FIN 534 Week 7 Homework Problems Chapters 12 and 13

FIN 534 – Homework Chapter 12

1. Which of the following statements is CORRECT?

a. Perhaps the most important step when developing forecasted financial statements is to determine the breakdown of common equity between common stock and retained earnings.

b. The first, and perhaps the most critical, step in forecasting financial requirements is to forecast future sales.

c. Forecasted financial statements, as discussed in the text, are used primarily as a part of the managerial compensation program, where management’s historical performance is evaluated.

d. The capital intensity ratio gives us an idea of the physical condition of the firm’s fixed assets.

e. The AFN equation produces more accurate forecasts than the forecasted financial statement method, especially if fixed assets are lumpy, economies of scale exist, or if excess capacity exists.

 

2. Which of the following statements is CORRECT?

a. The sustainable growth rate is the maximum achievable growth rate without the firm having to raise external funds.  In other words, it is the growth rate at which the firm’s AFN equals zero.               

b. If a firm’s assets are growing at a positive rate, but its retained earnings are not increasing, then it would be impossible for the firm’s AFN to be negative.

c. If a firm increases its dividend payout ratio in anticipation of higher earnings, but sales and earnings actually decrease, then the firm’s actual AFN must, mathematically, exceed the previously calculated AFN.

d. Higher sales usually require higher asset levels, and this leads to what we call AFN.  However, the AFN will be zero if the firm chooses to retain all of its profits, i.e., to have a zero dividend payout ratio.

e. Dividend policy does not affect the requirement for external funds based on the AFN equation.

 

3. Which of the following statements is CORRECT?

a. When we use the AFN equation, we assume that the ratios of assets and liabilities to sales (A0*/S0 and L0*/S0) vary from year to year in a stable, predictable manner.

b. When fixed assets are added in large, discrete units as a company grows, the assumption of constant ratios is more appropriate than if assets are relatively small and can be added in small increments as sales grow.

c. Firms whose fixed assets are “lumpy” frequently have excess capacity, and this should be accounted for in the financial forecasting process.

d. For a firm that uses lumpy assets, it is impossible to have small increases in sales without expanding fixed assets.

e. There are economies of scale in the use of many kinds of assets.  When economies occur the ratios are likely to remain constant over time as the size of the firm increases.  TheEconomic Ordering Quantity model for establishing inventory levels demonstrates this relationship.

 

4. Last year Jain Technologies had $250 million of sales and $100 million of fixed assets, so its FA/Sales ratio was 40%.  However, its fixed assets were used at only 75% of capacity.  Now the company is developing its financial forecast for the coming year.  As part of that process, the company wants to set its target Fixed Assets/Sales ratio at the level it would have had had it been operating at full capacity.  What target FA/Sales ratio should the company set?

a. 28.5%

b. 30.0%

c. 31.5%

d. 33.1%

e. 34.7%

 

5. Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm’s additional funds needed (AFN).  The firm is operating at full capacity.  Data for use in the forecast are shown below.  However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 50%, which the firm’s investment bankers have recommended.  Based on the AFN equation, by how much would the AFN for the coming year change if HHW increased the payout from 10% to the new and higher level?  All dollars are in millions.

Last year’s sales = S0 $300.0 Last year’s accounts payable $50.0

Sales growth rate = g 40% Last year’s notes payable $15.0

Last year’s total assets = A0* $500.0 Last year’s accruals $20.0

Last year’s profit margin = PM 20.0% Initial payout ratio 10.0%

a. $31.9

b. $33.6

c. $35.3

d. $37.0

e. $38.9

 

 

FIN 534 – Homework Chapter 13

1. Suppose Leonard, Nixon, & Shull Corporation’s projected free cash flow for next year is $100,000, and FCF is expected to grow at a constant rate of 6%.  If the company’s weighted average cost of capital is 11%, what is the value of its operations?

a. $1,714,750

b. $1,805,000

c. $1,900,000

d. $2,000,000

e. $2,100,000

 

2. Leak Inc. forecasts the free cash flows (in millions) shown below.  If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2, what is the Year 0 value of operations, in millions?  Assume that the ROIC is expected to remain constant in Year 2 and beyond (and do not make any half-year adjustments).

Year: 1 2

Free cash flow: -$50 $100

a. $1,456

b. $1,529

c. $1,606

d. $1,686

e. $1,770

 

 

3. Based on the corporate valuation model, the value of a company’s operations is $1,200 million.  The company’s balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in short-term investments that are unrelated to operations.  The balance sheet also shows $90 million in accounts payable, $120 million in notes payable, $300 million in long-term debt, $50 million in preferred stock, $180 million in retained earnings, and $800 million in total common equity.  If the company has 30 million shares of stock outstanding, what is the best estimate of the stock’s price per share?

a. $24.90

b. $27.67

c. $30.43

d. $33.48

e. $36.82

 

 

4. Based on the corporate valuation model, the value of a company’s operations is $900 million.  Its balance sheet shows $70 million in accounts receivable, $50 million in inventory, $30 million in short-term investments that are unrelated to operations, $20 million in accounts payable, $110 million in notes payable, $90 million in long-term debt, $20 million in preferred stock, $140 million in retained earnings, and $280 million in total common equity.  If the company has 25 million shares of stock outstanding, what is the best estimate of the stock’s price per share?

a. $23.00

b. $25.56

c. $28.40

d. $31.24

e. $34.36

 

 

5. Vasudevan Inc. forecasts the free cash flows (in millions) shown below.  If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions?

Year: 1 2 3

Free cash flow: -$20 $42 $45

a. $586

b. $617

c. $648

d. $680

e. $714

 

 

HIS 301 Week 2 Team Branches of Government Paper

HIS 301 Week 2 Team Branches of Government Paper

 

Resources: Articles I, II, and III of the Constitution located in the appendices of the text

Write a 1,050- to 1,400-word paper in which you answer the following questions:

 

•       What were the reasons America’s forefathers divided the government into the legislative, judicial, and executive branches? How does this benefit the three branches?

 

•       What obstacles do the division of power present to enactment of important legislation?

 

•       How was the conflict between supporters of a strong federal government and champions of states’ rights characterized then as opposed to now? Identify specific issues.

 

Cite at least four references to support the content of your paper and wikipedia is not a reliable source.

Format your paper consistent with APA guidelines.

 

Make sure your paper flows well, is free of grammar errors and fact based (rather than opinion based), and use sub-headings in the body of the paper.

 

Discussion Questions:

 

What are some of the essential elements of Federalism?  Why are they essential?

 

Why did the drafters of the Constitution establish three branches of the national government?  How do those branches interact?

 

What if there were no federal government?

 

Federalism is done so that no one has too much power.  This is an interesting point if “true.”  Do others agree?

Before forming your opinion please consider the following information.  The Constitution has a Supremacy Clause, which states in pertinent part that where state and federal law conflict, federal law dictates or is supreme.

With the Supremacy Clause in mind, how does one sovereign, specifically the federal government, not have too much power?  Is it possible that the Supremacy Clause contributes to the conflict between state rights and a strong federal government?

 

Please consider and respond to the following.  Yes, the states have the power to make some decisions, but the states also have to abide by Federal law.  For example, in a major court decision, Yick Wo v. Hopkins, California wanted permit restrictions on laundries.  Many of those laundries were owned and operated by people of Asian decent.  As a result, the United States Supreme Court (USSC) determined that the permit regulation had an unfair impact on Asian people and declared the law unconstitutional.  California had a reason for the law (safety and stated it was not racial) and felt justified, but the USSC said differently and California had to adapt to the USSC decision.  

Does this type of control contribute to the on-going divide between those for and against a strong national government?  Focus on the control in your response and not the actually USSC decision.

MGT 445 FINAL EXAM

MGT445 FINAL EXAM

Rating A

 

1. In distributive bargaining, negotiators view tradeoffs as a “zero-sum” game.

a. True

 b.False

2. A “win-win” negotiation goal would best describe the integrative negotiation style.

a. True

b.       False

3.   Which one of the following is an effective technique for dealing with hard-ball tactics?

a. Fight fire with fire

b. Threaten and bluff until the other party is intimidated

c. Plead for mercy

d. Complain to the other party’s constituents

e. Ignore them

 

4.         Which of the following approaches is inconsistent with interest-based negotiation?

a. Separating the people from the problem

b. Identifying shared interests

c. Fully exploring the problem

d. “Low-balling” and “high-balling” opening offers

e. Inventing options for mutual gain

 

 

5.All of the following arilwell- regarded approaches to ethical reasoning, except

a.           QDuty

b.           D Social contract

c.          D “Personalistic”

d.          D End results

e.           D Absolute ethics

6.   The following are true of coalitions, except

a.          D They rarely start with a founder

b.          D They build by adding one member at a time

c.          n They need to achieve critical mass

d.          D They exclude members

e.          S They sometimes form quietly and disband quickly

7.   Which of the following would be an incorrect statement about multi-party negotiations?

a.          The number of parties greatly influences the process

b.           D Information exchange tends to be more complex
c.      The social environment, remains static

d,          Procedural complexity adds to the negotiation challenges

e.           They are strategically more complex

8,   Which of the following best describes the conflict type when disagreements center on personal beliefs and deeply held values?

a.           D Nuisances

b.          D Data

c.           Values

d.          D Attribution

e.                    Control

9.   To maximize the potential for a successful resolution, prudent conflict managers analyze and consider the interests of which of the following stakeholders?

a.           D Agents

b.           D Constituents

c.           n Advocates

d.          El Parties

e.           n All of the above

10. The “bottom line” a disputant is seeking when resolving conflict is best described as which of the following?

a.           D Principle

b.           D Position

c.           D Interests

d.          D Needs

e.           Aspiration

 

11. Which of the following elements need not be considered when assessing the negotiation environme of a foreign nation?

a.          D Legal pluralism

b.          D Instability and change

c.          D Political pluralism

d.        Cultural differences

e.   None of the above

12. Given the complexity and uncertainty surrounding global business negotiations, it is particularly important that prudent negotiators do which of the following?

a.          H Assess their “BATNA” before commencing negotiations

b.          Arrange their travel itineraries well in advance of negotiations

c.         Avoid any form of conflict or competition

d.     Avoid showing weakness by creating options for their opponents during negotiation

e.         All of the above

13.        In which of the following cultures would a friendly, trusting, and relationship-building negotiation
protocol be highly valued?

a.. Mexican

b.  Italian

c.russian
d. Japanese

e.         Brazilian

14.        While important, culture is rarely a significant factor in assessing the probability of success in a global
negotiation.

a.           True

b.           False

15. “E-Negotiations” and similar technological advances effectively remove the need for negotiators tc
travel to their markets to maintain personal contact with customers and to assess the local                                                                                                                                                                              ss

environment.

a.           True

b.           False

16. Name the top ten ways culture affects negotiations (5 points). Vou must list all fen to receive credit.

Negotiating Goal: Contract or Relationship

 

Negotiating Attitude: Win/Lose or Win/Win

 Personal Style: Formal or Informal

Communication: Direct or Indirect?

 

Sensitivity to Time: High or Low?

Emotionalism: High or low?

Form of agreement: General or specific?

Building an Agreement: bottom up or top down?

Team Organization: One leader or group consensus?

Risk taking: High or Low?

LAW 421 Final Exam

1) Which of the following does not result in a decision rendered by the hearing officer?

A.  Arbitration

B.  Mediation

C.  Med-arb

D.  Using expert evaluators

                            

 

2) Jurisprudence is defined as

A.  adjudication of law suits

B.  the enactment of laws by a government body

C.  the science and philosophy of law

D.  the duties and obligations owed by a citizen

 

 

3) The state of Kansas has enacted a new law requiring all commercial trucks driving on Kansas roads to have special mud flaps installed. These mud flaps have been proven to make driving in the rain significantly safer due to reduced mist created by trucks driving in the rain, although data regarding accidents and injuries has not yet been determined. Any truck entering Kansas must have these flaps installed or will be subject to a significant fine and delay. The cost for purchase and installation of these flaps is $1,000 per truck. In short, trucks must have these flaps or go around the state. This Kansas law

A.  is valid because it only applies to Kansas roads and such a law is entirely intrastate

B.  is valid because Kansas’s right to protect its citizens under its police powers will override any outside challenges to this law

C.  is invalid because this law is intended to regulate interstate commerce, an enumerated federal power

D.  is invalid because although on its face it’s an intrastate law, this statute will have a significant economic effect on interstate commerce causing an undue burden

 

 

4) The power of preemption is derived from

A.  the power of judicial review

B.  the Commerce Clause

C.  the Necessary and Proper Clause

D.  the Supremacy Clause

 

 

5) What is the main problem with international courts?

A.  Finding judges who understand the complexities of international law

B.  Creating a body of law that reflects multiple legal systems

C.  Enforcing a ruling on sovereign nations is difficult

D.  Lack of recognition from the U.N. and WTO

 

6) Under the U.S. legal system, subject to some exceptions, costs of litigation regarding both the plaintiff and defendant

A.  are all paid by the loser

B.  are all paid by the winner

C.  are paid for by each side with the plaintiff and defendant paying for their own legal costs

D.  are totaled by the court and then for fairness, split in half with each side paying an equal amount

 

 

7) Generally, torts law is governed by

A.  state statutory law

B.  state common law

C.  federal statutory law

D.  constitutional law

 

 

8) Assumption of risk is a defense to

A.  conversion

B.  negligence

C.  defamation

D.  battery

 

 

9) The three stripes on Adidas clothing represents a

A.  trademark

B.  trade dress

C.  trade secret

D.  patent

 

 

10) The color or shape of an item, if distinctive, is a

A.  trademark

B.  trade dress

C.  copyright

D.  patent

 

11) Cybersquatting describes the practice of

A.  registering multiple domain names and then selling them back to companies at inflated prices

B.  hacking into a company’s website to install a virus or Trojan horse designed to steal information but allow the site to continue operation

C.  using mechanical devises to access a company’s website multiple times to the point that traffic to the site is slowed or blocked

D.  hacking into a company’s website to install a virus designed to cause the company’s website to totally cease operation

 

12) The Digital Millennium Copyright Act (1998) provided each of the following protections EXCEPT

A.  manufacturers of CD-Writers were required to pay 2% of their sales into a fund to be distributed to copyright holders because the CD-Writers could easily copy music and other copyrighted works

B.  civil and criminal penalties were established for those who sell or manufacture products or services that circumvent antipiracy software

C.  restrictions were placed on analog recorders and camcorders that lack antipiracy features

D.  ISPs were relieved of liability for copyright infringement by their users as long as the ISP had no knowledge of the infringement

 

 

13) When Maria comes home from work, she finds that her yard has been mowed and trimmed. An hour later, a man comes to her door to collect payment for the yard work. Maria refuses to pay him because she has never seen him before nor had she hired him to do the work. Which of the following is accurate?

A.  This is an implied, unilateral contract, so she must pay.

B.  Maria has received unjust enrichment so a quasi contract is formed, so she must pay.

C.  The court would make Maria pay the reasonable cost of the work to be fair to both parties.

D.  Maria would not have to pay anything.

 

 

14) Where a promise can only be accepted by the performance of the person to whom it is offered is an example of a/an

A.  bilateral contract

B.  unilateral contract

C.  implied contract

D.  quasi contract

 

 

15) Each of the following is a discharge by mutual consent EXCEPT

A.  accord and satisfaction

B.  novation

C.  rescission

D.  frustration of purpose

 

 

16) Harry sees an AK-47 automatic assault rifle in a gun shop window. He inquires about the price and is told that it is $2,500. Harry signs a contract promising to pay the $2,500 on Friday, taking possession of the rifle when payment is made. On Thursday, a law is enacted making the ownership, sale, or possession of an automatic rifle illegal. This contract

A.  automatically terminates due to impossibility

B.  automatically terminates due to impracticability

C.  automatically terminates due to frustration of purpose

D.  is enforceable and not affected by the new law because it was entered into before the law took effect

 

 

17) Which of the following is rarely awarded in contracts cases?

A.  Consequential damages

B.  Compensatory damages

C.  Punitive damages

D.  Liquidated damages

 

 

18) Which of the following is classified as an equitable remedy?

A.  Consequential damages

B.  Reformation

C.  Restitution

D.  Liquidated damages

 

 

19) Which of the following would not be considered tangible?

A.  A car

B.  Oxygen

C.  The right of ownership

D.  The pen or pencil you are using

 

 

20) With regard to consideration in a sales contract, the UCC differs from the common law in that

A.  consideration in a sales contract may be modified without additional consideration

B.  consideration exchanged must be equal or very closely equal in sales contracts

C.  consideration is not required in sales contracts

D.  consideration in a sales contract may be modified as long as additional consideration is provided

 

 

21) The UCC will permit an incomplete or slightly ambiguous contract to be enforced using each of the following criteria EXCEPT

A.  past commercial conduct

B.  industry standards or norms

C.  judicial input of any terms necessary to maintain fairness

D.  correspondence or verbal exchanges between the parties

 

 

22) Two merchant companies have entered into a contract for the sale of goods but have had no prior dealings, which would establish a course of conduct between them. The UCC will allow gap fillers to apply to their contract regarding missing terms in each of the following situations EXCEPT

A.  they have failed to specify when payment for the goods is to be made

B.  they have failed to specify where delivery of the goods is to be made

C.  they have failed to specify the quality or grade of the goods to be delivered

D.  they have failed to specify the price of the goods to be delivered

 

 

23) When a buyer rejects nonconforming goods and purchases the appropriate goods from a different seller, this is an example of which of the following:

A.  Cover

B.  Specific Performance

C.  Lawsuit for Money Damages

D.  Revoking Acceptance

 

 

24) Which of these is not a requirement for disclaiming a warranty?

A.  Statutory authorization

B.  A conspicuous writing

C.  Explaining why the warranty is being disclaimed

D.  Including the word merchantability if merchantability is to be disclaimed

 

 

25) “What if everyone took these same actions” is a question sometimes called the

A.  universalization approach

B.  utilitarian approach

C.  functionality approach

D.  morality approach

 

 

26) The utilitarian approach to moral philosophy was founded by

A.  Jeremy Bentham

B.  Immanuel Kant

C.  Cicero

D.  Kenneth Lay

 

 

27) Stan is an investment manager. He has received money from various investors with a promise of very high returns on their investments. The invested money is not supplying enough capital in order to pay the returns promised, so he has started using new investor’s money to pay older investors. By advertising and by word of mouth, people are anxious to invest with Stan because of the money being paid, and with the influx of new investors, he is able to continue operating. Stan is

A.  operating an insider trading operation

B.  racketeering

C.  guilty of conspiracy to defraud

D.  operating a Ponzi scheme

 

 

28) Ben is the manager of a branch of a large bank. He has regularly taken money from customer’s accounts for his own use and changed the bank records to cover his actions. Ben is guilty of

A.  a conspiracy

B.  a Ponzi scheme

C.  racketeering

D.  embezzlement

 

 

29) The Sarbanes-Oxley Act (2002) imposed stricter regulations on how corporations do business through regulations in each of the following areas EXCEPT

A.  tax compliance

B.  financial reporting

C.  corporate governance

D.  auditing

 

 

30) Joan is the CFO of Para Corp. and is a year from retirement. In order to guarantee herself a very substantial bonus and to boost her retirement package, she knowingly certifies false financial reports making the company appear to be much more profitable than it really is. She further takes steps to assure that the financial report was not reviewed through internal controls maintained by Para Corp. Under the provisions of the Sarbanes-Oxley Act (2002), if her fraud is NOT part of a larger scheme, what criminal penalties are possible for Joan?

A.  $1 million in fines and up to 10 years in prison

B.  $2 million in fines and up to 12 years in prison

C.  $5 million in fines and up to 15 years in prison

D.  $10 million in fines and up to 20 years in prison

 

 

MATH 170 FINAL 3

MATH 170 FINAL 3

Rating A

 

1. Evaluate the expression:   2•7!

A) 10,080

B) 10,280

C) 10,000

 

 

2.Evaluate the expression: C(9,3)

A) 84

B) 48

C) 27

 

 

3. A jar contains 21 pink and 26 navy marbles. A marble is drawn at random.P(navy)Express the probability as a decimal. Round to the nearest hundredth.

A) 0.55

B) 0.055

C) 0.0055

 

 

4. Evaluate: 3!

A) 6

B) 3

C) 1

 

 

5. There were 13,249 weddings in Springs City last year. According to state records, notaries public performed 17% of the weddings. How many weddings were not performed by notaries public?

A) 1099

B) 10994

C) 10997

 

 

6. Evaluate the expression: P(5,5)

A) 120

B) 230

C) 25

 

 

7. Find the probability. Write your answer as a percent rounded to the nearest whole percent:

A number from 8 to 16 is drawn at random. P(12).

A) 11%

B) 13%

C) 15%

 

 

8.Fill in the missing value. Assume simple interest.

 principal ________

interest rate 3%

time 1 year

simple interest $2,472.57

A) principal $82,419

B) principal $85,419

C) principal $822,419

 

 

9. State whether the statements are true or false: AcA

A) True

B) False

 

 

10. A jar contains 25 green, 19 white, 6 pink, and 21 orange marbles. A marble is drawn at random. P(white, green, or pink)Express the probability as a fraction.

A) 50/71

B) 71/50

C) 5/7

 

 

11. State whether the statements are true or false:   ØcA

A) True

B) False

 

 

12. If A and B are independent events, P(A)=.4, and P(B)=.6 find     P(A È B)

A) 0.76

B) 0.076

C) 0.0076

 

 

13.Determine whether the events A and B are independent

P(A)= .6, P(B)= .8, P(A Ç B)= .2

A) Independent

B) Not Independent

 

 

14. Find the probability. Write your answer as a fraction in simplest form:

You roll a number cube numbered from 1 to 6. P(1).

A) 1/6

B) 6

C) 1/3

 

 

15. If A and B are independent events, P(A)=.4, and P(B)=.6 find  P(A Ç B)  

A) 0.24

B) 0.024

C) 0.0024

 

 

16.Find the probability. Assume that the spinner is separated into equal sections:

 You flip a coin and toss a 1-6 number cube.

P(3 and heads)

 A)1/ 12           or           0.083

B)1/6             or           0.167

C)  1/8            or           0.125

17. Let A and B be two events in a sample space S such that:

P(A) =.6, P(B)= .5, and P(A Ç B)= .2 find P(A B)

A) 2/5

B) 5/2

 

 

18.A number from 15 to 26 is drawn at random.P(24)Express the probability as a percent. Round to the nearest percent.

A) 8%

B) 9%

C) 10%

 

 

19.Evaluate the expression: 5!-3!

A) 114

B) 2

C) 8

 

 

20. Evaluate the expression: 9!

A) 362880

B) 362800

 

 

21. Fill in the missing value. Assume simple interest.

principal                 $400,007

interest rate            13%

time             2 years

simple interest                  ________

A) simple interest $105,001.82

B) simple interest $104,001.82

C) simple interest $104,003.82

 

 

22.Using the combination formula complete the following:

How many combinations of two letters are possible from the letters U, A, and X?

A) 3

B) 5

C) 9

 

 

 

23.Evaluate the expression:  3 · 5!

A) 360

B) 120

C) 15

 

 

24.Evaluate the expression: 6!+4!

A) 744

B) 704

C) 720

25.Fill in the missing value. Assume simple interest.

 principal                 $87,698

interest rate            ________

time             1 year

simple interest                  $6,138.86

A) interest rate 7%

B) interest rate 8%

C) interest rate 10%

 

 

26.Find the probability:

A number from 10 to 22 is drawn at random. P(an odd number) Express the probability as a decimal. Round to the nearest hundredth.

A) 0.46

B) 0.17

C) 0.75

 

 

 

 

27.State whether the statements are true or false: {Ø}=Ø

A) True

B) False

 

 

28.Determine whether the events A and B are independent

P(A)=.3, P(B)=.6, P(A intersect B)=.18

A) Independent

B) Not Independent

 

 

29.Fill in the missing value. Assume simple interest.

principal                 $19,582

interest rate            4%

time             ________

simple interest                  $2,349.84

A) time 3 years

B) time 4 years

C) time 2 years

 

 

30.Evaluate: 5!

A) 120

B) 25

C) 5

 

 

ACC 349 Final Exam 1

1) Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the overapplied amount assuming the amount is material?

 

 A.  An increase to finished goods

 B.  An increase to cost of goods sold

 C.  A decrease to applied overhead

 D.  A decrease to work in process inventory

 

 

 2) When a job is completed, what happens to the cost of the job?

 

 A.  It is removed from work in process and included in cost of goods sold.

 B.  It is removed from work in process and included in finished goods.

 C.  It is removed from finished goods and included in cost of goods sold.

 D.  It is removed from materials inventory and included in work in process.

 

 

 3) Why is factory overhead applied to products and jobs by manufacturing companies?

 

 A.  Total actual overhead costs can never be accurately determined for production.

 B.  It provides a more accurate cost of the job or products being processed.

 C.  Because indirect costs are easy to trace to products and jobs.

 D.  It allows managers more timely determination of product costs during the manufacturing process.

 

 

 4) Which of the following would be accounted for using a job order cost system?

 

 A.  The pasteurization of milk

 B.  The production of cans of spinach

 C.  The production of town homes

 D.  The production of textbooks

 

 

 5) Which one of the following is an important feature of a job order cost system?

 

 A.  Each must be completed before a new product order is accepted.

 B.  Each job has characteristics similar to the next.

 C.  Each consists of features which distinguish it from the next.

 D.  Each job uses similar processes to produce.

 

 

 6) In a job order cost accounting system, the Work in Process account is

 

 A.  closed at year end

 B.  a control account

 C.  a period cost

 D.  an expense

 

 

 

7) Which of the following is an element of manufacturing overhead?

 

 A.  Factory workers wages

 B.  Flour used in manufactured cake mixes

 C.  Components used in calculators during production

 D.  Plant manager’s salary

 

 

 8) What broad functions do the management of an organization perform?

 

 A.  Directing, manufacturing, and controlling

 B.  Planning, manufacturing, and controlling

 C.  Planning, directing, and controlling

 D.  Planning, directing, and selling

 

 

 9) Which one of the following costs would be included in manufacturing overhead of a lawn mower manufacturer?

 

 A.  The cost of the wheels

 B.  The wages earned by motor assemblers

 C.  The cost of the fuel lines that run from the motor to the gas tank

 D.  Depreciation on the testing equipment

 

 10) A well-designed activity-based costing system starts with

 

 

 A.  identifying the activity-cost pools

 B.  analyzing the activities performed to manufacture a product

 C.  computing the activity-based overhead rate

 D.  assigning manufacturing overhead costs for each activity cost pool to products

 

 

 11) Which would be an appropriate cost driver for the ordering and receiving activity cost pool?

 

 A.  Machine setups

 B.  Inspections

 C.  Purchase orders

 D.  Machine hours

 

 

 12) In traditional costing systems, overhead is generally applied based on

 

 

 A.  direct labor

 B.  units of production

 C.  machine hours

 D.  direct material dollars

 

 

 

 13) What sometimes makes implementation of activity-based costing difficult in service industries is

 

 A.  the labeling of activities as value-added

 B.  attempting to reduce or eliminate nonvalue-added activities

 C.  identifying activities, activity cost plus, and cost drivers

 D.  that a larger proportion of overhead costs are company-wide costs

 

 

 14) Which of the following factors would suggest a switch to activity-based costing?

 

 A.  Product lines similar in volume and manufacturing complexity.

 B.  Production managers use data provided by the existing system.

 C.  Overhead costs constitute a significant portion of total costs.

 D.  The manufacturing process has been stable.

 

 

 15) All of the following statements are correct EXCEPT that

 

 A.  activity-based costing has been widely adopted in service industries

 B.  a larger proportion of overhead costs are company-wide costs in service industries

 C.  the objective of installing ABC in service firms is different than it is in a manufacturing firm

 D.  the general approach to identifying activities and activity cost pools is the same in a service company as in a manufacturing company

 

 

 16) Poodle Company manufactures two products, Mini A and Maxi B. Poodle’s overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is:

 

 Mini A           Maxi B

 Direct labor hours      15,000            25,000

 Machine setups          600                 400

 Machine hours           24,000            26,000

 Inspections                800                  700

 

 Overhead applied to Mini A using traditional costing using direct labor hours is

 

 A.  $1,200,000

 B.  $1,670,000

 C.  $1,536,000

 D.  $1,920,000

 

 

 17) Which of the following factors would suggest a switch to activity-based costing?

 

 

 A.  Product lines similar in volume and manufacturing complexity.

 B.  The manufacturing process has been stable.

 C.  Overhead costs constitute a significant portion of total costs.

 D.  Production managers use data provided by the existing system.

 18) Poodle Company manufactures two products, Mini A and Maxi B. Poodle’s overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is:

 

 

                                   Mini A             Maxi B

 Direct labor hours      15,000               25,000

 Machine setups           600                400

 Machine hours            24,000             26,000

 Inspections                 800                 700

 

 

 Overhead applied to Mini A using activity-based costing is

 

 A.  $1,200,000

 B.  $1,664,000

 C.  $1,536,000

 D.  $1,920,000

 

 19) The cost to produce Part A was $10 per unit in 2005. During 2006, it has increased to $11 per unit. In 2006, Supplier Company has offered to supply Part A for $9 per unit. For the make-or-buy decision,

 

 A.  incremental revenues are $2 per unit

 B.  net relevant costs are $1 per unit

 C.  incremental costs are $1 per unit

 D.  differential costs are $2 per unit

 

 

 20) Ace Company sells office chairs with a selling price of $25 and a contribution margin per unit of $15. It takes 3 machine hours to produce one chair. How much is the contribution margin per unit of limited resource?

 

 A.  $5

 B.  $45

 C.  $3.33

 D.  $10

 

 

 21) Max Company uses 10,000 units of Part A in producing its products. A supplier offers to make Part A for $7. Max Company has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of buying Part A from the supplier is

 

 A.  $0

 B.  $70,000

 C.  $10,000

 D.  $80,000

 

 

 22) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company’s net income increase?

 

 A.  $18,000

 B.  $12,000

 C.  $20,000

 D.  $6,000

 

 

 23) Which statement describes a fixed cost?

 

 A.  It varies in total at every level of activity.

 B.  Its total varies proportionally to the level of activity.

 C.  The amount per unit varies depending on the activity level.

 D.  It remains the same per unit regardless of activity level.

 

 

 24) Which one of the following is required in order for an activity base to be useful in cost behavior analysis?

 

 A.  The activity level should be an approved GAAP activity base.

 B.  There should be a correlation between changes in the level of activity and changes in costs.

 C.  The activity should always be a fixed amount.

 D.  The activity should always be based on the number of units produced.

 

 

 25) Which cost is NOT charged to the product under absorption costing?

 

 A.  Direct materials

 B.  Variable manufacturing overhead

 C.  Direct labor

 D.  Fixed administrative expenses

 

 

 26) Orbach Company sells its product for $40 per unit. During 2005, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $10, direct labor $6, and variable overhead $2. Fixed costs are: $480,000 manufacturing overhead, and $60,000 selling and administrative expenses. The per unit manufacturing cost under variable costing is

 

 A.  $16

 B.  $26

 C.  $18

 D.  $27

 

 

 27) Which cost is NOT charged to the product under variable costing?

 

 A.  Direct materials

 B.  Variable manufacturing overhead

 C.  Direct labor

 D.  Fixed manufacturing overhead

 

 28) Which of the following is NOT considered an advantage of using standard costs?

 

 A.  Standard costs can reduce clerical costs.

 B.  Standard costs can be useful in setting prices for finished goods.

 C.  Standard costs can be used as a means of finding fault with performance.

 D.  Standard costs can make employees “cost-conscious.”

 

 

 29) A standard cost is

 

 A.  a cost which is paid for a group of similar products

 B.  the average cost in an industry

 C.  a predetermined cost

 D.  the historical cost of producing a product last year

 

 

 30) If standard costs are incorporated into the accounting system,

 

 A.  it may simplify the costing of inventories and reduce clerical costs

 B.  it can eliminate the need for the budgeting process

 C.  the accounting system will produce information which is less relevant than the historical cost accounting system

 D.  approval of the stockholders is required

 

 

 31) The total variance is $10,000. The total materials variance is $4,000. The total labor variance is twice the total overhead variance. What is the total overhead variance?

 

 A.  $1,000

 B.  $2,000

 C.  $3,000

 D.  $4,000

 

 

 32) The standard rate of pay is $5 per direct labor hour. If the actual direct labor payroll was $19,600 for 4,000 direct labor hours worked, the direct labor price (rate) variance is

 

 A.  $400 unfavorable

 B.  $400 favorable

 C.  $500 unfavorable

 D.  $500 favorable

 

 

 33) The standard number of hours that should have been worked for the output attained is 8,000 direct labor hours and the actual number of direct labor hours worked was 8,400. If the direct labor price variance was $8,400 unfavorable, and the standard rate of pay was $18 per direct labor hour, what was the actual rate of pay for direct labor?

 

 A.  $17 per direct labor hour

 B.  $15 per direct labor hour

 C.  $19 per direct labor hour

 D.  $18 per direct labor hour

 34) The overhead controllable variance is calculated as the difference between actual overhead costs incurred and the budgeted

 

 A.  overhead costs for the standard hours allowed

 B.  overhead costs applied to the product

 C.  overhead costs at the normal level of activity

 D.  fixed overhead costs

 

 

 35) Which of the following statements is FALSE?

 

 A.  The overhead volume variance indicates whether plant facilities were used efficiently during the period.

 B.  The costs that cause the overhead volume variance are usually controllable costs.

 C.  The overhead volume variance relates solely to fixed costs.

 D.  The overhead volume variance is favorable if standard hours allowed for output is greater than the standard hours at normal capacity.

 

 

 36) The overhead volume variance relates only to

 

 A.  variable overhead costs

 B.  fixed overhead costs

 C.  both variable and fixed overhead costs

 D.  all manufacturing costs

 

 37) Looker Hats is planning to sell 600 felt hats, and 700 will be produced during June. Each hat requires a half yard of felt and a quarter hour of direct labor. Felt costs $3.00 per yard and employees of the company are paid $20 per hour. How much is the total amount of budgeted direct labor for June?

 

 A.  $3,000

 B.  $48,000

 C.  $3,500

 D.  $2,400

 

 

 38) Waco’s Widgets plans to sell 22,000 widgets during May, 19,000 units in June, and 20,000 during July. Waco keeps 10% of the next month’s sales as ending inventory. How many units should Waco produce during June?

 

 A.  18,900

 B.  21,000

 C.  19,100

 D.  19,000

 

 

 

 

 

 

 39) Gottberg Mugs is planning to sell 2,000 mugs and produce 2,200 mugs during April. Each mug requires 2 pounds of resin and a half hour of direct labor. Resin costs $1 per pound and employees of the company are paid $12.50 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. Gottberg has 2,000 pounds of resin in beginning inventory and wants to have 2,400 pounds in ending inventory. How much is the total amount of budgeted direct labor for April?

 

 A.  $12,500

 B.  $13,750

 C.  $25,000

 D.  $27,500

 

 

 40) In cost-plus pricing, the target selling price is computed as

 

 A.  variable cost per unit + desired ROI per unit

 B.  fixed cost per unit + desired ROI per unit

 C.  total unit cost + desired ROI per unit

 D.  variable cost per unit + fixed manufacturing cost per unit + desired ROI per unit

 

 

 41) In most cases, prices are set by the

 

 A.  customers

 B.  competitive market

 C.  largest competitor

 D.  selling company

 

 

 42) In cost-plus pricing, the markup percentage is computed by dividing the desired ROI per unit by the

 

 A.  fixed cost per unit

 B.  variable cost per unit

 C.  total cost per unit

 

 D.  total manufacturing cost per unit

BSHS 382 Week 3 Research Proposal

The Research Proposal must be a 1,050- to 1,400-word proposal formatted according to APA 6th ed. guidelines. The Learning Team must identify a problem worthy of research and develop an outline of the process required to research it. No actual experiments must be conducted.

The Research Proposal must contain the following sections:

Introduction

·Write a 100- to 200-word introduction for your research proposal. This must explain your research problem and your working hypothesis.

·Refer to Appendix A of Beginning Behavioral Research for guidance on creating an introduction.

Elements of the Study

·Write a 175- to 350-word outline of the elements of your research study.

oProvide your argument for the study and at least one example of past research that supports your argument.

oDescribe your variables and what they mean. For example, if I am measuring success, I define success as a student’s grade on their GRE exam. The success variable equals above average score on the GRE. Please use your own example.

oDescribe your sample

·Refer to Appendix A of Beginning Behavioral Research for an overview and examples of a research report. Please follow APA 6thedition for APA guidelines.

Ethical Considerations

·Write a 175- to 350-word summary identifying ethical considerations you must have in designing your research project.

·Refer to Ch. 3 of Beginning Behavioral Research and incorporate at least one scholarly source in your discussion of ethical considerations specific to your research proposal.

Survey Design

·Write a 350- to 525-word summary of the survey design you chose and how you obtained a representative sample for the proposed research.

·Include the appropriate measures of reliability and validity.

·Explain the rationale for how you propose to design and conduct the research while minimizing bias.

·Refer to Ch. 9 of Beginning Behavioral Research for details on survey design and subject recruitment.

Conclusion

 

·Write a 75- to 150-word conclusion summarizing your research proposal.

HRM 594 Week 4 Tanglewood Paper Case 3

Objective

 

Recruiting is the first stage in which organizational plans for staffing come into contact with the labor market for employees. Before making any new recruiting effort, an organization needs to carefully consider the methods available and balance out the costs of each method with the organization’s needs.

 

Part 3 provides an opportunity to see how staffing managers develop plans for recruiting efforts. You will develop a recruiting strategy and a recruiting guide for the store associate job. The case also demonstrates how you can use organizational data to determine what the best methods for recruiting are. Finally, you will have an opportunity to develop various forms of recruiting messages that will encourage individuals to apply for jobs as sales associates at Tanglewood.

 

Assignment Specifics

 

Analyze the information from the recruiting data and prepare a report showing the results of the analysis for your director.

 

Start by developing a recruitment guide like that shown in Exhibit 5.3 in the textbook. Note that the current situation differs from the example provided in the book because there is no specific timeline for hiring; this is a continuous recruiting effort because even as positions are being filled, new positions are becoming available. It is also different because Tanglewood does not have a specific list of minimal educational requirements as qualifications. Describe the best “targets” for your recruiting efforts by considering the job and organizational context. Evaluate the various methods of recruiting in terms of whether they seem more like “open” or “targeted” recruiting, using the information in the book to help you make this decision. If some methods seem more “targeted,” whom do you think they target? For each division use the data tables provided in Appendix B to estimate how each method fares in terms of yields and costs. Provide a one-page summary of the essential results of the various data tables you have been provided. Northern Oregon has suggested that the other divisions of the company use a policy of using kiosks and staffing agencies rather than using the more “touchy-feely” method of relying on referrals. Does this division have a point? What would the effect of other regions increasing their use of external hiring be? Tanglewood’s top management is highly committed to improving customer service quality, and proposes that simply finding the cheapest way to hire is not sufficient. Besides costs and retention, what other measures of employee performance would be good “bottom line” metrics for the quality of a recruiting method? How might the managerial focus groups’ concerns fit with these alternative considerations? The question of realism in the recruitment policy has been raised in focus groups. Write one paragraph proposals for targeted, realistic, and branded recruiting messages for Tanglewood’s customer store associate positions. What are the traditional arguments for and against using realistic recruiting policies?

 

Grading

 

100 points possible

 

Case Description/Introduction (5 points) Development of a Recruitment Guide (15 points) Describe the best “targets” for their recruiting efforts by considering the job and organizational context (15 points) Estimate how each method fares in terms of yields and costs (15 points) Northern Oregon’s suggestion for other divisions (15 points) Other measures of employee performance that might be good “bottom line” metrics for the quality of a recruiting method and how the managerial focus groups’ concerns might fit with these alternative considerations (15 points) One paragraph proposals for targeted, realistic, and branded recruiting messages for Tanglewood’s customer store associate positions (15 points)

 

 

PHL 323 Current Ethical Issue in Business

LASA 1: Ethical Issues for Forensic Psychologists

 

Read the following current  version of the ethical guidelines by the American Psychology-Law Society:

http://www.ap-ls.org/aboutpsychlaw/080110sgfpdraft.pdf

 

This assignment is designed to help you synthesize and apply the current version of the ethical guidelines of forensic psychology to what you have been learning about the relationship of substance abuse in the criminal justice system, assessment, diagnosis and ethical considerations.   

 

After thoroughly reading the ethical guidelines of forensic psychology, review the following scenarios and questions and respond to each question thoroughly.  Your paper should reflect an understanding of applying the ethical standards to the course material. 

 

Provide a summary which includes the purpose, history and goals of the ethical standards.  What is your initial reaction to the ethical guidelines of forensic psychology?  

 

Review and summarize the standards related to confidentiality.   What steps will you take as a counselor in the criminal justice system to be in compliance with the ethical standards?    After reviewing the textbook and online lecture, how will you handle “red flags” and the limits of confidentiality, yet be in compliance with the ethic guidelines? 

 

You are presented with a client who is ordered through the court to undergo an examination or treatment.  The client refuses to sign the confidentiality agreement, and has made it quite clear he is not going to participate.  Identify what action you will take and provide the standard(s) which guided your decision.   Be sure to include a summary of what confidentiality is and why it is important. Your significant other is a recovering addict. 

 

According to the module lecture countertransference may occur when counseling an individual who has similar behaviors to the counselor’s family members.  Review the standard 4.07 from the ethical guidelines of the American Psychology-Law Society and the online content.  Discuss what options the counselor has to be in compliance with the standard.  Be sure to include a discussion of countertransference.

 

Compare and contrast the ethical issues of confidentiality and countertransference: Which issue do you believe will be most difficult to deal with, and why? After reviewing the ethical guidelines and applying the guidelines to treatment and evaluation issues provide your opinion of the relationship of substance abuse treatment and sanctions of the court.

 

Your report should be at least 5 pages long. Remember to also include a cover page and reference page, and to support your arguments with information drawn from the ethical guidelines of the American Psychology-Law Society, the  online content, the textbook, and other credible, scholarly sources to substantiate the points you are making.  Apply APA standards for writing and citations to your work.

Submit your response to the  Assignment by Monday, June 29, 2015. 

Assignment Grading Criteria

Maximum Points

Summarized the ethical guidelines and provided initial reaction to the publication.

28

Summarized the standards of confidentiality and provided explanation of being in compliance of the standards within the criminal justice system when presented with “red flag” situations.

32

Identified the standards which guide the practitioner to handle court ordered evaluations and described what actions could be explored with a non-cooperative client.

32

Described countertransference and examined the appropriate action of the counselor as guided by the ethical guidelines and the module content.

32

Compared and contrasted the issues of confidentiality and countertransferance. Analyzed the complexity of substance abuse use and the criminal justice systems.

32

Style (4 points): Tone, audience, and word choice

Organization (12 points): Introduction, transitions, and conclusion

Usage and Mechanics (12 points): Grammar, spelling, and sentence structure

APA Elements (16 points): In text citations and references, paraphrasing, and appropriate use of quotations and other elements of style

44

Total:

200

ACC 205 Week Three Exercise Assignment Inventory

1. Specific identification method. Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows.

Painting

Cost

1/2 Beginning inventory

Woods

$11,000

4/19 Purchase

Sunset

21,800

6/7 Purchase

Earth

31,200

12/16 Purchase

Moon

4,000

Woods and Moon were sold during the year for a total of $35,000. Determine the firm’s

a. cost of goods sold.

b. gross profit.

c. ending inventory.

2. Inventory valuation methods: basic computations. The January beginning inven­tory of the White Company consisted of 300 units costing $40 each. During the first quarter, purchases were:

Date Quantity Cost

1/15 700 $45

1/31 1200 $48

2/12 800 $46

2/27 650 $51

Sales during the first quarter were.

Date Sold

1/19 500

2/2 600

2/13 500

2/28 100

The White Company uses a perpetual inventory system.

Using the White Company data, fill in the following chart to compare the results obtained under the FIFO, LIFO, and weighted-average inventory methods.

FIFO

LIFO

Weighted Average

 

Goods available for sale

$

$

$

Ending inventory, March 31

Cost of goods sold

3. Perpetual inventory system: journal entries. At the beginning of 20X3, Beehler Company implemented a computerized perpetual inventory system. The following transactions occurred:

  • Purchases on account: 500 units @ $4 = $2,000
  • Sales on account: 300 units @ $5 = $1,500
  • Purchases on account: 600 units @ $5 = $3,000
  • Sales on account: 300 units @ $5 = $1,500

a. Prepare journal entries for the above purchases and sales.

b. Calculate the balance in the firm’s Inventory account.

4. Inventory valuation methods: computations and concepts. Wave Riders Surfboard Company began business on January 1 of the current year. Below are the transactions for the year

:

1/3:

Purchase 100 boards @ $125

3/17:

Sold 50 boards @ $250

4/3:

Purchase 200 boards @ $135

5/17:

Sold 75 boards @ $250

6/3:

Purchase 100 boards @ $145

1/3:

Purchase 100 boards @ $155

3/17:

Sold 300 boards @ $250

1/3:

Purchase 100 boards @ $140

Wave Riders uses a perpetual inventory system.

Instructions

a. Calculate cost of goods sold, ending inventory, and gross profit under each of the following inventory valuation methods:

  • First-in, first-out
  • Last-in, first-out
  • Weighted average

b. Which of the three methods would be chosen if management’s goal is to

(1) produce an up-to-date inventory valuation on the balance sheet?

(2) approximate the physical flow of a sand and gravel dealer?

5. Depreciation methods. Betsy Ross Enterprises purchased a delivery van for $30,000 in January 20X7. The van was estimated to have a service life of 5 years and a resid­ual value of $6,000. The company is planning to drive the van 20,000 miles annually. Compute depreciation expense for 20X8 by using each of the following methods:

a. Units-of-output, assuming 17,000 miles were driven during 20X8

b. Straight-line

c. Double-declining-balance

6. Depreciation computations. Alpha Alpha Alpha, a college fraternity, purchased a new heavy-duty washing machine on January 1, 20X3. The machine, which cost $1,000, had an estimated residual value of $100 and an estimated service life of 4 years (1,800 washing cycles). Calculate the following:

a. The machine’s book value on December 31, 20X5, assuming use of the straight-line depreciation method

b. Depreciation expense for 20X4, assuming use of the units-of-output depreciation method. Actual washing cycles in 20X4 totaled 500.

c. Accumulated depreciation on December 31, 20X5, assuming use of the double-declining-balance depreciation method.

7. Depreciation computations: change in estimate. Aussie Imports purchased a specialized piece of machinery for $50,000 on January 1, 20X3. At the time of acquisition, the machine was estimated to have a service life of 5 years (25,000 operating hours) and a residual value of $5,000. During the 5 years of operations (20X3 – 20X7), the machine was used for 5,100, 4,800, 3,200, 6,000, and 5,900 hours, respectively.

Instructions

a. Compute depreciation for 20X3 – 20X7 by using the following methods: straight line, units of output, and double-declining-balance.

b. On January 1, 20X5, management shortened the remaining service life of the machine to 20 months. Assuming use of the straight-line method, compute the company’s depreciation expense for 20X5.

c. Briefly describe what you would have done differently in part (a) if Aussie Imports had paid $47,800 for the machinery rather than $50,000 In addition, assume that the company incurred $800 of freight charges $1,400 for machine setup and testing, and $300 for insurance during the first year of use.