Chambers, Inc. uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced, what is the difference between actual and budgeted costs?Chambers, Inc. uses flexible budgets. At normal ca

$2,000 unfavorable.

$2,000 favorable.

$8,000 favorable.

$6,000 unfavorable.

Answers

Answer 1
Answer:

Answer:

The correct answer is B.

Explanation:

Giving the following information:

At the normal capacity of 16,000 units, budgeted manufacturing overhead is $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced.

Variable overhead rate= 64,000/16,000= $4

Overhead variance= real - allocated

Overhead variance= 250,000 - (4*18,000 + 180,000)= 250,000 - 252,000= 2,000 favorable


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Core competencies and competitive capabilities _______. (A) usually are lodged in the narrow skills and specialized work efforts of a single department, as opposed to the combined expertise and capabilities of specialists scattered across several departments.
(B) most usually stem from collaborative efforts with strategic allies.
(C) are usually bundles of skills and know-how that most often grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain.
(D) tend to result in competitive advantage when they involve highly specific technologies and are grounded in a company's own deep technical expertise.
(E) typically are built rapidly, usually in conjunction with important product innovations.

Answers

Answer: C) are usually bundles of skills and know-how that most often grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain.

Explanation: Core competencies and competitive capabilities are best defined as a collection of skills and know-how that most often grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain. Core competencies are the various arrays of resources and capabilities that the strategic advantages of a business is composed of. Businesses have to define, grow, and exploit its core competencies across work groups and departments in order to succeed against competition. In this they build up capabilities that leads to a better performance in relation to their competitors driving profits and gaining more market share.

Answer:

The correct answer is letter "C": are usually bundles of skills and know-how that most often grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain.

Explanation:

Core competencies represent all the abilities employees of a company can contribute to improving efficiency and effectiveness. Competitive capabilities are those that allow a company to outstand its competitors' performance. Within a value chain, both core competencies and competitive capabilities must be effectively allocated to increase the firm's comparative advantage.

Which of the following measures the percentage change in earnings before interest and tax(or operating cash flow) associated with a given percentage change in sales? A) Degree of financial leverage B) Degree of operating leverage C) Degree of total leverage D) Degree of weighted averageWhat does P/E Ratio of a 10 indicate?
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. ​An investor would receive 10 percent of the total earnings of the firm, at the time of liquidation

Answers

Answer:

1. Measure of the percentage change in earnings before interest and tax or operating cash flow:

B) Degree of operating leverage

2. P/E Ratio of 10 indicates that:

c. ​The value of the stock will be 10 times the initial investment at the time of maturity.

Explanation:

Company B's degree of operating leverage is the financial measure that shows the degree of change of the operating income of the company in relation to a change in her sales revenue.  With this measure, investors and analysts of Company B are able to evaluate how sales impacts the company's operating income.  There are many ways to measure a company's degree of operating leverage.  One of the methods subtracts the variable costs of sales and divides that number by sales minus variable costs and fixed costs.

Company A's P/E ratio or price/earnings ratio is the measure of the relationship between the current market price and its earnings per share.  It is used to evaluate the value of the company's stock.  It points out whether the company's stock is undervalued, overvalued, or correctly valued.

Income Statement The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned $900,000 Office expense 300,000 Miscellaneous expense 15,000 Wages expense 450,000 Prepare an income statement for the year ended May 31, 20Y6. Paradise Travel Service Income Statement For the Year Ended May 31, 20Y6 $ Expenses: $ Total expenses $

Answers

Answer:

Net income is $135,000

Explanation:

The below is the Paradise Travel Service Income Statement For the Year Ended May 31, 20Y6 .

Fees earned                                                                      $900,000

less:

Office expense                               $300,000

miscellaneous expense                   $15,000

wages expense                               $450,000

Total expense for the year                                            ($765,000)

Net income                                                                       $135,000  

The net income is computed by deducting office,miscellaneous and wages expenses from the total fees earned during the year,hence the resulting net income thereafter is $135,000.

The net income would be added to opening balance of retained earnings in order to compute the closing retained earnings for the year

Final answer:

The net income for Paradise Travel Service for the year ended May 31, 20Y6, is calculated by subtracting the total expenses ($765,000) from the total revenue ($900,000), which results in a net income of $135,000. This information is summarized in the company's Income Statement.

Explanation:

To prepare the Income Statement for Paradise Travel Service for the year ended May 31, 20Y6, you start by listing the total revenue, followed by the expenses, and then finally compute the net income by subtracting total expenses from total revenue.

Here is how it would look:

Paradise Travel Service
Income Statement
For the Year Ended May 31, 20Y6

Revenues:-
Fees earned: $900,000

Expenses:-
Office expense: $300,000
Miscellaneous expense: $15,000
Wages expense: $450,000

Total expenses: $765,000

Net Income:
$900,000 (Fees Earned) - $765,000 (Total Expenses) = $135,000

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Privatization and nationalization are a. Both risks faced by privately held firms. b. Similar trends. c. Opposing trends.

Answers

Answer:

C.

Explanation:

Privatization and nationalization are two words that have opposite meanings, which makes them antonyms. Privatization is the process by which a government-owned business or a publicly-owned business is transferred into private ownership. The idea may be that privatization leads to a more efficient institution. Nationalization is the process by which privately owned business is transferred into government or public ownership. The idea may be that the business is so important to the well-being of the public that it can not be trusted to private individuals, or it may be that the government is over-reaching. Nationalization is the process of transforming private assets into public assets by bringing them under the public ownership of a national government or state.Nationalization usually refers to private assets or assets owned by lower levels of government, such as municipalities, being transferred to the state .The opposites of nationalization are privatization and demutualization. When previously nationalized assets are privatized and subsequently returned to public ownership at a later stage, they are said to have undergone re-nationalization. Industries that are usually subject to nationalization include transport, communications, energy, banking, and natural resources. Therefore privatization and nationalization are opposing trends. C is correct .

Discuss target market strategies. The target market strategy identifies which market segment or segments to focus on. This process begins with a market opportunity analysis (MOA), which describes and estimates the size and sales potential of market segments that are of interest to the firm. In addition, an assessment of key competitors in these market segments is performed. After the market segments are described, one or more may be targeted by the firm. The three strategies for selecting target markets are appealing to the entire market with one marketing mix, concentrating on one segment, or appealing to multiple market segments using multiple marketing mixes.You are given the task of deciding the marketing strategy for a transportation company. How do the marketing mix elements change when the target market is (a) low-income workers without personal transportation, (b) corporate international business travelers, or (c) companies with urgent documents or perishable materials to be delivered to customers?

Answers

You would figure out the most cost-effective approach to send perishables back and forth. You would need to be aware of the purification that would appeal to this range of income levels the most. What the needs are for various products, the most cost-effective ones, and whether further purification is required. You should select a trustworthy overnight delivery service that offers the fewest corporate incentives to do so.

What is market strategies?

A marketing strategy is a long-term plan for attaining a business' objectives through an understanding of client needs and the development of a distinct and long-lasting competitive advantage. It includes everything, from choosing which channels to utilize to contact your customers to figuring out who they are.

Product, pricing, place, and promotion make up the four Ps. They serve as an illustration of a "marketing mix," or the collection of tools and techniques utilized by marketers to accomplish their marketing goals.

Thus, You would figure out the most cost-effective approach to send perishables back and forth.

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Answer:

you would determine the best way to ship perishables back and forth with the most financial advantages. you would need to know what purification would sell best to this group of income levels. what the needs for varies products most cost effective and needed that would also call for further purification need. you would want to tap into a reliable overnight delivery carrier that gives the lowest corporate incentives to use

As a long-term investment, Painters' Equipment Company purchased 25% of AMC Supplies Inc.'s 500,000 shares for $580,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $350,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $615,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.

Answers

Answer:

A.Journal entries

(1)

Dr Investment in AMC common shares

$580,000

Cr Cash $580,000

(2) No journal entry required

(3) Dr Cash $31,250

Cr Investment Revenue $31,250

(4) Dr Fair value adjustment

$35,000

Cr Net unrealised holding gains and losses- OCI $35,000

(B.) Journal entries

Dr Investment in AMC common shares $580,000

Cr Cash $580,000

(2) Investment in AMC common shares

Dr $87,500

Cr Investment Revenue $87,500

(3) Dr Cash $31,250

Cr Investment in AMC common shares $31,250

(4) No journal entry required

Explanation:

A.Journal entries

(1)

Dr Investment in AMC common shares

$580,000

Cr Cash $580,000

(2) No journal entry required

(3) Dr Cash $31,250

Cr Investment Revenue $31,250

(4) Dr Fair value adjustment

$35,000

Cr Net unrealised holding gains and losses- OCI $35,000

Working notes:

Cash Dividends = 25%*500,000*$0.25 = $31,250

Adjustment entry:

Fair value adjustment = 580,000-615,000 = $35,000

B.) Journal entries:

(1)

Dr Investment in AMC common shares $580,000

Cr Cash $580,000

(2) Investment in AMC common shares

Dr $87,500

Cr Investment Revenue $87,500

(3) Dr Cash $31,250

Cr Investment in AMC common shares $31,250

(4) No journal entry required

Working notes:

Net Income:

Investment in AMC common shares = 25%*350,000= $87,500

Cash Dividends = 25%*500,000*$0.25= $31,250

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