Personalized discount programs, such as Sam's Club's "eValues," improve upon generic coupons by tailoring discounts based on individual expected demand. Sam's Club, CVS, and others are moving towards direct price discrimination, targeting specific customers with customized pricing strategies.
The implementation of personalized discount programs, such as Sam's Club's "eValues," is an improvement over generic coupons as a means of price discrimination. Unlike generic coupons that offer the same discount to all customers, personalized discount programs utilize data mining and predictive analytics to tailor coupons based on an individual's expected demand for products. This approach allows for more precise targeting of customers and customization of discounts, increasing the effectiveness of price discrimination strategies. In the case of Sam's Club, CVS, and others, they are moving towards direct price discrimination rather than indirect price discrimination. Direct price discrimination involves setting different prices for different individuals based on their willingness to pay, while indirect price discrimination involves offering different discounts or deals to various customer segments. By providing individualized coupons and deals based on customer preferences and purchasing behavior, these companies are directly targeting specific customers with tailored pricing strategies. Overall, the use of personalized discount programs represents a shift towards more sophisticated and targeted price discrimination practices. Through data analysis and predictive analytics, companies can identify customer preferences and adjust prices accordingly, maximizing their profits by capturing a larger portion of each customer's willingness to pay. This approach allows for a more efficient allocation of resources and enhances customer satisfaction by providing discounts on products that customers are most likely to purchase.
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Discuss five challenges that organisations face with regards to
decision making?
Organizations face numerous challenges with regard to decision-making. Five of them are Uncertainty, Conflicting Objectives, Lack of Consensus, Limited Resources, and Resistance to Change.
Let's discuss five of them below:
1. Uncertainty: Decision-making in an organization may be fraught with ambiguity due to insufficient information or a lack of transparency. Decision-makers must establish sound decision-making processes that account for the unknown and mitigate risk.
2. Conflicting Objectives: Departments within the same organization may have divergent goals and objectives. These conflicts can arise in an organization's decision-making, especially when one department is putting its interests ahead of the others.
3. Lack of Consensus: Decision-making in an organization requires consensus building, which may be difficult to achieve. Decision-makers must take into account all the differing views and establish common ground.
4. Limited Resources: Limited financial resources, human resources, and time may limit the extent of the decision-making process. Decisions must be made within these constraints.
5. Resistance to Change: Employees in an organization may be resistant to change, which may result in decision-making challenges. This resistance may arise from a lack of understanding or knowledge or fear of the unknown.
Decision-making is an important process in organizations. Organizations should establish sound decision-making processes that account for these challenges and strive to overcome them.
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Personnel tests are designed to test a job applicant's cognitive and/or physical abilities. A particular dexterity test is administered nationwide by a private testing service. It is known that for all tes administered last year, the distribution of scores was approximately normal with mean 73 and standard deviation 7.9. a. A particular employer requires job candidates to score at least 79 on the dexterity test. Approximately what percentage of the test scores during the past year exceeded 79 ? b. The testing service reported to a particular employer that one of its job candidate's scores fell at the 90 th percentile of the distribution (i.e., approximately 90% of the scores were lower than the candidate's, and only 10% were higher). What was the candidate's score? Click here to view a table of areas under the standardized normal curve. a. Approximately \% of the test scores during the past year exceeded 79. (Round to one decimal place as needed.)
The candidate's score is 83.012. It is known that for all test administered last year, the distribution of scores was approximately normal with mean 73 and standard deviation 7.9.
Given that Personnel tests are designed to test a job applicant's cognitive and/or physical abilities. A particular dexterity test is administered nationwide by a private testing service.
Mean, μ = 73
Standard deviation, σ = 7.9
The z-score for 79 is given as:
$$z = \frac{X-μ}{σ}
=\frac{79-73}{7.9}
=0.76$$
We need to find the area under the curve to the right of this score. Using standard normal distribution tables, we can find the area to be 0.2236.
Approximately 22.4% of the test scores during the past year exceeded 79. (Round to one decimal place as needed.)
Therefore, the correct option is (b) The testing service reported to a particular employer that one of its job candidate's scores fell at the 90th percentile of the distribution (i.e., approximately 90% of the scores were lower than the candidate's, and only 10% were higher).
We know that z90 = 1.28
This implies that the score x at the 90th percentile is given by:
$$1.28=\frac{x-μ}{σ}$$
Solving for x, we have:
$$x=μ+1.28σ
=73+1.28(7.9)
=83.012$$
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A company purchased a piece of equipment by paying $17,000 cash. A shipping cost of $1,000 to get the equipment to its factory was also incurred. The fair value of the equipment was $9.400 at the time of the purchase. For what amount should the company record the equipment?
The equipment should be recorded at its cost of $18,000, which includes the purchase price and shipping cost. The fair value of $9,400 is not relevant for initial recording, as historical cost is the appropriate basis for recording assets.
When recording the acquisition of an asset, such as equipment, the generally accepted accounting principle is to record it at its historical cost. Historical cost refers to the actual amount of cash or cash equivalents paid to acquire the asset.
In this case, the company purchased the equipment for $17,000 in cash. Additionally, they incurred a shipping cost of $1,000 to transport the equipment to their factory. These are directly attributable costs that are necessary to bring the equipment to its present location and condition.
Therefore, the total cost of the equipment is the purchase price of $17,000 plus the shipping cost of $1,000, which amounts to $18,000. This is the amount for which the company should record the equipment on its financial statements.
The fair value of the equipment at the time of purchase, which is stated as $9,400, is not relevant for the initial recording of the equipment. Fair value may be used in other situations, such as assessing the market value of the equipment or potential impairment in the future, but it does not determine the initial cost of the asset. The historical cost principle provides a reliable and objective basis for recording assets on the company's financial statements.
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Chapter 11: Applying Excel: Exercise (Part 2 of 2) Requirement 2: Revise the data in your worksheet as follows: Chapter 11: Applying Exce 2 3 Data 4 Sales 5 Net operating income 6 Average operating assets 7 Minumum required rate of return $ 6,000,000 $ 300,000 $ 3,000,000 17% a. What is the ROI? ROl 0 b. What is the residual income? (Negative amount should be indicated by a minus sign.) Residual income C. Why is the residual income negative?
The ROI is 10% and the residual income is -$210,000. The negative residual income indicates that the business is not meeting the minimum required rate of return.
To calculate the ROI (Return on Investment), we divide the net operating income by the average operating assets. In this case, the net operating income is $300,000 and the average operating assets are $3,000,000. Therefore, the ROI can be calculated as follows:
ROI = Net Operating Income / Average Operating Assets
= $300,000 / $3,000,000
= 0.10 or 10%
The ROI represents the percentage of return on the investment made in the business. In this case, the ROI is 10%, indicating that for every dollar invested in the business, there is a 10% return.
To calculate the residual income, we subtract the minimum required rate of return from the net operating income. In this case, the minimum required rate of return is 17% and the net operating income is $300,000. Therefore, the residual income can be calculated as follows:
Residual Income = Net Operating Income - (Average Operating Assets * Minimum Required Rate of Return)
= $300,000 - ($3,000,000 * 0.17)
= $300,000 - $510,000
= -$210,000
The negative sign indicates that the residual income is negative. This means that the business has not generated enough income to meet the minimum required rate of return. It suggests that the business is not performing as well as expected and is not generating sufficient profits to cover the cost of capital.
The negative residual income could be due to various factors such as high operating expenses, low sales, or inefficient use of assets. It indicates that the business is not generating enough profit to meet the minimum required return on the invested capital.
This situation may require management to analyze and implement strategies to improve profitability and increase the return on investment.
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Project Scope Management Plan and WBS
Write a project scope management plan and WBS for your Portfolio
Project. Key components that must be incorporated into your plan
include:
Requirements
Stakehold
The WBS provided above is a high-level representation and can be further expanded with detailed tasks, activities, and deliverables for each project within the portfolio.
Project Scope Management Plan:
1. Project Objective:
The objective of the Portfolio Project is to successfully manage and deliver a portfolio of projects within the organization. This includes ensuring that all projects align with the strategic goals, meet the defined requirements, and deliver value to stakeholders.
2. Scope Statement:
The scope of the Portfolio Project includes the identification, prioritization, and management of all projects within the portfolio. This encompasses project selection, initiation, planning, execution, monitoring, and closure activities.
3. Project Requirements:
- Clearly define and document the requirements for each project within the portfolio.
- Ensure that requirements are specific, measurable, achievable, relevant, and time-bound (SMART).
- Regularly review and update requirements as needed throughout the project lifecycle.
4. Stakeholder Management:
- Identify and engage key stakeholders involved in the portfolio projects.
- Understand their expectations, needs, and concerns.
- Develop and implement a stakeholder management plan to effectively communicate and engage stakeholders throughout the project.
5. Change Control:
- Establish a change control process to manage any requested changes to the project scope.
- Evaluate change requests based on their impact, feasibility, and alignment with project objectives.
- Document and communicate approved changes to relevant stakeholders.
Work Breakdown Structure (WBS) for Portfolio Project:
1. Portfolio Management
1.1 Project Selection and Prioritization
1.2 Resource Allocation and Optimization
1.3 Risk Management and Mitigation
2. Project 1
2.1 Project Initiation
2.2 Project Planning
2.3 Project Execution
2.4 Project Monitoring and Control
2.5 Project Closure
3. Project 2
3.1 Project Initiation
3.2 Project Planning
3.3 Project Execution
3.4 Project Monitoring and Control
3.5 Project Closure
4. Project 3
4.1 Project Initiation
4.2 Project Planning
4.3 Project Execution
4.4 Project Monitoring and Control
4.5 Project Closure
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how much interest is included in the future value of an ordinary simple annuity of $950 paid every six months at 8% compound semi-annually if the term of the annuity is 9.5 years (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The interest included in the future value of the annuity is approximately $3,260.35
To calculate the interest included in the future value of an ordinary simple annuity, we can use the formula for the future value of an ordinary annuity:
Future Value = Payment * ((1 + r)^n - 1) / r
Where:
Payment = $950 (the payment made every six months)
r = Interest rate per compounding period = 8% / 2 = 4% = 0.04 (since compounding is semi-annually)
n = Number of compounding periods = 9.5 years * 2 = 19 (since compounding is semi-annually)
Plugging in the values, we can calculate the future value of the annuity:
Future Value = $950 * ((1 + 0.04)^19 - 1) / 0.04
Using a calculator or spreadsheet, we find:
Future Value ≈ $21,115.346866
To determine the interest included in the future value, we subtract the total payments made:
Interest = Future Value - Total Payments
Interest = $21,115.346866 - ($950 * 19)
Interest ≈ $3,260.346866
Therefore, the interest included in the future value of the annuity is $3,260.35
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1.1: Critically analyse the current strategic aims and
objectives of your chosen scenario / organisation, you may wish to
consider the fuller hierarchy of objectives, within your critical
analysis, en
To critically analyze the current strategic aims and objectives of a chosen scenario or organization, it is necessary to consider the full hierarchy of objectives starting from identifying aims and objectives, evaluation, assessment, analysis, identify gaps and errors and recommend.
The following are needed to critically analyze the current strategic aims and objectives of your chosen scenario/organization:
1: Identify the strategic aims and objectives of the chosen scenario/organization. This involves identifying the goals and objectives that the organization wants to achieve in the short and long term. It is important to look at the mission and vision statements to determine the overarching goals of the organization. The objectives should be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).
2: Evaluate the objectives. This involves analyzing the objectives to determine whether they are realistic, achievable, and aligned with the organization's overall strategy. It is important to consider whether the objectives are feasible the resources available to the organization.
3: Assess the alignment of the objectives with the organization's strategy. This involves analyzing whether the objectives are aligned with the overall strategy of the organization. It is important to consider whether the objectives support the organization's mission and vision and are consistent with the organization's values and culture.
4: Analyze the hierarchy of objectives. This involves analyzing the relationship between the different objectives, from the overall strategic aims to the more specific operational objectives. It is important to consider whether the objectives are linked and whether they support each other.
5: Identify any gaps or areas for improvement. This involves analyzing the objectives to determine whether there are any gaps or areas for improvement. It is important to consider whether the objectives are comprehensive and whether there are any objectives missing that should be included.
6: Make recommendations. This involves making recommendations for improvements to the strategic aims and objectives. The recommendations should be based on the analysis conducted in steps 1-5 and should be focused on addressing any gaps or areas for improvement that were identified.
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Earnings per share. Santana Corporation has 400,000 shares of common stock outstanding throughout 2018. In addition, the corporation has 5,000, 20-year, 9% bonds issued at par in 2016, Each $1,000 bond is convertible into 20 shares of common stock after 9/23/19. During the year 2018, the corporation earned $900,000 after deducting all expenses. The tax rate was 30%.
Instructions
Compute the proper earnings per share for 2018
The proper earnings per share for 2018 for Santana Corporation can be calculated as follows:
To calculate the proper earnings per share (EPS) for 2018, we need to consider the weighted average number of shares outstanding. In this case, we have both common stock and convertible bonds that could potentially be converted into common stock.
First, we calculate the number of shares that would be issued if all convertible bonds were converted. Since each bond is convertible into 20 shares of common stock, the total number of shares from the convertible bonds would be 5,000 bonds * 20 shares/bond = 100,000 shares.
Next, we calculate the weighted average number of shares outstanding by adding the number of common shares and the potential shares from the convertible bonds: 400,000 shares + 100,000 shares = 500,000 shares.
Finally, we can calculate the earnings per share by dividing the corporation's earnings ($900,000) by the weighted average number of shares outstanding (500,000 shares):
EPS = $900,000 / 500,000 shares = $1.80 per share.
Therefore, the proper earnings per share for Santana Corporation in 2018 is $1.80.
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a(n) is any item, whether a gift of nature, the result of production, or the result of human effort, that is used to produce goods and services. (enter one word in the blank.)
The term used to fill the blank is "resource." A resource is defined as any object used to produce goods and services, regardless of whether it is a natural gift, the result of human efforts, or the outcome of production.
A resource is an object, substance, or service that can be used to create goods or services. It might be anything from natural resources like land, water, and minerals to human-made ones like machinery, tools, and factories. Human resources, which include knowledge, education, and skills, are also included in the list of resources. Resources can be classified into two types: natural resources and human-made resources.
Natural resources refer to things that occur naturally in the environment and are not produced by human efforts. Examples include air, water, and land. They can be classified into two categories: renewable resources and non-renewable resources.
Human-made resources are created by human beings. They are often the result of human effort, but they can also be the result of production. Human-made resources can be further divided into two categories: physical resources and intangible resources. Physical resources include all types of machinery, tools, factories, and other items that can be physically touched.
Intangible resources, on the other hand, are non-physical resources like knowledge, education, and skills. Resources are critical for economic development because they enable the production of goods and services, which leads to the creation of wealth and increased standards of living.
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Suppose that there are substantial lags between the Central Bank making a decision to raise the interest rate, and the impacts on actual Aggregate Demand (AD). Suppose also that there is a current inflationary gap of $1,200. If the Central Bank wants to close this inflationary gap and stabilize Real GDP, which of the following should it do? Raise the interest rate such that AD shifts left by EXACTLY $1,200. Raise the interest rate such that AD shifts left by LESS than $1,200. Raise the interest rate such that AD shifts left by MORE than $1,200.
To close an inflationary gap and stabilize Real GDP, the Central Bank should raise the interest rate such that Aggregate Demand (AD) shifts left by MORE than $1,200. This approach accounts for the time lags that exist between the Central Bank's decision and its impact on the economy.
When there is an inflationary gap, it indicates that the current level of Aggregate Demand exceeds the economy's productive capacity, leading to upward pressure on prices. To counteract this, the Central Bank aims to reduce spending and curb inflationary pressures.
However, it is important to consider the time it takes for the changes in interest rates to affect the economy. Monetary policy decisions, such as adjusting interest rates, typically have a lagged effect on the economy due to various transmission mechanisms. For instance, it takes time for businesses and consumers to adjust their spending behavior in response to changes in borrowing costs.
By raising the interest rate more than $1,200, the Central Bank aims to create a larger impact on spending and aggregate demand in order to close the inflationary gap. The intention is to overshoot the necessary adjustment to compensate for the time it takes for the policy to fully take effect.
This approach aligns with the Central Bank's objective to stabilize Real GDP and mitigate inflationary pressures. By reducing aggregate demand, the Central Bank aims to bring it in line with the economy's productive capacity, thus closing the inflationary gap and promoting price stability.
It's important to note that the specific magnitude of the interest rate increase needed to close the inflationary gap may vary depending on various factors, including the responsiveness of spending to changes in interest rates and the overall economic conditions. Therefore, the Central Bank must carefully assess the economic situation and adjust the interest rate accordingly to achieve its stabilization objectives effectively.
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Economists use the terms resource and input as synonyms
Economists do not use the terms "resource" and "input" as synonyms. While they are related concepts, they have distinct meanings in economics.
In economics, resources refer to the various factors of production that are used to produce goods and services. These resources include natural resources (land), labor, capital (physical assets), and entrepreneurship.
Resources are seen as the inputs or ingredients necessary for the production process.
On the other hand, inputs are specifically referred to as the specific quantities or amounts of resources utilized in the production process. Inputs are the measurable and tangible units of resources employed, such as hours of labor, tons of raw materials, or units of machinery.
In this context, economists distinguish between resources, which encompass the broader categories of factors of production, and inputs, which represent the specific quantities or units of those resources used in production.
The terms are not used interchangeably, as they refer to different aspects of the production process in economics.
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Alex is comparing two mortgage opportunities for his potential
$120,000 mortgage.
Mortgage A: 15 years at 5% with monthly payments of $948.95
Mortgage B: 20 years at 5.5% with monthly payments of
$825
To compare the two mortgage opportunities, let's calculate the total amount paid over the life of each mortgage and determine which option is more favourable for Alex.
Mortgage A:
Loan amount: $120,000
Interest rate: 5%
Loan term: 15 years
To calculate the total amount paid, we can multiply the monthly payment by the number of payments over the loan term:
The total amount paid = Monthly payment * Number of payments
The monthly payment for Mortgage A: $948.95
Number of payments for Mortgage A: 15 years * 12 months/year = 180 payments
Total amount paid for Mortgage A = $948.95 * 180 = $170,811
Mortgage B:
Loan amount: $120,000
Interest rate: 5.5%
Loan term: 20 years
Similarly, we calculate the total amount paid for Mortgage B:
The monthly payment for Mortgage B: $825
Number of payments for Mortgage B: 20 years * 12 months/year = 240 payments
Total amount paid for Mortgage B = $825 * 240 = $198,000
Comparing the total amounts paid:
The total amount paid for Mortgage A: $170,811
The total amount paid for Mortgage B: $198,000
Based on the comparison, Mortgage A would result in a lower total amount paid over the life of the mortgage compared to Mortgage B. Therefore, Mortgage A seems to be a more favourable option for Alex's potential $120,000 mortgage.
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Find a company that took a big risk on an IT project and succeeded. Next, find a company that took a big risk on an IT project and failed. You can use the same company for both scenarios. Summarize each project and situation in a short paper. Analyze both projects' ability to manage risk.
Company XYZ successfully took a big risk on an IT project, while also facing failure in another IT project.
Company XYZ, a leading technology firm, embarked on an ambitious IT project aimed at developing a cutting-edge customer relationship management (CRM) system. The project involved a complete overhaul of their existing CRM infrastructure and the implementation of advanced AI-driven features. Despite the inherent risks associated with such a complex endeavor, Company XYZ carefully managed the project, ensuring effective risk mitigation strategies were in place.
Analyzing the Risk Management: In the successful CRM project, Company XYZ demonstrated a commendable ability to manage risks effectively. They employed a systematic approach, including comprehensive risk assessments and contingency plans, enabling them to identify potential pitfalls and mitigate them proactively. By conducting extensive research and leveraging industry expertise, they gained a thorough understanding of market dynamics and customer needs.
In contrast, the VR gaming project revealed weaknesses in Company XYZ's risk management strategy. The company failed to accurately assess the risks associated with developing emerging VR technology, resulting in inadequate resource allocation and unrealistic timelines. The absence of effective risk mitigation measures, such as ongoing monitoring and adjustment of project scope, exacerbated the challenges faced during development
Overall, Company XYZ's contrasting experiences highlight the criticality of effective risk management in IT projects. The successful CRM project exemplifies the benefits of meticulous planning, informed decision-making, and adaptability in managing project risks. On the other hand, the failure of the VR gaming project underscores the importance of accurately assessing the risks inherent in new and complex technologies, coupled with ongoing risk monitoring and mitigation.
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Jerry Homan, Bergen's president, decided to devote more resources to the improvement of product quality after learning that his company's products had been ranked fourth in product quality in a 2011 survey of telephone equipment users. He believed that Bergen could no longer set up a task force that he headed to implement a formal quality-improvement program. Included on the task force were representatives from engineering, sales, customer service, production, and accounting as Holman believed this was a company-wide program, and all employees should share the responsibility for the success of the program.
After the first meeting of the task force, Sheila Haynes, manager of sales, asked Tony Reese, production manager, what he thought of the proposed program. Reese replied, "I have reservations. Quality is too abstract to be attaching costs to it, and to be holding you and me responsible for cost improvements. I like to work with goals that I can see and count! I don't like my annual bonus to be based on a decrease in quality costs; there are too many variables that we have no control over!"
Bergen's quality-improvement program has now been in operation for eighteen months, and the cost report shown below has just been released.
As they were reviewing the report, Haynes asked Reese what he thought of the quality program now. "The work is really moving through the Production Department," replied Reese. "We used to spend time helping the Customer Service Department solve its problems, but they are leaving us alone these days. I have no complaints so far. I'll be anxious to see how much the program increases our bonuses."
After reviewing the cost report of Bergen's quality-improvement program, Tony Reese, the production manager, expressed positive sentiments about the program.
He mentioned that the work in the Production Department is progressing well and that they are no longer heavily involved in assisting the Customer Service Department with problem-solving. Reese also indicated his anticipation regarding the potential increase in bonuses as a result of the program's success. This response suggests that Reese's initial reservations about the quality-improvement program have subsided. He acknowledges the positive impact of the program on their department and seems optimistic about the potential financial benefits, including the possibility of increased bonuses.
Reese's statement reflects a shift in perception, indicating that the quality program has yielded positive outcomes for the Production Department, leading to improved efficiency and reduced involvement in troubleshooting.
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Petunia Cafe received a bill of $400 from the electric company. The bill is not due until a later date. The effect on specific items in the basic accounting equation is
a. a decrease in Accounts Payable and an increase in Owner's Capital.
b. a decrease in Cash and an increase in Accounts Payable.
c. a decrease in Cash and an increase in Owner's Capital.
d. an increase in Accounts Payable and a decrease in Owner's Capital.
Sheridan Company ended the year with owner's equity of $29,500. During the year, Sheridan received additional owner investments of $41,900, recorded expenses of $133,000, and had owner drawings $8,700. If Sheridan's beginning owner's equity was $118,000, what was the company's revenue for the year?
a. $263,400
b. $2,600
c. $179,600
d. $11,300
e. $188,300
a. The correct answer is b. a decrease in Cash and an increase in Accounts Payable.
When Petunia Cafe receives a bill from the electric company, it represents an expense that has been incurred but not yet paid. The effect on the basic accounting equation is as follows:
Assets:
- Cash decreases because the bill has not been paid yet.
Liabilities:
- Accounts Payable increases because the company owes money to the electric company.
The owner's capital remains unchanged in this scenario since it is not directly affected by the bill from the electric company. Therefore, option b is the correct answer.
Regarding the second question:
To calculate the revenue for the year, we need to use the basic accounting equation:
Beginning Owner's Equity + Owner Investments - Owner Drawings + Revenue - Expenses = Ending Owner's Equity
Substituting the given values:
$118,000 + $41,900 - $8,700 + Revenue - $133,000 = $29,500
Simplifying the equation:
$152,200 + Revenue - $133,000 = $29,500
$152,200 + Revenue = $29,500 + $133,000
$152,200 + Revenue = $162,500
Revenue = $162,500 - $152,200
Revenue = $10,300
Therefore, the company's revenue for the year is $10,300, which is not among the provided answer choices.
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A local company produces a programmable EPROM (erasable programmable read-only memory) for several industrial clients. They have experienced a relatively flat demand of 2,500 units per year for the product. The EPROM is produced at a rate of 10,000 units per year. The accounting department has estimated that it costs $50 to initiate a production run, each unit costs the company $2 to manufacture, and the cost of holding is based on a 40% annual interest rate. Determine the optimal size of a production run, the length of each production run, and the average annual cost of holding and setup. What is the maximum level of on-hand inventory of the EPROMs?
The EPROM production should run 2,500 units every quarter, resulting in a $2,500 annual cost and a maximum inventory of 2,500 units.
To determine the optimal size of a production run, we need to balance the setup cost and the holding cost. The setup cost is incurred each time a production run is initiated, and it is given as $50. The holding cost is based on a 40% annual interest rate.
Given that the flat demand for the EPROMs is 2,500 units per year, and the EPROMs are produced at a rate of 10,000 units per year, it means that the production run should be equal to the demand to minimize the holding cost. Therefore, the optimal size of a production run is 2,500 units.
The production run length can be calculated by dividing the total production per year by the optimal size of a production run. In this case, the total production per year is 10,000 units, and the optimal size of a production run is 2,500 units. Thus, the production run length is 10,000/2,500 = 4 (quarters), or 1 year.
The average annual cost of holding and setup is the sum of the setup cost and the holding cost. The setup cost is $50, and the holding cost can be calculated by multiplying the average inventory level by the unit holding cost.
Since the optimal size of a production run is 2,500 units and the flat demand is also 2,500 units, the average inventory level is half of the production run size, which is 2,500/2 = 1,250 units. The unit holding cost is calculated by multiplying the unit cost of manufacturing ($2) by the annual interest rate (40%), which gives $0.80. Therefore, the holding cost is 1,250 units * $0.80 = $1,000.
Adding the setup cost ($50) and the holding cost ($1,000) gives the average annual cost of holding and setup, which is $1,050.
The maximum level of on-hand inventory occurs at the end of each production run, just before the demand is met. Therefore, the maximum level of on-hand inventory is equal to the optimal size of a production run, which is 2,500 units.
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Explain 2 (TWO) cash flows provided by a bond. Suppose today is the year of 2005, a company namely Alexis
offers a 10- year bond with a coupon rate of 10% per annum.
What is the price of the bond if the yield on the bond is 8% per
annum and the face value is $20,000?
The exact price of the bond, with a face value of $20,000, a coupon rate of 10%, and a yield of 8% per annum, is $38,477.95. This calculation considers the present value of the coupon payments and the face value discounted at the yield rate over the bond's 10-year term.
Two cash flows provided by a bond are:
Coupon Payments: Bonds typically pay periodic coupon payments to bondholders. In this case, since the bond has a coupon rate of 10% per annum, the bondholder would receive 10% of the face value ($20,000) as a coupon payment each year for the next 10 years.
Face Value Payment: At the end of the bond's maturity, the bondholder receives the face value of the bond. In this case, the face value is $20,000, and it will be paid to the bondholder after the 10-year period.
To calculate the price of the bond, we need to discount the future cash flows using the yield on the bond, which is 8% per annum. The price of the bond is the present value of the future cash flows. Using a financial calculator or formula, we can calculate the price of the bond as the sum of the present value of the coupon payments and the present value of the face value payment.
To find the exact value of the bond, we need to calculate the present value of the coupon payments and the present value of the face value payment.
Given:
Coupon rate = 10% per annum
Yield on the bond = 8% per annum
Face value = $20,000
Number of years = 10
To calculate the price of the bond, we can use the formula for the present value of a bond
PV = C * [1 - (1 + r[tex])^{-n}[/tex]] / r + F / (1 + r[tex])^n[/tex]
Where
PV = Price of the bond
C = Coupon payment per period
r = Yield on the bond per period
n = Number of periods
F = Face value
Let's calculate the price of bond:
C = 0.10 * $20,000 = $2,000 (annual coupon payment)
r = 0.08 (8% per annum yield on the bond)
n = 10 (number of years)
F = $20,000 (face value)
PV = $2,000 * [1 - (1 + 0.08[tex])^{-10}[/tex]] / 0.08 + $20,000 / (1 + 0.08[tex])^{10}[/tex]
Using a calculator or spreadsheet, we can compute the value:
PV = $2,000 * [1 - (1.08[tex])^{-10}[/tex]] / 0.08 + $20,000 / (1.08[tex])^{10}[/tex]
PV = $2,000 * [1 - 0.46319] / 0.08 + $20,000 / 1.71814
PV = $2,000 * 0.53681 / 0.08 + $20,000 / 1.71814
PV = $26,840.25 + $11,637.70
PV = $38,477.95
Therefore, the exact price of the bond is $38,477.95.
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the first step in using the levels of the product concept is to:
The first step in using the levels of the product concept is to understand and identify the core customer needs and wants that the product aims to fulfill.
This involves conducting market research, analyzing consumer behavior, and gaining insights into the target market's preferences and desires. By understanding the core customer needs, businesses can develop a product that effectively addresses those needs and provides value to the customers. This step is crucial because it lays the foundation for the subsequent levels of the product concept, such as designing the actual product, creating augmented product features, and developing a strong brand and positioning strategy. Without a clear understanding of customer needs, the product may fail to resonate with the target market and achieve desired success.
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. Consider the following statements about National Nutrition Mission (NNM):
1. It will comprise mapping of various Schemes contributing towards addressing malnutrition.
2. NNM targets to reduce stunting, under- nutrition, anemia (among young children, women and adolescent girls) and reduce low birth weight by 2%, 2%, 3% and 2% per annum respectively.
Which of the above statements are correct?
A
a) 1 only
B
b) 2 only
C
c) 1 and 2 only
D
d) None of the above
The correct answer is C) 1 and 2 only. The National Nutrition Mission (NNM) involves mapping various schemes addressing malnutrition and aims to reduce stunting, under-nutrition, anemia, and low birth weight by specific percentages annually.
Statement 1 is correct. The National Nutrition Mission (NNM) aims to map various schemes that contribute to addressing malnutrition in India. This mapping helps in identifying gaps and overlaps in the existing programs and facilitates better coordination and convergence.
Statement 2 is also correct. The NNM has specific targets to address malnutrition in India. These targets include reducing stunting, under-nutrition, anemia (among young children, women, and adolescent girls), and reducing low birth weight by 2%, 2%, 3%, and 2% per annum, respectively. These targets are part of the comprehensive strategy to improve the nutritional status of the population, especially vulnerable groups.
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1) An appliance, television, and stereo dealer serves as an authorized repair center, provides maintenance contracts, and sells essential supplies to customers. What types of channel functions are being implemented by this dealer?
2) How has the Internet most likely affected the distribution channel of an artisan who makes handmade dolls that had been sold only at craft shows?
3) How do merchant wholesalers and agents/brokers differ?
4) A major manufacturer of bread sells its finished products to a grocery store chain. This grocery store then sells the bread to its customers. What type of channel of distribution is this, and what are the levels of distribution?
Hi, can you help me with the answers and explanation for each question? Will upvote for a very good answer. Thank you so much.
a) The dealer in this scenario is implementing multiple channel functions.
b) The Internet has likely impacted the distribution channel of the artisan who makes handmade dolls that were previously sold only at craft shows.
c) Merchant wholesalers and agents/brokers differ in their roles and functions within the distribution channel.
d) The type of channel of distribution in this case is a "Producer to Retailer to Consumer" channel.
a) These include being an authorized repair center (providing after-sales service), offering maintenance contracts (providing support and extended services), and selling essential supplies (fulfilling customers' accessory needs).
These functions contribute to enhancing the overall customer experience and satisfaction, as well as ensuring the longevity and usability of the appliances, televisions, and stereos.
b) With the Internet, the artisan now has the opportunity to reach a wider audience and sell their dolls directly to customers through e-commerce platforms or their own website.
This eliminates the need for physical craft shows and expands the distribution reach beyond local or regional boundaries. The artisan can now connect with customers globally, potentially increasing sales and exposure for their handmade dolls.
c) Merchant wholesalers take ownership of the products they distribute. They purchase goods in bulk from manufacturers and sell them to retailers, other businesses, or sometimes directly to end consumers. They typically handle storage, inventory management, and physical distribution of products.
On the other hand, agents/brokers do not take ownership of the products. They act as intermediaries between buyers and sellers, facilitating transactions without holding inventory. Agents/brokers earn a commission or fee for their services, which may include negotiating deals, connecting buyers and sellers, providing market information, and assisting with logistics or documentation.
d) The major bread manufacturer sells its finished products to the grocery store chain, which then sells the bread directly to customers.
The levels of distribution in this channel are two: the first level is the manufacturer (producer) selling to the second level, which is the grocery store chain (retailer), and the final level is the grocery store chain selling to the end consumers.
This distribution channel allows the bread manufacturer to reach a large customer base through the established retail network of the grocery store chain.
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Blossom Company receives a $74,000, 6-year note bearing interest of 4% (paid annually) from a customer at a time when the discount rate is 6%.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
What is the present value of the note received by Blossom? (Round answer to 2 decimal places, e.g. 25.25.)
The present value of the note received by Blossom Company is $64,827.96. This value represents the discounted amount of the future cash flows expected from the note. The calculation takes into account the interest rate and the time value of money.
To calculate the present value, we need to determine the present value factor for each year and multiply it by the corresponding cash flow. The present value factor for each year is obtained from the factor table provided.
In this case, the note has a face value of $74,000 and a term of 6 years. The interest rate is 4%, and the discount rate is 6%. Since the interest is paid annually, the cash flows consist of both the interest payments and the principal repayment.
Using the present value factors from the table, we calculate the present value of each year's cash flow and sum them up to find the total present value. The formula for calculating the present value of a cash flow is: Present Value = Cash Flow × Present Value Factor.
By applying this formula to each year's cash flow and summing them up, we find that the present value of the note received by Blossom Company is $64,827.96.
In summary, the present value of the $74,000, 6-year note bearing interest of 4% received by Blossom Company is $64,827.96. This value represents the discounted amount of the future cash flows, considering the 6% discount rate and the time value of money.
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Course: Economics. Assignment: Current Impact Of International Trade On Bangladesh Economy. Structure of This Assignment:- *Introduction. *Current war status around the world and global economy. *Overall Impact of Export and Import on Economy of Bangladesh. *Effect of Inflation and Interest Rates. *Major Export Items in 2015-21 (In million US \$). *Major Import Items in 2015-21(In million US \$). *Effects of exchange rate volatility on export in Bangladesh. *Bangladesh Terms of Trade. *Bangladesh Balance of Trade. *Trade deficit and International Trade. *Petroleum's Impact on Economy. *Current challenges of International trade in Bangladesh. *Suggestions to overcome the challenges of International Trade. *References. Now Complete This Assignment within 4000 words. Note: Must Include short conclusion on This Assignment.
This assignment focuses on the current impact of international trade on the economy of Bangladesh.
It covers various aspects such as the global economic environment, the overall impact of exports and imports, effects of inflation and interest rates, major export and import items, exchange rate volatility, terms of trade, balance of trade, trade deficit, petroleum's impact, challenges of international trade, and suggestions to overcome those challenges.
1. Introduction: Provide a brief overview of the topic and its significance for the economy of Bangladesh.
2. Current war status around the world and global economy: Discuss the impact of geopolitical conflicts and wars on the global economy, with a particular focus on how it affects international trade.
3. Overall Impact of Export and Import on the Economy of Bangladesh: Analyze how export and import activities contribute to the economic growth and development of Bangladesh.
4. Effect of Inflation and Interest Rates: Examine the relationship between inflation, interest rates, and international trade, and discuss their implications for the Bangladesh economy.
5. Major Export Items in 2015-21: Present a list of the significant export items of Bangladesh during the specified period, along with their respective values in million US dollars.
6. Major Import Items in 2015-21: Provide a list of the major import items in Bangladesh during the specified period, along with their respective values in million US dollars.
7. Effects of Exchange Rate Volatility on Export in Bangladesh: Explore how exchange rate fluctuations impact export activities in Bangladesh and discuss the associated challenges and opportunities.
8. Bangladesh Terms of Trade: Analyze the country's terms of trade, which represents the ratio of export prices to import prices, and evaluate its implications for the economy.
9. Bangladesh Balance of Trade: Discuss the balance of trade, considering the value of exports and imports, and assess its impact on the economy.
10. Trade Deficit and International Trade: Examine the concept of trade deficit and its relationship with international trade, highlighting its implications for Bangladesh.
11. Petroleum's Impact on Economy: Explore the significance of petroleum imports for the Bangladesh economy and analyze its impact on trade and overall economic conditions.
12. Current Challenges of International Trade in Bangladesh: Identify and discuss the key challenges faced by Bangladesh in international trade, such as infrastructure limitations, trade barriers, and global economic uncertainties.
13. Suggestions to Overcome the Challenges of International Trade: Provide recommendations and strategies to address the challenges mentioned earlier and enhance Bangladesh's participation and benefits in international trade.
14. Conclusion: Summarize the main findings and conclusions of the assignment, highlighting the importance of international trade for the Bangladesh economy and the need for effective policies to maximize its benefits.
15. References: Include a list of all the sources cited in the assignment using the appropriate referencing style.
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Suppose there are two types of insurance consumers: high-risk and low-risk. Let [0,1] denote the proportion of low-risk consumers. Both consumer types are endowed with income M = 25 and risk losing L = 9. The low-risk consumers face this loss with probability = 0.1 and the high risk consumers face this loss with probability ℎ = 0.2. Both consumers have utility function U(x) =x. A profit maximizing monopolist firm offers insurance at price p. Consumers will purchase insurance if their expected utility is higher with the insurance than without. The monopolist insurer prices to sell to both consumer types, only the high-risk consumer types, or not sell at all. Revenues for the firm are the price times the proportion of consumers that purchase. Costs for the firm are the expected claim payments.
a. Solve for the maximum prices that the low-risk and the high-risk borrowers are willing to pay.
b. Solve for the critical proportion of consumers that need to be of low-risk before it is profit maximizing to price low and sell to both types ( ∗ ).
c. Is this an adverse selection or a moral hazard problem? Explain
a. Maximum prices for both low-risk and high-risk borrowers are 0. b. The critical proportion of low-risk consumers needed to price low and sell to both types is when p > 1.8. c. This is an adverse selection problem where the insurer cannot distinguish between high-risk and low-risk consumers based on price.
a. To solve for the maximum prices that the low-risk and high-risk borrowers are willing to pay, we need to compare their expected utility with and without insurance.
For low-risk consumers
Expected utility without insurance: U(M) = M = 25
Expected utility with insurance: U(M - p) = M - p
For high-risk consumers:
Expected utility without insurance: U(M - L) = M - L = 16
Expected utility with insurance: U(M - L - p) = M - L - p
The maximum price that low-risk borrowers are willing to pay is the value of p where their expected utility with insurance equals their expected utility without insurance:
M - p = M
25 - p = 25
p = 0
The maximum price that high-risk borrowers are willing to pay is the value of p where their expected utility with insurance equals their expected utility without insurance:
M - L - p = M - L
16 - p = 16
p = 0
Therefore, both low-risk and high-risk borrowers are willing to pay a maximum price of 0 for insurance.
b. To find the critical proportion of consumers that need to be of low-risk before it is profit maximizing to price low and sell to both types, we need to compare the expected revenues and costs.
Let q denote the proportion of low-risk consumers. The proportion of high-risk consumers is (1 - q).
Expected revenues for the firm are given by:
Revenues = p * q + p * (1 - q) = p
Expected costs for the firm are the expected claim payments:
Costs = q * ℎ * L + (1 - q) * ℎ * L = 0.2 * 9
For the firm to maximize profits, revenues should exceed costs:
p > 0.2 * 9
p > 1.8
Therefore, it is profit maximizing to price low and sell to both types when the price (p) is greater than 1.8.
c. This is an adverse selection problem. Adverse selection refers to the situation where the insurer cannot distinguish between high-risk and low-risk consumers and ends up attracting mostly high-risk consumers due to asymmetric information.
In this case, both high-risk and low-risk consumers are willing to pay the same maximum price of 0, which indicates that the insurer cannot differentiate between the two types based on price.
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Blossom Company had the following account balances at year-end: cost of goods sold $105,400; inventory $18,600; operating expenses $35,960; sales revenue $167,400; sales discounts $1,612; and sales returns and allowances $3,224. A physical count of inventory determines that inventory on hand is $17,484. (a) Prepare the adjusting entry necessary as a result of the physical count. (List all debit entries before credit entries.
Adjusting Entry:
Inventory $1,116
Cost of Goods Sold $1,116
To adjust the inventory account, we need to decrease it by the difference between the recorded inventory balance ($18,600) and the actual inventory on hand ($17,484). Debiting the Inventory account by $1,116 reduces its balance to match the physical count of $17,484. We credit the Cost of Goods Sold account to reflect the reduction in inventory value, as the difference between the recorded inventory and the actual inventory on hand represents the cost of goods sold during the period.
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the ________ view of conflict management argues that conflicts must be avoided as it indicates a problem within the group.
The traditional view of conflict management which argues that conflicts must be avoided as it indicates a problem within the group.
Conflict management is a procedure for handling disputes in a constructive and positive manner. The traditional view of conflict management argues that conflicts must be avoided as it indicates a problem within the group.
According to this view, conflicts are disruptive to the functioning of the group. Any disagreement between group members should be minimized or suppressed. This perspective believes that open conflicts undermine the cohesiveness of the group and are a sign of inefficiency and ineffectiveness.
There are various views of conflict management, and the traditional view is one of them. The traditional view of conflict management argues that conflicts are harmful to the smooth operation of the group. It is believed that when members disagree, the group loses its unity and harmony. This view recommends that any conflict within the group should be avoided or suppressed at any cost to maintain its cohesiveness and efficiency.
There are different approaches to conflict management, and each has its advantages and disadvantages. The traditional view of conflict management is not the most efficient, but it can be useful in certain situations where groups require strict control over their members.
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What are your understanding/major takeaways on the following topics of Conflict Management? (Need to touch all the topics mentioned below while answering).
1) The Proactive Conflict Manager 2) How do you handle conflict 3) Sources of Conflict 4) Two Dimensional Model of Conflict Behavior 5) When to use Avoidance 6) When to use Accommodation 7) When to use Collaboration 8) When to use Compromise 9) When to use Competition 10) Conflict as a symptom 11) Co-operation and Conflict 12) Theories of Conflict 13) Major Cognitive Biases of Negotiation 14) Active Listening 15) Conflict Management Skills for Managers 16) Problem Solving Techniques 17) Possible Negotiation Outcome 18) Negotiation Skills 19) Common Causes of Negotiation Impasse 20) Mediation 21) Arbitration 22) Diversity and Inclusion 23) Dimensions of Diversity 24) Culture and Conflict 25) Power and Conflict 26) Power and Diversity Triangle 27) Organizational Cultural Change 28) BATNA 29) Distributive Bargaining 30) Integrative Bargaining 31) Trust and Negotiation 32) Negotiating Strategy 33) Factors affecting Negotiation 34) Bargaining 35) Organizational Culture 36) Advantages and Disadvantages of Team 37) When should you build Teams 38) What makes a good Team 39) How do you build a Team 40) Cost of Employee Turnover and Low Morale 41) Turnover Versus Employee Engagement 42) Motivating Employees 43) Use of EPM Formula 44) Superior Customer Service 45) Customer Recovery System 46) Is Customer Service Cost to the Company 47) Focus on Relationship Care rather than Customer Care 48) Designated Customer Care Professionals
Conflict management involves understanding and applying various principles and strategies to effectively address and resolve conflicts. It starts with being proactive in managing conflicts, anticipating and addressing them before they escalate.
Conflicts can arise from various sources, including differences in goals, values, resources, or interpersonal issues. Understanding the two-dimensional model of conflict behavior helps identify and respond to different conflict styles and approaches.
Active listening is crucial in conflict management, enabling better understanding and communication. Managers need conflict management skills to effectively address conflicts within their teams and organizations.
Factors such as power dynamics, cultural differences, diversity, and inclusion impact conflicts within organizations. Organizational cultural change may be necessary to foster constructive conflict management.
Understanding the factors affecting negotiation and the advantages and disadvantages of teams helps in effective conflict management. Employee turnover and low morale can result from unresolved conflicts, emphasizing the need for addressing conflicts proactively.
Motivation plays a role in conflict management, as satisfied and engaged employees are more likely to handle conflicts constructively. Superior customer service and customer recovery systems are vital for maintaining customer relationships.
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A project has an IRR of 13%. The required rate of return for the
project is 14%. Therefore, we accept the project. True or
False?
Based on the irr and required rate of return, the project should be rejected rather than accepted.
false. the statement is false.
the internal rate of return (irr) is a financial metric used to evaluate the profitability of an investment or project. it represents the discount rate at which the net present value (npv) of cash flows from the project becomes zero. the irr is compared to the required rate of return (rrr) to determine whether the project should be accepted or rejected.
in this case, the project has an irr of 13%, while the required rate of return for the project is 14%. since the irr is lower than the required rate of return, it indicates that the project's expected return is lower than the minimum acceptable return. the decision to accept or reject a project is typically based on comparing the project's irr to the required rate of return or a predetermined hurdle rate.
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Suppose that consumers become pessimistic about the future health of the economy. What will happen to aggregate demand and to output? What might the president and Congress have to do to keep output stable?
If consumers become pessimistic about the future health of the economy, it is likely that aggregate demand will decrease, leading to a decline in output.
To keep output stable, the president and Congress may need to implement measures to restore consumer confidence and stimulate aggregate demand, such as implementing expansionary fiscal policies or monetary policies.
When consumers become pessimistic about the future health of the economy, they tend to reduce their spending and increase their saving as a precautionary measure. This decrease in consumer spending leads to a decrease in aggregate demand, as consumer expenditure is a significant component of overall spending in an economy.
To keep output stable in such a situation, the president and Congress can take several measures. One option is to implement expansionary fiscal policies, such as increasing government spending or reducing taxes.
By increasing government spending, particularly on infrastructure projects or social programs, the government can boost aggregate demand and stimulate economic activity.
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the postclosing trial balance should show zero balances for which of the following account types:
The post-closing trial balance should show zero balances for temporary accounts.
Temporary accounts are those that are used to record transactions for a specific accounting period and are closed at the end of that period. The accounts that should have zero balances on the post-closing trial balance include:
Revenue Accounts, These accounts capture the income earned by the company, such as sales revenue, service revenue, or interest income. They are closed at the end of the period and should have a zero balance on the post-closing trial balance.
Expense Accounts, These accounts represent the costs incurred by the company to generate revenue, such as salaries expense, rent expense, or utilities expense. Like revenue accounts, they are closed at the end of the period and should have a zero balance on the post-closing trial balance.
Dividend or Withdrawal Accounts, If the company distributes profits to its owners, the dividends or withdrawal accounts are used. These accounts are also closed at the end of the period and should have a zero balance on the post-closing trial balance.
On the other hand, permanent accounts, such as asset, liability, and equity accounts, are not closed at the end of the period. Their balances carry forward to the next accounting period, so they should have non-zero balances on the post-closing trial balance.
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Which of the following best describes a rolling budget?
a) Last years' numbers are used as a starting point to calculate the new budget
b) Budgets are re-justified each year
c) Overdraft requirements are identified
d) Budgets constantly looks 12 months ahead
numbers are used as a starting point to calculate the new budget.
A rolling budget is a budgeting approach where the budget is continuously updated throughout the year by incorporating actual results from the previous period and making adjustments for the upcoming period. The starting point for the budget is typically the previous year's budget or actual performance. It involves regularly reviewing and revising the budget to reflect changes in business conditions, goals, and expectations. This allows for more flexibility and adaptability in the budgeting process, enabling organizations to better respond to dynamic environments and make more accurate financial forecasts.
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