The answer is a higher value to equity holders.
The limited liability feature of common equity results in a higher value to equity holders compared to a firm with unlimited liability. This is because limited liability protects equity holders from being personally responsible for the firm's debts, which allows them to benefit from the profits without assuming the same level of risk as debtholders. Additionally, the interest tax shield, which is the tax savings resulting from deducting interest payments from taxable income, is also leveraged by equity holders in a limited liability firm. However, this does not necessarily mean that the firm will have a higher value to debtholders or that it will result in a leveraged buyout mechanism.
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determine whether each of the following policy interventions is designed to increase supply or decrease demand for a public good or common resourcea. A city government increases the frequency of street sweeping b. London begins charging a toll to all vehicles that drive within the city limits. c. A gated community passes a bylaw requiring all homeowners to mow their lawns once a week during the summer. d. The National Park Service increases the cost of a pass to enter the Everglades.
A. Increasing the frequency of street sweeping is a policy intervention designed to decrease the demand for a public good, in this case, clean streets. By sweeping the streets more often, the city government is hoping to reduce the amount of litter and debris on the streets, which should in turn decrease the demand for a clean environment.
B. The gated community's bylaw requiring homeowners to mow their lawns once a week during the summer is a policy intervention designed to increase the supply of a common resource, in this case, well-maintained lawns. By requiring all homeowners to mow their lawns regularly, the community is hoping to ensure that the common resource of well-maintained lawns is available to all residents.
C. The National Park Service's increase in the cost of a pass to enter the Everglades is a policy intervention designed to decrease the demand for a public good, in this case, access to the Everglades. By increasing the cost of a pass, the National Park Service is hoping to discourage some visitors from entering the park and therefore decrease the demand for access.
a. Increasing the frequency of street sweeping is a policy intervention designed to increase the supply of a public good (clean streets).
b. Charging a toll to vehicles within city limits is a policy intervention designed to decrease the demand for a common resource (road usage).
c. Requiring homeowners to mow their lawns weekly is a policy intervention designed to increase the supply of a public good (aesthetic appeal and property value).
d. The National Park Service increasing the cost of a pass to enter the Everglades is a policy intervention designed to decrease the demand for a common resource (access to the park).
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Financial leverage will ________ shareholders' expected return and ________ shareholders' risk.
a. increase; do nothing to
b. decrease; increase
c. increase; decrease
d. increase; increase
c. Increase; decrease. Financial leverage refers to the use of borrowed funds to finance the purchase of assets or investments.
This can increase the potential return for shareholders as they can benefit from the return on the investment without having to provide all the capital upfront. However, this also increases the risk for shareholders as they have to repay the borrowed funds along with interest regardless of whether the investment generates a return or not. Therefore, financial leverage can increase shareholders' expected return but also decrease their risk.
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a key weakness in the calculation of capital ratio that basel 4 attempts to correct is:
Question options: OPTION 3 IS WRONG
1)
Wide variability in the calculation of risk-weighed assets
2)
Internal ratings-based approach
3)
Standardized approach calcualtions (WRONG)
4)
Leevrage ratio calcualtions
A key weakness in the calculation of capital ratio that Basel 4 attempts to correct is: 1) Wide variability in the calculation of risk-weighted assets.
What is capital ratio?The capital ratio is the percentage of a bank's capital to its risk-weighted assets. This example is from Wikipedia and may be reused under a CC BY-SA license. Major depository banks around the world had also used financial innovations such as structured investment vehicles to circumvent capital ratio regulations.
Basel 4 aims to address the issue of inconsistency and variability in the calculation of risk-weighted assets, which can lead to inaccurate capital ratios. This is done by implementing more standardized methods and reducing the reliance on banks' internal models for calculating risk-weighted assets.
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If a company is operating at full capacity, the incremental costs of a special order will likely include fixed manufacturing costs. A. True B. False
(Option A) True. When a company is operating at full capacity, the incremental costs of a special order will include fixed manufacturing costs.
That is because there are no additional resources available to produce the order, so the company must use its existing resources, which includes fixed costs. If a company is operating at full capacity, it means that it is already producing as much as it can, using all its available resources. In this case, accepting a special order would require the company to increase its production, which would likely involve additional fixed manufacturing costs such as rent, depreciation, insurance, and property taxes. Therefore, the incremental costs of a special order would include both variable costs (such as direct materials and direct labor) and fixed manufacturing costs.
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The cost of a merger may outweigh the potential gain if the: O present value of the acquired firm exceeds the price paid for it. acquired firm's shareholders receive more than the value of their firm. present value of the merged firms is greater than the sum of their individual values. merger allows cost savings to occur. A Moving to another question will save this response.
The merger allows cost savings to occur, it may be beneficial for both firms in the long run. Ultimately, it is important to weigh the potential gain and cost against the individual values of each firm before making a decision on a merger.
The potential gain and cost of a merger depend on various factors. If the present value of the merged firms is greater than the sum of their individual values, then the merger may result in a potential gain for both firms. However, if the cost of the merger exceeds the potential gain, then it may not be worth it. Additionally, if the acquired firm's shareholders receive more than the value of their firm, it may not be a fair deal for the acquiring firm. On the other hand, if the merger allows cost savings to occur, it may be beneficial for both firms in the long run. Ultimately, it is important to weigh the potential gain and cost against the individual values of each firm before making a decision on a merger.
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Which item best corresponds to the integration of cost-leadership and differentiation?a) It is possible but difficult to obtain.b) It is only possible through industry fragmentation.c) It is impossible to achieve.d) It is a popular strategy among young businesses.e) It is actually a common and easy-to-execute strategy in the business world.
The item that best corresponds to the integration of cost-leadership and differentiation is option a) It is possible but difficult to obtain.
While cost leadership and differentiation are often seen as opposing strategies, it is possible to achieve a balance between the two by focusing on areas where cost savings can be made without compromising on quality or value for customers. However, this requires careful planning and execution, and is not always easy to achieve.
Cost-leadership is a term that is used for a company that is providing the cheapest commodity in the market and is leading in that area. While differentiation means when a company specializes in a product/service that fulfills the need of the customer and this product/service is generally not found in the market.
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the exchange rate between japanese yen and indian rupee was ¥1.74/rupee. how many ¥ will you receive if you sell rupee 500?¥870 ¥500 ¥4287.36 ¥1,740
To calculate how much you will receive if you sell 500 Indian rupees at an exchange rate of 1.74 yen per rupee, you need to multiply 500 by 1.74. The answer is 870.
This means that if you sell 500 Indian rupees, you will receive 870 in return. It's important to note that exchange rates fluctuate constantly and can change quickly, so it's important to check the current rate before making any transactions involving foreign currencies.
Additionally, there may be fees or commissions associated with exchanging currency, so it's important to consider those as well when determining how much money you will receive.
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Suppose Darnell has a portfolio of stocks from the following companies: Archibald (ARCH), Akolytle (AKO), or Hyrius (HYRI). Suppose the portfolio consists of the following number of shares: Archibald—20 shares, Akolytle—140 shares, and Hyrius—60 shares. If Darnell decides he wants to sell 50 percent of his shares in Archibald at the prevailing market price, fill in the details in the steps he should take to place the order.
1. Get in contact with his broker to let him know he wants to make a transaction.
2. Tell the broker he wants to sell stock in Archibald.
3. Receive (a bid / an ask) quote from the broker.
4. Tell the broker he wants to sell (10 / 20/ 60 / 140) shares.
5. Tell the broker he wants this to be a (marker order / stop-buy order/stop-loss order).
1. The first step that Darnell should take is to get in touch with his broker to inform him of his desire to sell 50 percent of his shares in Archibald at the current market price.
2. He should then instruct his broker that he wants to sell his shares in Archibald and provide the number of shares he wants to sell.
3. The broker will then provide him with a bid or an ask quote, which represents the current market price for the shares in Archibald.
4. Darnell should tell his broker that he wants to sell 10 shares of Archibald, which represents 50 percent of his holdings in that stock.
5. Darnell should instruct his broker that he wants this to be a market order, which means that the shares will be sold at the prevailing market price without any restrictions or limitations.
Here's the correct information to fill in the steps Darnell should take to place the order:
1. Get in contact with his broker to let him know he wants to make a transaction.
2. Tell the broker he wants to sell stock in Archibald.
3. Receive an ask quote from the broker.
4. Tell the broker he wants to sell 10 shares (50% of his 20 Archibald shares).
5. Tell the broker he wants this to be a market order.
Your answer: 1. Contact broker, 2. Sell Archibald stock, 3. Ask quote, 4. Sell 10 shares, 5. Market order.
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true or false: the average cost at the cost-minimizing level of output is lower for the new marginal firm than it was for the marginal firm before the change in demand.
The given statement, The average cost at the cost-minimizing level of output is typically higher for the new marginal firm than it was for the marginal firm before the change in demand is false.
The shift in demand increases the marginal firm's marginal revenue, which increases the marginal firm's profit potential. This increased potential for higher profits leads the marginal firm to increase their level of output and their average costs.
The marginal firm’s average cost increases because the marginal firm has to increase their level of output to meet the increased demand. To do this, they have to use more resources and invest in additional capital and labor. This leads to an increase in their average costs. The marginal firm will also have to increase their price to cover these additional costs, resulting in higher average costs than before the change in demand.
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find the least squares point estimate for bo and b1 on the computer output and report their values. interpret b0 and b1. does the interpretation make practical sense?
B1 and Bo on the computer output are the parameters or unknowns in the line. Bo is the y-intercept, the value of y when x=0. B1 is the slope or how y adjustments per unit lengthen in x.
How do you derive B0 and b1 in linear regression?We derive B0 and B1 by using minimizing the sum of squared errors between the appropriate y values and the estimated y values, and we use B0 and B1 to decide the slope and y-intercept of the line of tremendous fit.
The slope of the regression line is b1 = Sxy / Sx^2, or b1 = 11.33 / 14 = 0.809. Thus the equation of the least squares line is yhat = 0.95 + 0.809 x.
The mathematical components of the linear regression can be written as y = b0 + b1*x + e , where: b0 and b1 are diagnosed as the regression beta coefficients or parameters: b0 is the intercept of the regression line; that is the anticipated value when x = zero . b1 is the slope of the regression line.
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https://brainly.com/question/29841669#SPJ1The founder and current CEO of Whole Foods Markets wears cut-off jeans to work. He is a vegetarian, an outspoken proponent of green marketing, and a person who believes in eating organic foods. His views and beliefs have shaped the _____ of the supermarket chain, and all employees are expected to agree with these tenets.
acculturation
cultural socialization
ethical perception
organizational advantage
corporate culture
~: Corporate culture refers to the core values and beliefs that support the mission and the business model of the firm and guide employee behavior.
Corporate culture refers to the core values and beliefs that support the mission and the business model of the firm and guide employee behavior
. The founder and current CEO of Whole Foods Markets has shaped the corporate culture of the supermarket chain with his views and beliefs as a vegetarian, outspoken proponent of green marketing, and a person who believes in eating organic foods. All employees are expected to agree with these tenets, which are a crucial aspect of the company's corporate culture.
The founder and current CEO of Whole Foods Markets wears cut-off jeans to work. He is a vegetarian, an outspoken proponent of green marketing, and a person who believes in eating organic foods. His views and beliefs have shaped the corporate culture of the supermarket chain, and all employees are expected to agree with these tenets. Corporate culture refers to the core values and beliefs that support the mission and the business model of the firm and guide employee behavior.
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Pine Systems' revenues for 2018 totaled $27.1 million. As with most companies, Pine is a defendant in lawsuits related to its products. Note 14 of the Pine annual report for 2018 reported thefollowing: O(click the icon to view the note.) Read the requirements. Requirement 1. Suppose Pine's lawyers believe that a significant legal judgment against the company is reasonably possible. How should Pine report this situation in its financial statements? First, let's decide how the lawsuit should be reported in the financial statements. The lawsuit should 1 Requirements 1. Suppose Pine's lawyers believe that a significant legal judgment against the company is reasonably possible. How should Pine report this situation in its financial statements? 2. Suppose Pine's lawyers believe it is probable that a $2.1 million judgment will be rendered against the company. In general terms, how would this situation be reported in Pine's financial statements (using U.S. GAAP)?
Debit the relevant expense account, and crediting the liability account.
How would this situation be reported in Pine's financial statements (using U.S. GAAP)?When reporting this situation in the financial statements, Pine should disclose the nature and potential scope of the loss and state that the loss is only hypothetically possible and not probable. This is the case if Pine's attorneys believe that a significant legal judgement against the company is reasonably possible. The notes to the financial statements, specifically the section on contingencies, should include this information. The situation would be reported in Pine's financial statements using U.S. GAAP by recognising the loss in the income statement and recording a liability for the estimated loss in the balance sheet if Pine's attorneys believe it is likely that a $2.1 million judgement will be handed down against the company. To accomplish this, debit the relevant expense account, and crediting the liability account.
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f a producer increases the amount of labor used in production, holding other inputs constant, then
total product will always increase at an increasing rate.
total product will decrease at a decreasing rate.
total product will continue to increase at a constant rate.
total product will eventually increase at a decreasing rate.
If a producer increases the amount of labour used in production, holding other inputs constant, the then total product will eventually increase at a decreasing rate.
This is because of the law of diminishing returns, which states that as more and more units of a variable input (in this case, labour) are added to a fixed input (such as capital or land), the marginal product of that input will eventually decrease.
In other words, the additional output gained from each additional unit of labour will decrease over time, leading to a slower increase in total product.
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C&A produces three kinds of bread: wheat, white, and multigrain. The data on these products are given below:
Wheat White Multigrain
Demand (lbs per hour) 50 20 10
Changeover time (min) 60 30 45
Production rate (lbs per hour) 200 200 200
How many pounds of wheat bread should C&A produce with each batch in order to minimize inventory while satisfying demand?
To minimize inventory while satisfying demand, C&A should produce 50 pounds of wheat bread with each batch.
What is inventory reduction?Inventory reduction is the process of reducing inventory to meet customer demand. With that being said, it’s important to remember that this isn’t just moving excess inventory.
It also means preventing excess inventory in the first place while simultaneously increasing inventory of better-selling SKUs.
For example; when the top floor sends word that you need to reduce inventory levels, you don’t just cut your inventory indiscriminately.
For the question above, wheat bread has the highest demand at 50 pounds per hour, and the production rate for all three types of bread is the same at 200 pounds per hour.
Additionally, the changeover time for wheat bread is the longest at 60 minutes, so it is most efficient to produce a full batch of wheat bread before switching to another type of bread.
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An organization’s decision to establish a factory in a different country that can provide labor at significantly lower wages is likely based on which of the following rationales?
Lower wages will make up for higher logistics costs.
Lower overall product costs will lead to higher profit margins.
Lower wages will make up for higher inventory costs.
All of the answers are correct.
Lower per-unit variable expenses are exchanged for greater fixed costs. Operating leverage, which uses fixed costs to multiply returns at high levels of operation. The correct answer is b. Lower wages will make up for higher logistics costs.
Emphasises the importance of fixed assets in a company. When a company adjusts the ratio of fixed capital resources to variable labour it uses for its operations, operating leverage varies. The degree of operating leverage should.
Operating sacrificing lower per-unit variable expenses in favour of higher fixed costs. The relationship between a company's fixed and variable costs is known as operating leverage. The Degree of Operating Leverage (DOL) test measures how effectively a company turns its fixed costs into earnings. The formula is (Variables).DOL = Revenues .The DOL assists in estimating the potential revenue and loss levels for a business. Firms with high DOLs typically replace their higher fixed costs with lower variable costs per unit.
Complete question:
An organization’s decision to establish a factory in a different country that can provide labor at significantly lower wages is likely based on which of the following rationales?
a. Lower wages will make up for higher logistics costs.
b. Lower overall product costs will lead to higher profit margins.
c. Lower wages will make up for higher inventory costs.
d. All of the answers are correct.
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Oldhat Financial starts its first day of operations with $10 million in capital. A total of $130 million in checkable deposits are received. The bank makes a $25 million commercial loan and another $40 million in mortgages, with the following terms: 200 standard 30-year, fixed-rate mortgages with a nominal annual rate of 5.25%. each for $200,000. Assume that required reserves are 8%. Complete the bank's balance sheet provided below. (Round your responses to the nearest whole number.) The leverage ratio is and the bank is. (Round your response to two decimal places.) The risk-weighted assets after Oldhat's first day are $ million. (Round your response to the nearest whole number.)
Oldhat Financial's balance sheet shows assets of $75.4 million, liabilities and equity of $140 million, and a leverage ratio of 7.54. The risk-weighted assets after the first day are $65 million.
Based on the information you've provided, I can help you complete Oldhat Financial's balance sheet and calculate the leverage ratio and risk-weighted assets.
Balance Sheet:
Assets:
- Reserves: $10.4 million (8% * $130 million)
- Commercial Loan: $25 million
- Mortgages: $40 million
Liabilities:
- Checkable Deposits: $130 million
Equity:
- Capital: $10 million
Total Assets = Reserves + Commercial Loan + Mortgages = $10.4 million + $25 million + $40 million = $75.4 million
Total Liabilities and Equity = Checkable Deposits + Capital = $130 million + $10 million = $140 million
Leverage Ratio = Total Assets / Equity = $75.4 million / $10 million = 7.54 (rounded to two decimal places)
Risk-Weighted Assets:
- Assuming 100% risk-weight for both commercial loans and mortgages:
Risk-Weighted Assets = $25 million + $40 million = $65 million (rounded to the nearest whole number)
Your answer: Oldhat Financial's balance sheet shows assets of $75.4 million, liabilities and equity of $140 million, and a leverage ratio of 7.54. The risk-weighted assets after the first day are $65 million.
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consist of price, delivery arrangements, payment terms, discounts and tax exemptions; should be negotiated to make sure agreements are met
Terms of Purchase
Delivery Arrangements
Payment Terms
When making a purchase, it's important to consider the terms of purchase, including the price, delivery arrangements, payment terms, discounts, and tax exemptions.
These terms should be negotiated to ensure that both parties are meeting their agreed-upon agreements. The price should be agreed upon beforehand, and any discounts or tax exemptions should be clearly stated. The delivery arrangements should also be discussed, including the time frame for delivery, and any additional fees for expedited delivery. Payment terms should be agreed upon, including the method of payment and the date that payment is due. It's important to negotiate these terms to ensure a smooth transaction and avoid any misunderstandings or disagreements.
Hi! Your question seems to be about the various factors that should be considered and negotiated during a transaction.
In order to ensure that agreements are met, it is essential to negotiate the Terms of Purchase, which cover aspects like price, Delivery Arrangements, Payment Terms, discounts, and tax exemptions. Proper negotiation and clear communication about these factors will help both parties to reach a mutual understanding and facilitate a successful transaction.
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with respect to evaluating sales proposals, ________________builds the buyer’s trust and confidence in the salesperson’s ability to deliver, implement, produce, and/or provide the benefits.
With respect to evaluating sales proposals, trust builds the buyer’s trust and confidence in the salesperson’s ability to deliver, implement, produce, and/or provide the benefits.
In order to successfully close a sale, the salesperson must first establish a foundation of trust with the buyer. This can be achieved by demonstrating a deep understanding of the buyer's needs and concerns, as well as by providing relevant and accurate information about the product or service being sold. Additionally, the salesperson must be able to produce and deliver on their promises, providing a level of reliability and dependability that further strengthens the buyer's trust. Ultimately, the ability to build trust is essential to producing successful sales outcomes. So while evaluating sales proposals, establishing "Trust" builds the buyer's confidence in the salesperson's ability to deliver, implement, produce, and provide the desired benefits, ultimately leading to successful "Sales" and satisfied customers.
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A motherboard workstation produces 1,000 motherboards in 20 seconds. Bottleneck time of the motherboard workstation is 50 motherboards per second. A. True B. False
The statement "A motherboard workstation produces 1,000 motherboards in 20 seconds. Bottleneck time of the motherboard workstation is 50 motherboards per second" is B. False.
To calculate the actual rate of production at the workstation, we can follow these steps:
1. Divide the total number of motherboards produced (1,000) by the time taken to produce them (20 seconds).
1,000 motherboards ÷ 20 seconds = 50 motherboards per second.
The actual production rate is 50 motherboards per second. However, this does not represent the bottleneck time, which would be a constraint or limit in the production process. The bottleneck time would be slower than the actual production rate.
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discuss the physical appearance of the aqueous tea solution versus the organic solution; why is tea so dark?
The presence of other compounds, such as caffeine and flavonoids, can also contribute to the color of the tea solution.
The physical appearance of an aqueous tea solution is typically a light to medium brown color, while an organic solution of tea can range from amber to dark brown. The reason tea appears dark is due to the presence of compounds called tannins. Tannins are organic molecules that are found in tea leaves and are released into the water during brewing. These molecules give tea its distinctive flavor and also contribute to its dark color. The longer the tea is brewed, the more tannins are released, which causes the tea to become darker. Additionally, the presence of other compounds, such as caffeine and flavonoids, can also contribute to the color of the tea solution.
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An increase in perceived business opportunities will generally _____ the demand curve for loanable funds.
A.
right-shift
B.
cause a leftward movement along
C.
cause a rightward movement along
D.
left-shift
An increase in perceived business opportunities will generally cause the demand curve for loanable funds to right-shift. So, the correct answer is A. right-shift.
When there are more business opportunities, entrepreneurs and companies seek more funding to invest in these opportunities, which increases the demand for loanable funds. As a result, the demand curve shifts to the right.
The demand curve is a graphical representation of the relationship between the quantity of a product or service that consumers are willing to buy and the price of that product or service. It is a downward-sloping curve because as the price of a good or service increases, consumers tend to demand less of it. The demand curve is a fundamental tool in economics as it helps businesses and policymakers understand how changes in price and other economic factors impact consumer behavior and demand.
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If you encounter a process that has limited flexibility, shorter lead times, and cheaper products, customization most likely is occuring: A Early in the Supply Chain B. At every step of the Supply Chain C. At no steps of the Supply Chain D. Late in the Supply Chain E. Before the raw materials are procured
If you encounter a process that has limited flexibility, shorter lead times, and cheaper products, customization most likely is occurring (Option D) Late in the Supply Chain.
When a process has limited flexibility, it means that there are constraints on how it can be customized. Therefore, if customization is occurring, it is likely to be towards the end of the supply chain when the product is closer to being finished and the options for customization are more limited. Additionally, shorter lead times and cheaper products also suggest that customization is occurring late in the supply chain, as it is more efficient and cost-effective to make changes to the product at this stage.
A supply chain is a process of delivering a product from raw material to the consumer. It includes supply planning, product planning, demand planning, sales and operations planning, and supply management.
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the range of the cost driver in which the actual value of the cost driver is expected to fall is called the:
The range of the cost driver in which the actual value of the cost driver is expected to fall is called the "relevant range."
The relevant range refers to the range of activity or volume of a cost driver within which the assumptions about cost behavior are valid. In other words, it is the range within which the cost relationships (such as fixed and variable costs) remain constant.
When activity levels are within the relevant range, cost predictions can be made with reasonable accuracy. However, if activity levels fall outside the relevant range, cost relationships may change, and predictions may no longer be accurate.
This concept is essential in cost accounting and budgeting, as it helps management make better decisions based on the cost behavior patterns within the relevant range.
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In the video, Fostering Self-Esteem: The Hazards of Pride, experimental participants with inflated levels of self-esteem are shown reacting to an experimental partner who was critical of their essays with aggression disgust. O jealousy. fear.
In the video, "Fostering Self-Esteem: The Hazards of Pride," experimental participants with inflated levels of self-esteem are shown reacting to an experimental partner who was critical of their essays with aggression.
The study found that individuals with high levels of self-esteem may be more likely to respond to criticism with hostility and aggression, rather than taking it as an opportunity for growth and improvement. This can be attributed to the fact that individuals with high levels of self-esteem may have an exaggerated sense of their own abilities and accomplishments, making it difficult for them to accept criticism or feedback.
The study highlights the hazards of excessive pride and the importance of fostering a healthy level of self-esteem that allows individuals to accept criticism, learn from their mistakes, and grow both personally and professionally.
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Suppose in a Cournot duopoly that two firms, Firm 1 and Firm 2, face market demand P 50- Qand both have marginal cost MC $20. The equilibrium output for each firm will be b)Q1=Q2 = 7.5 Q122 15 d) 01 Q2 20
Therefore, the equilibrium output for each firm is Q1* = 7.5 and Q2* = 10.
Facing market demand P = 50 - Q, where Q = Q1 + Q2 is the total quantity produced by both firms. Both firms have a marginal cost of MC = $20. To find the equilibrium output for each firm, we can use the following steps: Start by assuming that both firms will produce some positive quantity of output. Let's call these quantities Q1 and Q2.
The total quantity produced by both firms is Q = Q1 + Q2. This quantity is also equal to market demand, so we can write Q = 50 - P, or equivalently, P = 50 - Q.
Each firm will try to maximize its profit by choosing its output level given the output level of the other firm. This means that Firm 1 will choose Q1 to maximize π1 = (P - MC)Q1, holding Q2 constant at some level Q2*. Similarly, Firm 2 will choose Q2 to maximize π2 = (P - MC)Q2, holding Q1 constant at some level Q1*.
Profit-maximization conditions. That is, we need to find Q1* and Q2* such that Q1 = Q1* and Q2 = Q2*.
Firm 1:
π1 = (P - MC)Q1 = (50 - Q1 - Q2* - MC)Q1
Taking the derivative of this expression with respect to Q1, we get:
dπ1/dQ1 = 50 - 2Q1 - Q2* - MC
Setting this expression equal to zero to find the profit-maximizing quantity for Firm 1, we get:
50 - 2Q1 - Q2* - MC = 0
Q1* = (50 - Q2* - MC)/2
Similarly, we can write down the profit-maximization condition for Firm 2:
π2 = (P - MC)Q2 = (50 - Q1* - Q2 - MC)Q2
Expression with respect to Q2, we get:
dπ2/dQ2 = 50 - Q1* - 2Q2 - MC
50 - Q1* - 2Q2 - MC = 0
Substituting Q1* from the previous equation, we get:
50 - (50 - Q2* - MC)/2 - 2Q2 - MC = 0
Q2* = (50 - MC)/3 = 10
Substituting Q2* into the equation for Q1*, we get:
Q1* = (50 - Q2* - MC)/2 = 7.5
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When the salvage value of an asset is revised, it is necessary to go back and restate prior years' earnings to reflect the change. True or False?
The given statement "When the salvage value of an asset is revised, it is necessary to go back and restate prior years' earnings to reflect the change" is False because Salvage value refers to the estimated value of an asset at the end of its useful life, and it is used to calculate the depreciation expense for that asset.
When an asset's salvage value is revised, it affects the calculation of future depreciation expenses but does not require a restatement of prior years' earnings. Generally Accepted Accounting Principles (GAAP) require that accounting records and financial statements accurately reflect the financial position of a company, including any changes to the estimated salvage value of an asset.
However, the revision of salvage value only impacts future periods, and therefore, any changes would be accounted for prospectively. Companies would adjust their depreciation expense going forward to reflect the revised salvage value, but not retrospectively for prior periods.
In summary, a change in an asset's salvage value does not require a restatement of prior years' earnings. Companies must only adjust their depreciation expense prospectively, and future financial statements will accurately reflect the revised estimate of the asset's salvage value.
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Suppose Claire Dutton, the specialty retailer, had these records for ladies' evening gowns during 2017 : (Click icon to view records.) Assume sale of evening gowns totalled 127 units during 2017 and that Claire's uses the weight-average-cost method under the periodic inventory system to account for inventory. The income tax rate is 33%. Requirements 1. Compute Claire's cost of goods sold for evening gowns in 2017
2. Compute what cost of goods sold would have been if Claire had purchased enough inventory in December—at $ 950 per evening gown—to keep year-end inventory at the same level it was at the beginning of the year, 31 units. Requirement 1. Compute Claire's cost of goods sold for evening gowns in 2017. (Round all interim calculations to the nearest whole dollar. Round your answer to the nearest whole dollar.) The cost of goods sold is $__ Requirement 2. Compute what cost of goods sold would have been if Claire had purchased enough inventory in December—at $ 950 per evening gown—to keep year-end inventory at the same level it was at the beginning of the year, 31 units. The cost of goods with the new units would be $__
Beginning inventory plus purchases minus ending inventory equals cost of goods sold and ending cost of goods inventories will rise if FIFO is adopted. The cost of products sold will rise as beginning inventory increases.
A higher ending inventory will result in a lower cost of goods sold. Cost of goods sold under FIFO is $31049 plus $2139 less $1934 to equal $31,254. $31049 is the cost of the products sold at LIFO. $31254 is the cost of the products sold under FIFO.1) The following is a schedule of the cost of the goods purchased.
Cost of goods purchased is calculated as follows: purchases + goods in and out - purchase returns plus purchase discounts. Cost of Goods Bought = ($523,000 + $ 2000 + $2 2000 ) - ($20000 + $ 20000). Purchased Goods Cost: $505,000.Cost of sales. Opening Inventory + Purchases + Freight In & Out + Purchase Returns & Discounts + Direct Labour + Factory Overhead + Ending Inventory = Cost of Goods Sold Cost of Goods Sold = 92,000$ + 523000$ + 2000$ + 22000$ - ($20000+$ 2000O)$ + 9000$$499,00 cost of goods sold.
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Other things being constant, what will be the effect of on consumption (consumption line) when the number of liquid assets consumers is holding increases?
Other things being constant, an increase in the number of liquid assets consumers are holding will result in an upward shift of the consumption line.
This is because consumers will have more resources at their disposal to spend on goods and services, leading to an increase in overall consumption. The shift will be relatively small and gradual, as the increase in liquid assets may not significantly impact overall consumer behavior. However, over time, the effect may become more pronounced as consumers continue to accumulate liquid assets and spend accordingly. Overall, an increase in the number of liquid assets held by consumers is likely to have a positive impact and upward shift on consumption levels.
An increase in the number of liquid assets held by consumers, with other things being constant, will lead to a higher consumption line due to the increase in disposable income and consumption expenditures.
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put these four panels in order from the easiest case of input substitutability to the hardest case of input substitutability? a. panel(b), panel(a), panel(c), and panel(d)
b. panel(a), panel(c), panel(d), and panel(b)
c. panel(d), panel(c), panel(a), and panel(b)
d. panel(a), panel(d), panel(c), and panel(b)
The correct order is d. panel(a), panel(d), panel(c), and panel(b).
Input substitutability refers to the extent to which one input can be replaced by another input without affecting the overall production process. Panel (a) refers to perfect substitutability, where inputs can be easily and perfectly substituted for each other without affecting the production process.
Panel (d) refers to complementary inputs, where the inputs are highly specialized and cannot be substituted at all. Panel (c) refers to weak substitutability, where the inputs can be substituted, but with some limitations and costs.
Panel (b) refers to the case where inputs are intermediate goods, and their substitutability depends on the elasticity of demand for the final product. Therefore, the correct order from easiest to hardest case of input substitutability is panel (a), panel (d), panel (c), and panel (b).
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Select all the events that could cause the price of a security to increase. ______ (Drag appropriate answers)
- The firm's bond rating increases.
- The stock price of this firm is expected to double. - Abond becomes a high-yield security,
- A secondary market exists for this security
The firm's bond rating increases: This could mean that the market perceives the firm to be more creditworthy, which could lead to an increase in the price of their securities.
What is bond?A bond is a type of debt security that represents a loan made by an investor to a borrower (typically corporate or governmental). The borrower then promises to repay the loan in full at maturity, usually with interest payments. Bonds are used by companies and governments to finance their operations and projects, and are an important part of the global financial markets.
The stock price of this firm is expected to double: If the stock price of a firm is expected to double, this can indicate that the market expects the firm to do well, which could lead to an increase in the price of their securities.
A bond becomes a high-yield security: If a bond becomes a high-yield security, this could mean that the market perceives the bond to be more attractive and could lead to an increase in the price of the bond.
A secondary market exists for this security: The presence of a secondary market allows investors to purchase and sell this security, which can lead to an increase in the price of the security.
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