Homework Answers
| Residual income is similar to the economist's notion of profit as being the amount left over after all costs, including the cost of the capital employed in the division, are subtracted |
| Profits are considered as a charge for the cost of capital by economists. |
| Option D economist's is correct |
Add Answer to:
Residual income is similar to the subtracted notion of profit as being the amount left over...
When the selling division in an internal transfer has unsatisfied demand from outside customers for the...
When the selling division in an internal transfer has unsatisfied demand from outside customers for the product that is being transferred, then the lowest acceptable transfer price as far as the selling division is concerned is: Multiple Choice O C variable cost of producing a unit of product O O the full absorption cost of producing a unit of product O the market price charged to outside customers O the amount that the purchasing division would have to pay an...
Paying an above-equilibrium wage rate might reduce unit labor costs by Multiple Choice increasing the supply...
Paying an above-equilibrium wage rate might reduce unit labor costs by Multiple Choice increasing the supply of labor. 0 increasing the opportunity cost to workers of being fired for sharing 0 increasing voluntary worker turnover. permitting the firm to attract lower quality labor 0 < Prev 19 of 40 Next > 23 8 7 8 Economists would not consider which one of the following to be a productive economic resource? Multiple Choice erreno O capital goods money N Defined narrowly...
Carroll Corporation has two products, Q and P. During June, the company's net operating income was...
Carroll Corporation has two products, Q and P. During June, the company's net operating income was $27,000, and the common fixed expenses were $58,000. The contribution margin ratio for Product Q was 40%. Its sales were $143.000, and its segment margin was $50,000. If the contribution margin for Product P was $48,000, the segment margin for Product P was: Multiple Choice $35,000 O $50,000 O O "ounle Corporation has two divisions: the South Division and the West Division. The corporation's...
When the direct write-off method is used: Multiple Choice 0 the estimated amount of bad debts...
When the direct write-off method is used: Multiple Choice 0 the estimated amount of bad debts is debited to Bad Debt Expense. 0 the estimated amount of bad debts is debited to Allowance for Doubtful Accounts the estimated amount of bad debts is debited to which account Accounts Receivable. 0 bad debts are not estimated 0 A company bought land and a building for $128,000. The building has a useful life of 20 years. Why should the company split the...
FoodMart is considering a project. The project's flotation costs amount to 9.2% of the funding need. Thus, the project...
FoodMart is considering a project. The project's flotation costs amount to 9.2% of the funding need. Thus, the project analysis should Multiple Choice Increase the project's discount rate to offset these expenses by multiplying the company's WACC by 1.092 0 O increase the project's discount rate to offset these expenses by dividing the company's WACC by (1 - 092) 0 ) add 9.2 percent to the company's firm's WACC to determine the discount rate for the project 0 increase the...
QUESTION 9 1. What does the operating expense percentage measure? a. The amount of profit left...
QUESTION 9 1. What does the operating expense percentage measure? a. The amount of profit left in a business after deducting cost of goods sold from b. The relative amount of operating expenses (excluding financing costs) incurred comparte goods sold. c. The percentage of sales incurred for operating expenses and income taxes d. The percentage of sales absorbed by operating expenses, excluding interest
Operating Income For Segments Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home,...
Operating Income For Segments Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. Each division is evaluated as a profit center. Data for each division for last year are as follows (numbers in thousands): Home Restaurant Specialty Sales $4,130 $3,600 $2,520 Cost of goods sold 2,900 2,620 1,700 Selling and administrative expenses 950 410 320 The income tax rate for Xenold, Inc., is 40 percent. Xenold, Inc., has two sources of financing: bonds paying...
Polyester division of Quintex Ltd has forecast a net profit before tax of R3 million per...
Polyester division of Quintex Ltd has forecast a net profit before tax of R3 million per annum for the next five years, based on net capital employed of R10 million. Plant replacement over this period is expected to be equal to the annual depreciation each year. These figures compare well with the group’s required rate of return of 20% before tax. Polyester’s management is currently considering a substantial expansion of its manufacturing capacity to cope with the forecast demands of...
Pebble Beach Co. buys a plece of equipment for $60,000. The equipment has a useful life...
Pebble Beach Co. buys a plece of equipment for $60,000. The equipment has a useful life of six years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipment's useful life? (Do not round Intermediate calculations.) Multiple Choice Ο $20.000 Ο Ο S15.000 $15.000 Ο $10,000 Ο Ο S30000 A piece of equipment was acquired on January 1, 2018, at a...
Ignacio, Inc., had after-tax operating income last year of $1,198,000. Three sources of financing...
Ignacio, Inc., had after-tax operating income last year of $1,198,000. Three sources of financing were used by the company: $2 million of mortgage bonds paying 4 percent interest, $4 million of unsecured bonds paying 6 percent interest, and $11 million in common stock, which was considered to be relatively risky (with a risk premium of 8 percent). The rate on long-term treasuries is 3 percent. Ignacio, Inc., pays a marginal tax rate of 30 percent. Required: 1. Calculate the after-tax...
When the selling division in an internal transfer has unsatisfied demand from outside customers for the product that is being transferred, then the lowest acceptable transfer price as far as the selling division is concerned is: Multiple Choice O C variable cost of producing a unit of product O O the full absorption cost of producing a unit of product O the market price charged to outside customers O the amount that the purchasing division would have to pay an...
Paying an above-equilibrium wage rate might reduce unit labor costs by Multiple Choice increasing the supply of labor. 0 increasing the opportunity cost to workers of being fired for sharing 0 increasing voluntary worker turnover. permitting the firm to attract lower quality labor 0 < Prev 19 of 40 Next > 23 8 7 8 Economists would not consider which one of the following to be a productive economic resource? Multiple Choice erreno O capital goods money N Defined narrowly...
Carroll Corporation has two products, Q and P. During June, the company's net operating income was $27,000, and the common fixed expenses were $58,000. The contribution margin ratio for Product Q was 40%. Its sales were $143.000, and its segment margin was $50,000. If the contribution margin for Product P was $48,000, the segment margin for Product P was: Multiple Choice $35,000 O $50,000 O O "ounle Corporation has two divisions: the South Division and the West Division. The corporation's...
When the direct write-off method is used: Multiple Choice 0 the estimated amount of bad debts is debited to Bad Debt Expense. 0 the estimated amount of bad debts is debited to Allowance for Doubtful Accounts the estimated amount of bad debts is debited to which account Accounts Receivable. 0 bad debts are not estimated 0 A company bought land and a building for $128,000. The building has a useful life of 20 years. Why should the company split the...
FoodMart is considering a project. The project's flotation costs amount to 9.2% of the funding need. Thus, the project analysis should Multiple Choice Increase the project's discount rate to offset these expenses by multiplying the company's WACC by 1.092 0 O increase the project's discount rate to offset these expenses by dividing the company's WACC by (1 - 092) 0 ) add 9.2 percent to the company's firm's WACC to determine the discount rate for the project 0 increase the...
QUESTION 9 1. What does the operating expense percentage measure? a. The amount of profit left in a business after deducting cost of goods sold from b. The relative amount of operating expenses (excluding financing costs) incurred comparte goods sold. c. The percentage of sales incurred for operating expenses and income taxes d. The percentage of sales absorbed by operating expenses, excluding interest
Pebble Beach Co. buys a plece of equipment for $60,000. The equipment has a useful life of six years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipment's useful life? (Do not round Intermediate calculations.) Multiple Choice Ο $20.000 Ο Ο S15.000 $15.000 Ο $10,000 Ο Ο S30000 A piece of equipment was acquired on January 1, 2018, at a...
Ignacio, Inc., had after-tax operating income last year of $1,198,000. Three sources of financing were used by the company: $2 million of mortgage bonds paying 4 percent interest, $4 million of unsecured bonds paying 6 percent interest, and $11 million in common stock, which was considered to be relatively risky (with a risk premium of 8 percent). The rate on long-term treasuries is 3 percent. Ignacio, Inc., pays a marginal tax rate of 30 percent. Required: 1. Calculate the after-tax...
Most questions answered within 3 hours.
-
i
need the summary of this article “Why I Don’t Trust The Video Games
Cause Violence”...
asked 11 minutes ago -
Draw the reactants and products of the following
reaction:
3-ethyl-2-heptene + HOH → 3-ethyl-3-heptanol +
3-ethyl-2-heptanol...
asked 9 minutes ago -
Determine the ratio of adipic acid and butylene glycol that
should be used to obtain a...
asked 18 minutes ago -
Calculate the ratio of the resistance of 11.0 m of aluminum wire
2.5 mm in diameter,...
asked 11 minutes ago -
Kinkaid Co. is incorporated at the beginning of this year and
engages in a number of...
asked 15 minutes ago -
when setting up a simple pendulum, calculate the string length
required for the period to equal...
asked 33 minutes ago -
: A small but very close dense mass of 389 kg is brought close
to a...
asked 34 minutes ago -
Create a class called Hotel. The hotel class will track the
current reservations for your one-room...
asked 57 minutes ago -
In space, a 4.0 kg metal ball moving 30 m/s has a head on
collision with...
asked 1 hour ago -
Financial Markets and Corporate Strategy (assignment template) –
1 of 2
Insights/Instructions: Use this template to...
asked 1 hour ago -
A firm has announced a cash dividend of $3 dollar per share.
Assuming an efficient market,...
asked 1 hour ago -
Which of the following statements is consistent with the fact
that capital in an economy is...
asked 1 hour ago