False. The professor's statement, as presented, does not accurately describe positioning.
Positioning refers to the process of creating a distinct image and identity for a product or brand in the minds of consumers relative to competing products or brands. It involves defining the unique value proposition and target market for the product or brand. The professor's statement suggests that positioning is solely about selecting a target segment, which is an oversimplification.
Positioning involves not only identifying the target segment but also determining how the product or brand will be perceived and differentiated within that segment. It encompasses strategic decisions related to branding, messaging, pricing, and distribution channels to establish a competitive advantage. Therefore, the professor's statement is false based on the limited understanding of positioning presented in the question.
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what statement best illustrates an example of economic specialist
Some HR workers investigate possible company violations. Why is it important for these workers to reserve judgment and be impartial? Explain in your own words. Then, imagine a situation in which someone may NOT reserve judgment and/or may NOT be impartial. Describe that situation.
To ensure a fair and impartial investigation, HR employees investigating potential company violations must reserve judgment and remain impartial.
Why is it critical for these employees to exercise impartiality and reserve judgment?HR professionals can gather all relevant data, facts, and evidence if they are impartial, and then evaluate it without having any preconceived notions or personal biases. They are able to make sound decisions using this strategy rather than relying on their own irrational thoughts or feelings to make decisions.
A situation in which the HR worker conducting the investigation is personally connected to or has a close relationship with the accused party could indicate that the individual may NOT reserve judgment or be impartial.
In such a scenario, the HR employee may feel compelled to safeguard their friend or coworker, which may result in a biased investigation and a result that does not accurately reflect the situation. The HR department's impartiality and integrity could be questioned in this scenario, which would jeopardize the investigation.
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Changing the method of inventory valuation should be reported in the financial statements under what qualitative characteristic of accounting information
Answer:
These are the answer choices for the question:
a. Consistency
b. Verifiability
c. Timeliness
d. Comparability
And this is the correct answer choice:
a. Consistency
Explanation:
Consistency is the qualitative characteristic of accounting information that allows an investor, a stockholder, or a government official, to look at accounting data and establish that the quantities presented are all obtained in a consisten manner depending on the type of account.
This means that if cash is resported in dollars, all cash and cash equivalents are reported in dollars, and that if inventory is reported under a specific system, if that system is changed at any point in the future, stakeholders are informed.
Which of the following refers to business activities that change the accounting equation?
A) transactions
B) liabilities
C) purchases
D) on account
Answer:
A
Explanation:
What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? A pension fund manager is considering three mutual funds: the first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.6%. The probability distributions of the risk funds are: Stock Fund (S) Expected Return, 16%, Standard Deviation, 36%; Bond Fund (B) Expected Return, 7%, Standard Deviation, 30%. The correlation between the fund returns is .0800. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
The minimum-variance portfolio of the two risky funds has an expected return of 8.47% and a standard deviation of 25.16%.
To find the expected return and standard deviation of the minimum-variance portfolio of the two risky funds, we need to follow these steps: Calculate the portfolio variance. The formula for portfolio variance is
I²p = w₁² I₁² + w₂²I₂² + 2w₁w₂I₁I₂I₁₂ , where w₁ and w₂ are the weights of the two funds, σ1 and σ2 are the standard deviations of the returns of the two funds, and ρ12 is the correlation coefficient between the returns of the two funds.
Using the given data, we can calculate the portfolio variance as: Calculate the weights of the two funds: To find the weights of the two funds, we need to set the derivative of the portfolio variance with respect to w1 equal to zero and solve for w₁:w₁ = (I₂² - I₁₂I₁I₂) / I₁² + I₂² - 2I₁₂I₁I₂)
Using the given data, we can calculate the weights as: Calculate the expected return of the minimum-variance portfolio: The expected return of the minimum-variance portfolio can be calculated as: E(r p) = w₁ E(r₁) + w₂ E(r₂) Using the given data, we can calculate the expected return as:
E(rp) = 0.3296 *16
Calculate the standard deviation of the minimum-variance portfolio: The standard deviation of the minimum-variance portfolio can be calculated as:
Ip = a( I²p)
Using the calculated portfolio variance from step 1, we can calculate the standard deviation as:
Ip = a( 0.0634416) =25.16
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assume that the government imposes a $20 per unit tax on fireworks. does this policy eliminate deadweight loss?
When the government imposes a $20 per unit tax on fireworks, it increases the price producers receive and decreases the quantity demanded by consumers.
This tax creates a wedge between the supply and demand curves, resulting in a decrease in market equilibrium quantity. This policy does not eliminate deadweight loss; instead, it creates deadweight loss. Deadweight loss is the loss of consumer and producer surplus due to inefficient allocation of resources. In this case, the tax leads to fewer fireworks being bought and sold, reducing overall economic welfare. The deadweight loss is represented by the reduction in combined consumer and producer surplus due to the tax.
Therefore, while the tax may generate revenue for the government, it may also result in deadweight loss if it significantly reduces demand and supply in the market.
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How do you overcome barriers to communication?
To overcome barriers, there are many steps such as:
First, we need to Identify and understand the barriers.
Speak clearly and concisely, using simple language that is easy to understand.
Use facial expressions and gestures, to increase your verbal communication.
Ask questions to confirm that you have understood the message correctly, and provide feedback to ensure that the other person has understood your message.
These steps will help you to become a more social person and let you overcome your barriers.
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How does one's behavior affect business? Give at least two examples.
Aggressive workplace conduct puts workers at risk, hinders efficiency and damages the reputation of the organization. Even if violence is not overt, it ultimately erodes trust and morale and could lead to actions that are progressively worse.
Course : Analyzing and Visualizing data
Please note what you’ve learned in the course and how you will
apply it to your work life. Also, note anything else of importance
regarding the course overall
Analyzing and Visualizing Data is a comprehensive course that aims to impart data analysis and data visualization skills to learners. It teaches you how to utilize tools such as R, Python, and Tableau to analyze data, extract insights, and visualize them. Below are some of the key concepts learned in this course that can be applied to the work-life:
1. Data Cleaning and PreprocessingIn data analysis, the data you're working with will most likely need to be cleaned and preprocessed to ensure the accuracy of the results. Data cleaning refers to the process of removing or correcting errors, incomplete data, or duplicate entries from your data set. The preprocessing involves the conversion of raw data into a form that is compatible with analysis tools.
2. Data VisualizationData visualization is a way of representing data in a graphical format to enhance its readability and make it easier to interpret. It is a critical tool for data scientists, business analysts, and researchers to communicate insights to stakeholders.
3. Data AnalysisThis course teaches you the basics of data analysis, which is the process of examining data sets to extract insights and find trends. The process involves several steps, including data cleaning, data wrangling, data exploration, and data visualization. It also covers techniques such as statistical analysis and machine learning algorithms. Overall, Analyzing and Visualizing Data is a valuable course that can be applied to many careers. The skills learned in the course are transferable to data-driven fields such as data analysis, business intelligence, machine learning, and more.
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What are four types of taxes that you pay (or are likely to pay in the future)? Describe these types of taxes
Four types of taxes that you can pay are the State Withholding Tax, a Federal Withholding Tax, a Property Tax, and a Sales Tax. Both withholding taxes are withheld from your paycheck going into state officials and federal officials. Property Taxes are charged against any personal property that you own, and Sales Tax is what you pay on any purchases that you buy, each price varying depending on what state or country you're in.
The State Withholding Tax, Federal Withholding Tax, Property Tax, and Sales Tax are the four sorts of taxes you can pay.
What is Property Tax?
A property tax, usually referred to as a millage rate, is levied by the majority of regional governments in the United States as their main revenue source. Either real estate or private possessions may be subject to this tax. The majority of property owners are required by law to pay real estate taxes in each of the 50 states of the United States, and state property taxes differ.
It's interesting to note that in the USA, property taxes are the main source of income for state and local governments. Property taxes are assessed based on the value of your home, and the average rate is now between 0.1% and 1.9%.
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To examine
the weekly payroll of all employees, one would look at the:
To examine the weekly payroll of all employees, one would look at the: d. payroll register.
What is the payroll register?The payroll register is a book or record that is used to fill in the details of all the employees and their payment logs. A record of this register is often kept in good condition in case of any future discrepancies that will have to be resolved.
A person who wants to examine the weekly payroll of all employees in an organization must be able to look at the payroll register to know what is obtainable. There, he would find the names of the employees, their job roles and payment record.
Options:
a. W-4
b. employee earnings record
c. W-2
d. payroll register.
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Nathan owns a termite inspection service, so he falls under the animal systems pathway in agricultural, food, and natural resources cluster?
True or False ?
In which part of a résumé would you mention details of any prizes or awards that you won in professional competitions?
Answer:
"Scholarships or Competitions" would be the appropriate choice.
Explanation:
As even the title indicates, this would be the segment of your CV or resume wherever you mention the related honors, accomplishments, or prizes you have received for performing above the norm. It requires scholarships, contests, career-related honors, or perhaps even raises to management place throughout the job. Even with your remarkable accomplishments, users shouldn't have to build a special segment.Answer:
Honors and activities
Explanation:
Hope this helps :)
e7-10 (algo) evaluating the effects of inventory methods on income from operations, income taxes, and net income (periodic) [lo 7-3] courtney company uses a periodic inventory system. the following data were available: beginning inventory, 1,900 units at $20; purchases, 3,100 units at $25; operating expenses (excluding income taxes), $98,000; ending inventory per physical count at december 31, 1,400 units; sales price per unit, $65; and average income tax rate, 30%. required: 1. complete the income statements and the cost of goods sold calculation under the fifo, lifo, and weighted average costing methods. 2-a. between fifo and lifo, which method is preferable in terms of maximizing income from operations, if costs are rising? 2-b. between fifo and lifo, which method is preferable in terms of minimizing income taxes, if costs are rising? 3-a. between fifo and lifo, which method is preferable in terms of maximizing income from operations, if costs are falling? 3-b. between fifo and lifo, which method is preferable in terms of minimizing income taxes, if costs are falling?
First in, first out, or FIFO, is a simple inventory valuation approach that relies on the premise that commodities bought or produced first are sold first.
Income statements and cost of goods sold calculations:
FIFO Method:
Sales revenue: 4,550 units x $65 = $296,750
Cost of goods sold:
Beginning inventory: 1,900 units x $20 = $38,000
Purchases: 3,100 units x $25 = $77,500
Total cost of goods available for sale = $115,500
Less: Ending inventory (1,400 units x $25) = $35,000
Cost of goods sold = $80,500
Gross profit = $296,750 - $80,500 = $216,250
Operating expenses = $98,000
Income before taxes = $118,250
Income taxes (30%) = $35,475
Net income = $82,775
LIFO Method:
Sales revenue: 4,550 units x $65 = $296,750
Cost of goods sold:
Beginning inventory: 1,900 units x $20 = $38,000
Purchases: 3,100 units x $25 = $77,500
Total cost of goods available for sale = $115,500
Less: Ending inventory (1,400 units x $20) = $28,000
Cost of goods sold = $87,500
Gross profit = $296,750 - $87,500 = $209,250
Operating expenses = $98,000
Income before taxes = $111,250
Income taxes (30%) = $33,375
Net income = $77,875
Weighted Average Method:
Sales revenue: 4,550 units x $65 = $296,750
Cost of goods sold:
Cost of goods available for sale = ($1,900 x $20) + ($3,100 x $25) = $38,000 + $77,500 = $115,500
Average cost per unit = $115,500 / 5,000 units = $23
Cost of goods sold: 4,550 units x $23 = $104,650
Gross profit = $296,750 - $104,650 = $192,100
Operating expenses = $98,000
Income before taxes = $94,100
Income taxes (30%) = $28,230
Net income = $65,870
2-a. If costs are rising, FIFO method is preferable as it assumes that the units sold are from the oldest inventory first, resulting in a lower cost of goods sold and a higher gross profit, thereby maximizing income from operations.
2-b. If costs are rising, LIFO method is preferable as it assumes that the units sold are from the most recent inventory first, resulting in a higher cost of goods sold and a lower gross profit, thereby minimizing taxable income and income taxes.
3-a. If costs are falling, LIFO method is preferable as it assumes that the units sold are from the most recent inventory first, resulting in a lower cost of goods sold and a higher gross profit, thereby maximizing income from operations.
3-b. If costs are falling, FIFO method is preferable as it assumes that the units sold are from the oldest inventory first, resulting in a higher cost of goods sold and a lower gross profit, thereby minimizing taxable income and income taxes
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True or false? the patient should be given a receipt for payments on account even if the account is not paid in full.
The statement is True.
What does receipt mean?Receipts are formal records that serve as evidence of a transaction or purchase involving money. Both stock market transactions and business-to-business exchanges issue receipts. As evidence of some expenses, receipts are also required for tax purposes.A payment receipt, also known as a receipt for payment, is a record that serves as evidence of purchase. It is supplied by a company to its clients following the receipt of payment for any good or service.The patient's receipt can assist you to understand this. You have a right to the patient's receipt under the law. This implies that if you request it, your doctor is required to give it to you. Its contents must be clearly explained and understandable to laypeople.The patient should be given a receipt for payments on account even if the account is not paid in full.
The statement is True.
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Preparing a bank reconciliation and recording adjustments LO6
Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31:
Stewart Recording Studio
Bank Reconciliation
March 31, 2020
Bank statement balance $ 22,300 Book balance $ 31,225
Add:
Deposit of March 31 in transit 10,090
$ 32,390
Deduct:
Outstanding cheques:
#14 $ 846
#22 319 1,165
Adjusted bank balance $ 31,225 Adjusted book balance $ 31,225
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
2020
March 31 Balance 31,225
April 30 CR17 72,084 103,309
30 CD13 92,828 10,481
A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below:
Deposits Made
April 7 $ 696
13 4,640
18 5,952
23 14,022
27 1,766
30 45,008
Total April Cash Receipts $ 72,084
Cheques Written
No. 23 $ 5,246
24 3,178
25 948
26 316
27 4,312
28 4,900
29 20,006
30 41,880
31 420
32 11,622
Total April Cash Disbursements $ 92,828
The following bank statement is available for April:
Bank Statement
To: Stewart Recording Studio April 30, 2020
Bank of Canada
Cheques/Charges Deposits/Credits Balance
22,300
#31 04/03 420 04/03 10,090 31,970
#28 04/07 9,400 04/07 696 23,266
#26 04/13 316 04/13 4,640 27,590
NSF 04/18 14,474 04/18 5,952 19,068
#24 04/23 3,178 04/23 14,022 29,912
#23 04/27 5,246 04/27 1,766 26,432
#29 04/30 20,006 04/30 122,000 128,426
PMT 04/30 16,204 112,222
INT 04/30 546 111,676
SC 04/30 179 111,497
NSF = Not Sufficient
Funds SC = Service
Charge PMT = Payment of
Principal on
the loan INT = Interest
on Bank
Loan
In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #28, for delivery expense, was recorded in the Cash Disbursements Journal correctly as $4,900.
The NSF cheque for $14,474 was that of customer Oprah Winney, deposited in March.
On the bank statement, the payment for $16,204 is regarding a note payable.
There is also a deposit of $122,000 dated April 30. It is an investment made by the owner into the business (the bank transferred the funds electronically from the owner’s personal account to his business account, which is why it was not recorded in the Cash Receipts Journal).
Required:
a. Prepare a bank reconciliation for Stewart Recording Studio at April 30.
b. Prepare the necessary journal entries to bring the General Ledger Cash account into agreement with the adjusted balance on the bank reconciliation.
a. Bank Reconciliation for Stewart Recording Studio at April 30:
Bank Statement Balance: $31,970
Add:
Deposit in Transit (March 31): $10,090
Deposit (April 7): $696
Deposit (April 13): $4,640
Deposit (April 18): $5,952
Deposit (April 23): $14,022
Deposit (April 27): $1,766
Deposit (April 30): $122,000 (Owner's investment)
Total Deposits: $159,166
Deduct:
Outstanding Cheques:
Cheque #23: $5,246
Cheque #24: $3,178
Cheque #25: $948
Cheque #26: $316
Cheque #27: $4,312
Cheque #28: $4,900
Cheque #29: $20,006
Cheque #30: $41,880
Cheque #31: $420
Cheque #32: $11,622
Total Outstanding Cheques: $92,828
Adjusted Bank Balance: $31,970 + $159,166 - $92,828 = $98,308
b. Journal Entries to bring the General Ledger Cash account into agreement with the adjusted balance on the bank reconciliation:
1. To record the owner's investment:
Date: April 30
Account Debit Credit
Cash (General Ledger) 122,000
Owner's Equity (or Capital) 122,000
2. To record the NSF cheque returned:
Date: April 30
Account Debit Credit
Accounts Receivable (Oprah Winney) 14,474
Cash (General Ledger) 14,474
3. To record the note payable payment:
Date: April 30
Account Debit Credit
Notes Payable 16,204
Cash (General Ledger) 16,204
4. To adjust for the incorrectly recorded cheque:
Date: April 30
Account Debit Credit
Cash (General Ledger) 4,900
Delivery Expense 4,900
Please note that these entries assume the Cash account in the General Ledger has a beginning balance of $31,225 as per the bank reconciliation provided at March 31. Adjustments may be required if there are other transactions affecting the Cash account not mentioned in the provided information.
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Debbi Fields' success as an entrepreneur can be attributed to her prior business training and
experience.
False
True
Answer: False
Explanation:
According to low estimates, we see advertisements every _____ minutes.
Answer:
4
Explanation:
Its every 4 mins we see ads
Which of the following is a common way to describe a product that is being offered for sale? (Select the best answer.) In business On exchange On the market In the market
One common way to describe a product that is being offered for sale, is On the market.
How can we describe a product being offered?If you want to describe a product being offered then the best way to do so is to do it on the market.
This is because the market is where buyers and sellers meet and so this will be the place where a product can best be described to get it sold.
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A person who seeks to preserve, conserve, and protect buildings and landscapes of
historical importance.
O Historical Preservationist
Real Estate Agent
Landscape Architect
Residential Designer
If you purchase a straddle on euros, this implies that you: A) finance the purchase of a call option by selling a put option in the euros. B) finance the purchase of a call option by selling a call option in the euros. C) finance the purchase of a put option by selling a put option in the euros. D) finance the purchase of a put option by selling a call option in the euros. E) None of the above.
Answer:
The correct answer is E) None of the above.
Explanation:
when you purchase a straddle on euros, this means you simultaneously buy a call option and a put option on the same common stock on euros bearing a similar expiration date, and the same place where the security can be bought and sold. What this means is, you tend to make a profit once the common stock makes a sharp move. Normally, call options give investors the liberty to sell stock expecting a rise in price, while a put option gives the investors want to sell their stock because they predict a fall in price. These two option contracts aim at making investors make profits.
Write any five methods of getting information of foreign employment and discuss any one of them.
Answer:
May it will help you
Explanation:
1) Notice board
2) Book of introduction
3) Institutions work working under the ministry of labour
4) Authority of human resources
5) Manifestos of training institutions
6)Web site
7) Newspapers
8) Public meeting :the manpower company, training institutions and institutions of public counseling are working in the field of foreign employment in nepal.
They come to the direct or indirect contact of people through various programmes of interaction, seminar, and meeting.
9)Radio and television
Foreign employment getting information through Notice board, Book of introduction, Authority of human resources, Web site, and Newspapers.
Who is Foreign employment?
Public meeting: When the manpower company, training institutions, and institutions of public counseling are working in the field of foreign employment in Nepal.
Although, They come to direct or indirect contact with people through various programs of interaction, seminars, and meetings.
Also, Foreign employment getting information through Institutions work working under the ministry of labor, Manifestos of training institutions, Radio, and television
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If you were to do a research on the topic of determining the satisfaction of university students on campus cafeteria, a- how would you define target population? b-would you take a census or a sample for your research?
When conducting research on the satisfaction of university students on the campus cafeteria, defining the target population is crucial to ensure accurate results.
When conducting research on the satisfaction of university students on the campus cafeteria, defining the target population is crucial to ensure accurate results. Target population refers to the specific group of individuals that the research focuses on. In this case, the target population would be university students. A group of individuals who are currently enrolled and attending the university. University students, in this case, are individuals who attend the university on a full-time or part-time basis. They should be individuals who frequently eat in the campus cafeteria. So, the target population is those individuals who are both enrolled at the university and frequent the campus cafeteria. To ensure accuracy, it would be best to take a sample of the target population. This means that a portion of the population would be selected for the study. The sample should be a representation of the target population, so it should be large enough and diverse. By taking a sample, the study would be more feasible and less time-consuming, compared to taking a census. The study would still provide an accurate picture of the satisfaction levels of university students on the campus cafeteria. In conclusion, defining the target population and taking a sample would provide more accurate and practical results for the study.
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which of these is the interest rate that is actually observed in financial markets?a. nominal interest rateb. real interest ratec. default premiumd. market premium
Option A, The interest rate that is actually observed in financial markets is the nominal interest rate.
The nominal interest rate reflects the rate at which an individual or organization borrows or lends money, without taking into account the effects of inflation or other factors that may impact the purchasing power of the currency.
The real interest rate, on the other hand, takes into account the effects of inflation and reflects the actual purchasing power of the money borrowed or lent. Default premiums and market premiums are additional factors that can impact interest rates, but they are not the actual observed interest rate in financial markets.
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When an agent of an investment adviser prepares a client balance sheet, which of the following are considered to be personal possessions?
a) Real estate properties
b) Stocks and bonds
c) Bank accounts
d) Jewelry and artwork
When an agent of an investment adviser prepares a client balance sheet, the following are considered to be personal possessions: Real estate properties, Jewelry, artwork, etc.
which are not readily marketable or easily liquefiable.The term personal property has been defined by the law to include any form of movable property, except for land and any permanent attachments to it (such as buildings or fixtures).
The definition encompasses any object that may be moved from one location to another and is not permanently connected to the soil; personal property includes tangible items such as books, furniture, artwork, and vehicles, as well as intangible items such as patents, copyrights, trademarks, and securities. Real estate properties are not included in personal possessions as they are immovable property. Stocks and bonds, as well as bank accounts, are considered financial assets and liabilities rather than personal possessions.
Jewelry and artwork, on the other hand, are included in personal possessions, provided that they are not readily marketable or easily liquefiable.
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Which of the following is NOT Considered personal information?
O a) Social Security number
Ob) Date of Bith
Oc) Place of employment
O d) Credit card number
Answer: NOne of the above. Or C Place of employement
Explanation:
The personal information that does not consider is the place of employment.
The following things should be considered for personal information:
The number of social security.The date of birth.The credit card number.Personal information refers to the information that does not share with anyone as it is safe and secure data that should be kept with the person only.
Therefore we can conclude that the personal information that does not consider is the place of employment.
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Give 10 examples of nonmaterial/nontangible values
Answer:
Wind
Heat
Water Vapor
Gases
Sun Ray
Gadget Signals
Transverse Wave
Sound
Music
Gamma Rays.
Internships are usually paid.
True or False
Answer:
Depending on you're position. Can not be paid
Explanation:
Although Many Employee's do pay their interns, and some of there companies recognize the value in training for somebody became an after they finished college.
Wyalusing Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers’ lots. Wyalusing expanded into the precut housing market when it acquired Fairmont Company, one of its suppliers. In this market, various types of lumber are precut into the appropriate lengths, banded into packages, and shipped to customers’ lots for assembly. Wyalusing designated the Fairmont Division as an investment center. Wyalusing uses return on investment (ROI) as a performance measure with investment defined as average productive assets. Management bonuses are based in part on ROI. All investments are expected to earn a minimum return of 16 percent before income taxes. Fairmont’s ROI has ranged from 29. 2 to 32. 4 percent since it was acquired. Fairmont had an investment opportunity in 20x1 that had an estimated ROI of 28 percent. Fairmont’s management decided against the investment because it believed the investment would decrease the division’s overall ROI. The 20x1 income statement for Fairmont Division follows. The division’s productive assets were $23,100,000 at the end of 20x1, a 5 percent increase over the balance at the beginning of the year.
Fairmont Division Income Statement For the Year Ended December 31, 20x1 (in thousands) Sales revenue 22,500 Cost of goods sold 13,900 Gross margin 8,600 Operating Expenses: Administrative 1,800 Selling 4,300 6,100 Income from operations before income taxes 2,500.
Required:
1. Calculate the following perofrmance measures for 20x1 for the Fairmont Division.
a. Return on Investment (ROI)
b. Residual Income
2. Would the management of Fairmont Division have been more likely to accept the investment opportunity it had in 20X1 if residual income were used as a performance measure instead of ROI? Explain your answer
1. The performance measures for 20x1 for the Fairmont Division are as follows:
a. Return on Investent (ROI) is 11.09%.
b. Residual Income is ($1,108,000).
What is a performance measure?A performance measure is a technique that measures outcomes or results, enabling management, lenders, and investors to gauge the effectiveness and efficiency of their investments.
A performance measure may be applied to the following resources:
Human resourcesEmployee timeFundingInvestments.Data and Calculations:Required minimum return = 16% before taxes
Ending productive assets = $23,100,000
Beginning productive assets = $22,000,000 ($23,100,000/1.05)
Average productive assets = $22,550,000 ($23,100,000 + $22,000,000)/2
Return on Investment = Income from operations before income taxes/Average productive assets x 100
= $2,500/$22,550 x 100
= 11.09%
Residual Income = Income before taxes - Cost of Capital or (Average productive assets x Minimum Required Returns)
= $2,500,000- ($22,550,000 x 16%)
= $2,500,000 - $3,608,000
= ($1,108,000)
Thus, while the Return on Investment (ROI) is 11.09%, the Residual Income is ($1,108,000).
Learn more about return on investment and residual income at https://brainly.com/question/22985922
(Help Needed ASAP will give Brainlist)
List two products and then discuss how supply and demand appear to affect the prices of each of the products.
Answer:
As the supply of Gasoline goes up, the price goes down and the demand goes up, which the higher demand of gasoline will lower the supply and push the prices higher, which will lower the demand, and with the demand being low, the supply gets higher and the whole cycle starts again