Answer:
Quality Control Policies and Procedures and the Elements of Quality (SQCS 8):
1. Assign management responsibilities in such a manner that commercial considerations do not override the quality of work performed.
d. Human resources
2. Establish policies and procedures for resolving differences of opinion among firm personnel that arise during professional engagements.
a. Leadership responsibilities for quality within the firm (the tone at the top)
3. Develop policies and procedures to ensure that professionals are provided appropriate professional development opportunities.
d. Human resources
4. Review engagement documentation, reports, and the client’s financial statements.
f. Monitoring
5. Develop effective performance evaluation, compensation, and advancement procedures. Identify circumstances and relationships that create threats to independence and take appropriate action to eliminate those threats or reduce them to an acceptable level.
b. Relevant ethical requirements
6. Identify whether the firm possesses the competency, capability, and resources to appropriately serve a specific client.
c. Acceptance and continuance of client relationships and specific engagements
7. Devote sufficient resources to develop, communicate, and support the firm’s quality control procedures.
d. Human resources
8. Retain engagement documentation for a sufficient period of time to satisfy the needs of the firm, professional standards, laws, and regulations.
e. Engagement performance
Explanation:
According to SQCS 8, the firm must establish and maintain a system of quality control. The six elements of the system of quality control are:
a. Leadership responsibilities for quality within the firm (the tone at the top)
b. Relevant ethical requirements
c. Acceptance and continuance of client relationships and specific engagements
d. Human resources
e. Engagement performance
f. Monitoring
The quality control policies and procedures in public accounting firms are categorized into six elements identified by SQCS 8. Reviewing engagement documentation and the client's financial statements is under the element of monitoring.
Review engagement documentation, reports, and the client's financial statements falls under the element of monitoring in the quality control policies and procedures. This involves performing internal reviews to ensure the accuracy of the work and compliance with professional standards. Developing performance evaluation and compensation procedures falls under the human resources element. Identifying threats to independence and addressing them is part of the independence and ethical requirements element.
Develop effective performance evaluation, compensation, and advancement procedures is related to the element of human resources. This includes establishing fair and objective processes for evaluating staff performance and providing appropriate rewards.
Identifying circumstances and relationships that create threats to independence and taking appropriate action is part of the element of independence and ethical requirements. This involves assessing potential conflicts of interest and ensuring that professional judgment is not compromised.
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The cars will wait an average of 1.67 hours before being served at routine repairs while they'll wait an average of 3 hours before being served at major repairs.
From the information given, at the routine repair hoist, 5 people waiting on average and the cars are processed at a rate of 3 per hour, therefore the flow time (T) will be:
= I/R = 5/3 = 1.67 hours.
Also, at the major repair hoist, 3 people wait on average and the cars are processed at a rate of 1 per hour. Therefore, the Flow time (T) will be:
= I/R = 3/1 = 3 hours.
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Answer:
The Cars wait an average of 1.67 hours before being served at routine repairs.
The Cars wait an average of 3 hours before being served at major repairs.
Explanation:
At the routine repair hoist, 5 people waiting on average hence the Inventory (I) = 5 cars. The cars are processed at a rate of 3 per hour, hence the Throughput (R) = 3 cars per hour.
Therefore the Flow time (T) = I/R = 5/3 = 1.67 hours.
The Cars wait an average of 1.67 hours before being served at routine repairs.
At the major repair hoist, 3 people waiting on average hence the Inventory (I) = 3 cars. The cars are processed at a rate of 1 per hour, hence the Throughput (R) = 1 cars per hour.
Therefore the Flow time (T) = I/R = 3/1 = 3 hours.
The Cars wait an average of 3 hours before being served at major repairs.
Answer:
The equivalent units of conversion is 351,300
Explanation:
The computation of the conversion equivalent units is shown below:
= (Units completed and transferred out × conversion percentage) + (Ending Inventory × conversion percentage)
= 348,000 × 100% + $33,000 × 10%
= 348,000 + 3,300
= 351,300
All other information which is given in the question are not relevant. So, ignore other information.
Answer:
What is marginal revenue when quantity is 30 ? 30?
= ($2,400 - $1,350) / (30 - 15) = $900 / 15 = $70
What is marginal cost when quantity is 60 ? 60?
= ($3,150 - $2,250) / (60 - 45) = $900 / 15 = $60
If this firm is a monopoly, at what quantity will profit be maximized?
a monopoly maximizes its accounting profit when marginal revenue = marginal cost, in this case they both equal $50 per unit when total output is 45 units
If this is a perfectly competitive market, which quantity will be produced?
a perfectly competitive firm maximizes its accounting profit when marginal revenue = marginal cost, in this case they both equal $50 per unit when total output is 45 units
Comparing monopoly to perfect competition, which statement is true?
In a monopoly, output is smaller than the perfectly competitive output. The price charged by a monopolist is also higher. This also results in lower consumer surplus with a monopoly.
Explanation:
Quantity Price Total Revenue Total Cost
15 90 1350 900
30 80 2400 1500
45 70 3150 2250
60 60 3600 3150
75 50 3750 4200
90 40 3600 5400
The marginal revenue is $70, when the quantity is 30.
The marginal cost is $60 when quantity is 60.
If this firm is a monopoly, at 450units the profit will be maximized.
In perfect competition, a firm produces where price and marginal cost both are equal. Both price and marginal cost are equal at 60 units. Comparing monopoly to perfect competition, the monopoly's price is higher. Thus, the first option is correct.
A financial ratio called the marginal revenue (MR)formula estimates the change in total revenue brought on by the sale of more goods or units. It typically slows down as output levels rise and is observed to follow the rule of diminishing returns. It is frequently shown as a graph with a declining slope.
Marginal revenue at 30 units of quantity:
= Change in Total Revenue / Change in Quantity
2400 - 1350 / 30 - 15
= $70
Marginal cost at 60 units of quantity:
= Change in Total Cost / Change in Quantity
= 3150 - 2250 / 60 - 45
= $60
If the firm is a monopoly then marginal profit will be zero at 45 units. If marginal revenue and marginal cost both are equal then marginal profit can be zero
In perfect competition, a firm produces where price and marginal cost both are equal. Both price and marginal cost are equal at 60 units
Comparing monopoly to perfect competition, the monopoly's price is higher .As in monopoly, the price at 45 units is $70 and in perfect competition, the price at 60 units is $60.
A table is attached for reference.
To learn more on marginal revenue, here:
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Answer:
The Journal entries are as follows:
(i) General fund
Property taxes receivable current A/c Dr. $1,878,700
To Allowance for uncollectible current taxes $37,574
To Revenue $1,841,126
(To record general fund)
(ii) Governmental activities
Property taxes receivable current A/c Dr. $1,878,700
To Allowance for uncollectible current taxes $37,574
To Revenue $1,841,126
(To record governmental activities)
Workings:
Allowance for uncollectible current taxes:
= Real property taxes × percent of levy uncollectible
= $1,878,700 × 2%
= $37,574
Answer:
Blume's formula combines the geometric and arithmetic means of an asset to be able to predict its returns in a given period.
The formula is;
= Geometric Mean*(T-1)/(N-1) + Arithmatic Mean *(N-T)/(N-1)
Where;
T = Period in question
N = Total period
10 years
= 8.3%*(10-1)/(90-1) + 10.3%*(90-10)/(90-1)
= 10.1 %
25 years
= 8.3%*(25-1)/(90-1) + 10.3%*(90-25)/(90-1)
= 9.76%
30 years
= 8.3%*(30-1)/(90-1) + 10.3%*(90-30)/(90-1)
= 9.65%
Answer:
$1428
Explanation:
Profit = Total Revenue - total cost
total revenue = price x quantity sold
total cost = variable cost + fixed cost
total revenue = 223 x $12 = $2676
Variable cost = $5 x 223 = $1115
total fixed cost = $103.00 + $30.00 = $133.00.
Total cost = $1115 + $133 = $1248
profit = $2676 - $1248 = $1428