provides a framework for identifying and measuring cost variances on a timely basis. By monitoring and analyzing cost variances, a company can identify inefficiencies in its production process, reduce costs, and improve overall profitability.

Standard costing can help to ensure that production and accounting information is available in a timely manner, allowing management to make informed decisions.

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