estimated cost: a. managers use to make decisions about the future b. find a right price c. is not useful for

Answers

Answer 1

Answer:

managers use to make decisions about the future

Explanation:

Estimated cost is the cost that is projected to be incurred by a business when undertaking a project, program, or operation.

It comprises of the list of expenses that will be spent on an activity in the future.

Therefore it is used by managers to decide on the best activity to undertake in the future.

Usually the activity that has the lowest cost is balanced against the required quality.


Related Questions

What is the net effect on a firm's working capital if a new project requires: $38,991 increase in inventory, $31,869 increase in accounts receivable, $35,000.00 increase in machinery, and a $41,802 increase in accounts payable

Answers

Answer: Increase by $29,058

Explanation:

A firm's net working capital is the Current Assets less the current liabilities.

From the above, the current assets are; inventory and accounts receivable.

Current Assets

= 38,991 + 31,869

= $70,860

Current liabilities = Accounts payable = $41,802

Net effect on working capital

= 70,860 - 41,802

= $29,058

Sienna Company uses the FIFO cost flow assumption. Sienna has inventory with a selling price of $100, packaging costs of $5, and transportation costs of $10. Sienna's normal profit margin is $20. However, due to limited supply of the product from the manufacturer, it would cost Sienna $80 to replace the inventory. What amount should be used as the market value?a. $ 65b. $ 80c. $ 85d. $ 100

Answers

Answer: $85

Explanation:

The following information can be gotten from the question:

Selling price = $100

Less: Packaging cost = $5

Less: Transportation cost = $10

Ceiling price = $100 - $5 - $10 = $85

Net profit = $20

Floor price = $85 - $20 = $65

In this scenario, the replacement cost of the inventory is higher than the floor price of $65, therefore the market value should be $85.

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

Fixed Component per Month Variable Component per Job Actual Total for February
Revenue $280 $39,250
Technician wages $8,400 $8,250
Mobile lab operating expenses $4,800 $31 $9,290
Office expenses $2,400 $3 $2,700
Advertising expenses $1,580 $1,650
Insurance $2,870 $2,870
Miscellaneous expenses $970 $1 $425

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $31 per job, and the actual mobile lab operating expenses for February were $9,290. The company expected to work 150 jobs in February, but actually worked 154 jobs.

Required:
Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February.

Answers

Answer:

I used an excel spreadsheet since there is not enough room here. I ordered the given data:

                                              Fixed           Variable           Actual Total

Revenue                                                        $280                $39,250

Technician wages                $8,400                                       $8,250

Mobile lab operating exp.   $4,800              $31                   $9,290

Office expenses                   $2,400               $3                   $2,700

Advertising expenses           $1,580                                       $1,650

Insurance                              $2,870                                       $2,870

Miscellaneous expenses        $970                $1                      $425              

The actual results yielded an unfavorable operating income variance. Operating income = $14,065, unfavorable variance = $2,645

Many restaurants and food companies, such as Frito-Lay have made many of their products free of trans fat by changing cooking methods and oils used. Is it the responsibility of commercial industries to alter their product to keep us healthier or should we be more alert as consumers

Answers

Explanation:

It is essential that consumers are aware when choosing the companies they will consume, in relation to the food industries, it is necessary to be aware of how the food is prepared and if the ingredients will be good for our health.

In this case, the responsibility lies with the consumer, but companies follow consumer trends and consumer preferences, so it can be said that Frito-Lay has made its products healthier due to a new behavior by consumers, who are more willing to consume healthy products that generate health and well-being, then the company adapted to the market to remain competitive and profitable.

Using the lower of cost or market, what should the total inventory value be for the following items:_____. Item Quantity Unit Cost Price Unit Market Price Total Cost Price Total Market Price Lower of Cost or Market A 220 $9 $11 $1,980 $2,420 $fill in the blank 1 B 94 $17 $13 $1,598 $1,222 $fill in the blank 2 C 42 $25 $28 $1,050 $1,176Apply the lower-of-cost-or-market method to inventory as a whole.

Answers

Answer:

 $ 4252  is the lower cost price.  

Explanation:

Using lower of cost price or lower of market price :

Item      Total cost price    Total market value     Lower of cost or market price

  A            $ 1980                      $ 2420                          $ 1980

  B            $ 1598                      $ 1222                           $ 1222

  C            $ 1050                      $ 1176                            $ 1050              

                                                                                        $ 4252                                                  

Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is units. Southeastern estimates its annual holding cost for this item to be ​$ per unit. The cost to place and process an order from the supplier is ​$. The company operates days per​ year, and the lead time to receive an order from the supplier is working days. ​a) What is the economic order​ quantity? nothing units ​(round your response to the nearest whole​ number).

Answers

Answer:

A. Economic order​ quantity= 319

B. Annual holding​ costs= 3,669

C. Annual ordering​ costs= 3,669

D. 154

Explanation:

a) Calculation for the economic order​ quantity

Using this formula

Economic order​ quantity=√2*Demand*Cost order/Annual holding cost

Let plug in the formula

Economic order​ quantity=√2*15,400*76/23

Economic order​ quantity=√2,340,800/23

Economic order​ quantity=√101,774

Economic order​ quantity= 319

b) Calculation for annual holding​ costs

Using this formula

Annual holding​ costs=Economic order​ quantity/2*Annual holding cost

Let plug in the formula

Annual holding​ costs=319/2*23

Annual holding​ costs= 3,669

c) Calculation for the annual ordering​ costs

Using this formula

Annual ordering​ costs=Demand/Economic order​ quantity*Cost order

Let plug in the formula

Annual ordering​ costs=15,400/319*76

Annual ordering​ costs= 3,669

d) Calculation for reorder​ point

Using this formula

Reorder point=Demand/Numbers of days the company operate per​ year*Lead time

Let plug in the formula

Reorder point=15,400/300 days per year*3

Reorder point= 154

Why is "inventory turns" an important metric?

Answers

Explanation:

The metric, number of inventory turns, aims to measure the movement of stock. The higher the turnover, the less time your inventory spends sitting in storage. The number of inventory turns, also known as stock turn, is calculated by taking the value of stock purchased, divided by the value of stock on hand

A home furniture store, David's Furnishings, lowers its prices below those of
their competitors, Ada's Home Store. A price war then ensues. What must the
response of Ada's Home Store have been in order for the price war to begin?
A. Ada's Home Store started a marketing campaign against David's
Furnishings and their lower quality.
B. Ada's Home Store took David's Furnishings to court in an attempt
to make them raise their prices back up.
C. Ada's Home Store raised prices to show consumers that their
products are better.
O D. Ada's Home Store lowered prices even lower than David's
Furnishings did.

Answers

Answer:

d.

Explanation:

The response of Ada's Home Store has been in order for the price war to begin as  Ada's Home Store lowered prices even lower than David's Furnishings did. Thus option D  is correct.

What is the Price?

A price refers to the amount which takes place between two individuals when performing the exchange of goods and services. This price is determined by the willingness of both parties involved in the exchange.

A price war took place when the competitors lower their prices in order to retain more customers will create conflicts in the market.

In the given case when an organization named David's Furnishings lower its prices with its competitors to begin a price war the competitors also lower their prices in order to capture the market gain effectively.

Therefore, option D is appropriate.


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Shares of Corporation have a beta of 0.90. The market risk premium is 7%, and
the risk-free rate is 8%. Corporation paid a dividend of $1.80 per share, and the
dividend is expected to grow at 7% forever. The share currently sells for $25.
Corporation has a debt-equity ratio of 50%. Its cost of debt is 8%, before taxation,
taxation rate is 30%.
What is the weighted average cost of capital of Corporation?

Answers

Answer:

The weighted average cost of capital of Corporation is 11.4%

Explanation:

Now use following formula to calculate the weighted average cost of equity

WACC = ( Weight of equity x Cost of equity ) + ( Weight of debt x Cost of debt (after tax ) )

Weight

Equity  = 100%

Debt = 50%

Cost

First we need to calculate the cost of equity using CAPM formula

Cost of equity = Risk free rate + Beta x ( Market risk premium )

Placing values in the formula

Cost of equity = 8% + 0.90 x  7%

Cost of equity = 14.3%

Cost of debt = 8%

Cost of debt (after tax ) = 8% x ( 1 - 30% ) = 5.6%

Placing values in the formula of Weighted average cost of capital

WACC = ( ( 100%/150% ) x 14.3% ) + ( ( 50% / 150% ) x 5.6% )

WACC = 9.53% + 1.87%

WACC = 11.4%

In order to create an environment where employees can achieve their potential as they move the organization towards its goals, the manager role needs to be that of _____________. a. resource allocator b. resource controller c. a flexible resource d. an advocator of the status quo

Answers

Answer: c. Flexible resource

Explanation:

In order to create an environment where employees can achieve their potential as they move the organization towards its goals, the manager role needs to be that of a flexible resource.

A flexible manager helps the employees achieve their potential as he or she tailors them in the right direction. They also help the workers to work productively which will be vital in the accomplishment of the goals of the organization.

Answer:

c. a flexible resource

Explanation:

A flexible resource use is the process by which businesses make changes to adapt to different circumstances in order to maintain competitive edge in the industry.

This method emphasises efficiency by use of available resources.

Resources employed include working tools and human resources.

This creates an environment where employees can achieve their potential as they move the organization towards its goals.

As new changes are made new roles are created that will lead to staff growth

Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these decisions involve private spending; others involve government spending.
For each form of private spending, indicate whether it represents consumption or investment.
Private Spending Consumption Investment
Laundromats buying washing machines
People buying houses
People buying newspapers
People buying food
For each form of government spending, indicate whether it represents consumption or investment.
Government Spending Consumption Investment
Payment for public safety employees
Building hospitals
Building roads
Buying military equipment

Answers

Explanation:

Note, for private spending, consumption refers to purchases usually made for present needs, while investment refers to purchases that may provide. For government spending, consumption refers to purchase made to care for the immediate welfare or needs of those governed without any monetary benefits, while investment purchases are done with the perceived future benefits in mind.

Private Spending

Laundromats buying washing machines =  InvestmentPeople buying houses  = InvestmentPeople buying newspapers  = ConsumptionPeople buying food = Consumption

Government Spending

Payment for public safety employees = InvestmentBuilding hospitals = InvestmentBuilding roads = InvestmentsBuying military equipment = Investment

Jane has always made budgets for herself. She plans her expenses according to her budget. However, despite creating plans, some unforeseen circumstance often puts her off the budget. Which course of action should Jane follow to prepare herself for unforeseen circumstances and stay on a budget?

A. Follow the plan strictly at any cost
B. Create an emergency fund
C. Follow the same plan
D. Tweak her financial goals

Answers

Answer:

C.

Explanation:

Sana makatulong

Answer:

B

Explanation:

Having an emergency fund will help cover unexpected costs.

Geralds manufacturing firm sold goods worth $6000 to some customers on credit in the month of January. His customers plan to pay him the entire amount at once in March. Gerald plans to record and recognize this income in the business’s accounts in March. Which accounting method does Geralds business follow?

His business follows the (________) method of accounting.

Answers

Answer:

Cash accounting method

Explanation:

The cash accounting method records receipts and expenses during the period in which cash changes hands. In this method, revenue will be recorded when payment from a customer is received. Expenses are not recorded unless money is paid out.  In short, revenues and expenses are recognized and recorded only when cash is received or paid.

Cash accounting contrasts with the accrual accounting system, which recognizes revenues and expenses when their respective events occur.

When people refer to jobs in the public sector they are referring to jobs with:
O A. The federal government
B. A local business
OC. A large corporation
D. A franchise

Answers

A. Is the answer since if you look up what a public sector is it mentions the government


2. Seller is defined as a party that makes, offers or contracts to make a sale to an actual or
potential buyer."
True of false? ​

Answers

Answer:

True

Explanation:

A seller is a person who agrees to exchange his goods or services with another party for money or other goods. A seller transfers ownership of the products to a buyer in exchange for money or other valuables.  It is a person who sells, a salesperson, or a vendor of goods and services.

A seller requires a buyer to complete a sales transaction.

Assume the state of Alabama placed a tax on playing cards of 6 cents per pack. If the state generated $48600 in revenue, how many packs of cards were sold?

Answers

Answer:

the number of packs of cards sold is 810,000 units

Explanation:

The computation of the number of packs of cards sold is shown below:

Tax revenue  = tax per good  × goods

$48,600 = 0.06 ×  Q

Q =$48,600 ÷ 0.06

Q = 810,000

hence, the number of packs of cards sold is 810,000 units

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

Monroe manufacturing has a quick ratio of 2.00x $31,000 in cash $17,500 in accounts recivable some inventory total current assets of $70,000 and total current liabilities of $24,500 the company reported annaul sales of $400,000 in the most recent annual reportOver the past year how often did Monroe manufacturing sell and replace its inventory?A) 19.05 xB) 20.96 xC) 2.86 xD) 8.01 x

Answers

Answer:

Inventory turnover ratio = 19.05 times

Explanation:

Quick ratio = (Current assets - Inventory) / Current liabilities  

2 = (70,000 - Inventory) / 24,500

Inventory = $21,000

Inventory turnover ratio = Total sales / Inventory

Inventory turnover ratio = 400,000 / 21,000

Inventory turnover ratio = 19.05 times

If Roten Rooters, Inc., has an equity multiplier of 1.63, total asset turnover of 2.50, and a profit margin of 4.3 percent, what is its ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.).

ROE _________ ?? %

Answers

Answer: 17.52%

Explanation:

Equity Multiplier = 1.63

Total asset turnover = 2.50

Profit margin = 4.3%

Rate of Return = Equity Multiplier × Asset turnover × Profit margin

= 1.63 × 2.50 × 4.3%

= 1.63 × 2.50 × 0.043

= 0.175225

= 17.52% approximately

If a consumer buys flour because he loves baking, the flour is counted as part of GDP. If a bakery buys flour as an input to bake things in order to sell, the flour is not counted as part of GDP. Briefly explain why we treat these purchases differently.

Answers

Explanation:

Remember, the GDP (Gross Domestic Product) is an economic term that refers to the total value of goods and services produced in an economy in a particular period, usually in a period of one year.

Note, the standard way of counting GDP tries to avoid double counting by noting only the final value of goods or services.

Hence, the flour bought by the consumer (the final user) is measured by the producer as output or goods produced, whereas If a bakery buys flour as an input to bake things in order to sell, the flour is not counted as part of GDP because it is not the final value of the goods as value is still going to be transferred to whatever output from the bakery (eg bread, cakes).

A proposed new project has projected sales of $222,000, costs of $96,500, and depreciation of $26,100. The tax rate is 24 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)A. EBIT+Depreciation-TaxesB. Top-DownC. Tax-ShieldD. Bottom-Up

Answers

Answer: See explanation

Explanation:

Sales = $222,000

Less: Cost = $96,500

Less: Depreciation = $26100

EBIT = $99400

Less: Tax = 24% × $99400 = $23856

Net income = $75544

A. EBIT+Depreciation-Taxes

EBIT = $99400

Add: Depreciation = $26100

Less: Tax = $23856

Operating cashflow = $101644

B. Top-Down

= EBIT(1 - t) + Depreciation

= $99400(1 - 0.24) + $26100

= $75544 + $26100

= $101644

C. Tax-Shield

= (Sales - Cost)(1-t) + Depreciation (t)

= ($222000 - $96500)(1 - 0.24) + $26100(0.24)

= ($125500 × 0.76) + $6264

= $95380 + $6264

= $101644

D. Bottom-Up

= Net income + Depreciation

= $75544 + $26100

= $101644

What is it called when a person's behavior in the workplace creates circumstances that make it difficult for someone else of a particular sex to do his or her work?

Answers

Discrimination because they are making it difficult for someone else of particular sex to do his/her work.

________ is the process of training and educating employees to become good managers and then developing their managerial skills over time.A) Management development
B) Vestibule training
C) Pre-mentoring
D) Self-actualization training

Answers

Answer:

A) Management development

Explanation:

Management development is the process of training and educating employees to become good managers and then developing their managerial skills over time.

Personnel management can be defined as an administrative task or function which primarily involves the process of hiring employees and developing or training them to become beneficial and valuable for the growth and development of the company.

Hence, the main purpose and focus of personnel management is to provide a quality workforce necessary to successfully achieve the organizational set goals and objectives.

This ultimately implies that, the main purpose of a training focuses is to improve an employee's performance in his or her place of work while development is focused on preparing an employee for higher positions available in an organization.

The following is a list of prices for zero-coupon bonds of various maturities. a. Calculate the yield to maturity for a bond with a maturity of (i) one year; (ii) two years; (iii) three years; (iv) four years. (Do not round intermediate calculations. Round your answers to two decimal places.) YTM Maturity (Years) Price of Bond 920.90 $ 912.97 $ 826.62 $ 785.62 b. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year. (Do not round intermediate calculations. Round your answers to two decimal places.) Maturity (years) Price of Bond $ 920.90 912.97 826.62 785.62 Forward Rate Maturity (Years) Price of Bond $ 912.97 $ 826.62 $ 785.62

Answers

Answer:

a. Calculation of the yield to maturity for a bond with a maturity years

Yield to Maturity = [(Face value/Bond price)^(1/Time period)] - 1

i. One year = (1000/920.90) - 1 = 0.0858942339 = 8.59%

ii. Two year = (1000/912.97)^(1/2) - 1 = 0.04657835011 = 4.66%

iii. Three year = (1000/826.62)^(1/3) - 1 = 0.06552758403 = 6.55%

iv. Four year = (1000/785.62)^(1/4) - 1 = 0.06217693669 = 6.22%

b.  Calculation of the forward rate

Forward rate = [(1 + Next year YTM)^Period / (1+Previous year YTM)^Period} - 1

i. Second year = (1+4.66%)^2/(1+8.59%) - 1 = 0.00872231328 = 0.87%

ii. Third year = (1+6.55%)^2/(1+4.66%) - 1 = 0.08474130517 = 8.47%

iii. Fourth year = (1+6.22%)^2/(1+6.55%) - 1 = 0.05891022055 = 5.89%

A perfectly competitive firm shuts down in the short run when:________. A. economic losses occur. B. the price is below the average total cost curve. C. the price is below the average variable cost curve. D. the price is below the average fixed cost curve.

Answers

Answer:

C. the price is below the average variable cost curve.

Explanation:

In a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.

Hence, a perfectly competitive market is characterized by the following features;

1. Perfect information.

2. No barriers, it is typically free.

3. Equilibrium price and quantity.

4. Many buyers and sellers.

5. Homogeneous products.

Some examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.

A perfectly competitive firm shuts down in the short run when the price it is selling its goods (products) in the market is below the average variable cost curve.

This ultimately implies that, a business firm should only continue to be in operation when its price is above or greater than its average variable costs based on the shutdown rule.

J-Pac Co. uses the Allowance Method to account for uncollectible Accounts Receivable. If they determine that $900 of the balance owed by Matt Evans is uncollectible, the correct entry to write it off would be:

Answers

Answer and Explanation:

The correct entry to write off is shown below:

Allowance for Doubtful Accounts $900

         To Accounts Receivables $900

(Being written off is recorded)

Here the allowance for doubtful accounts is debited as it increased the assets and the account receivable is credited as it decreased the assets. Also, the assets contains the normal debit balance

3M Co. reports beginning raw materials inventory of $855 million and ending raw materials inventory of $717 million. Assume 3M purchased $3,646 million of raw materials and used $3,784 million of raw materials during the year. Compute raw materials inventory turnover and the number of days' sales in raw materials inventory.

Required:
Compute raw materials inventory turnover and the number of days' sales in raw materials inventory.

Answers

Whats the question.....

You have $135,000 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $49,000.

Required:
a. Does this create a disbursement float or a collection float?
b. What is your available balance?
c. What is your book balance?

Answers

Answer:

a. Does this create a disbursement float or a collection float?

A disbursement float occurs when you write a check and hand it out, but the person that receives the check hasn't cashed it yet. You do not owe the money anymore, but it still appears on your bank account.

b. What is your available balance?

your bank account balance = $135,000

c. What is your book balance?

book balance = $135,000 - $49,000 = $86,000

Due to recent beef​ recalls, Southwest Steakhouse is considering incorporating.​ Bob, the​ owner, wants to protect his personal assets in the event the restaurant is sued. Requirements:1. Which advantage of incorporating is most​ applicable?A. A corporation has continuous life. B. There is a mutual agency among the stockholders. C. Corporations can raise more money to pay for government regulations. D. The transfer of corporate ownership is easy. E. Stockholders have limited liability.2. What are other advantages of organizing as a corporate entity? A. A corporation has continuous life. B. Start-up costs are lower than other business forms. C. The corporation is taxed separately from the shareholders. D. A majority vote is all that is required for any business decision. E. All income and expenses are split evenly among the shareholders. F. It does not allow stockholders to bind the business to a contract. G. There is no mutual agency among the stockholders and the corporation.3. What are some disadvantages of organizing as a​ corporation?​A. Start-up costs are higher than other business forms.
B. Stockholders have limited liability.
C. The transfer of corporate ownership is easy.
D. Earnings of the corporation are subject to double taxation.
E. Ownership and management are often separated.
F. Corporations can raise more money than a proprietorship or partnership.
G. It has an indefinite life.

Answers

Answer:

D. Earnings of the corporation are subject to double taxation.

Regular corporations, not S corporation, are subject to double taxation, because the are taxed on corporate income, and taxed on dividends: stockholders pay a dividend tax when these are distributed.

E. Ownership and management are often separated.

In most corporations, specially those that are very large, management and owners are different people, something that creates the principal-agent problem: the agent (management) may not always work in the best interest of the principal (the owner) because their interests are not fully aligned.

Historically, a factory has been able to produce a very specialized nano-technology component with 35% reliability, i.e., 35% of the components passed its quality assurance test. They have now changed their manufacturing process and hope that this has improved the reliability. To test this, they took a random sample of 24 components produced using the new process and found that 13 components passed the test. If you do a hypothesis test to see if the new manufacturing process is more reliable, does this observation give you enough evidence to reject the null hypothesis at 5% level of significance? (Suggestion: Use Microsoft Excel for your calculations.)The table below shows the probability of observing number of components (X) passing the test out of 24 components, if the reliability is 35%.X Probability0 0.00001 0.00042 0.00263 0.01024 0.02895 0.06226 0.10617 0.14708 0.16829 0.161010 0.130011 0.089112 0.052013 0.025814 0.010915 0.003916 0.001217 or more 0.0004A) NoB) Yes

Answers

Answer:

Yes

Explanation:

From the given output

The  Probability of getting 13 or more passed

when the  reliability = 0.35. can be calculated as follows

=0.0258+0.0109+0.0039+.0012+0.0004 = 0.0422   ≈  4.2%

Since the probability is less than the  5% level we will therefore reject the Null hypothesis  

answer : YES

Omega Enterprises budgeted the following sales in units:​

January 40,000
February 30,000
March 50,000

​Omega's policy is to have 30% of the following month's sales in inventory. On January 1, inventory equaled 8,000 units. February production in units is:_________

a, 20,000.
b. 26,500.
c. 40,000.
d. 36,000.
e. 28,000

Answers

Answer:

d. 36,000

Explanation:

Given the following data,

Units;

February = 30,000

March = 50,000

In order to calculate February production in units, the sales for the month and the required ending inventory will be added together and then deduct the beginning inventory.

February Production in units ;

Sales for the month = 30,000

Ending inventory = [50,000 × 0.3] = 15,000

Beginning inventory = [30,000 × 0.3] = [9,000]

Total = 36,000 units.

Other Questions
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