the effective interest rate method of amortizing a bond discount or premium is the preferred method by generally accepted accounting principles. true or False

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Answer 1

True. This is because it results in a constant periodic rate of interest on the carrying value of the bond, which is more representative of the true economic cost of borrowing.

The Effective Interest Rate Method of Amortizing a Bond Discount or Premium

The effective interest rate method of amortizing a bond discount or premium is generally accepted as the preferred accounting method because it results in a constant periodic rate of interest on the carrying value of the bond. This method is more representative of the true economic cost of borrowing, as it results in interest payments that are more consistent with the actual cost of borrowing funds.

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Related Questions

An individual's conflict style is developed early in life.

a. True
b. False

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An individual's conflict style is developed early in life and remains static throughout his/her lifetime. This statement is false.

The process of resolving conflicts involves minimizing unfavorable outcomes and prioritizing beneficial outcomes. This essential managerial talent entails negotiation, innovative problem-solving and the use of various strategies depending on the circumstance. An organization can reduce interpersonal problems, improve client happiness and achieve better business results by managing conflict well.

The default conflict style of a person is likely influenced by a variety of things, including previous conflict experiences, cultural norms from the person's home or workplace, the organizational setting and even gender standards. A conflict style is never static, rather, we modify it depending on the situation, the person with whom we are in dispute and other office-related issues.

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Full question: An individual's conflict style is developed early in life a. True b. False

Costs that have no impact on future cash flows and are irrelevant to decisions are ______ costs.

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Costs that have no impact on future cash flows and are irrelevant to decisions are sunk costs.

Sunk costs are those that have already been incurred but are not recoverable. Sunk costs are not considered in future business decisions because the cost remains constant regardless of the outcome of the decision. Salary, insurance, rent, non-refundable deposits, and repairs are examples of sunk costs (as long as each of those items is not recoverable). 

Businesses that proceed with a course of action because they have already invested time or money in a prior decision risk falling into the sunk cost trap. All sunk costs are fixed costs, but not all fixed costs are sunk costs. Sunk costs are different in that they cannot be recovered. It is not a sunk cost if equipment can be resold or returned at the original purchase price.

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bob lives in denver and runs a business that sells guitars. in an average year, he receives $851,000 from selling guitars. of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totaling $281,000. he owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if bob does not operate this guitar business, he can work as an accountant, receive an annual salary of $34,000 with no additional monetary costs, and rent out his showroom at the $71,000 per year rate. no other costs are incurred in running this guitar business.

Answers

Using cost-benefit analysis we know that Bob will earn more by working as an accountant while collecting rent from his showroom rather than to keep running his business.

We can calculate using cost-benefit analysis that if Bob were to keep running his business he receives $851,000 from selling guitars minus the wholesale guitar cost of $476,000 minus wages and utilities of $281,000. By then end of the year he would have a net profit of $94,000.

$851,000-$476,000-$281,000=$94,000

Again by using cost-benefit analysis, if Bob were to work as an accountant and receive an annual salary of $34,000 while collecting a rent of $71,000 from his showroom, he would have collected $105,000 by the end of the year.

$34,000+$71,000=$105,000

By calculating the cost-benefit, we can conclude that it will be more profitable Bob to work as an accountant and collecting rent from his showroom rather than to keep his business running, because he will earn an extra $11,000 by doing so.

$105,000-$94,000=$11,000

You didn't ask the question yet, but I assume you are going to ask whether it'll be more profitable for Bob to run a business selling guitar or to work as an accountant while collecting rent from his showroom.

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in which of the following scenarios would an excise tax placed on producers result in the smallest deadweight loss?

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Answer:

when demand is perfectly inelastic

Explanation:

The scenario where an excise tax placed on producers would result in the smallest deadweight loss is one where the demand and supply for the good are relatively inelastic.

What is an excise tax?

An excise tax is a type of tax that is levied on a specific good or service, typically at the point of production or sale. Excise taxes are often used to discourage the consumption of certain products, such as tobacco, alcohol, or gasoline, or to raise revenue for government programs.

An excise tax is a tax on the production or sale of a specific good or service, which is typically passed on to the consumers by increasing the price. The deadweight loss of a tax refers to the loss of economic efficiency that occurs when the tax reduces the amount of the good or service produced and consumed.

The size of the deadweight loss depends on the elasticity of demand and supply of the taxed good. If the demand and supply are relatively inelastic, then the tax burden will fall more heavily on the consumers, resulting in a smaller deadweight loss.

If the demand and supply are relatively elastic, then the tax burden will be shared more evenly between the producers and consumers, resulting in a larger deadweight loss.

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The A-B-C Approach to Inventory Classification

Read the overview below and complete the activities that follow.

An important aspect of inventory management is that items held in inventory are not of equal importance in terms of dollars invested, profit potential, sales or usage volume, or stockout penalties. It would be unrealistic to devote equal attention to every item. Instead, a more reasonable approach is to allocate control efforts according to the relative importance of various items in inventory.

Answers

An important aspect of inventory management is that items held in inventory are not of equal importance in terms of dollars invested, profit potential, sales or usage volume, or stockout penalties.

Out-of-stock occurs when we run out of stock of a particular item. Out-of-stocks can occur anywhere in the supply chain, but they have the greatest impact on retail shelves and profits when they occur when customers are about to buy.

Inventory Percentage is the percentage of items that are not available when needed for sale. It is calculated by dividing the number of items that are not in stock by the total number of items that are in stock. Average inventory levels are around 8% and increase when products go on sale. A high out-of-stock rate can lead to a significant loss of sales.

Stockouts often occur due to delivery bottlenecks and poor inventory management. Another out-of-stock scenario occurs when a retailer has a product in stock in its warehouse but is unable to purchase the item when a customer requests it.

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morton office supply, of rochester, new york, ordered fifty calculators from georgia instruments company, of savannah, georgia, terms fob savannah, georgia. the calculators were damaged in transit between savannah and rochester. who suffers the loss?

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Morton office supply, of rochester, new york, ordered fifty calculators from georgia instruments company. Morton Office Supply suffers the loss.

What's the company instrument?

Company  instrument means a legal document performing from a importunity or supplication that defines an agreement between the DOE and a company, individual, another Government agency, or public or private institution.

What's instrument design?

The Instrument Design section, a platoon of professed masterminds, designs prototypes of protean laboratory instruments according to specific exploration requirements. Innovative results to specialized problems that arose during the design process are worked out by the platoon in confluence with the scientist.

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the practice of high risk assets on a banks books while removing low risk assets with the same capital requirement is known as

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The practice of high risk assets on a banks books while removing low risk assets with the same capital requirement is known as regulatory arbitrage.

What is regulatory arbitrage ?Using more advantageous rules in one country to get around less favorable regulations in another is a practice known as regulatory arbitrage.Due to the fact that it utilizes legal loopholes, this approach is frequently regarded legal yet unethical.When certain activities or positions within a conglomerate are moved, it is referred to as "supervisory arbitrage." This may be done to avoid being subjected to one set of supervisors' relatively stricter prudential oversight or to completely avoid it.

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a purely competitive firm finds that the market price for its product is $20. it has a fixed cost of $100 and a variable cost of $10 per unit for the first 50 units and then $25 per unit for all successive units. does price exceed average variable cost for the first 50 units? for the first 100 units? what is the marginal cost per unit for the first 50 units? the marginal cost for units 51 and higher? for each of the first 50 units, does mr exceed mc? is mr > mc for units 51 and higher? what output level will yield the largest possible profit for this purely competitive firm?

Answers

1. Yes, the price exceed average variable cost (AVC) for the first 50 units.

2. Yes, the price exceed AVC for the first 100 units.

3. Marginal Cost (MC) is $10 for the first 50 units.

4. MC is $25 per unit for subsequent units.

5. Yes, MR exceeds MC for each of the first 50 units.

6. MR is less than MC for units 51 and higher

7. The firm will produce 50 units to maximize profits.

1. Yes, the price exceed average variable cost (AVC) for the first 50 units. The price of $20 exceeds AVC for the first 50 units because AVC for the first  50 units is ($10 per unit x 50 units)/50 units

2. Yes, the price exceed AVC for the first 100 units.

The AVC for the first 100 units is $17.50 per unit: [($10 per unit x 50 units) ÷ $25 per unit x 50 units)/100].

3. Marginal Cost (MC) is $10 for the first 50 units.

4. MC is $25 per unit for subsequent units.

5. Yes, MR exceeds MC for each of the first 50 units.

   since $20 > $10

6. MR is less than MC for units 51 and higher

  Since $20 < $25

7. The firm will produce 50 units to maximize profits.

This is because the Marginal Cost (MC) of the 51st  unit exceeds Marginal Revenue (MR) and profit maximization is where MR=MC

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as a project manager, you are about to hire a new vendor; however, there are terms in the contract you are unfamiliar with. who should you contact to better understand the contract?

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Should contact to better understand the contract a member of the legal team

What is a new vendor?A vendor who is not an Approved Vendor or a Vendor of Record and does not appear in the procurement system database is referred to as a New Vendor.Anyone who buys and sells goods or services is referred to as a vendor in general. A vendor buys goods and services to resell them to another business or person. The products that large retailers like Target purchase at wholesale costs and resell at higher retail prices are supplied by a variety of different vendors.A vendor is a person or business that makes a profit by selling goods or services. They can conduct their company either business-to-business (B2B) or business-to-consumer (B2C). B2B vendors are frequently referred to as suppliers.

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A firm’s earnings are a true representation of cash flows available to the stockholders.

a. True
b. False

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False: A company's net income accurately reflects the cash flows available to stockholders.

Earnings of a company do not always accurately reflect the cash flows available to stockholders.

The management might decide to use the earnings—known as retained earnings—to fund additional expansion or acquisitions. Therefore, shareholders would not receive a cash dividend in that scenario.

Why do businesses choose not to pay dividends in cash?

In most cases, a business that is still expanding rapidly will not pay dividends because it wants to put as much money as it can into further expansion. Paying dividends is not an option for mature businesses that believe they can increase value by reinvesting their earnings.

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as a team leader, you recognize decision-making by your team may experience challenges that arise due to a high degree of cohesiveness and group norms that result in conformity. if this situation occurs, it is known as .

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A team decision-making challenge that arises due to a high degree of cohesiveness and group norms that result in conformity is known as groupthink.

Define groupthink.

When people repress their rational inclinations to present alternatives, contest a position, or express an unpopular opinion in favor of group consensus, it is known as groupthink. In this situation, the urge for group cohesion effectively stifles wise judgment and creative problem-solving.

Pressure to fit in, the false sense of invulnerability, self-censorship, and unquestioning ideas are four of groupthink's key traits. Groupthink can, in fact, make us prioritize harmony and consensus over our own judgment, which can result in immoral action. The psychological phenomenon known as "groupthink" refers to circumstances in which members of a group act in an improper or irrational manner in order to maintain peace or conformity.

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you are using jensen's alpha to analyze the performance of two small-cap funds and will select one of those funds for the client to purchase. during the performance period being measured, the market returned 12.8% and treasury bills returned 4.2%. the two funds had the following performance: fund standard deviation beta return 1 21.2% 1.19 18.1% 2 23.8% 1.07 17.5% which fund would you select, and why? a) fund 2, because its alpha (0.124) is lower than fund 1's alpha (0.117) b) fund 2, because its alpha (0.041) is higher than fund 1's alpha (0.037) c) fund 1, because its alpha (0.656) is higher than fund 2's alpha (0.559) d) fund 1, because its alpha (0.121) is higher than fund 2's alpha (0.113)

Answers

Two of the most important metrics for assessing the performance of a stock, a fund, or an investment portfolio are alpha and beta.

What is Portfolio Managers' Alpha?Alpha is a tool that helps individual investors understand how a company or fund might perform in comparison to its competitors or to the market at large.The rate of return that is greater than or less than the projection made by the model is how professional portfolio managers determine alpha. To forecast the probable returns of a portfolio of investments, they employ a capital asset pricing model (CAPM).That sets a higher standard generally. If the CAPM analysis shows that the portfolio should have earned 5% but only managed to earn 3% due to risk, the state of the economy, and other reasons, the portfolio's alpha would be a depressing -2%.Formula for Alpha:

Alpha=Start PriceEnd Price+DPS−Start Price​where:

DPS=Distribution per share

In order to balance risk, portfolio managers diversify their holdings in an effort to increase alpha.The value that a portfolio manager contributes or subtracts from a fund's return is represented by alpha, which measures a portfolio's performance in relation to a benchmark. The benchmark value for alpha is zero, meaning that the portfolio or fund is mirroring the benchmark index exactly. The investment manager has not gained or lost any value in this situation.

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which of the following statements is true of nonmarketing-controlled information sources?
a. It is monitored anonymously by marketers acting as nonmarketing agents to promote their product.
b. It includes Internet forums and other forms of public sources of information.
c. It is biased towards a specific product because it originates with marketers promoting that product.
d. It includes mass media advertising like television, and newspaper advertising.

Answers

It includes Internet forums and other forms of public sources of information that are true of non-marketing-controlled information sources.

Public information sources like the internet, social media, and of them are instances of non-marketed, regulated information sources.

An Internet forum, often known as a message board, is a website where users may have discussions by posting messages.

Forums serve as primary hubs for topical discourse. The Forum format is inherited from BBS and Usenet. The most illustrious and important Internet forum groups have concentrated on issues ranging from health to technology, as well as professions and pastimes.

A component of social media technologies is forums, which can be found in a variety of platforms such as blogs, business networks, enterprise social networks, microblogs, photo sharing, reviews of products and services, social bookmarking, social networks, social gaming, video sharing, and virtual worlds.

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a fixed asset has a useful life of 5 years is purchased on the first of january of a certain. the purchasing price of the asset is $3,000, and its residual value is expected to be $750. based on this information, the depreciation for year 2 will be equal to:

Answers

Divide the asset's cost by its salvage value, then multiply the result by the asset's usable life.$2,100

Find the solution ?Say a business invested $50,000 in equipment that will be used for a long time in its operations.It projects that the item will have a salvage value of $2,000 and a usable life of 15 years.The annual depreciation cost would be $3,200. Assuming a straight line method of depreciation in which the depreciation is the same for each year, the annual depreciation can be calculated as follows:

Annual depreciation = .$2,100

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If an economy moves into a recession, causing that country to produce less than potential GDP, then:

tax revenue and government spending will be higher because of automatic stabilizers.

tax revenue and government spending will be lower because of automatic stabilizers.

automatic stabilizers will cause tax revenue to decrease and government spending to increase.

automatic stabilizers will cause tax revenue to increase and government spending to decrease.

Answers

If an economy moves into a recession, causing that country to produce less than the potential GDP, then automatic stabilizers will cause tax revenue to decrease and government spending to increase.

A trillionaire is a character with a net worth equal to at least a trillion in U.S. Bucks or a similarly valued currency, consisting of the euro or the British pound. Presently, no one has yet claimed trillionaire status, although a number of the world's richest people may also most effective be some years far from this milestone.

Gross home product (GDP) is the standard measure of the price brought created thru the production of products and offerings in a rustic at some point of a certain duration. As such, it also measures the income earned from that manufacturing or the full quantity spent on final goods and offerings (fewer imports).

Monetary output is now and again called gross output or virtual output. As said earlier, economic output is different from GDP. Gross domestic product is a degree of “price added” at the national level.

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a. analyzing the liquidity ratios over the ten-year period, is discount goods current ratio (a) generally increasing, (b) roughly the same, or (c) generally decreasing from year to year?

Answers

The modern ratio is a liquidity ratio that measures a company's potential to pay temporary responsibilities or these due inside one year. It tells traders and analysts how a corporation can maximize the contemporary property on its stability sheet to satisfy its modern-day debt and other payables

How do you analyze liquidity ratios?

The method is: Current Ratio = Current Assets/Current Liabilities. This means that the firm can meet its modern-day short-term debt duties 1.311 times over. To remain solvent, the association must have a current ratio of at least one, which skill it can exactly meet its cutting-edge debt obligations.06

Repaying or restructuring debt will elevate the modern-day ratio. Explore whether you can reamortize existing time period loans and change how the lender charges you interest, efficiently delaying debt payments so they drop off your cutting-edge ratio. Negotiate longer charge cycles each time possible.

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was created to protect current homeowners and provide incentives for new homeowners. deepened previous government practices. helped very few americans get new homes. was created to protect loaning banks and landlords. failed to address the needs of families wanting to buy homes.

Answers

In order to help homeowners who were in danger of losing their homes to foreclosure, the Home Owner's Loan Corporation (HOLC) was established in 1933.

The National Housing Act of 1934 was based on a comprehensive housing plan created by the HOLC.In order to promote the building of new homes and the renovation of old ones, this law established the Federal Housing Administration (FHA), which insures banks, mortgage firms, and other lenders.

FDR hoped that the law would increase employment in the construction sector as well.The 1934 National Housing Act and the FHA provided for the housing needs of current homeowners and those Americans who could afford to buy a home, but they did little to help the poor, especially many African-Americans who lived in slums.

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True/False: Companies with multiple products or businesses typically choose one marketing strategy for all their different businesses or products.

Answers

Companies with multiple products or businesses typically choose one marketing strategy for all their different businesses or products. This statement is false.

A product is any object or provider you promote to serve a customer's want or want. They may be bodily or virtual. Physical merchandise includes long-lasting items (like cars, furniture, and computers) and nondurable items (like meals and beverages). Common Products method Hazardous Substances commonly utilized in, and in portions essential for the everyday operation of, the Company Facilities, and that are normally utilized in different comparable facilities, inclusive of however now no longer confined to cleansing fluids, pesticides, and medicines.

primary merchandise method merchandise meant for export after processing into processed merchandise or into items; items meant for export after processing shall additionally appear as primary merchandise,

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What project scheduling term is used to describe the completion of significant portions of the project or a transition from one phase to another?.

Answers

The term "milestone project scheduling" refers to the completion of important project components or a change from one phase to another.

Describe a project milestone.

An important time period is denoted by a project milestone. Your projects can use milestones to symbolize a variety of occasions, including the receipt of important deliverables, the completion of project kickoff, the approval of the final plan, the gathering of requirements, the approval of the design, the completion of a project phase, and many more.

What do a task and a milestone mean?

A milestone is a date on the calendar that has a single, clearly defined deliverable, and tasks are the actions necessary to reach that milestone. The beginning and end dates of tasks or activities. A single day when delivery is complete is known as a milestone.

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True or false: When a decision provides an uncompensated benefit to people outside the transaction, there is a negative externality.

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When a decision provides an uncompensated benefit to people outside the transaction, there is a negative externality. FALSE

A transaction is a business event that has a financial effect on an entity's financial statements and is recorded as an entry in its accounting statistics. Examples of transactions are as follows: Paying a supplier for offerings rendered or items introduced.

There are 4 fundamental sorts of monetary transactions that arise in a commercial enterprise. The four styles of monetary transactions that impact the commercial enterprise are income, purchases, receipts, and bills.

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Walmart is requiring more trade sales promotion from bolthouse farms, a juice and smoothie company, to keep extensively promoting its products and displaying them on their shelves. Why will bolthouse farms most likely comply with walmart’s request?.

Answers

Given that Bolthouse Farms favors sales promotions to more expensive advertising, it is likely that Bolthouse Farms will agree with Walmart's request.

What is meant by the term sales promotions?

A transitory campaign or offer is used by a company as part of a sales promotion to raise interest or demand through its item or service.

A company may decide to utilize a promotional strategies (or "promo") for a variety of reasons, but the main one is to increase sales. Sales increases could be required to meet a requirement as a deadline draws near or to spread word of a particular model.

Bolthouse Farms, a firm that makes juice and smoothies, is being required by Walmart to increase trade sales marketing in order to remain heavily promoting its commodities and stocking them on store shelves.  

Thus, considering that Bolthouse Farms prefers sales promotions to ever more expensive advertising, Bolthouse Farms will probably agree with Walmart's request.

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What accounts are increased from zero balances after adjusting entries for supplies and prepaid insurance are journalized and posted?.

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Supplies Expense and Insurance Expense accounts are increased from zero balances after adjusting entries

A company's insurance costs includes the cost of the insurance contract as well as any additional premium payments. The company's payment is recorded as an expense for the given accounting period. If the insurance is used to cover operations and production, the cost can be broken down into each unit produced over the course of the period and listed in an overhead cost pool.

The cost of consumables utilised during a reporting period is referred to as supplies expense. This could be one of the more expensive corporate expenses, depending on the sort of firm. Two different kinds of supplies, which are listed below, may be charged as expenses.

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which department of the u.s. federal government usually receives over $700 billion to spend on goods and services each year, making it one of the largest b2b spenders in the country?

Answers

One of the top b2b spenders in the nation, the department of defense of the US federal government typically receives over $700 billion to spend on goods and services annually.

What is department of defense in U.S?U.S Department of Defense is in charge of providing the armed forces required to prevent conflict and safeguard national security. With over 1.3 million men and women on active duty, the Army, Navy, Marine Corps, and Air Force make up the bulk of these forces.The Pentagon in Washington, DC, serves as the home of the Department of Defense.The secretary of defense, a cabinet-level official who answers directly to the American president, is in charge of the Department of Defense. The Department of the Army, Department of the Navy, and Department of the Air Force are the three military agencies that report to the Department of Defense.

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Assume that a firm distributes all of its carnings as dividends. Which of the following is indicated by a price-carnings (P/E) ratio of 10? a. It would take 10 years for an investor to recover his or her initial investment. b. The firm will pay a dividend of $10 per share. c. The value of the stock will be 10 times the initial investment at the time of maturity d. The stock's value will increase by 10 percent every year. e. An investor would receive 10 percent of the total earnings of the firm at the time of liquidation

Answers

A. P/E ratio indicates that  an investor would need to wait 10 years to recoup their initial investment.

The P/E ratio reveals the payback period for a stock. If a company's P/E ratio is 10, it would take an investor 10 years to recoup their initial investment if the company pays out all of its earnings as dividends.

The ratio for valuing a company that compares its current share price to its earnings per share is called the price-to-earnings ratio. The price multiple or earnings multiple are other names for the price-to-earnings ratio.

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at the beginning of the year, a company estimates total direct materials costs of $2,000,000 and total overhead costs of $3,000,000. if the company uses direct materials costs as its activity base to apply overhead, what is the predetermined overhead rate it should use during the year?

Answers

The estimated allocation base divided by the predetermined overhead rate.

Why don't actual overhead rates be used by most businesses instead of predetermined overhead rates?

The application of predetermined overhead rates can aid in the smoothing of periodic variations (such as seasonal shifts) in the actual overhead costs. Product costs will remain constant throughout the year as a result of this.

Numerator for the predetermined overhead rate:/ Numerator: = Rate

Assessed above costs / Estimated direct materials costs = Rate

1260000 / 1020000 = 124%

What does it mean to charge overhead?

The overhead rate is a cost that goes toward making a product or service. Expenses that are not directly related to production include overhead costs like the cost of the corporate office.

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buyers who face a new task-buying situation usually go through ________.

Answers

Buyers who face a new task-buying situation usually go through all stages of the buying process.

the retail industry, a buyer is a private who selects what things are furnished and their key responsibility is addressing all the merchandise that acquire by the store. patrons typically work closely with designers and their selected sales representatives and attend trade fairs, wholesale showrooms, and fashion shows to watch trends.

they will work for large department stores, chain stores, or smaller boutiques. For smaller freelance stores, a client may participate in sales furthermore as promotion, whereas in an exceedingly major fashion store there are also completely different levels of seniority love initiate buyers, assistant buyers, senior buyers, and shopping for managers and buying directors.[1] Decisions concerning what to stock will greatly have an effect on fashion businesses.

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johnson company manufactures a variety of shoes, and has received a special one-time-only order directly from a wholesaler. johnson has sufficient idle capacity to accept the special order to manufacture 15,000 pairs of sneakers at a price of $7.50 per pair. johnson's normal selling price is $11.50 per pair of sneakers. variable manufacturing costs are $5.00 per pair and fixed manufacturing costs are $3.00 a pair. johnson's variable selling expense for its normal line of sneakers is $1.00 per pair. what would the effect on johnson's operating income be if the company accepted the special order?

Answers

The Johnson Company, which produces a range of shoes, recently received a unique order from a wholesaler.$22,500 has been added to operational income by special order.

Due to other output covering the fixed cost. This order has not been accounted for. It is a project-related expense that can be avoided.

Orders specifically 15,000 pairs

Sale total: 15,000 pairs multiplied by $7.50 = $112,500.

15,000 pairs at $5 each = $75,000 in variable costs.

$112,500 - $75,000 = $37,500 is the gross income.

15,000 pairs times $1 equals variable selling costs.

$15,000 is the variable selling expense.

Gross income minus a variable selling price equals operating income.

$37,500 minus $15,000 is operating income.

operating earnings are $22,500.

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Assume your group decided to outsource the pistons to the external supplier. Identify a plan that would enable FlexCon to carry out this recommendation. Be as thorough as possible.

Answers

An outsourcing Plan refers to the process of contracting out a portion of a company's production process to another company more specialized in that area to allow it to focus on its core competencies. The plans to execute such outsourcing will go as follows.

What is the Outsourcing Plan?

Step 1: Create a standard for the pistons that the company expects the outsourcing entity to meet.

Step 2: Create a standard that you expect the outsourcing company to meet.

Step 3: Create and Advertise an RFP (Request for Proposals) for the role

Step 4: Select the best company that meets the criteria

Step 5: Sign the contract

Step 6: Begin a test run

Step 7: If Step 6 goes well, continue indefinitely while monitoring the quality of the product and relationships.

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assume that the a stock price is modeled using a one-period forward binomial tree with the length of a single period equal to three months. according to this model, the stock price can take either the value of $50, or the value of $40 in exactly three months. calculate the volatility of the stock price.

Answers

The volatility of the stock price will be 0.402

What is volatility?Volatility is frequently used to describe the degree of risk or uncertainty associated with the magnitude of variations in a security's value. A security's value may potentially range over a wider range of values if its volatility is higher. This implies that the security's price can fluctuate sharply in either direction over a brief period of time. A security's value will not change significantly and will be more stable if its volatility is lower.Quantifying the daily returns (% change on a daily basis) of an asset is one technique to gauge its fluctuation. The level of fluctuation in an asset's returns is indicated by historical volatility, which is based on past prices. This value is expressed as a percentage without a unit.While volatility is a measure of that variance constrained by a given time period, variance reflects the dispersion of returns around the mean of an asset in general. As a result, we can report volatility on a daily, weekly, monthly, or annually basis. In order to better understand volatility, think of it as the annualized standard deviation.

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As described in the ten axioms for success, what approach should be used to addresses a common source of project failure described as scope creep or drift caused by deviations from the project plan?.

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The reason this approach should be used is that it will help to ensure that the project stays on track and does not deviate from its original objectives.

How to Address Scope Creep or Drift Caused by Deviations from the Project Plan

The approach that should be used to address a common source of project failure described as scope creep or drift caused by deviations from the project plan is to establish clear project objectives and milestones, and to track progress against these objectives and milestones. By tracking progress against clear objectives and milestones, it will be easier to identify when scope creep or drift is occurring so that corrective action can be taken.

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