Answer:
B) Decentralization of authority
Explanation:
Based on the scenario being described it can be said that the concept that is best illustrated in this scenario would be a decentralization of authority. This is the process in which authority is moved to the lower level managers within an organization. Which is what is happening in Chimbake, since they have given the store managers full authority to control and create the dessert flavors as they see fit.
Answer:
Annual depreciation= $25,375
Explanation:
Giving the following information:
Purchase price= $109,200
Salvage value= $4,200
Useful life in miles= 120,000
<u>To calculate the depreciation expense, we need to use the units-of-activity method:</u>
<u></u>
Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles operated
<u>2018:</u>
Annual depreciation= [(109,200 - 4,200) / 120,000]*29,000
Annual depreciation= 0.875*29,000
Annual depreciation= $25,375
Answer:
1. A) Satisfying your day-to-day spending needs?
<u>Statement Savings account </u>
Bank statements will hep you keep track of the balance.
B) Making and holding funds for your car purchase?
<u>NOW Account.</u>
An account that earns interest yet allows the owner to write drafts against the money in the account. This would be good here as it will increase the funds you are saving for the car purchase.
C) Making and holding funds for your home purchase?
<u>NOW Account. </u>
NOW stands for Negotiable Order of Withdrawal account and would work here as well.
D) Making and holding funds for your retirement?
<u>Certificate of Deposit.</u>
These are offered by banks and earn a higher interest return. They however have to be locked up for a while without withdrawing so they are great for retirement saving.
2. Which of the following accounts is typically not insured?
<h2>
A. Mutual Funds.</h2>
Mutual funds are not financial deposits so will not be covered by the Federal Deposit Insurance Corporation (FDIC).
3. Which of the following practices would help you keep accurate records regarding the funds in your bank account?
- A. Keep track of your balance online.
- B. Immediately record the date and amount of each transaction in your check register and calculate the new balance.
4. You can avoid a service fee on an average-balance account if you:
- B. Keep a certain average daily balance in the account through a specified time
Answer:
$11,098.94
Explanation:
first we must calculate the future value of the 7 year annuity:
FV of an annuity = p x {[(1 + r)ⁿ - 1] / r}
- p = $13,100
- r = 17.18%
- n = 7
FV of an annuity = $13,100 x {(1.1718⁷ - 1) / 0.1718} = $13,100 x 11.8377 = $155,073.56
since he wants to have $176,000, he needs $20,926.44 more in 7 years (= $176,000 - $155,073.56)
X = FV / (1 + r)ⁿ
- future value =
- n = 4 years
- r = 17.18%
X = $20,926.44 / 1.1718⁴ = $11,098.94
