Answer: A and B
Explanation: The above projects is likely to have higher asset beta other things being equal because people or workers are motivated by Money which would aid them to perform and give hundred percent on any project.
Abraham Maslow gives us a good explanation around Motivation-Starting from the premise that each human being is motivated by needs that are inborn, presumably as a result of tens of thousands of years of evolution, the Maslow theory of motivation suggests a hierarchy of needs:
Physiological needs
These are the very basic needs such as air, water, food, sleep, sex, etc. When these are not satisfied we may feel sickness, irritation, pain, discomfort, etc. These feelings motivate us to alleviate them as soon as possible to establish homeostasis. Once they are alleviated, we may think about other things.
Safety needs
These have to do with establishing stability and consistency in a chaotic world. These needs are mostly psychological in nature. We need the security of a home and family. However, if a family is dysfunction, i.e., an abused child - cannot move to the next level as she is continuously fearful for her safety. Love and a sense of belonging are postponed until she feel safe.
Love and needs of belonging
Humans have [in varying degrees of intensity] a strong desire to affiliate by joining groups such as societies, clubs, professional associations, churches and religious groups etc. There is a universal need to feel love and acceptance by others.
Self-Esteem needs
There are essentially two types of esteem needs:self-esteem resulting from competence or mastery of a task; and the esteem and good opinion of other people.
The need for self-actualisation
Maslow theory of motivation proposes that people who have all their "lower order" needs met progress towards the fulfilment their potential. Typically this can include the pursuit of knowledge, peace, esthetic experiences, self-fulfillment, oneness with God, nirvana, enlightenment etc. So ultimately this is all to do with the desire for self transcendence.
Project A and Project C are likely to have higher asset betas due to their specific characteristics.
The asset beta of a project depends on various factors, including the risk profile of the project. In the given scenarios, the project with a higher asset beta would be:
#SPJ11
1 $15,750 $26,250 $35,000
2 15,750 21,000 21,000
3 15,750 15,750 12,600
4 15,750 10,500 7,560
5 15,750 5,250 2,590
Total $78,750 $78,750 $78,750
Required:
a. What is the cost of the asset being depreciated?
b. What amount, if any, was used in the depreciation calculations for the salvage value for this asset?
c. Which method will produce the highest charge to income in Year 1?
d. Which method will produce the highest charge to income in Year 4?
e. Which method will produce the highest book value for the asset at the end of Year 3?
f. If the asset is sold at the end of Year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?
Answer:
a. What is the cost of the asset being depreciated?
the cost of the asset = $35,000 / 0.4 = $87,500
b. What amount, if any, was used in the depreciation calculations for the salvage value for this asset?
salvage value = $87,500 - (5 x $15,750) = $8,750
c. Which method will produce the highest charge to income in Year 1?
double declining results in the highest depreciation expense
d. Which method will produce the highest charge to income in Year 4?
straight line results in the highest depreciation expense
e. Which method will produce the highest book value for the asset at the end of Year 3?
straight line, book value = $87,500 - (3 x $15,750) = $40,250
f. If the asset is sold at the end of Year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?
double declining balance, since the carrying value is lowest = $87,500 - $35,000 - $21,000 - $12,600 = $18,900
e.g. if the assets is sold at $30,000, the gain = $11,100
under straight line method a $30,000 resale price would result in a loss(= $30,000 - $40,250 = -$10,250), while sum of years' digit would result in a gain = $30,000 - ($87,500 - $26,250 - $21,000 - $15,750) = $5,500
b. a gift is always a contract, but a bailment is generally not a contract.
c. a gift requires delivery, but a bailment does not.
d. in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee.
Answer: d. in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee.
Explanation:
When you give a person a gift, you are giving the person both ownership of that gift and the possession as well. For instance, if you give a person a car as a gift, that person now owns the car and will use it as they please.
With a bailment, there is no transfer of ownership. The bailor is simply giving the bailee possession of the property in question which means that after the bailee is done with the property, they have to return it back to the bailor.
Answer:
October
direct labor rate variance =$2,420 unfavorable
direct labor efficiency variance =$11,060 favorable
direct labor cost variance = $ 8,640 favorable
Investigate : direct labor efficiency variance
November
direct labor rate variance = $4,025 unfavorable
direct labor efficiency variance =$ 39,500 favorable
direct labor cost variance = $35,475 favorable
Investigate : direct labor efficiency variance
Explanation:
October
direct labor rate variance = (Aq × Ap) - (Aq × Sp)
= (12,100×$16) - (12,100×$15.80)
=$2,420 unfavorable
direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)
=(12,100 × $15.80) - (6,400×2 ×$15.80)
=$11,060 favorable
direct labor cost variance = direct labor rate variance + direct labor efficiency variance
= $2,420 (A) + $11,060 (F)
= $ 8,640 favorable
November
direct labor rate variance = (Aq × Ap) - (Aq × Sp)
= (16,100×$16.05) - (16,100×$15.80)
= $4,025 unfavorable
direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)
=(16,100 × $15.80) - (6,800×2 ×$15.80)
=$ 39,500 favorable
direct labor cost variance = direct labor rate variance + direct labor efficiency variance
= $4,025 (A) + $ 39,500 (F)
= $35,475 favorable
Answer:
Each firm sets it price equal to its average total cost.
Explanation:
In economic theory, perfect competition is a market with a large number of sellers and buyers, producing similar products and having a small market share that does not affect prices. Let's explain the characteristics of the perfect competition :
1) manufacturers of identical products. . .
Products in the perfect competitive market are completely substitute. In other words, products and services offered by vendors do not differ from one another in terms of quality or character.. . .
2) the firm has a small market share that will not affect prices. . .
No vendor in this market has the ability to influence prices by increasing or decreasing production. Also, no buyer can reduce the supply of goods and lead to lower prices
3)Market where there are many buyers and sellers. . .
The above feature is directly related to this. Thus, if there is a seller or buyer in the market (such as monopoly or monopsony), it can easily affect the market price. However, in perfect competition, every seller and buyer must act based on market prices.
4)There is no obstacle to entering and leaving the market. . .
That is, access to the market is extremely easy and at the same time neither the state nor the old market participants have a barrier for the new participant.
5)Perfect information. . .
Every market participant knows the prices, quality and production methods.
6) Zero transaction costs...
Buyers and sellers do not bear any transaction costs (contract costs, etc.) during the purchase of goods and services. . .
7) Maximizing profits. . .
In a highly competitive market, the main purpose of firms is to maximize their profits, without any serious obstacles. In a fully competitive market, maximum profits are earned when marginal costs are equal to marginal revenue.
As you see there is information above about the easy entry and exit, the identical products and maximizing profits but nothing about the equal prices to average costs.
b. 0.33 pieces/min
c. 1.66 pieces/min
d. 0.83 pieces/min
Answer:
Production rate = 1.66 pieces/min (Approx)
Explanation:
Given:
Average lead time = 18 minutes
Average work in process inventory = 30 pieces
Find:
Production rate
Computation:
Production rate = Average work in process inventory/Average lead time
Production rate = 30/18
Production rate = 1.66 pieces/min (Approx)
Answer:
Record the adjusting entry on December 31, 2021. Calculate the 2021 year end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2021 is $0).
1
Db Salaries expenses____________________ 690
Cr Salaries payable_______________________ 690
Explanation:
Pays 3220 Two Weeks
Pays 230 Daily
Dates Expense Payable
December 29 230
December 30 230
December 31 230
Janaury 1 230
Janaury 2 230
Janaury 3 230
Janaury 4 230
Janaury 5 230
Janaury 6 230
Janaury 7 230
Janaury 8 230
Janaury 9 230
Janaury 10 230
Janaury 11 230
690 2530
1
Db Salaries expenses____________________ 690
Cr Salaries payable_______________________ 690