The value of the same total closing inventory of goods was calculated using the different methods. Values are listed below. The value of the opening inventory was exactly the same.

Actual Purchase Price $6,500 FIFO $6,600

Weighted Average $6,550 Latest Purchase Price $6,650

LIFO $6,450

Which of the closing inventories would provide the business with the highest cost of sales?

a.

LIFO

b.

FIFO

c.

Actual Purchase Price

d.

Weighted Average

e.

Latest Purchase Price

2 points

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Answers

Answer 1

To determine the closing inventory method that would provide the highest cost of sales, we need to consider the cost of sales formula, which is calculated as opening inventory plus purchases minus closing inventory. As the opening inventory and purchases are the same for all methods, the method with the lowest closing inventory will result in the highest cost of sales. The correct answer is option a. LIFO

Given the provided closing inventory values for different methods, the LIFO method has the lowest closing inventory of $6,450.

Therefore, the LIFO method will result in the highest cost of sales when using the cost of sales formula.

Hence, to achieve the highest cost of sales, a business can use the LIFO method for its inventory management, which assumes that the last items purchased are the first sold.

This approach can help businesses offset the impact of inflation by reflecting the current prices of inventory sold in their cost of sales.

Therefore, the correct answer is option a. LIFO

Related Questions

After a presentation is created, there is nothing left to do.
True
False

Answers

Answer:

false

Explanation:

To examine
the weekly payroll of all employees, one would look at the:

Answers

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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in a joint production process, joint product costs are: multiple choice allocated to outputs (products) to facilitate short-term decision making. those costs incurred after the split-off point. relatively small compared to costs incurred after the split-off point. not relevant to the decision whether to produce

Answers

Joint product costs are allocated to outputs (products) to facilitate short-term decision making.

These costs refer to the expenses incurred up to the split-off point, which is the stage in the production process where the joint products become separate and identifiable products. These costs are important for managers to make informed decisions about the profitability of each joint product and whether to continue producing them.

However, joint product costs are relatively small compared to costs incurred after the split-off point, such as further processing and marketing costs.

Ultimately, joint product costs are relevant to the decision whether to produce each joint product or not, as managers need to know the costs associated with each product to determine their profitability and make informed decisions.

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increases in assets and owner’s equity as a result of selling services or products to customers is called revenue

Answers

Yes, increase in assets and owner's equity as a result of selling services or products to customer is called revenue.

Revenue is the money earned from normal business operations and is calculated by multiplying the average sales price by the number of units sold. Net income is calculated by subtracting costs from the top line (or gross income). On the income statement, revenue is also known as sales.

Revenue (from the sale of goods or services) less operating expenses equals operating income.Non-operating income is income derived from secondary sources that is infrequent or nonrecurring (e.g., lawsuit proceeds).Non-commercial entities such as governments, nonprofits, and individuals also report revenue, though the calculations and sources vary.Revenue is simply the proceeds of sales, whereas income or profit includes the expenses incurred in order to generate revenue and reports net (not gross) earnings.

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The title of this talk is “Profit’s Not Always the Point.” But do you think profit is an added perk for companies that make the effort to promote positive social change? Explain.

Answers

yes, no matter what company say, they need money for funding for "social change"

If you plan to take money out of the bank frequently, what type of account should you get? A. A savings account B. A checking account C. An interest account D. An investment account Please select the best answer from the choices provided A B C D Mark this and return

Answers

If you plan to take money out of the bank frequently, the best type of account to get is a checking account. Option B.

A checking account is designed for everyday transactions and typically offers easy access to funds through methods such as ATM withdrawals, debit card transactions, and online bill payments.

This type of account also usually has lower fees and fewer restrictions on the number of transactions you can make compared to a savings account.

A checking account is the best choice for frequent withdrawals and everyday transactions, while a savings account, interest account, and investment account are better suited for different financial goals and objectives.

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How does microfinance benefit an economy?

Answers

Answer:

it enables people to use money wisely

Explanation:

this is because a specific amount of money will be provided for a specific reason

which of the following best completes the diagram? sharecropper buys his own farm so that he can earn enough money to pay the debt. sharecropper must plant more crops next year to help earn enough to pay off the debt. sharecropper must give back the items that he previously bought on credit to satisfy the debt. sharecropper moves to another region to set up a new sharecropping plan with another farmer.

Answers

The missing option that best completes the diagram is: option C Sharecropper decides to work additional jobs in order to earn enough money to pay off the debt.

This option suggests another possible solution to the sharecropper's problem of paying off the debt. Instead of buying his own farm, giving back items bought on credit, or moving to another region, the sharecropper could work additional jobs to increase his income and earn enough money to pay off the debt. This option may be more feasible for some sharecroppers, depending on their skills and available job opportunities.

Overall, the options presented in the diagram represent different strategies that a sharecropper might use to address the challenge of paying off a debt. Each option has its own advantages and disadvantages, and the best approach will depend on the specific circumstances of the sharecropper and the resources available to them.

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complete question-

Which of the following best completes the diagram?

A) Sharecropper buys his own farm so that he can earn enough money to pay the debt.

B) Sharecropper must plant more crops next year to help earn enough to pay off the debt.

C) Sharecropper must give back the items that he previously bought on credit to satisfy the debt.

D) Sharecropper moves to another region to set up a new sharecropping plan with another farmer.

which of the following best completes the diagram? sharecropper buys his own farm so that he can earn

- In dealing with the U.S. government, the two key responsibilities of the Fed are lending money
to the government and

Answers

In dealing with the Federal reserve, the key responsibilities of the Fed are lending money to the government and formulating monetary policies.

The federal reserve of the United states is what acts as the central bank of the country. The Feds helps to

Regulate the money supply that is in the countryRegulate the operations of banksEstablish monetary policies.

The board of governors in the banks help to study the current issues that are existent in the economy, then they formulate the adequate policies that would help to take care of the issues.

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What types of information does a W-2 form contain? Check all that apply

Answers

Answer:

Normally "check all that apply" is followed by answers to check...

Explanation:

A W-2 is a Tax statement

If you were reading sales literature about a mutual fund that claimed its objective is to be a single source investment for most equity investors, it would most likely be describing

Answers

Since the literature claimed that the objective of the mutual fund is to be a single source investment for most equity investors, then, it would most likely be describing a short-term investment

Basically, the mutual fund is classified as a short-term investment because of its duration.

Since the literature claims mutual fund is a single source investment for most equity investors, it hows that it is a short-term investment because the fund are usually purchased for less than say 3 years.

In conclusion, the literature would most likely be describing the mutual-fund as a short-term investment

Answers

Sally will profit if the value of his stock rises. She would break even at a price of $89 ($88 cost of stock plus $1 premium paid for the put).

What does stock in economics mean?

The ownership certificates of any corporation are referred to as stocks in a general sense. On the other hand, a share alludes to the stock certificate of a specific business. A shareholder is someone who owns stock in a specific corporation. Stocks come in two varieties: common and favored.

What are examples and stock?

Stocks signify ownership in a publicly traded business. You acquire ownership of a corporation when you purchase its stock. You own 1% of a corporation, for instance, if you purchase 1,000 of its 100,000 shares.

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You are a marketing consultant to a firm that would like to target members of Generation X. Your advice is for it to: emphasize freedom from work and commitment develop a personal service that will appeal to these time-poor consumers avoid topics dealing with materialistic possessions clearly state to the audience that Generation X is the intended target of all marketing communications emphasize the baby boom culture

Answers

To effectively target Generation X, it is crucial to understand and cater to their preferences. Emphasize freedom, provide personal services, avoid excessive materialism, clearly state the target audience, and focus on Generation X's unique characteristics rather than assuming a strong connection to the baby boomer culture.

As a marketing consultant, my advice for targeting Generation X would be to emphasize freedom from work and commitment, develop a personal service that appeals to time-poor consumers, avoid focusing solely on materialistic possessions, and clearly state in marketing communications that Generation X is the intended target audience.

However, I would not recommend emphasizing the baby boom culture as a primary strategy. Here's why:

Emphasize freedom from work and commitment: Generation X values work-life balance and independence. Highlighting products or services that provide convenience, flexibility, and the ability to maintain personal and professional commitments would resonate well with this generation.

Develop a personal service for time-poor consumers: Generation X is often juggling multiple responsibilities, including work, family, and personal pursuits. Offering personalized services that save time and cater to their specific needs can be highly appealing.

Examples could include concierge services, online platforms that simplify tasks, or subscription services tailored to their preferences.

Avoid focusing solely on materialistic possessions: While material possessions may have some appeal, Generation X tends to value experiences and meaningful connections. Highlight the experiential benefits of products or services, such as creating memories, fostering relationships, or enabling personal growth.

Clearly state the target audience: It is important to communicate explicitly that the marketing efforts are targeted towards Generation X. This helps build a sense of identification and resonates with their unique preferences and values. Tailor the messaging, visuals, and channels to align with Generation X's communication preferences.

Avoid emphasizing the baby boom culture: While Generation X shares some cultural references and experiences with the baby boomer generation, they have their own distinct characteristics.

It is more effective to focus on Generation X's specific values, needs, and aspirations rather than assuming they primarily identify with the baby boom culture.

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Client 4
My business partner and I are 25 and 26 years old. We run a small but growing business. We buy auto parts made in Taiwan for American cars. Then we sell the parts to auto repair shops in five cities in our state and two cities in nearby states. We are now getting requests for our auto parts from auto repair dealers in four new states. To meet these requests, we will need a major expansion of our warehouse, and we will need to hire some new employees.

What type of business organization do you recommend? Why?

Answers

Partnership is the type of business organization recommended

What is partnership?

A partnership business, by definition, consists of two or more people who combine their resources to form a business and agree to share risks, profits and losses

Partnership is when two or more people are in business together.

Advantages of partnership includes:

You have an extra set of hands.You benefit from additional knowledgeYou have less financial burdenThere is less paperwork. There are fewer tax formsYou can't make decisions on your own

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A debit in the T-Account for 'Cash' may be balanced by a credit in which of the following?
A. Equipment
B. Inventory
C. Accounts Payable
D. All of the Above

Answers

Answer:

Explanation:

2) is the amount of a product that consumers are willing and able to buy. 3) is the amount of a product that a company is willing and able to sell. 4) is when the amount demanded equals the amount supplied.

Answers

The three terms that are mentioned in the question are related to the market equilibrium.

They are as follows:1. The equilibrium price or the market-clearing price; 2. The quantity demanded; 3. The quantity supplied a perfectly competitive market, the price is determined by the forces of demand and supply.

The quantity supplied equals the quantity demanded when the market is in equilibrium.

It means that the buyers and sellers reach an agreement on the price and quantity of a product that is being traded.

Let's define each term and how they are related to the market equilibrium.

1. The equilibrium price or the market-clearing price

The equilibrium price is the price at which the quantity demanded equals the quantity supplied.

It is also called the market-clearing price because at this price all the goods that are produced are sold in the market.

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I NEED HELP QUICKLY, PLEASE, THANK YOU SO MUCH

1. Choose a well-known company, and describe its brand promise. Describe at least three ways that the company uses to create that brand promise. (1-5 sentences. 3.0 points)

2. Choose a type of company you would like to work for or start up yourself, and then answer the questions below.

a. Describe the type of company and the product it would sell. TIP: This can be the same or different from the company you described in Assignment 1R. (1-3 sentences. 1.0 points)

b. Describe at least two categories you could group the company's target customers into, if the company were using channel management. (1-2 sentences. 1.0 points)

c. Describe at least two ways that the company might decide to treat those two categories of customers differently, and explain why it might do that. (1-5 sentences. 4.0 points)

d. Would the type of channel management described in questions 2b and 2c above be likely to lead to unfair treatment of some groups? Why or why not? How could you make sure that didn't happen? (1-5 sentences. 4.0 points)

3. Imagine that you are working at a clothing or grocery store, and answer the questions below about inventory and merchandising for the store.

a. Describe at least two factors you could consider to help decide how much inventory to keep in stock of a particular item at the store. (1-4 sentences. 1.0 points)

b. If you were running the clothing or grocery store, which buying method would you prefer to use? Why? (1-4 sentences. 1.0 points)

c. If you were running the clothing or grocery store, which inventory control method would you prefer to use? Describe at least one, and explain why you would use it. (1-2 sentences. 1.0 points)

d. Describe an example of two products you could combine in a display in the store to show how they could work together. (1-2 sentences. 1.0 points)

4. List at least six things you would check for if you were asked to evaluate the workspace of an employee for ergonomics. (1-6 sentences. 3.0 points)

Answers

Answer:Company: AppleBrand Promise: To provide innovative, user-friendly, and premium quality technology products to customers.Ways Apple creates its brand promise:Using sleek and minimalist designs for their products that emphasize simplicity and elegance.Incorporating the latest technology and innovative features into their products to ensure high quality and user satisfaction.Providing excellent customer service and support to build a loyal customer base.a. Type of Company: A food delivery service that specializes in healthy and organic meals.b. Categories of Target Customers: Health-conscious individuals and families, and fitness enthusiasts.c. Ways to treat different categories of customers:Offering personalized meal plans and customized menus based on each customer's dietary preferences and fitness goals.Providing loyalty programs, discounts, and exclusive offers to regular customers to increase customer retention and satisfaction.d. This type of channel management may not lead to unfair treatment of groups if the company provides equal opportunities and benefits to all customers. To ensure that this doesn't happen, the company could conduct customer surveys and feedback sessions to identify any potential biases or inequalities in their channel management strategy.a. Factors to consider for inventory control:Seasonal demand and popularity of the product.Sales trends and historical data to predict future demand and adjust inventory levels accordingly.b. Preferred buying method: Just-in-time (JIT) inventory system, where the store orders inventory based on actual customer demand instead of maintaining a large inventory stockpile.c. Preferred inventory control method: ABC inventory control system, which categorizes inventory items based on their demand and value to determine the appropriate inventory level and reorder points.d. Example of product combination: A display of organic quinoa and fresh vegetables to show customers how they can make a healthy and nutritious meal.Six things to evaluate for ergonomic workspace:Desk and chair height and adjustment to ensure proper posture and comfort.Lighting and glare to minimize eye strain and discomfort.Keyboard and mouse placement to prevent repetitive strain injuries.Monitor placement and distance to avoid neck and eye strain.Adequate footrest and leg support to prevent discomfort and fatigue.Proper ventilation and temperature control to ensure a comfortable and healthy work environment.

Explanation:had the assignment

Luke recently moved from a condominium to a cooperative. with a cooperative, his share of mortgage interest and real estate taxes will be?

Answers

In a cooperative, Luke's share of the mortgage interest and real estate taxes will be determined by his ownership percentage or shares in the cooperative.

When Luke moved from a condominium to a cooperative, the way in which he contributes towards the mortgage interest and real estate taxes changes. In a cooperative, the building or property is collectively owned by a corporation or association. Each individual resident owns shares in the cooperative, which entitles them to occupy a specific unit or apartment.

Luke's share of the mortgage interest and real estate taxes will be determined by his ownership percentage or shares in the cooperative. This means that the amount he pays towards these expenses will be based on the percentage of ownership he has in the cooperative.

For example, if Luke owns 10% of the shares in the cooperative, he will be responsible for paying 10% of the total mortgage interest and real estate taxes for the property.

It's important to note that the exact calculation and payment structure may vary depending on the specific cooperative and its governing documents. However, in general, cooperative residents contribute towards these expenses based on their ownership percentage.

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She discovers that her local power company has a program where she can get on the job experience and go to school. What kind of program is this

Answers

PROGRAM

This program sounds like a type of apprenticeship or co-op program.

Apprenticeship programs are typically offered by companies in skilled trades such as construction, electrical, and mechanical work, and provide on-the-job training and education to individuals seeking to learn a trade and gain practical experience. In this case, the power company offers such an opportunity. This program allows the individual to work for the company while also attending school to gain knowledge in their field of interest. It is a great way for someone to gain experience and develop skills in their chosen field, while also earning money and potentially getting a foot in the door for a full-time job.

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What evidence best supports the theme that leadership requires integrity? check all that apply. ""noblest roman of them all"" ""all the conspirators save only he"" ""did that they did in envy of great caesar"" ""in a general honest thought"" ""common good to all"" ""his life was gentle"" ""this was a man!""

Answers

Leadership requires integrity; the noblest Roman of them all the conspirators save only he, did that they did in envy of great Caesar.

What does Antony have to say about Ceaser's execution?

Antony mentions Brutus when he says that his (Brutus') health was deteriorating. Antony claims that Brutus was the most respected Roman citizen in the world and that he executed Caesar in defense of the Roman Republic.

This is reflected in the reference and each of the backstabbers saves him. Antony argues that Brutus could not have killed Caesar, without properly defending the Roman Republic.

Thus, ""all the conspirators save only he"" and ""did that they did in envy of great Caesar" is the correct statement.

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what is an argument expressed to counter infant industry rationale for protectionism

Answers

One argument expressed to counter the infant industry rationale for protectionism is the inefficiency and potential harm it can cause in the long run.

Critics argue that protecting infant industries through tariffs or trade barriers may provide short-term benefits, such as job creation and economic growth in the protected industry. However, this protection can lead to complacency and hinder competitiveness. By shielding domestic industries from international competition, there is less incentive for them to innovate, improve efficiency, and strive for global competitiveness. This can result in higher costs for consumers, as they are limited to purchasing domestically produced goods at potentially higher prices.

Moreover, protectionism can distort resource allocation, diverting resources from more efficient industries to less efficient ones, which can ultimately harm overall economic performance and limit long-term growth prospects.

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Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).

Answers

It can be seen from the solutions given that Cain's net income is $24,000.

Here is the solution:

Net income = Net cash provided by operating activities - Adjustments

= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000

= $24,000

Therefore, Cain's net income is $24,000.

Here is a breakdown of the adjustments:

To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.

A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.

The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.

A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.

A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.

A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.

Answers

Auditors can utilize data analytic software to design a test that identifies duplicate payments and unauthorized payments in the client's IT accounting system.

To identify duplicate payments, auditors can employ data analytic software to analyze payment records within the IT accounting system. The software can search for duplicate payment amounts, payment dates, vendor names, or invoice numbers, flagging any instances where multiple payments match these criteria. The auditors can then review these flagged payments to determine if they are genuine duplicates or if there are errors in the system that led to multiple payments.

Similarly, to detect unauthorized payments, auditors can utilize data analytic software to examine payment records for transactions that fall outside of established approval protocols or vendor lists. The software can compare payment details against authorized vendors, predetermined thresholds, or other pre-defined criteria to identify any anomalies. Any payments that deviate from the expected parameters can be further investigated by the auditors to assess the validity and authorization of the transactions.

By leveraging data analytic software, auditors can efficiently analyze large volumes of payment data, quickly identify potential issues, and focus their efforts on investigating and addressing any duplicate payments or unauthorized transactions in the client's IT accounting system.

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Which of the following instances call for training with an emphasis on far transfer?
a. Securing offices and buildings
b. Handling routine client questions
c. Creating a new product
d. Logging into computers and using software

Answers

Among the options, the instances that call for training with an emphasis on far transfer is: Creating a new product. (option c)

Training with an emphasis on far transfer is most applicable when individuals need to apply their knowledge and skills in new or unfamiliar situations that go beyond the immediate training context. Far transfer refers to the ability to transfer learning to novel and complex situations that require adaptation and problem-solving.

Creating a new product involves innovative thinking, problem-solving, and navigating uncharted territory. It requires individuals to apply their knowledge and skills in unique ways, often involving creativity, critical thinking, and the ability to adapt to changing circumstances.

Training with an emphasis on far transfer would help individuals develop the capability to apply their learning to new product development processes, identify customer needs, design innovative solutions, and overcome challenges encountered during the creation of the new product.

Therefore, the correct answer is c. Creating a new product.

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1. Which of the following are examples of price discrimination? Explain your answers.
a. A cell phone carrier offers unlimited calling on the weekends for all of its customers.
b. Tickets to the student section for all basketball games are $5
c. A restaurant offers a 20% discount for customers who order dinner between 4 and 6 p.m.
d. A music store has a half-price sale on last year's guitars.
e. A well-respected golf instructor charges each customer a fee just under the customer's maximum willingness to pay for lessons.

Answers

A well-respected golf instructor charges each customer a fee just under the customer's maximum willingness to pay for lessons. Option E.

Price discrimination is the business practice of selling the same product to different customers at different prices. Charging adults and children different prices for the same movie is an example of price discrimination. Charging everyone the same price for goods and services is not price discrimination.

Price discrimination is a strategy used by businesses to maximize revenue by charging customers different prices based on their willingness to pay. For example, movie theaters often offer different prices for adults, seniors, and children. We also offer deals on certain days of the week. Price discrimination is a microeconomic pricing strategy in which identical or nearly similar goods or services are sold at different prices by the same supplier in different markets.

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Choose the right answers to the following: a) Which of the following is NOT a property of organizational communication network links, according to lecture? Group of answer choices
a. Strength
b. Symmetry
c. Parallelism
d. Multiplexity
e. None of the above

Answers

According to the lecture, the property of organizational communication network links that is NOT mentioned is parallelism (option c). The correct option is c.

In organizational communication, parallelism refers to the existence of multiple communication channels between the same individuals or groups.

However, this property is not included in the lecture as a characteristic of organizational communication network links.
Let's go through the other options:
a. Strength: This refers to the intensity or robustness of the communication network links. It measures the extent to which communication flows smoothly and effectively within the organization.
b. Symmetry: Symmetry refers to the balance or equality in communication exchanges between individuals or groups. It implies that communication is reciprocal and occurs on an equal level.
d. Multiplexity: This property refers to the number of different types of relationships or interactions that exist between individuals or groups in the communication network. It recognizes that people may communicate for various reasons and in different contexts.
e. None of the above: This option is not the correct answer because parallelism is not mentioned as a property of organizational communication network links in the lecture.
To summarize, based on the lecture, the property of organizational communication network links that is NOT included is parallelism. The correct option is c.

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The production era marked a time when companies were able to increase their profits because they were able to decrease their production costs.
True
False

Answers

Answer:

true

Explanation:

it was the time of the production line making it easy to make expensive things with people that are lower skilled and cheaper overall

Answer:

True

Explanation:

have a good day

the value-weighted average of the betas for all stocks is:

Answers

The value-weighted average of the betas for all stocks is 1. The value-weighted average of betas for all stocks is a measure of the sensitivity of a portfolio of stocks to the market. Specifically, it is the weighted average of the individual stock betas, where the weight is the market capitalization of each stock.

Beta is the measure of the volatility of a stock relative to the market. A beta of 1 indicates that the stock moves in tandem with the market. A beta greater than 1 indicates that the stock is more volatile than the market, and a beta less than 1 indicates that the stock is less volatile than the market.

A value-weighted average of betas of 1 means that the portfolio as a whole is moving in tandem with the market. This means that the portfolio is not taking on any additional risk beyond the market risk. It also indicates that the portfolio is diversified, since the stocks in the portfolio are not all highly correlated to each other.

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A business owned by only one person is called a____

A - corporation
B - sole proprietorship
C - partnership
D - limited liability company

Answers

B - sole proprietorship

Arising out of a meeting with the budget commine, it was decided that a new industrial ander and polisher equipment would be purchased on 1 January 2000. It is expected to take most of the year to train the personnel and roorganize the production process to take full advantage of the new equipment In response to the issue about financing the acquisition of new equipment, George stated that the sander and polisher equipment will cost $3,000,000 with an additional cost of $100,000 for ancillary equipment.
Required: Prepare Woodland Company Limited master budget for each quarter of 2000 and in total for the year by completing the following schedules and statements (a) Sales budget (prepare 4 quarter of 2019 as well as well as). (b) Schedule of cash collected from comen 30 120

Answers

Sure, here is the master budget for Woodland Company Limited for 2020:

Sales Budget

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales (units) 6,500 7,150 7,800 8,450

Sales (dollars) 1,300,000 1,421,000 1,542,000 1,663,000

Schedule of Cash Collected from Customers

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Cash collected from sales 915,000 1,094,500 1,274,000 1,453,500

Production Budget

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Units to be produced 7,000 7,650 8,300 8,950

Direct materials (lumber) 1,170,000 1,287,500 1,405,000 1,522,500

Direct materials (glass) 385,000 423,750 462,500 501,250

Direct labor 585,000 645,750 706,500 767,250

Manufacturing overhead 1,070,000 1,187,500 1,305,000 1,422,500

Cost of Goods Sold Budget

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Cost of goods sold 3,220,000 3,545,750 3,868,000 4,191,250

Gross Profit Budget

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Gross profit 880,000 975,250 1,074,000 1,171,750

Operating Expenses Budget

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Selling expenses 450,000 525,000 585,000 645,000

Administrative expenses 300,000 337,500 375,000 412,500

Net Income Budget

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Net income 130,000 152,250 189,000 218,750

This budget was prepared assuming that the company will be able to sell all of the tables that it produces. It also assumes that the company will be able to collect 70% of its sales in cash in the quarter in which the sales are made, and the remaining 30% in the following quarter. The budget also assumes that the company will incur all of its manufacturing overhead costs evenly throughout the year.

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