This increases the nation's money supply and expands the economy.
When the Federal Reserve decreases the reserve ratio, it lowers the amount of cash that banks are required to hold in reserves, allowing them to make more loans to consumers and businesses.
What is the federal reserve?
The United States of America's central banking system is called the Federal Reserve System. The passage of Federal Reserve Act on December 23, 1913, was established in response to the need for centralized control of the monetary system to prevent financial crises following a string of financial panics. To guarantee that the financial system supports a strong economy for American people, communities, and businesses, the Federal Reserve analyses financial system risks and actively participates at home and abroad. To better understand the effects of financial services laws and practices on customers and communities, the Federal Reserve promotes supervision, community reinvestment, and research.
To learn more about the federal reserve click on the given link:
https://brainly.com/question/25817380
#SPJ4
ch 2 kb. increases to finished goods can also be found as decreases to which account? group of answer choices work in process manufacturing overhead cost of goods manufactured raw materials
Cost of goods manufactured work in process.
production is the creation or manufacturing of goods with the help of device, hard work, machines, equipment, and chemical or organic processing or method. it is the essence of secondary sector of the economic system.[1] The term may also consult with a variety of human hobby, from handicraft to excessive-tech, but it's far most typically applied to business design, in which raw materials from the primary area are converted into completed items on a large scale. Such items may be sold to different manufacturers for the production of different more complicated products (such as plane, family home equipment, furniture, sports device or motors), or allotted via the tertiary industry to cease customers and customers (typically via wholesalers, who in turn promote to retailers, who then promote them to person clients).
learn more about manufactured
https://brainly.com/question/13767214
#SPJ4
Alexander Industries is considering a project that requires an investment in new equipment of $3,570,000. Under the new tax law, the equipment is eligible for 100% bonus depreciation at t - 0 so the equipment will be fully depreciated at the time of purchase. Alexander estimates that its accounts receivable and inventories need to increase by $680,000 to support the new project, some of which is financed by a $272,000 increase in spontaneous liabilities (accounts payable and accruals). The company's tax rate is 25%. The after-tax cost of Alexander's new equipment is ____Alexander's initial net investment outlay is _________Suppose Alexander's new equipment is expected to sell for $400,000 at the end of its four-year useful life, and at the same time, the firm expects to recover all of its net operating working capital (NOWC) investment. Remember, that under the new tax law, this equipment was fully depreciated att -0. If the firm's tax rate is 25%, what is the project's total termination cash flow? O $400,000 O $300,000 O $500,000 O $708,000
The after-tax cost of Alexander's new equipment is $2,677,500, Alexander's initial net investment outlay is $3,085,500The project's total termination cash flow is $708,000.
Define terminal cash flow.The term "terminal cash flow" refers to the total cash flow (i.e., net of cash inflow and cash outflow) at the conclusion of the project, which includes the after-tax cash flow from selling all of the project-related equipment and recovering working capital.
Given:
Year 0
Cash flow Purchase Cost of new equipment = $3,570,000
Tax rate = 25%
The equipment is eligible for tax benefit of 100%
Depreciation at t = 0,Thus the equipment will be fully depreciated at the time of purchase.
The after taxes cost of Alexander's new equipment
After taxes cost of equipment = Purchased - Tax savings on Depreciation = 3570000 - (3570000×25%) =
$2,677,500
Increase in accounts receivable and inventories = $680,000
Increase in spontaneous liabilities = $272,000
Increase in NWC = Increase in current assets - Increase current liabilities
= $680,000 - $272,000
= $408,000
Alexander's initial net investment outlay is:
Initial investment outlay = After tax cost of equipment + Increase NWC requires
= $2,677,500 + $408,000
= $3,085,500
Recovery of net working capital (NOWC) = $408,000
Sales value of equipment = $400,000
The project's total termination cash flow is
Termination cash flow = After tax salvage value + NOWC recovered
= $408,000(1-0.25)+ $408,000
= $708,000
To learn more about terminal cash flow, visit:
https://brainly.com/question/28191587
#SPJ1
All else being equal, an increase in government spending would shift the ______ line to the ______, causing interest rates to _______ and the trade balance to _______.
All else being equal, an increase in government spending would shift the IS line to the right, causing the interest rates to rise and the trade balance to rise.
IS-LM model represents the relationship between the market for economic goods or investment-savings level (IS) and money market or the level of liquidity preference-money supply (LM). The intersection between both curves shows the short-run equilibrium between interest rates and output. The X-axis of IS-LM graph is income or output (GDP / Y), and its Y-axis is interest rates.
IS-LM graph is depended on 3 factors: liquidity, investment, and consumption. LM graph is affected by the amount and velocity of money supply in the market. Meanwhile the marginal decisions of individu affected both investment and consumption.
IS curve reflects the set of all levels of interest rate and output where the level of investment and the level of saving are equal. LM curve reflects the relationship between the levels of income and interest rates where money supply equals money demand. IS curve slopes downward and LM curve slopes upward.
When government increase its spending, the output (GDP) will increase since government spending is one of variables affecting GDP level. Hence, the IS curve will shift to the right. Because LM curve remains the same, the new equilibrium will appear in the higher interest rate and higher output level.
Learn more about IS-LM Curve here: https://brainly.com/question/24039972
#SPJ4
Electronic commerce initiatives are, in general, more successful than other types of information systems implementations. T or F
Initiatives in electronic commerce are typically more effective than other forms of information technology implementations. It is true.
Companies and individuals who buy and sell goods and services online are said to engage in electronic commerce, or ecommerce. E-commerce is a multifaceted industry that may be carried out on computers, tablets, smartphones, and other smart devices. Ecommerce transactions allow for the purchase of almost any good or service imaginable, including publications, music, airline tickets, and financial products like stock trading and online banking. It is therefore seen as a particularly disruptive technology.
Online purchasing and selling of physical goods and services is known as e-commerce, as was previously mentioned. To conduct a transaction, more than one person is involved, and money or data must be exchanged. It is a component of the larger sector known as "electronic business" (ebusiness).
Learn more about electronic commerce here
https://brainly.com/question/5123792
#SPJ4
Like the partners in a partnership, the shareholders in a corporation cannot change without affecting the continued existence of the firm.a. Trueb. False
A partnership firm's existence is constrained to the lifestyles of the partners. Eventually, when all the partners die, the partnership association comes to an end as there is no one left to look after the business.
Which of the following is a disadvantage of a organisation when compared to a partnership?The agency and its stockholders are problem to double taxation; It is taxed when it is earned and once more when it is distributed to stockholders as dividends.
The partnership is a enterprise that is owned through two or extra humans with the intent to make a profit. The employer is a legal entity that is organized in accordance to the laws of the kingdom in which it is formed. The enterprise employer is separate from its proprietors
Learn more about partnership here:
https://brainly.com/question/14034519#SPJ4multiple choice question when applied overhead is more than actual overhead, the journal entry made at the end of the period cost of goods sold. multiple choice question. has no effect on increases reduces
If the applied overhead exceeds the actual amount incurred, overhead is said to be overapplied.
What do you understand by the term overhead?
No matter how much or how little a company sells, it always has expenses to cover. For instance, a service-based business with an office must additionally pay overhead expenses like rent, power, and insurance in addition to the direct costs of providing its service (such as staff and supplies).
The amount of overhead expenses is shown on an organization's income statement and directly affects the business's overall profitability. Overhead expenses must be taken into account when calculating net income, often known as the corporation's bottom line. Net profitability is calculated by deducting all production-related and overhead expenses from net revenue, sometimes referred to as the company' top line.
To study more about overhead.
https://brainly.com/question/25279292
#SPJ4
Suppose that all the necessary conditions exist for the realization of equal wage rates in every labor market, but that currently the wage rate in market X is higher than the wage rate in market Y We expect that eventually the wage rate O in market X will increase more. O in market Y will decrease. O in market X will decrease and the wage rate in market Y will increase. O will not chan ge in either market, because something out of the ordinary must have caused the wage rates in the two markets not to be equalQuestion 21 2.5 pts Two possible ways to increase union wages indirectly are to increase of union labor the demand for union labor or increase the supply ○ True False
If all the necessary conditions exist for the realization of equal wage rates in every labor market, in market X will decrease and the wage rate in market Y will increase.
What do you mean by a wage per hour?Hourly pay is the amount that an employee receives for each hour that they work. There is no specified or targeted annual compensation for an hourly employee. Instead, the number of hours worked by an employee during each pay period—which could be a week, two weeks, half a month, or an entire month—determines how much they are paid.
The method of paymentCosts that must be covered in cash or currency notes:
With the exception of the employer, who may do so with the employee's written consent, pay the employee by check or by crediting his bank account, all wages must be paid in current coin, currency notes, or both.
To know more about Wage visit:
https://brainly.com/question/13847060
#SPJ4
g you are a buyer for your company and are reviewing the shipping paperwork from an overseas supplier for their first shipment. you notice a potential issue with the assigned harmonized tariff code and contact the supplier before the shipment occurs to correct it. which of the statements below is true: group of answer choices no answer text provided.
The buyer requests that a financial institution issue the document.
What does finance mean to a business?Business Finance Meaning
It refers to the total amount of money and credit that a company has utilised. All other economic activities, as well as the purchase of commodities, assets, and raw materials, require business financing. In particular, it is required for carrying out all business processes.
What is fundamental financial knowledge?Budgeting, knowing how much money to save, picking beneficial loan conditions, understanding how credit will be affected, and differentiating between retirement vehicles are all included in this. These skills enable people to make more informed decisions and manage their money more prudently.
To know more about financial visit:
https://brainly.com/question/1537763
#SPJ4
For the majority of businesses, newly-proposed financial reforms by the U.S. House of Representatives and the Senate will likely increase the time and cost of obtaining financing.True
True, The U.S. House of Representatives and Senate's recently proposed financial reforms are likely to lengthen the application process and raise the cost of borrowing for the majority of firms.
The correct answer is true
What do u mean by "finance"?Finance is the term used to describe the process of raising capital or money for virtually any type of expenditure. It entails allocating various finance options, including credit, loans, including investment capital, to the organizations that can utilize them most efficiently.
What's the difference between loans and financing?When you finance an automobile, you take out a loan that you return over time. When you get a personal loan, you promise to pay it back within a certain time frame, along with interest and any costs.
To know more about financing visit:
https://brainly.com/question/29493385
#SPJ4
the reserve ratio, open-market operations, and the discount rate are tools of policy used by the fed to alter commercial bank reserves.
The reserve ratio, open-market transactions, and discount rate are monetary policy instruments that the Fed uses to modify commercial bank reserves.
What Does Reserve Ratio Mean?
The reserve ratio is the percentage of reservable liabilities that commercial banks are required to keep onto and refrain from lending to or investing in. The requirement is set by the nation's central bank, in this case the Federal Reserve in the United States. The cash reserve ratio is another name for it.
The terms "reserve requirement" and "reserve ratio" are frequently used interchangeably to refer to the minimum number of reserves that a bank must maintain. The Federal Reserve Board's Regulation D specifies the reserve ratio. All depository institutions with transaction accounts are subject to a consistent set of reserve requirements established by Regulation D, which also mandates that banks submit routine reports to the Federal Reserve.
learn more about Reserve ratio-https://brainly.com/question/4255685
#SPJ4
During the _____ of the systems development life cycle (SDLC), an information system is operating, enhancements and modifications to the system have been developed and tested, and hardware and software components have been added or replaced.
maintenance phase
During the maintenance phase of the systems development life cycle (SDLC), an information system is operating, enhancements and modifications to the system have been developed and tested, and hardware and software components have been added or replaced.
After the product has been fully operational, the SDLC moves on to the maintenance phase. Program updates, fixes, and remedies for the software when it malfunctions are all examples of software maintenance. It is common for software programmes to need updating or integrating with brand-new systems that the client deploys.
This stage sees the implementation and operation of systems and products, the development and testing of system improvements and/or alterations, and the addition or replacement of hardware and software components.
To know more about Maintenance Phase here
https://brainly.com/question/14852890
#SPJ4
karyn wants to evaluate some bonds she is contemplating buying. in order to adequately evaluate them, she should check the bond yields, read the bond quotes in a paper, and check the group of answer choices company rating. par values. bond ratings. company's performance.
Karyn wants to evaluate some bonds she is contemplating buying. In order to adequately evaluate them, she should check the bond yields, read the bond quotes in a paper, and check the bond ratings.
What are Bond ratings?
A bond rating is a means to assess a bond's creditworthiness, which relates to how much an issuer will pay to borrow money. In these ratings, bonds are often given a letter grade indicating their credit worthiness.
Bonds classified as investment grade received ratings of "AAA" to "BBB-" from Standard & Poor's and "Aaa" to "Baa3" from Moody's. Lower ratings apply to junk bonds.
All other things being equal, a bond's interest rate will be lower the higher its grade.
Bond ratings play a critical role in influencing investors' perceptions of the value and stability of a given bond. As a result, these ratings have a significant impact on bond pricing, interest rates, and investor interest.
To learn more on Bond ratings from the link:
https://brainly.com/question/14266363
#SPJ4
Taggart Transcontinental has an equity cost of capital of 12%, a market capitalization of $15 billion, an enterprise value of $20 billion, a debt cost of capital of 7%, and a marginal tax rate of 25%. Assume that Taggart Transcontinental maintains a constant debt-equity ratio, Currently Taggart Transcontinental is considering a project with average risk that is projected to generate the following cash flows: Year 0 1 2 3FCF 250 -350 200 300Question Taggart Transcontinental's weighted average cost of capital (wace) is closest to?
The WACC for Taggart Transcontinental is roughly 10.75%. The present value of the project's cash flows can then be calculated using this WACC, after which you can decide whether to accept or reject the project.
How do you calculate the WACC?First, you need to calculate the weight of equity in the capital structure. You can do this by dividing the market capitalization by the enterprise value:
Weight of equity = Market capitalization / Enterprise value
= $15 billion / $20 billion
= 0.75
Next, you can calculate the weight of debt in the capital structure by subtracting the weight of equity from 1:
Weight of debt = 1 - Weight of equity
= 1 - 0.75
= 0.25
Then, you can use the weights of equity and debt and the respective costs of capital to calculate the WACC:
WACC = (Weight of equity x Equity cost of capital) + (Weight of debt x Debt cost of capital x (1 - Marginal tax rate))
= (0.75 x 12%) + (0.25 x 7% x (1 - 25%))
= 9% + 1.75%
= 10.75%
To know more about Weight of equity, visit:
brainly.com/question/28042295
#SPJ4
suppose the governments of two very similar economies, economy n and economy m, implement a tax cut of equal size. the tax cut in economy n is permanent, while the tax cut in economy m is temporary. the economies are otherwise completely identical. the tax cut will have a larger impact on aggregate demand in the economy with the . continue without saving
Tax cuts decrease governmental income, resulting in a budget deficit or an increase in sovereign debt.
Describe a budget.By making a written budget, you may select how much money you will spend each month. You can make sure you have enough money each month by creating a budget. You run the risk of running out of money before your next pay period if you don't create a budget. Your spending plan displays your income.
Why is budgeting crucial?Making a budget promotes financial security. Because it helps you keep track of your spending and stick to a plan, a Tax cuts decrease governmental income, resulting in a budget deficit or an increase in sovereign debt.
To know more about budget visit:
https://brainly.com/question/15683430
#SPJ4
The nurses at a hospital get together for lunch three times a week. This contributes a(n) _ group
a) interest
b) informal
c) command
d) task
e) top management
The nurses at a hospital get together for lunch three times a week. This contributes to an informal Group. Hence, option B is appropriate.
What is the meaning of an Informal Group?An informal group has no organizational control over it and is typically created by its members out of a desire for social interaction.
Informal groups are defined by interpersonal connections, affinity groups, and social networks that form as staff members interact with one another at work. These interpersonal connections influence how employees in an informal organization think, act, and communicate with one another.
Formal groups and informal groups are two different forms of groupings. Formal groups are those that are formed in accordance with the official authority to achieve the intended outcome. In contrast, employees create informal groupings based on their preferences, attitudes, and interests.
Hence, option B is correct.
Learn more about the Informal Group here:
https://brainly.com/question/31375837
#SPJ2
exists when a supplier agreed to provide a product to a supply chain member only if that member will buy addidtional product from the supplier
Tying agreements exist when a supplier agrees to provide a product to a supply chain member only if that member will buy additional products from the supplier.
What is Tying agreements ?Tying agreements are a type of exclusive dealing arrangement in which a supplier requires a customer to purchase a product or service as a condition of purchasing another product or service. Tying agreements can be used to sell a variety of products, including software, hardware, and other goods and services.Tying agreements can be beneficial to suppliers because they allow the supplier to increase sales of the tying product and to increase its market power. However, they can also be harmful to competition and to consumers because they can limit the choice of products available to customers and potentially raise prices. Tying agreements are generally considered to be anticompetitive under competition laws, and they are often subject to legal scrutiny.To learn more about Tying agreements refer :
https://brainly.com/question/9982025
#SPJ4
In long-run equilibrium, all firms in a pure competition market situation operating under a condition of certainty will have identical costs even though they may use different production and operation techniques.
a. true
b. false
In long-run equilibrium, all firms in a pure competition market situation will have identical costs even though they may use different production and operation techniques. ---- true
Long Run Equilibrium of the Firm :
In the long run, firms reach equilibrium when they adjust their assets to produce at the lowest point of the long-term average cost (AC) curve. This curve is tangent to the demand curve defined by market prices. In the long run, the company will only get a normal profit. Markets are in long-term equilibrium when prices perfectly match production costs and the economy is at its full potential. In the long-run equilibrium, unemployment falls to its natural state. When this happens, the economy is using all its resources and the actual GDP equals the potential GDP.
What does it mean that the market is in long-term equilibrium?A perfectly competitive market reaches long-term equilibrium when not all firms are making economic profits and the number of firms in the market does not change.
Learn more about Long run equilibrium :
brainly.com/question/6275304
#SPJ4
A crisis in which there is a shortage of cash for expanding a business after an exponential increase in sales is termed _____.A. nonsufficient fundsB. reconcilingC. charge backD. growth trap
A crisis in which there is a shortage of cash for expanding a business after an exponential increase in sales is termed as Growth trap.
Explain in detail.
A growth trap is simply a growth stock that fails projections in the same manner as one that looks costly but actually appears to be growing quickly. According to Inker, these are even more prevalent and harmful than value traps.A value trap is when an investor believes a stock is undervalued (cheap to purchase) based on its fundamentals and market price, but this turns out not to be the case.Therefore, the correct option is option D.
To know more about Growth here
https://brainly.com/question/25849702
#SPJ1
Auditors may review the portion of accounts payable that is ______ at YE and compare it to corresponding data for previous years.a. not yet dueb. past duec. paid
Auditors may review the portion of accounts payable that is completeness at YE and compare it to corresponding data for previous years.
Accounts payableAccounts payable and management is a vital business procedure that allows an institution to properly manage its financial responsibilities. The amount due by a company to its vendors/suppliers for products and services received is referred to as accounts payable. To put it another way, whenever an organization orders items and receives them before paying for them, it should record a liability in its books of accounts based on the invoice amount. Accounts payable refers to the short-term liability owed to suppliers, vendors, and others.
To know more about accounts payable visit the link
https://brainly.com/question/4656883
#SPJ4
b. Suppose demand for computer software increases. This increases the value of Jim's contributions to the firm to $650. What is the maximum wage at which Allison would be willing to hire Jim?
Answer:
If the value of Jim's contribution increases to the firm to $650 then the maximum wage that Allison would be willing to pay will also increase to $650.
(q049) one of the main obstacles for the presidential campaign of john mccain was the financial crisis of 2008.
Al-Qaeda members are a legitimate use of the taxing authority. combating terrorist organizations
What made the 2008 election such a momentous occasion?An African American man and a woman faced off for the nomination in the election. A significant party proposed an African American leader. For the first time, a president who is African American was elected.
What were the top two reasons behind the financial crisis in 2008?Falling US housing values and an increase in the number of borrowers unable to make loan payments were the GFC's main causes. Around the middle of 2006, the number of newly constructed homes for sale in several places in the United States reached its peak.
To know more about presidential visit:-
https://brainly.com/question/20749340
#SPJ4
Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May.
Standard Cost per Unit Actual Cost per Unit
Direct materials:
Standard: 1.80 feet at $3.00 per foot $ 5.40
Actual: 1.80 feet at $3.30 per foot $ 5.94
Direct labor:
Standard: 0.90 hours at $18.00 per hour 16.20
Actual: 0.92 hours at $17.50 per hour 16.10
Variable overhead:
Standard: 0.90 hours at $5.00 per hour 4.50
Actual: 0.92 hours at $4.50 per hour 4.14
Total cost per unit $ 26.10 $ 26.18
Excess of actual cost over standard cost per unit $ 0.08
The production superintendent was pleased when he saw this report and commented: “This $0.08 excess cost is well within the 2 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product."
Actual production for the month was 12,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials.
Required:
Compute the following variances for May:
Materials price and quantity variances.
Labor rate and efficiency variances.
Variable overhead rate and efficiency variances.
How much of the $0.08 excess unit cost is traceable to each of the variances computed in requirement 1.
How much of the $0.08 excess unit cost is traceable to apparent inefficient use of labor time?
The actual quantity is 21,600, Direct material price variance is $6,480, Standard quantity is 21,600, Direct material quantity variance is 0, Direct labor rate variance is $5520, Direct labor efficiency variance is $4320.
Give a brief account on Variance analysis.Comparison of budgeted data and actual performance is part of variance analysis. This offers crucial feedback for enhancing business performance in the future. Depending on whether budgeted targets are met, variations are typically categorized as favorable or unfavorable.
To solve the question :
Requirement : 1
a. Actual quantity :
Given:
Number of the units = 12,000
The standard quantity per unit = 1.80
The actual quantity
= (Number of the units × standard quantity)
=12,000 × 1.80
= 21,600
b.Direct material price variance.
Given,
Standard price = $3.00
Actual price = $3.30
Direct material price variance
= (actual - standard price) × actual quantity.
= ($3.30−$3.00) × $21,600
= $6,480 Unfavaourable
c. Standard quantity :
Given,
Number of the units = 12,000
The standard quantity per unit = 1.80
= (Number of the units × standard quantity per unit)
= 12,000 × 1.80
= 21,600
d. Direct material quantity variance :
Given,
Actual quantity = 21,600
Standard quantity = 21,600
Standard price = $3.00
Direct material quantity variance
= (Actual quantity - Standard quantity) × Standard price
= (21,600 − 21,600) × $3.00
= $0.00
e. Direct labor rate variance.
Given,
The actual hours ( 0.92 × 12,000 ) = 11,040
The actual rate per hour = $17.50
The standard rate per hour = $18.00
Direct labor rate variance
= (actual hours × actual rate per hour) - ( actual hours - standard rate per hour)
= (11,040 × $17.50) − (11,040 × $18.00)
= $5,520 Favourable
f. Direct labor efficiency variance.
Given,
The standard rate per hour = $18.00
The actual hours ( 0.92 × 12,000 ) = 11,040
The standard hours ( 0.90 × 12,000) = 10,800
Direct labor efficiency variance
= (standard hours × standard rate per hour) - ( actual hours - standard rate per hour)
= (10,800 × $18.00) − (11,400 × $18)
= $4,320 Unfavourable
g. Variable overhead rate variance.
Given,
The actual labor hours ( 0.92 × 12,000 ) = 11,400
The standard rate per hour = $5.00
The actual rate per hour = $4.50
Variable overhead rate variance :
= ( actual labor hours × standard rate per hour) - ( actual labor hours × actual rate per hour)
= (11,400 × $5.00) − (11,400 × $4.50)
= $5,520 Favourable.
h. Variable overhead efficiency variance.
Given,
The actual hours ( 0.92 × 12,000 ) = 11,040
The standard hours ( 0.90 × 12,000) = 10,800
The standard rate per hour = $5.00
Variable overhead efficiency variance
= (actual hours × standard rate per hour) - ( standard hours × standard rate per hour)
= (11,400 × $5.00) − (10,800 × $5.00)
= $1,500 Unfavourable.
Requirement 2 :
This time, we will determine the indirect effect of the $0.08 extra unit cost over the calculation of spending variances. The unfavourable direct material price variance is $6,480. The variation in the direct material quantity is $0.00. The $6,480 unfavourable differences in direct material spending.
The favourable direct labor rate variance is $5.520. The $4,320 unfavourable direct labor efficiency variance. The variations in direct labor costs are favourable by $1,200. The favourable variable overhead rate variance is $5,520. The $1,500 unfavourable variance in overhead efficiency. The favourable variable overhead variances total $4,020.
The $1,260 in unfavourable spending variances total. The total spending variations are $1,260 unfavourable as a result of the unfavourable material spending variances.
The $0.08 primary effect is therefore on the material spending variances.
Requirement 3 :
Inefficient use of the labor time :
Given,
The actual hour per item = 0.92
The standard hours = 0.90
The number of units = 1,200
Inefficient use of labor time
= (number of units × (actual hour per item - standard hours))
= (1,200 × (0.92 − 0.90)
= 240
Conclusion :
The total variations are negative because of the material spending variances, even if the $0.08 additional unit cost represents only 0.3% of the unit pricing. Although there are positive labor variations, 240 hours of labor time are used inefficiently.
As a result, the indirect harm caused by the $0.08 extra unit cost is as follows:
as a result of the variancesin the ineffective use of labor hours.To know more about, variance analysis, visit :
https://brainly.com/question/22851332
#SPJ1
Chad is willing to pay $5.00 to get his first cup of morning latte. He buys a cup from a vendor selling latte for $3.75 per cup. Chad's consumer surplus
The amount of money Chad was prepared to spend consumer surplus on his second latte was less than it was on his first.
Consumer surplus is the difference between the asking price for a good and the price the consumer ultimately pays.
In the specific scenario, Chad was prepared to shell out $5 for his initial cappuccino. He paid $3.75 for the initial cup.
His consumption surplus, then, for the first cup he bought was $5 - $3.75 = $1.25.
The consumer surplus for the second latte he bought was similarly $4.5 - $3.90.
= $0.6
Due to his declining consumer surplus in the case of the second cup and the diminishing marginal utility effect, which causes utility obtained from further consumption to decrease, Chad was willing to pay $4.5 rather than $5 for the second latte.
Learn more about marginal utility here
https://brainly.com/question/14149928
#SPJ4
The complete question is
Chad is willing to pay $5.00 to get his first cup of morning latté; he is willing to pay $4.50 for a second cup. He buys his first cup from a vendor selling latté for $3.75 per cup. He returns to that vendor later in the morning to find that the vendor has increased her price to $3.90 per cup. Chad buys a second cup. Which of the following statements is correct?
a. Chad’s consumer surplus on his second cup of latté was larger than his consumer surplus on his first cup of latté.
b. Chad places a higher value on his second cup of latté than on his first cup of latté.
c. Chad’s willingness to pay for his second cup of latté was smaller than his willingness to pay for his first cup of latté.
d. Chad is irrational in that he is willing to pay a different price for his second cup of latté than what he is willing to pay for his first cup of latté.
Mark Washington, CFA, is an analyst with BIC. One year ago, BIC analysts predicted that the U.S. equity market would most likely experience a slight downturn and suggested delta-hedging the BIC portfolio. As predicted, the U.S. equity markets did indeed experience a downturn of approximately 4% over a 12-month period. However, portfolio performance for BIC was disappointing, lagging its peer group by nearly 10%. Washington has been told to review the options strategy to determine why the hedged portfolio did not perform as expected. After discussing the concept of a delta-neutral portfolio, Washington determines that he needs to further explain the concept of delta. Washington draws the value of an option as a function of the underlying stock price. Draw such a diagram, and indicate how delta is interpreted. Delta is the: a. Slope in the option price diagram. b. Curvature of the option price graph. c. Level in the option price diagram.
The total call option contracts required to create a delta neutral hedge are 75,000.
What is a call option contract?
An agreement between a buyer and a seller to buy a specific stock at a specific price up until a specified expiration date is known as a call option. The right to exercise the call and buy the stocks belongs to the call's buyer, not the other way around.
The return on a delta-neutral portfolio is hedged against small price changes in the underlying asset.
Calculation of the number of call options required to create a delta-neutral hedge:
[tex]\begin{aligned}\text { Number of Contracts } & =\frac{\text { Number of Shares }}{\text { Delta }} \\& =\frac{51,750 \text { shares }}{0.69} \\& =75,000\end{aligned}[/tex]
Therefore, the total call option contracts required to create a delta neutral hedge are 75,000.
To lern more about call option contracts visit:https://brainly.com/question/29217531
#SPJ4
The intergenerational elasticity provides the percentage difference in a child's status given a 1% difference in their parents status. In the US today it is approximately _____, while in a perfect meritocracy it would be _____. A) 0.15; 0
B) 0.5; 0
C) 0.15; 1
D) 0.5; 1
The intergenerational elasticity provides the percentage difference in a child's status given a 1% difference in their parents status. In the US today it is approximately 0.5 while in a perfect meritocracy it would be 0.
What is intergenerational elasticity?
Assuming that the intergenerational relationship is constant across the income distribution, intergenerational elasticity theorises that changes in inequality between generations have an impact on the intergenerational relationship. Less is known about the characteristics of new intergenerational persistence measures.
If intergenerational elasticity provides: 1% difference in their parents status
Now in the US it is approximately 0.5,
While in a perfect meritocracy it would be less than 0.5(0.5>)
As per above given option then it In perfect meritocracy it would 0.
To learn more about intergenerational elasticity visit:https://brainly.com/question/9789722
#SPJ4
Initial investment -Basic calculation Cushing Corporation is considering the purchase of a new grading machine to replace the existing one. The existing machine was purchased 3 years ago at an installed cost of $20,000 ; it was being depreciated under MACRS using a 5-year recovery period. (See table LOADING... for the applicable depreciation percentages.) The existing machine is expected to have a usable life of at least 5 more years. The new machine costs $36,000 and requires $4,500 in installation costs; it will be depreciated using a 5-year recovery period under MACRS. The existing machine can currently be sold for $25,600 without incurring any removal or cleanup costs. The firm is subject to a 40% tax rate. Calculate the initial investment associated with the proposed purchase of a new grading machine.
The initial investment associated with purchasing a new grading machine is $14,900.
What is the initial investment for a replacement asset?The initial investment for a replacement asset is determined by subtracting the net sales proceeds of the old asset from the installed costs of the new asset.
The installed costs of a new asset include the purchase and installation costs.
Cost of old machine = $20,000
Accumulated MACRS depreciation rate = 71.2% (20% + 32% + 19.20%)
Accumulated depreciation after 2 years, using 5-year MACRS = $14,240 ($20,000 x 71.2%)
Book value after 2 years = $5,760 ($20,000 - $14,240)
Sales proceed = $25,600
Capital gains = $19,840 ($25,600 - $5,760)
Capital gains tax rate = 40%
Capital gains tax = $7,936 ($19,840 x 40%)
After-tax proceeds = $17,664 ($25,600 - $7,936)
Cost of the new machine = $36,000
Installation cost = $4,500
The installed cost of the new machine = $40,500 ($36,000 + $4,500)
Thus, the initial investment for the replacement asset is $14,900 ($40,500 - $25,600).
Learn more about the initial investment of a replacement asset at https://brainly.com/question/24212090
#SPJ1
Question Completion:MACRS 5-year Declining Method:
Year Depreciation Rate
1 20%
2 32%
3 19.20%
4 11.52%
5 11.52%
6 5.76%
What happens if the insured tenant and the insurance company fail to agree on the amount of loss?.
Answer: The insurance policy becomes null and void
Explanation:
That's the answer.
The LIFO conformity rule states that:
Multiple Choice
A. if LIFO is used for tax purposes, the external financial statements must also use LIFO.
B. if FIFO is used for tax purposes, the external financial statements must also use FIFO.
C. if LIFO is used for tax purposes, the external financial statements must use FIFO.
D. if FIFO is used for tax purposes, the external financial statements must use LIFO.
If LIFO is used for tax purposes, the external financial statements must also use LIFO. Option A
What is LIFO?Generally, The LIFO conformity rule states that if a company uses the Last-In, First-Out (LIFO) inventory valuation method for tax purposes, it must also use LIFO for financial reporting purposes. This means that the company must use the same inventory valuation method for both its tax returns and its external financial statements.
The LIFO conformity rule is based on the idea that a company's tax and financial reporting should be consistent and that using different methods for each could lead to discrepancies and confusion.
It's worth noting that the LIFO conformity rule only applies to companies that use LIFO for tax purposes. If a company uses a different method, such as First-In, First-Out (FIFO) or Average Cost, for tax purposes, it is not required to use the same method for financial reporting.
Read more about LIFO
https://brainly.com/question/17236535
#SPJ1
Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs:
Rent on manufacturing facility $ 118,000 Office manager's salary 67,000 Wages of factory machine operators 47,000 Depreciation on manufacturing equipment 17,000 Insurance and taxes on selling and administrative offices 7,000 Direct materials purchased and used 77,000 Based on the above information, the amount of period costs shown on Steuben's income statement is:
I know the answer is $74,000 but can anybody explain why?
The amount of period costs shown on Steuben's income statement is $74,000.
Given that, Rent on the manufacturing facility is $ 118,000; the Office manager's salary is 67,000; the Wages of factory machine operators are 47,000; Depreciation on manufacturing equipment is 17,000; Insurance and taxes on selling and administrative offices is 7,000 and Direct materials purchased and used is 77,000.
Period costs are expenses incurred on non-manufacturing-related activities. The following is a breakdown of the period's costs: Office manager wage + insurance and taxes on selling and administrative offices = 67,000 + 7,000 = $74,000.
Period costs are expenditures that can't be capitalized on a business's balance sheet. They appear on the income statement and are, in other words, expensed in the period in which they are incurred. They are also known as period expenses.
To learn more about Period costs visit: https://brainly.com/question/29590425
#SPJ4
oriole company gathered the following recociling information in preparing its april bank reconciliation
Option (D) is accurate; the adjusted amount or cash balance as of April 30 is $24260.
Why do you call reconciliation anything else?
Conciliate and terms like accommodate, adapt, adjust, and conform are commonly used interchangeably. Even while all these terms pertain to "putting one item into correspondence with another," reconcile means to reveal the underlying compatibility of things that at first seem to be incompatible. I attempted to make sense of what he said in light of my understanding.
What is reconciliation's primary goal?
Purpose: The process of reconciliation guarantees the reliability and correctness of financial data. A thorough reconciliation procedure also makes sure that no illegal changes were made to transactions while they were being processed.
Briefing:
The adjusted coins stability in keeping with books on April 30
= (Cash stability + Notes receivable and hobby gathered via way of means of financial institution Printing 1 Charge NSF check) 1
=( $ 19,700 + $6,630 - $220 - $1,250) = $ 24,260
To know more about reconciliation visit:
https://brainly.com/question/29097188
#SPJ4