Answer:
Outsourcing is a cost reduction practice where Company A contracts Company B or another party to carry out services or produce goods that Company A used to produce for itself.
It is done when paying Company B to perform the services, is cheaper than performing it themselves which would enable Company A to cut down on costs.
For example, it costs Company A $5 per customer service call if they do it themselves but it would cost $3 per call if they let Company B handle it. Outsourcing is where they pay Company B that $3 to handle the calls and save $2.
the most expensive part of the system life cycle is typically which may account for 80% of its total product life cycle cost.
The most high-priced parts of such software program development consist of the checking out and planning stages, which can take up from a month to countless years. However, the lifecycle hardly ever exceeds a 3-year period.
Which is greater luxurious device improvement or device maintenance?a. When evaluating the costs associated to gadget protection and device development, gadget renovation is the extra pricey option of the two.
Why the gadget renovation segment is regularly the most highly-priced phase?Maintenance is the closing segment that closing longer than any different software life cycle. This make preservation the most expensive or pricey phase in the device development existence cycle in view that it is long and time consuming
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https://brainly.com/question/15074944#SPJ4While the manage communications process is underway, effective information distribution often requires the project manager and team to accomplish all of the following activities EXCEPT: (x2)
a. determine any information needs not already uncovered
b. establish an information retrieval and distribution system
c. develop responses to identified risks
d. report project performance to stakeholders
While the manage communications process is underway, effective information distribution often requires the project manager and team to accomplish all of the following activities EXCEPT: c. develop responses to identified risks.
When project managers authorize work they should empower others to the extent possible?When project managers provide the go-ahead for work, they should empower employees as much as feasible while yet exercising appropriate control. The processes of tracking, reviewing, and reporting progress to satisfy the performance targets specified in the project plan are referred to as monitoring and controlling project work.
Planning for quality is more cost-effective than checking the final product, redoing the job, or fixing issues to meet quality standards. The project manager must weigh the price of conformity against the cost of obtaining the desired level of quality.
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The SEC has issued independence rules that differ from the AICPA's in all of the following areas except:
A) working paper documentation.
B) provision of other professional services.
C) human resource and compensation-related issues.
D) required communication.
Out of the choices provided above, it can be stated that the SEC has issued independence rules that differ from the AICPA's in all of the following areas except working paper documentation. Therefore, the option A holds true.
The SEC, or the Securities and Exchange Commission, acts as the superior authority to deal with the regulations of securities and stock markets. Its rules are applicable in all the areas aforementioned, except for the case of the documentation of the working papers of a company.
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which one of these statements related to chapter 11 bankruptcy is accurate? group of answer choices prepacks apply only to chapter 7, not chapter 11, bankruptcies. senior management must be replaced prior to exiting a chapter 11 bankruptcy. a company can only file for chapter 11 after it becomes totally insolvent. companies sometimes file for chapter 11 in an attempt to gain a competitive advantage. chapter 11 involves the total liquidation of the bankrupt firm.
Senior management must be replaced prior to exiting a chapter 11 bankruptcy is related to chapter 11 bankruptcy and is accurate.
What is bankruptcy?People or other entities who are unable to pay their creditors back can seek some or complete relief from their debts through the legal process known as bankruptcy. Most typically requested by debtor, bankruptcy is imposed by court order in most jurisdictions. An insolvent individual may have other legal statuses as well; hence, the phrase "bankruptcy" is not a synonym for insolvency. Bankruptcy wasn't a thing in ancient Greece. If a man owed money but couldn't pay it back, his wife, kids, or servants were made to work for the creditor as "debt slaves" until the obligation was paid off. This was not the case in Athens, where Solon's rules prohibited slavery as payment for debt, leading to the majority of the city's slave population being foreigners.
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and example of world systems theory would be that a rich country like the us sends some of its dirtiest manufacturing over to countries like china, so the us can then buy back (for cheap) many of those products without having to live with the pollution they created.
Rivals have criticized world-systems theory for being overly centered on the economics, underemphasized on culture, and overly core- and state-centric.
These factors don't make sense when viewed through Wallerstein's nation-centered lens because they operate on a global scale as opposed to a state system.
According to systems theory, a world-system is a socioeconomic system that includes all or part of the world and details the overall structural outcome of all interactions between polities. Although they are not always global, world-systems are typically larger than single states.
1. The Knowledge Economy, first A "knowledge economy" is one where employment requires a high degree of technical and scientific expertise and is characterized by a high level of innovation in both fields.
2. Carbon emissions and climate change politics An uneven transaction underpins the politics of climate change.
3. The Packaged Food Sector and Hidden Hunger
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Carlota and Dave formed an S corporation; Carlota owns 75% of the out-standing shares, and Dave owns the rest. When the entity’s AAA balance is $1,000,000, it distributes an asset to each shareholder; the basis of each asset to the corporation is $152,500. Carlota’s asset is worth $213,500, and Dave’s is worth $183,000.
a. How much gain, if any, does the corporation recognize as a result of the distribution? $______
b. By how much, if any, does the distribution increase Dave’s gross income? $_____
c. By how much, if any, does the distribution increase Carlota’s gross income? $_____
The corporation recognized gain is $26000.Mark recognized is $34600 and basis in land is fair market value is $70,400
How much profit, if any, does the company realize from the distribution?we get here recognized is express as
recognized is = fair market value - tax basis
recognized is =$70400 - $44400
recognized gain is = $26000and
Gain raised his stock's basis from $35,800 to $61,800 (26,000 + 35,800).
so we recognized gain allocated is = $70400 - $61800 = $8600
here mark recognized is = gain allocated + recognized gain
mark recognized is = $8600 + $26000
mark recognized is = $34600
basis in land is fair market value = $70,400
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Which of the following terms refers to the economic circulation of works of art? Art gallery Auction Patronage Art market CONCEPT
Art market refers to the economic circulation of works of art.Through consumer spending and tourism, the arts and culture can help to boost local economies.
What exactly does "art market" in economic circulation mean?The art market is a venue where buyers and sellers exchange goods, services, and pieces of art. The art market operates under an economic model that takes into account factors other than supply and demand. It is a hybrid form of prediction market where art is bought and sold for prices based not only on a work's perceived cultural value but also on both its past monetary value and its anticipated future value. The market has been described as one where producers don't create products primarily for sales and where customers frequently don't understand the worth of the products they purchase.
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The three most popular types of marketable securities are Treasury bills, Certificate of deposit, and:A) Treasury notesB) Corporate bondsC) Commercial paperD) Checking accounts
The three most popular types of marketable securities are Treasury bills, Certificate of deposit, and Treasury notes. Hence, option A is correct.
Marketable securities are investments that can be swiftly converted into cash. These publicly traded stock exchanges and public bond exchanges are where these short-term liquid securities can be purchased or sold. These instruments, which can be either debt or equity, often mature in a year or less. Treasury Bills, Treasury Notes, Treasury Bonds, Treasury Inflation-Protected Securities (TIPS), and Floating Rate Notes are the five categories of marketable Treasury securities that the US Treasury sells (FRNs).
U.S. Treasury securities are primarily used to issue American government debt. Due to their low default risk, these assets, often known as Treasuries, are regarded as the safest investments.
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______ focus on solving society's challenges through their businesses.
a. social entrepreneurs
b. classic entrepreneurs
c. change agents
d. atypical entrepreneurs
Option (a), social entrepreneurs concentrate on using their enterprises to address societal issues.
What prioritizations do social entrepreneurs have?The process by which people, companies, and entrepreneurs develop and fund solutions that primarily address social problems is known as social entrepreneurship. An individual who investigates business opportunities that help their community, society, or the entire world is said to be a social entrepreneur.
What links exist between social issues and social business?By addressing a range of social problems, social entrepreneurs seek to better society. But because it can also aim to succeed financially through a cutting-edge business model, this desire does not deviate from financial goals.
What societal problems are social entrepreneurs attempting to solve?Social entrepreneurs usually take the initiative in developing products that are ecologically sustainable, serve the needs of marginalized communities, or focus on philanthropic activities. Through non-profit, for-profit, and hybrid firms, social entrepreneurs promote a wide range of solutions geared toward sustainable development.
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An organization uses a Session Initiation Protocol (SIP) endpoint for establishing communications with remote branch offices. Which of the following protocols will provide encryption for streaming data during the call?
A secure peer-to-peer connection is made using SIP, not only for the audio but also while the connection is being made. That implies that the connection information is encrypted in addition to the audio (who is calling whom etc.).
Which of the following protocols would protect internal network file transfer services?As its name suggests, the Secure File Send Protocol (SFTP) is used to transfer files safely over a network. The client and server are authenticated, and data is encrypted.
Which wireless setup offers the most modern and safe method of tethering wireless devices to a home or office network?Experts concur that WPA3 is the best wireless security protocol when deciding between WEP, WPA, WPA2.
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Economizing requires that any particular good be produced by the nation having the ______ domestic opportunity cost, or the ______ advantage for that good.
O lowest; absolute
O greatest; absolute
O lowest; comparative
O greatest; comparative
c) Economizing requires that any particular good be produced by the nation having the lowest domestic opportunity cost, or the comparative advantage for that good.
This means that the nation must have lower costs for producing the good than other trading nations. In other words, the nation must be able to produce the goods more efficiently and at a lower cost.
Comparative advantage is based on the concept of opportunity cost. Opportunity cost is the number of resources, such as time and money, that are lost when one chooses to produce a particular good.
Nations that can produce a good with the lowest opportunity cost have a comparative advantage. For example, when a nation produces a good at a lower cost than other nations, it has a comparative advantage in that good.
Thus, the nation can sell the goods to other countries at a lower price, making it more competitive. Therefore, it is important for nations to identify their comparative advantage in order to maximize their profits and to competitively produce goods for the international market.
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on october 1, black company receives a 10% interest-bearing note from reese company to settle a $15,400 account receivable. the note is due in 6 months. on december 31, black should record interest revenue of
Black should report interest income of $77,000 on December 31 (15,400 x 10 x 6/12).
Is interest income or capital?In other words, interest receivable refers to the anticipated interest income that a business will receive. Interest receivable is typically represented as a current asset in the balance sheet as long as it may be normally assumed to be paid within one year.
What is an illustration of interest income?A bank's interest income would be $50 million if its portfolio of loans totals $1 billion and earns an average interest rate of 5%. On the liabilities side, the bank's interest expenditure would be $24 million if it had $1.2 billion in outstanding customer deposits generating 2% interest.
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though akbar held discussions with jesuit missionaries, the mughals generally considered europeans to be barbarians and did not import their products.
Although Akbar met with Christian missionaries, the Mughals did not purchase European products because they considered the people from that continent to be barbarians.
What made Akbar so powerful, and why?The Mughal Empire rapidly grew to embrace the whole Indian subcontinent under Akbar, a charismatic general who was successful. However, because the Mughals controlled the military, politics, culture, and economy of the whole subcontinent, his power and influence grew throughout it.Against Akbar, who prevailed?Maharana Pratap, the ruler With the upgraded textbooks, students may now learn. Maharana Pratap soundly beat Akbar, the Mughal emperor, in the Battle of Haldighati in the 16th century.For more information on Akbar kindly visit to
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FILL IN THE BLANK Because income is not distributed perfectly equally anywhere in the world, the top quintiles earn a disproportionately _____ share of income and the lower quintiles earn a disproportionately _____ share of income.
Because income is not distributed perfectly equally anywhere in the world, the top quintiles earn a disproportionately high share of income and the lower quintiles earn a disproportionately low share of income.
What three forms of poverty are there?localized poverty
poverty over generations
absolute need.
relative destitution
urban squalor
rural destitution
Which forms of poverty are a gauge of economic disparity?Five indices, including the Gini coefficient and S90/S10, among others, are used to measure income disparity. Poorness rate: The ratio of people (in a certain age group) whose income is below the poverty line, calculated as half the median family income of the entire population, is known as the poverty rate.
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Kito makes on online purchase of a guitar case for $39.99, a tuner for $24.99 and picks for $26.99. Taxes are 6% of the total purchase price. Shipping charges are based on the following table:
Kito selects express shipping and the company bills his credit card $105.69 for the total of the online purchase. Determine if Kito has been billed correctly for his purchase.
a.Kito has been billed correctly.
b.Kito has not been charged enough for his purchase.
c.Kito has been over charged by $1.85 for his purchase.
d.Kito has been over charged by $3.40 for his purchase.
It is accurate for the business to charge Kito's credit card $105.69 for his transaction.
The following are the items:$39.99 for a guitar case
Tuner=$ 24.99
Picks= $26.99
The total cost of the items is thus: Total= $39.99+$24.99+$26.99 (before tax).
Total= $91.97
The following results from adding the 6% sales tax to the total cost of the goods:Total= $91.97 ×(1+6%)
Total= $97.49
Kito chooses express shipping.
Given that express delivery costs $8.20 for purchases up to $100, Kito's invoice will be
Bill = 97.47 plus 8.20 = 105.69
According to the query, the business charges his credit card $105.69.
Thus, we can say that (a) Kito has been accurately billed.
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During 2022, Blossom Company sold equipment with a book value of $172800 for proceeds of $208800. The company purchased new equipment for $460800 by signing a long-term note payable. No other transactions impacted long-term asset accounts during 2022. The investing section of the statement of cash flows will report
a.net cash outflows of $252000.
b.net cash outflows of $424800.
c.net cash inflows of $208800.
d.net cash inflows of $36000.
The investing section of the statement of cash flows will report a net cash inflow of of $208800. Thus, the correct answer is option C.
What is a statement of cash flows?A cash flow statement, also known as a statement of cash flows in financial accounting, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and divides the analysis into operating, investing, and financing activities.
The investing activities section of the cash flow statement records the activities that include the purchase and sale of long-term assets. The purchase is a cash outflow, whereas the sale is a cash inflow.
In the given case, the sale proceed of equipment is consider in the investing activity i.e. $208800.
Therefore, net cash inflows of $208800 is reported in the investing section of the statement of cash flows.
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Adam is writing a proposal to the board of directors about an idea he has for a new product line. What should he do to best persuade the members to adopt his idea?
a. Avoid using facts and figures as it may bore or confuse his reader.
b. Show how his proposal will increase company revenues.
c. Avoid mentioning any risks involved because doing so might scare the audience.
d. Adam should do all of these.
Show how your suggestion would boost company revenue.
Give some examples of revenues.Revenues are frequently substituted with the word income. Purchases, service revenue, paid fees, mortgage revenue, and interest income are a few examples of cash receipts. Revenue accounts often contain debit balance because they are paid when services are rendered and invoiced.
Do sales generate revenue?Some businesses incorrectly mix the phrases sales and revenue. Despite the fact that sales are a source of income, not all money does. In reality, they are the same for many businesses. However, some companies consistently generate additional money via their everyday activities.
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You are wondering how to explain price elasticity of demand to the management of the Houston Astros baseball team, in user-friendly language. You decide to talk about How demand increases when price is decreased How price decreases when demand is increased How price increases when demand in decreased How demand decreases when price is increased How demand increases when price is decreased and How demand decreases when price is increased are both correct
How demand increases when price is decreased and how price increases when demand in decreased both correct.
What is the connection between supply and demand and price?According to the law of demand, higher prices result in smaller quantities being wanted, whereas lower prices result in bigger quantities being demanded. The link between quantity demanded and price can be summarized using demand curves and schedules. The law of supply and demand combines two fundamental economic concepts to describe how changes in a resource's price affect its supply and demand.
Supply increases as the price rises, but demand drops. When the price drops, however, supply becomes more constrained, and demand increases. Demand for a good or service is inversely related to price, under the rule of demand, provided all other parameters remain constant.
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given the information below, what is the gross profit? sales revenue $ 300,000 accounts receivable $ 56,000 ending inventory $115,000 cost of goods sold $243,000 sales returns $29,000
Explanation:
student school District hai na ki baat hai na ki baat
dalton company uses the allowance method to account for uncollectible receivables. dalton has determined that the irish company account is uncollectible. to write off this account, dalton should debit
The allowance approach is used by Dalton Company to account for uncollectible receivables. The Irish Company Account is Uncollectible, according to Dalton.
Briefing:-Dalton should debit Allowance for Doubtful Accounts and credit Accounts Receivable in order to write off this account..
When a corporation accounts for uncollectible receivables using the allowance method?The Allowance Method credits a contra-asset account called Allowance for Uncollectible Accounts and debits bad debt expenditure during the period that the sale is recorded. The Allowance is debited and Accounts Receivable is credited during the period in which a given account is found to be uncollectible.
What does the direct write-off technique for uncollectible accounts entail?The direct write-off method involves creating a journal entry to credit your accounts receivable account for the same amount and debit your bad debt account for the bad debt.
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consider the above laffer curve. this curve suggests that as the government raises the tax rate, a point will eventually be reached at which the revenues that are collected will
The concept of Arthur Laffer's tax cuts boosting growth and tax collection was rapidly branded "trickle-down." Both President Herbert Hoover's Great Depression stimulus attempts and President Ronald Reagan's use of income tax cuts were dubbed as "trickle-down."
The Laffer Curve is an economic hypothesis developed by economist Arthur Laffer that proposes that tax rates beyond a particular level lower tax revenue by incentivizing individuals not to work. As a result, it argues that decreasing tax rates encourages individuals to work harder, resulting in higher tax income. The Laffer Curve gained popularity in the 1980s and was a driving factor behind economic policy under the Reagan administration in the United States and Margaret Thatcher's government in the United Kingdom. The principles underpinning the theory have been so embedded in economic discourse that while most people are unfamiliar with the word Laffer Curve, they are familiar with the notion.
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Which of the following is not a measure of liquidity? Acid-Test Ratio Current Ratio Gross Profit Ratio Working Capital
Gross Profit Ratio is not a measure of liquidity.
Which three liquidity ratios are there?The current ratio, quick ratio, and cash ratio are the three primary liquidity ratios. Investors and creditors look for companies with liquidity ratios above 1.0 when evaluating a company. A business that has strong liquidity ratios has a higher chance of getting loans.
The acid-test ratio (ATR), usually referred to as the fast ratio, determines how well current assets can cover current obligations to determine a company's liquidity. Only the most liquid current assets that can be converted to cash in 90 days or less are used for calculating the quick ratio.
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Managers who consider the impact of their organization on the natural environment are said to be practicing:
A) value-based management.
B) ethics-based management.
C) socially responsible management.
D) green management.
Green management is the practice of taking into account how an organization's actions may affect the environment.
The discussion of corporate sustainability and sustainable development led to the establishment of the academic idea of green human resource management. With his proposition that "if a firm is to take an environmentally-aware approach to its activities, the employees are the key to its success or failure," Wehrmeyer is frequently credited with laying the groundwork for this theory. GHRM is described as "the HRM components of Environmental Management" in one of the most popular definitions. GHRM is defined as "phenomena relevant to understanding linkages between organizational activities that impact the natural environment and the design, evolution, implementation, and effect of HRM systems" in a broader sense. One of GHRM's objectives is to inform staff members about environmental problems throughout the world by starting proposal schemes, educate staff members about greener habits, and motivate staff members to participate in and develop sustainable initiatives.
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Green management is the practice of taking into account how an organization's actions may affect the environment.
The discussion of corporate sustainability and sustainable development led to the establishment of the academic idea of green human resource management. With his proposition that "if a firm is to take an environmentally-aware approach to its activities, the employees are the key to its success or failure," Wherever is frequently credited with laying the groundwork for this theory. GHRM is described as "the HRM components of Environmental Management" in one of the most popular definitions. GHRM is defined as "phenomena relevant to understanding linkages between organizational activities that impact the natural environment and the design, evolution, implementation, and effect of HRM systems" in a broader sense. One of GHRM's objectives is to inform staff members about environmental problems throughout the world by starting proposal schemes, educate staff members about greener habits, and motivate staff members to participate in and develop sustainable initiatives.
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Sent a check to Lyon Co for the April 2 purchase, net of the discount and the returned merchandise.
Paid $4600 - 600 (returned good) = 4000 x 2% = 80
4000 - 80 = 3920
In the journal entry, the accounts payable will be debited, and the cash and discounts will be credited.
The journal entry to record the financial transaction in the books of Lyon Co. for the April 2 purchase, net of the discount and the returned merchandise, is as given below.
17 April Account payable Ac. Dr. 4,000
TO, Discount received 80
TO, Cash 3,920
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#Complete question
Prepare journal entries to record the following transactions for a retail store.
Sent a check to Lyon Co for the April 2 purchase, net of the discount and the returned merchandise.
Paid $4600 - 600 (returned good) = 4000 x 2% = 80
4000 - 80 = 3920
sunland company has a materials price standard of $2.00 per pound. 6300 pounds of materials were purchased at $2.20 a pound. the actual quantity of materials used was 6300 pounds, although the standard quantity allowed for the output was 6000 pounds. sunland company's materials price variance is
If the standard quantity allowed for the output was 6000 pounds, Sunland company's materials price variance is 920$.
In plain English, what is a variance?The variance is the difference between the numbers in a set of data, to put it simply. Each number's variance is a statistical metric that shows how far off from the mean and from each other number in the set it is.
What is statistics variance?In statistics, variability is measured by variance. It evaluates the mean squared deviation between the data values and the mean. It includes all data points in its calculations by comparing each value to the mean, unlike some other statistical measures of variability.
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TRUE/FALSE. it is not necessary for a job description to capture every last detailed task that may be encountered in the performance of the job.
It is not necessary for a job description to capture every last detailed task that may be encountered in the performance of the job. This is a true statement.
Why are job descriptions important?A job description's main goals are to make sure the position will satisfy the organization's needs and to help recruit the best candidates. It will be less probable that candidates who don't meet the requirements will apply if you clearly define the requirements for a given post.
Why is the function of job descriptions in the hiring process important?Employers and job applicants can better understand what is expected of them in a particular position thanks to job descriptions and selection process, which also aid in identifying individuals who are a good fit for the role.
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Which of the following stages of the five-stage development model for teams is when the team finalizes its work and disbands?
A. adjourning
B. performing
C. forming
D. norming
Option (a), The team adjourns during the adjourning stage of the five-stage development model for teams after completing its task.
What is the final phase of team development?During this final stage of group formation, members begin to make ready to say goodbye. The main goals of the adjourning stage are to close and reach a successful finish. Group members should take some time to reflect on their individual contributions and growth.
Bruce Tuckman coined the term "adjourning" in 1977 to describe the fifth and final stage of group growth, which takes place after a group completes its work before breaking up. It is crucial that team members at this point receive the necessary congratulations and closure for the work they did.
As the meeting comes to an end, the majority of the team's goals have been accomplished. Finalizing unfinished business and documenting work and results are the main priorities. As the workload lowers, specific team members might be moved to other teams, which would cause the team to dissolve.
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the paris paint company is in the process of planning labor force requirements and production levels for the next four quarters. the marketing department has provided production with the following forecasts of demand for paris paint over the next year:Assume that Paris currently has 80,000 gallons of paint in inventory and would like to end the year with an inventory of at least 20,000 gallons a. Determine the minimum constant workforce plan for Paris Paint and the cost of the plan. Assume that stock-outs are not allowed. b. If Paris were able to back-order excess demand at a cost of $2 per gallon per quar ter, determine a minimum constant workforce plan that holds less inventory than the plan you found in part (a), but incurs stock-outs in quarter 2. Determine the cost of the new plan. c. Formulate this as a linear program. Assume that stock-outs are not allowed. d. Solve the linear program. Round the variables and determine the cost of the resulting plan.
Net demand for the 4 quarters: (380 - 80), 630, 220, (160+20), i.e., 300, 630, 220, 180 So, the demand rises from 300 to 630 and then reduces gradually. The production level should be chosen at the midpoint of 300 and 630 so that the ending inventory
If a company issues 10,000 shares of $1 par value common stock at a market price of $50 per share, which of the following is the correct balance sheet entry? Select one: O a. Increase cash by $500,000 and increase earned capital by $500,000 O b. Increase revenues by $500,000 O c. Increase common stock and cash by $10,000 O d. Increase cash by $500,000 and increase contributed capital by $500,000
d. Correct balance sheet entry to increase cash by $500,000 and increase contributed capital by $500,000.
This is the correct balance sheet entry because when a company issues 10,000 shares of $1 par value common stock at a market price of $50 per share, the company will receive cash equal to $500,000 (10,000 x $50). This amount should be recorded as an increase in cash on the balance sheet.
The other side of this entry should be an increase in contributed capital, which is the value of the shares issued in the market. In this case, the company has issued 10,000 shares of $1 par value common stock for $50 each, resulting in a contributed capital of $500,000 (10,000 x $50). This should be recorded as an increase in contributed capital on the balance sheet.
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On January 1, 2021, Lizzy's Lemonade issues 5%, 20-year bonds with a face amount of $97,000 for $85,789, priced to yield 6%. Interest is paid semiannually. What amount of interest expense will be recorded on June 30, 2021, the first interest payment date? (Round your final answer to the nearest whole dollar amount.) Interest expense
Interest expense to be recorded on 30 June, 2021 is $2573.67 for 20-year bonds with a face amount of $97,000 for $85,789, priced to yield 6%.
Give a brief account on interest expense.An entity's cost for borrowing money is regarded as an interest expense. On the income statement, interest expense is listed as a non-operating expense. It represents interest that must be paid on all borrowings, including bonds, loans, convertible debt, and credit lines. It is essentially determined by multiplying the debt's outstanding principal amount by the interest rate. Instead of the amount of interest paid during that time, interest expenditure on the income statement shows interest accrued throughout the period covered by the financial statements. Despite the fact that interest costs are tax deductible for businesses, they may not be in the case of an individual, depending on their jurisdiction and the loan's intended use.
To solve the question :
Interest expense on 30 June, 2021:
= $85,789 × 6% × 6/12
= $2573.67
Hence, interest expense to be recorded on 30 June, 2021 is $2573.67.
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