Based on the investment amount after 2 years, and the interest amount that was earned, the nominal interest rate when compounded quarterly is 5.82%.
How to find the interest?First, find the annual interest on the investment that would have enabled it to grow to $13,500 in 2 years.
The amount invested was:
= 13,500 - 1,150
= $12,350
The nominal interest rate annually is:
13,500 = 12,350 x ( 1 + rate) ^ 2 years
Rate = 5.7%
The nominal interest rate compounded quarterly is:
= (1 + Annual rate / Number of compounding periods in year) ^ number of compounding periods in year - 1
= (1 + 5.7%/ 4)⁴ - 1
= 5.82%
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Select the correct answer.
Stratus Inc. entered into an agreement with an Indian company, with Stratus providing equipment, products and supplies, and training staff. Which
type of global business is this?
A. franchising
B. licensing
C. foreign direct investment
D. exporting
Answer:
A
Explanation:
it is the only one that makes sense.
pls mark brainliest
A reporting relationship in which an employee receives orders from, and reports to only one supervisor is known as:
Answer:
According to the concept of unity of command, each level of the organizational hierarchy has only one supervisor who is responsible for each employee. This holds true even if a collection of individuals leads the organization's top. Consider being the CEO of a Silicon Valley-based technology company as an illustration. While the board of directors of your company oversees policy-making and strategic planning, you solely report to the chairman of the board in accordance with the unity of command principle. however, have a supervisor for your unit who reports to her department manager. The vice president of operations, who reports to the CEO, is the department manager's superior. The board of directors' chairman is the CEO's subordinate.
Answer:
unity of command
Explanation:
Being accountable and answerable to more than one supervisor is never liked by the employees. Unity of Command is the one business management theory that resolves this issue.
According to the Principle of Unity of Command, there shouldn’t be a group of supervisors for a single subordinate or a single team working for a company.
For example, the HR team of a company will have just one supervising head instead of two or three to have an orderly set up in the work atmosphere. With the help of the Unity of Command principle, there is a proper hierarchy that is set in the company.
the intentional efforts of a company to design, manage, and evolve its channel strategy in light of changes that arise in the competitive and customer environments is referred to as:
The intentional efforts of a company to design, manage, and evolve its channel strategy in light of changes that arise in the competitive and customer environments is referred to as channel stewardship.
What is channel stewardship?
Stewardship can be described as the careful construction as well as the management of channel relationships whereby they were being given the adequately rewarded.
It should be noted that i this process even though the valuable members are are been treated very well and given the needed encouragement so that they deliver more in the future time, the less valuable members at the same time are been weeded out.
In conclusion, this method is been used by the firms in the industry so that they can use the channel strategy in attending to the competitive and customer environments so that the goal as ell as the objectives of the organization can be gotten as well as well as making the neccesay improvement.
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Using the aggregate expenditures-output model, if aggregate expenditures (aggregate demand) is $10 trillion and aggregate output is $10.3 trillion:
a. businesses will accumulate inventories, and output will decline.
b. real output will increase if the full-employment capacity of the economy is greater than $10.3 trillion.
c. inflation will be a problem if the full-employment capacity of the economy exceeds $10.3 trillion.
d. both b and c are correct.
Using the aggregate expenditures-output model, so if aggregate expenditures (aggregate demand) is $10 trillion and aggregate output is $10.3 trillion businesses will accumulate inventories, and output will decline.
When the aggregate expenditure is less than the aggregate output, the inventories will increase and prices will fall. Thus, the firms will then lower the production and also lay off workers in order to save on costs and lower prices to sell their inventory.
It is said that a change in the aggregate expenditures tends to circle through the economy - households buy from firms, then firms pay workers and suppliers, workers and suppliers buy goods from other firms, and so on.
Hence, option A is correct.
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besides marketing information being used throughout all of the marketing mix process, what is another critical area that benefits from discovering the marketing research information?
Sales forecasting and related costs. Sales forecasting is the process of predicting future revenue by estimating how much product or service a sales unit will sell in the coming week, month, quarter, or year.
What is Sales forecasting ?Forecasts are predictions about the future. It's difficult to overstate the importance of a company producing an accurate sales forecast. When leaders can rely on forecasts, privately held companies gain confidence in their operations. Accurate forecasts confer market credibility on publicly traded companies.
Forecasting sales adds value throughout an organisation. Forecasts are used by finance to create budgets for capacity planning and hiring, while sales forecasts are used by production to plan their cycles. Forecasts aid sales operations by assisting with territory and quota planning, supply chain by assisting with material purchases and production capacity, and sales strategy by assisting with channel and partner strategies.
One of the most important things to remember about sales forecasts is that they do not have to be perfect to be useful. Your sales forecast will frequently, if not always, differ slightly from your actual results.
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chaim bought a pickup truck to transport his equipment to fishing tournaments. he also bought a trailer for his lawn maintenance business. his purchases were
Based on the fact that Chaim bought a pickup truck for the transportation of equipment to fishing tournaments and for his lawn maintenance business, the purchases can be said to be B2C and B2B respectively.
What are types of purchases?There are several types of purchases which depend on the nature of the seller and the nature of the buyer of the good or service that is being sold.
There is Business to Customer or B2C which is when a business sells a good or service to a customer who would use it to engage in personal activities that do not have to do with business. This is what Chiam did with the pickup truck for his fishing tournaments.
Then there is Business to Business or B2B which is when a business sells a good or service to another business which would enable to latter business to carry out its business activities. This happens when Chiam bought a trailer to be able to use for his lawn maintenance business.
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Jones Corporation reported current assets of $189,000 and current liabilities of $134,000 on its most recent balance sheet. The current assets consisted of $62,800 Cash; $44,200 Accounts Receivable; and $82,000 of Inventory. The acid-test (quick) ratio is:
Multiple Choice
1.4 : 1.
0.80 : 1.
0.57 : 1.
1 : 1.
0.61 : 1.
The acid-test ratio of Jones Corporation is 0.80 : 1.
What is the acid-test ratio?
Acid test ratio also known as the quick ratio is used to measure the ability of short term assets to meet the current liabilities of a firm. The acid test ratio is an example of a liquidity ratio. Liquidity ratio measures the ability of a company to meet its short term liquidity
Acid test ratio = (current asset - inventory) / current liabilities
Acid test ratio = ($189,000 - $82,000) / $134,000
Acid test ratio = $107,000 / $134,000
Acid test ratio = 0.80
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8. A manager is trying to decide whether to purchase a certain part or to have it produced internally.
Internal production could use either of two processes. One would entail a variable cost of $17 per
unit and an annual fixed cost of $200,000; the other would entail a variable cost of $14 per unit
and an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A has
a price of $20 per unit for any volume up to 30,000 units. Vendor B has a price of $22 per unit for
Chapter Five Strategic Capacity Planning for Products and Services
demand of 1,000 units or less, and $18 per unit for larger quantities. Vendor C offers a price of
$21 per unit for the first 1,000 units, and $19 per unit for additional units.
a. If the manager anticipates an annual volume of 10,000 units, which alternative would be best
from a cost standpoint? For 20,000 units, which alternative would be best?
b. Determine the range for which each alternative is best. Are there any alternatives that are never
best? Which?
217
Vendor B exists still the lowest so they exists the best from an overall cost standpoint. The best alternative is going to be vendor B because it is the lowest in both calculations.
How to find the cost standpoint?The best alternative is going to be vendor B because it is the lowest in both calculations.
First of all, we would calculate 10,000 Units
The Total cost here = Fixed cost + Variable cost
Total Cost for Int1:
200,000 + 17 × 10000 = 200,000 + 170,000 = 370000
Total Cost for Int 1:
240,000 + 14 × 10000 = 240000 + 140000 = 380000
Total Cost for Vendor A:
20 × 10000 = 200000
Total Cost for Vendor B:
18 × 10000 = 180,000
Total Cost for Vendor C:
21 × 1000 + 19 × 9000 = 192000
We can see that Vendor B is the lowest. It is best from an overall cost standpoint
Secondly, we have to calculate for 20000 units
The Total cost = Fixed cost + Variable cost
Total cost for Int1:
200,000 + 17 × 20000 = 200,000 + 340,000 = 540000
Total cost for Int 1:
240,000 + 14 × 20000 = 240000 + 280000 = 520000
Total Cost for Vendor A:
20 × 20000 = 400000
Total Cost for Vendor B:
18 × 20000 = 360,000
Total cost for Vendor C:
21 × 1000+19 × 19000=382000
Vendor B exists still the lowest so they exists the best from an overall cost standpoint.
The complete question is:
A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could use either of two processes. One would entail a variable cost of $17 per unit and an annual fixed cost of $200,000; the other would entail a variable cost of $14 per unit and an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A has a price of $20 per unit for any volume up to its maximum capacity of 30,000 units. Vendor B has a price of $22 per unit for demand less than 1,000 units and $18 per unit for larger quantities. Vendor C offers a price of $21 per unit for the first 1,000 units and $19 per unit for additional units.
a. If the manager anticipates an annual volume of 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best? (Omit the "$" sign in your response.)
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a marketing research approach that uses a discussion leader to interview 6 to 10 past, present, or prospective customers simultaneously is referred to as .
What is an interview?
Personal interviews are the most important instrument for primary research. There are differences in the potential quality of data that can be collected depending on whether the researcher and respondent interact face-to-face. More than just the interviewee's spoken comments, which are frequently brief, can be recorded during a face-to-face interview. Direct communication between humans results in far more information being exchanged. The conversation takes place on a number of levels when two people are face to face. It transcends spoken communication.However, The tone of the words used, the way they are utilized, and the body language all convey what the other person is trying to say.
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which report is constructed immediately prior to preparing the financial statements with the purpose of demonstrating that the accounts balance?
Adjusted trial balance is constructed immediately prior to preparing the financial statements with the purpose of demonstrating the accounts balance.
Trial stability is a listing of all the general ledger debts (both revenue and capital) contained within the ledger of a business. This listing will include the name of each nominal ledger account and the cost of that nominal ledger stability. Every nominal ledger account will preserve both debit stability and credit score stability. The debit stability values could be indexed within the debit column of the trial balance and the credit score cost balance will be listed within the credit column. The buying and selling income and loss assertion and balance sheet and other financial reviews can then be produced using the ledger money owed indexed on the equal balance.
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paid absences offered to employees are called _ benefits.
The most common kind of paid leave is vacation.
The required details for vacation in given paragraph
A leave of absence from a regular employment or a leisurely trip away from home are both examples of a vacation or holiday. For particular holidays, festivals, or celebrations, people frequently take vacations. Family or friends are frequently present during vacations. A trip or travel can be included in a vacation, typically for leisure or tourism.
A longer leave of absence from work is possible, such as a sabbatical, gap year, or career break. Over the past 200 years, the concept of vacationing has undergone significant change. Historically, the idea of vacation travel was a luxury solely available to the well-off.
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Kristine transferred investment property she has owned for six years to XYZ Corporation in exchange for 40 percent of the corporation's stock (40 shares valued at $160,000) at the time XYZ was incorporated. The property's adjusted tax basis was $90,000 and its fair market value was $160,000. Assume the transfer qualifies under §351.What gain or loss does Kristine recognize on the transfer?
Based on the question that we have here, Kristine is not going to have to recognize any forms of loss or any forms of gains on the investment property transfer.
What gain would Kristine have?Given the rules in section 368(c) we would have it that Kristine is not going to have any forms of losses or any forms of gains. This would be on the property that is to be transferred.
This is due to the fact that once this property has been transferred to a corporation or to another business, the people that won the corporation would be the ones that would have to take over the control of the business. Hence we would have it that Kristine is not going to have to recognize any gains or any forms of loss on the transfer that she has done.
In conclusion, we have to say that Kristine is not going to have to recognize loss or take gain.
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PLEASEEE HELP ASAP
Under the Federal Insurance Contributions Act (FICA) every person is an
employer if the person employs one or more individuals for the performance of
services in the United States. The Internal Revenue Service (IRS) test for an
employer/employee relationship is if a business tells, or has a right to tell a
worker how, when, and where to work then the worker is an employee, and if
they meet these tests, must withhold and pay FICA taxes on those employees’
wages. During your life, you may have noticed many employees performing work
for a company without paying FICA taxes (i.e. being paid “under the table”).
Questions to be Answered:
1) What are the concerns from a business perspective on this legally
questionable practice?
2) What are the concerns from a social perspective on this legally
questionable practice?
The concerns from a business perspective on this legally questionable practice is that the Federal Insurance Contributions Act (FICA) is a U.S.law which orders charge demand on the pay rates or wages procured by the representatives.
Federal Insurance Contributions Act (FICA) is a U.S. federal payroll tax. It is deducted from each paycheck. So, your nine-digit number tends to help social security accurately record your covered wages or self- employment.
So, as you work and pay FICA taxes, you tend to earn enough credits for social security benefits. Thus, the concerns from a business perspective on this legally questionable practice was mentioned.
Hence, FICA tax is a percentage of each employee's taxable wages.
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The following are the types of managers classified by levels except.
Select one:
A.
Lower level
B.
Middle level
C.
Top level
D.
Moderate level
The Lower Level, Middle Level & Top Level are the types of managers classified by levels.
Moderate Level is not included in this classification.
Explanation:The three levels of management in most organizations are top-level management, mainly responsible for overseeing all operations, middle-level management, responsible for executing plans and policies, and low-level management, responsible for direct task execution and deliverables.
Ethics Student Activity Packet
There are many situations where you may feel that the "right" answer is debatable, namely ethical dilemmas such as accepting a bribe or accepting unethical attitudes from others.
What is an ethical dilemma?It corresponds to a situation where there are two options to choose from for decision making, both of which do not actually correspond to an ethical decision, such as if you observe your friend committing an unethical act at school and you do not know if what you should to do is to tell the directors what actually happened or not.
For a person to decide what is or is not ethical, it is essential to make a moral and value judgment about a situation, the decision can be made according to the option that benefits the greatest number of people, for example.
Therefore, ethics is the set of moral values that directs positive behavior in society, and should be a parameter for the actions of individuals in society.
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Write a solution to each scenario
1. Julio,Liza, and Jon must prepare a report, but Jon hasn't done his share.
2. Regeena's boss likes her work but she 's always late in spite if being warned.
3. Lucie thinks her boss is being unfair because he gives her morw work than he gives her co-workers.
The solution that would have to be done in all of the situations that we have here would be:
The solution that would be done here is to find out why Jon has not done his then try to offer him assistance to get the job doneGiven that Regina is always late despite being warned, the boss has to find out the reason for her lateness and if she still continues, it may cause her to have a probation at work.Lucie would have to speak to her boss on the volume of work that she gets.How to deal with situations in the work placeIn the work place, it would be best if the people that are in a particular work environment are able to work in a way that they would avoid all forms of conflicts that may arise.
This would have to do with putting up all of the attitudes that has to do with coming early to work, showing respect and being eager to learn.
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5. Due to a recession, expected inflation this year is 3%, and 3.25% in year 2. However, the inflation rate in year 3 and thereafter is expected to be constant. Assume the expectations theory holds and the real risk-free rate is 2.5%. If the yield on 4-year T-bond equals 1-year bond plus 2%, what is the inflation rate after year 2?
Based on the expected inflation, and the expectation theory as well as the real risk-free rate, the inflation rate after year 2 is 6.88%.
How to find the inflation rate?To find the inflation rate, first find the yields on Treasury bonds for a year and four years.
One year Treasury bond yield:
= Real Risk-free Rate + Inflation Premium on 1-year Treasury Bond
= 2.5% + 3%
= 5.50%
Four year Treasury bond yield has been given by the question to be 2%.
We can therefore use the Four year Treasury bond yield to find the inflation premium in the fourth year:
= One year Treasury bond yield - Real Risk-free Rate + Four year Treasury bond yield
= 5.5% + 2% - 2.5%
= 5.0%
Now that you have the inflation premium, the inflation for after year 2 is:
5 % = (3% + 3.25% + 2 x Inflation after year 2] / 4
= 6.88%
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What additional information would you need to create an action plan when you make changes to HR plan to merge two companies
Your organizational structure, the goals and demands of your HR department, the amount of workers you want to hire, how you want to manage them, and all information expected personnel costs should be included in your human resources business plan.
An action HR plan is a tool used by managers to aid staff in information succeeding by assisting them in identifying areas of subpar performance and establishing required performance standards. Action plans may be utilized independently, in conjunction with discipline, or both. First, the business needs to inform every employee of how it intends to accomplish its objectives, with a focus on its mission statement.
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How many hours do you have to work to earn one credit?
40
O 100
O 160
O 256
a manager who takes credit for the work his/her employees perform without giving credit to the person(s) who actually did the work is acting in a(n) manner.
A manager who takes credit for the work his/her employees perform without giving credit to the person(s) who actually did the work is acting in a(n)unethical manner.
Why do people engage in unethical manner?
Therefore, communication has ethical bounds because it is a powerful tool. Ethical communication is communication that aims to enhance interpersonal relationships or modify society's moral values. It is unethical to use communication to sabotage relationships or promote social immorality.
Unethical manner can be defined as actions that are against social norms or acts that are considered unacceptable to the public.
Examples of Unethical Behavior
Using Misfortune to Your Advantage. In English, the expression "kicking somebody while they're down" is used to describe this unethical behavior.
Overcharging customers, lying, accepting kickbacks, and making cash under the table are all unacceptable.abuse of animals, child labor, and other issuesPolitical activism is being repressed.To learn more about unethical manner refer to:
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a check issued to a creditor in the amount of $35 was recorded in the journal as $350. in the bank reconciliation, the correction would be recorded as a(n)
A $35 check that was written to a creditor was entered in the journal as $350. The correction would be shown as an increase to the cash ledger balance in the bank reconciliation.
What is bank reconciliation?A bank reconciliation is a procedure carried out by a business to confirm the accuracy of its records (such as the check register, general ledger account, balance sheet, etc.). This is accomplished by contrasting the quantities recorded by the business with those displayed on the bank statement. Any discrepancies must be explained. Accountants describe the bank statement as reconciled when there are no unexpected variances.
An essential component of a company's internal controls over its assets is the bank reconciliation. It must be carried out by someone other than an authorized check signer or record keeper in order to be effective.
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The Plan-Do-Check-Adjust problem-solving technique is useful when:
The Plan-Do-Check-Adjust, or the PDCA, problem-solving technique is useful when there is an improvement in a new project or implementation of a change.
What is the significance of PDCA technique?A PDCA technique can be referred to or considered as the management process under which a manager develops a plan, acts according to the plan, checks the results or outcomes of the act, and finally makes the required adjustments in the plan in order to achieve organizational goals.
Therefore, the significance regarding the PDCA technique has been aforementioned.
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Wyatt (39) is a U.S. citizen. He was married at the beginning of 2021. His wife lived in the household until July. Their divorce was finalized on September 30, and Wyatt has not remarried. Wyat is his qualifying child. Wyatt's most advantageous filing status is?
A. single
B. married filing jointly
C. married filing separately
D. head of household
Since Wyatt's divorce was finalized on September 30, and Wyatt has not remarried and Wyat is his qualifying child, his most advantageous filing status is: D. head of household.
What is taxation?Taxation can be defined as the involuntary fees that are levied on individuals or business firms by the government of a particular country, so as to generate revenues that can be used to fund public projects, institutions and activities.
The types of filing status.According to the Internal Revenue Service (IRS) of the United States of America, there are five (5) main filing statuses and these include the following:
SingleMarried filing jointly.Married filing separately.Head of household.Qualifying widow or widower with dependent child.In this scenario, the most beneficial filing status for Wyatt a citizen of the United States of America who is divorced but not remarried with a qualifying child is head of household because it is primarily for unmarried taxpayers with dependents.
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based on the free cash flow valuation model, the value of weidner co.'s operations is $1,200 million. the company's balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in short-term investments that are unrelated to operations. the balance sheet also shows $90 million in accounts payable, $120 million in notes payable, $300 million in long-term debt, $50 million in preferred stock, $180 million in retained earnings, and $800 million in total common equity. if weidner has 30 million shares of stock outstanding, what is the best estimate of the stock's price per share? a. $27.67 b. $30.43 c. $33.48 d. $24.90 e. $36.82
The best estimate of the stock's price per share $27.67
Given:
the value of Weidner Co.'s operations = $1,200 million
accounts receivable = $80 million
short-term investments = $100 million
accounts payable = $90 million
notes payable = $120 million
long-term debt = $300 million
preferred stock = $50 million
retained earnings = $180 million
total common equity = $800 million
shares of stock outstanding = 30 million
Now,
The total intrinsic value
= value of operation + short-term investments or
The total intrinsic value = $1200 million + $100 million = $1300 million
thus, the total value of the equity
= Total intrinsic value - Debt - preferred stocks - notes payable
or the total value of the equity
= $1300 million - $300 million - $50 million - $120 million
= $830 million
therefore,
the stock's price per share = Total value of equity/ Total outstandings stocks
or
the stock's price per share = 830 million/30 million
or
the stock's price per share = $27.67
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Kraft Heinz fired many older, more experienced employees and hired younger, less experienced ones who may not have developed a problem-solving approach for accomplishing the goals, called
a. self-set goals.
b. specific goals.
Incorrect
c. task strategies.
c. intensity.
e. direction.
Kraft Heinz fired many older, more experienced employees and hired younger, less experienced ones who may not have developed a problem-solving approach for accomplishing the goals, called specific goals.
Employees utilise a problem-solving approach as a tool to better comprehend their difficulties and provide the best answers possible. By assisting people in overcoming outdated or binary ways of thinking, they enable them to come up with more creative ideas.
Approaches to problem-solving are necessary for productive employees since they enable people to address any challenge effectively and methodically. Employees that use problem-solving techniques are more likely to come up with original solutions that go to the source of the issue so they can do previously challenging activities more readily in the future. The time that has been saved can then be used by employees to complete more tasks during the workday.
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Government policies that favor businesses are:
Government policies that favor businesses are:
Reducing the amount of interference as much as possible.The drafting of laws that enable the formation of contracts that are enforceable.This is further explained below.
What are Government policies?Generally, A government policy is a guideline or concept that is intended to better guide decision-making, with the ultimate goal of producing good results that are beneficial to the community or unit.
In conclusion, The reasons why things are to be done in a specific manner and why are laid forth in the policies of the government.
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when merchandise is returned for a refund or for credit to be applied to other purchases, the situation is called a(n)
When merchandise is returned for a refund or for credit to be applied to other purchases, the situation is called a(n) Credit to Accounts Receivable and Debit to Sales Returns.
Merchandising is any application that contributes to the sale of products to a retail consumer. At a retail in-store level, selling refers to showing a product that is available in an inventive way that stimulates customers to get a lot of things or products.
In retail commerce, visual display merchandising means that merchandise sales using product design, selection, packaging, pricing, and display stimulate customers to pay more. This includes disciplines and discounting, physical presentation of products and displays, and therefore the choices concerning which products ought to be conferred to which customers at what time. typically in a retail setting, creatively attachment to connected products or accessories could be a good way to entice consumers to purchase more.
Merchandising helps to grasp the normal associate degreealysis|qualitative analysis} notation for the terms of payment of an invoice.[clarification needed] Codified discounting solves evaluation issues together with markups and markdowns.
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Once a corrective action plan begins addressing or fraud waste
True or false
Once a corrective action plan begins addressing or fraud waste. This statement was the false. Thus, option (b) is correct.
What is waste?
The term waste are the non-used items. The waste items are the decomposed and the recycled. The waste material are to be the uses as well as the non-used.
The corrective action plans are not to describe the fraud or the waste. They are the ongoing of the employee's activity to the measure. The given the statement are the false.
Therefore, option (b) is correct.
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on october 25, yacht doc received $200,000 for a yacht valued at $180,000 and a 4-month service contract. during november, the yacht was delivered and 1 month of the service contract was performed. the remaining services are to be performed evenly over the next 3 months. what is the entry yacht doc should record on october 25? multiple choice question. debit cash; credit revenue debit deferred revenue; credit revenue debit deferred revenue; credit cash debit cash; credit deferred revenue
The appropriate choice is option (d). On October 25, Yacht Doc needs to record a credit of $200,000 to Unearned revenue and a debit of $200,000 to Cash.
What does unearned income mean?
The term "unearned income," also referred to as deferred revenue is used to describe advance payments a business receives for goods or services that will be produced or provided in the future. As a liability for deferred revenue on its balance sheet, the company that receives the prepayment reports the sum.
A company's receipts for items and services it hasn't yet sold or provided are included in this account.
Yacht Doc received payment even though they had not yet delivered the yacht or rendered any services. Since this is a liability account, it will be credited to the unearned revenue account.
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Your friend, Suzie Chang, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie’s product will target two groups: day care centers in warm climates and home school programs. Her company is Jiffy Jet and costs for last month follow. Find the total variable cost and total fixed cost
Factory rent $ 3,120
Company advertising 1,040
Wages paid to assembly workers 31,100
Depreciation for salespersons’ vehicles 2,110
Screws 525
Utilities for factory 855
Assembly supervisor’s salary 3,620
Sandpaper 175
President’s salary 5,140
Plastic tubing 4,000
Paint 280
Sales commissions 1,310
Factory insurance 1,080
Depreciation on cutting machines 2,130
Wages paid to painters 7,650
Assume that Suzie Chang has decided to begin production of her outdoor children’s toy and that screws, sandpaper
The classification of these items as either period or product cost are as follows:
Factory rent - Product costs.Company advertising - Period costs.Wages paid to assembly workers - Product costs.Depreciation for salespersons’ vehicles - Period costs.Screws - Period costs.Utilities for factory - Period costs.Assembly supervisor’s salary - Product costs.Sandpaper - Product costs.President’s salary - Product costs.Plastic tubing - Period costs.Paint - Period costs.Sales commissions - Period costs.Factory insurance - Product costs.Depreciation on cutting machines - Period costs.Wages paid to painters - Product costs.What is a Product cost?In accounting, a product cost refers to any costs incurred to create a product which include a direct labor, direct materials, consumable production supplies, factory overhead etc. It can also be considered as the cost of labor required to deliver a service to a customer.
What is a Period cost?Basically, a period costs refers to those costs not included in product costs. These cost are not directly tied to the production process, an example includes an overhead or sales, general and administrative (SG&A) costs.
Missing question "Identify each of items (preceding costs) as either a product or a period cost."
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