What rate of interest with continuous compounding is equivalent to 8% per annum with monthly compounding?

Answers

Answer 1
Answer:

Answer:

8.30% is the rate of interest with continuous compounding is equivalent to 8% per annum with monthly compounding

Explanation:

Per annual rate = r = 8% = 0.08

Numer of compounding = m

Compounding Interest rate = ( ( 1 + r / m )^m ) - 1

Compounding Interest rate = ( ( 1 + 0.08 / 12 )^12 ) - 1

Compounding Interest rate = 0.0829995

Compounding Interest rate = 0.083

Compounding Interest rate = 8.30%

So, 8.30% is the rate of interest with continuous compounding is equivalent to 8% per annum with monthly compounding.


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R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is less than 500. When the quantity ordered is 500 or more, the price per unit drops to $48. The ordering cost is $30 per order and the annual demand is 7,500 units. The holding cost is 10 percent of the purchase cost. If R. C. wishes to minimize his total annual inventory costs, he must evaluate the total cost for two possible order quantities. What are these two possible quantities?a. 300b. 306c. 500d. 200e. None of the above

A process cost system would be appropriate for a a.custom cabinet builder b.jet airplane builder c.natural gas refinery d.catering business

Answers

Answer:

The correct answer is letter "C": natural gas refinery.

Explanation:

Process cost systems are used by companies which production process go through several steps manufacturing large batches of homogeneous products. Process costing uses a Work-In-Progress (WIP) account for the progress of the production. Typical examples of industries that use the process costings system are petroleum and paint.

Final answer:

A process cost system would be appropriate for a jet airplane builder and natural gas refinery.

Explanation:

A process cost system would be most appropriate for a jet airplane builder and natural gas refinery. Both of these industries involve the production of a large number of identical units and require the accumulation of costs by department or process.



In a jet airplane builder, each department would be responsible for a specific process such as assembling the fuselage, attaching the wings, or installing the engine. The costs incurred in each department, such as labor, materials, and overhead, would be accumulated separately to determine the total cost of producing each airplane.



In a natural gas refinery, the production process involves multiple stages such as separating impurities, distillation, and purification. Each stage would have its own associated costs, and a process cost system would allow for the tracking and allocation of costs to each stage.

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A customer recently wrote your bakery a letter complaining that the cherry scones were too crumbly and dry. Although the customer already ate all the scones, he is demanding a full refund. Your company does not honor refunds on food that has been consumed What could you include in the closing of your response to restore confidence? 1. A statement of company policy regarding refunds
2. A freebie or promotional discount
3. A defensive remark
4. An alternative product

Answers

Answer:

1. A statement of company policy regarding refunds

Explanation:

A statement of company policy regarding refunds would give clarity to the customer on the reason why the request for refund was denied.

Suppose the economy only produces three goods: bread, laptops, and movies. Calculate the CPI of 2008, using 2004 as the base year.

Answers

Answer:

Most of the question is missing, so I looked for a similar one and found the attached image.

CPI = (current year price × base year quantity) / (base year price × Base year quantity)

CPI for bread in current year = [($1.50 × 2,000) / ($1 × 2,000)] x 100 = 150

CPI for laptops in current year = [($1,500 × 100) / ($2,000 × 100)] x 100 = 75

CPI for movies in current year = [($7 × 50) / ($5 × 50)] x 100 = 140

CPI for current year = (CPI for bread x weight of bread) + (CPI of laptops x weight of laptops) + (CPI of movies x weight of movies) = (150 x $2,250/$227,530) + (75 x$225,000/$227,530) + (140 x $280/$227,530) = 1.48 + 74.17 + 0.17 =75.82

Final answer:

To calculate the CPI in 2008 using 2004 as the base year, compare the prices of the three goods (bread, laptops, and movies) in 2008 to their prices in 2004. Multiply the price of each good by the quantity consumed to calculate the cost of the basket in each year. Divide the cost of the basket in 2008 by the cost of the basket in 2004 and multiply by 100 to get the CPI.

Explanation:

The CPI (Consumer Price Index) measures the change in the prices of a fixed basket of goods and services over time. To calculate the CPI in 2008 using 2004 as the base year, you need to compare the prices of the three goods (bread, laptops, and movies) in 2008 to their prices in 2004. Here's how you can calculate the CPI:

  1. Determine the price of each good in 2008 and 2004.
  2. Calculate the cost of the basket in 2008 by multiplying the price of each good by the quantity consumed.
  3. Calculate the cost of the basket in 2004 by multiplying the price of each good by the quantity consumed.
  4. Divide the cost of the basket in 2008 by the cost of the basket in 2004 and multiply by 100 to get the CPI.

For example, if the cost of the basket in 2008 is $100 and the cost of the basket in 2004 is $80, the CPI would be (100/80) * 100 = 125.

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Which of the following best describes why the predicted incremental earnings arising from a given decision are not sufficient in and of themselves to determine whether that decision is worthwhile? A) They do not show how the firm's earnings are expected to change as the result of a particular decision.
B) They are not easily predicted from historical financial statements of a firm and its competitors.
C) These earnings are not actual cash flows.
D) They do not tell how the decision affects the firm's reported profits from an accounting perspective.

Answers

Answer and Explanation:

C) These earnings are not actual cash flows.  

if viewed from a flow standpoint, the stage of configuration management that has provision for variable routing to the next step, depending on outcome at this stage, is:

Answers

If viewed from a flow standpoint, the stage of configuration management that has provision for variable routing to the next step, depending on outcome at this stage, configuration control.

What is configuration control?

Process for regulating hardware, software, firmware, and documentation alterations to safeguard the information system from unauthorised alterations before, during, and after system deployment. In military and technology development environments, configuration control is frequently employed. By making sure that any changes are thoroughly tested before being incorporated into the finished product, it can lower the likelihood of failure or malfunction.

What does the configuration serve?

The process of configuration management involves keeping software, servers, and computer systems in a consistent, desirable condition. It's a method of ensuring that a system functions as expected as modifications are made to it over time.

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In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $13,000. During the month, $283,000 of costs were added to production. In the department's cost reconciliation report for August, the total cost to be accounted for would be:

Answers

Answer:

total cost to be accounted = $294,000

Explanation:

Work in Process

Beginning value of WIP = $24,000

Ending value of WIP = $13,000

Cost added to production = $283,000

Cost to be accounted for = Beginning value of WIP + Cost added to production - Ending value of WIP

Cost to be accounted for = $24,000 + $283,000 - $13,000 = $294,000

Final answer:

The total cost to be accounted for in Tsuzuki Corporation's cost reconciliation report for August would be $307,000. This is calculated by adding the beginning work in process inventory ($24,000) to the costs added to production during the month ($283,000). The ending work in process inventory is not included in this calculation.

Explanation:

In the scenario provided, Tsuzuki Corporation's cost reconciliation report for August would be a combination of the beginning work in process inventory, the ending work in process inventory, and the costs added to production for that month. To calculate the total cost to be accounted for, we add the beginning inventory to the costs added during the month. That would be $24,000 (beginning work in process) + $283,000 (costs added to production) = $307,000.

It is important to note that the ending work-in-process inventory of $13,000 is not included in this particular calculation because the question asks for the total cost to be accounted for, not the cost assigned to finished goods or carried forward to the next accounting period. In other words, the total cost to be accounted for represents the money spent within the period, regardless of whether the goods were finished or not.

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