Answer:
In accounting, agency costs are the costs of hiring an agent in order for him/her to act on behalf of a principal. In finance, agency costs are much broader since they imply costs that may appear due to conflicts of interests between the agent and the principal. E.g. a manager who seeks to accomplish short term goals in order to collect a bonus but hurts the long term objectives and goals of the stockholders.
Agency costs of financial distress refers to the costs associated with conflicts of interest that may result in a company being insolvent, specially in the long run. This type of costs are not necessarily related to operating costs, instead they result from management decisions and strategies, e.g. higher cost of capital or debt, or even excessive spending.
Agency benefits of leverage result from stockholders benefiting from the agent's decision to keep equity low, and if needed, obtain financing from debt sources.
Answer:
Material quantity variance
= (Standard quantity - Actual quantity) x Standard price
After the adjustment for missing order
Material quantity variance
= (1.25 x 5,000 - 6,200) x $1.50
= $ 75( F)
The correct answer is A
Explanation:
Material quantity variance is the difference between standard quantity and actual quantity used multiplied by standard price. Standard quantity is standard quantity per unit multiplied by units made. Since the units made are now 5,000 units. Standard quantity will be 1.25 multiplied by 5,000 units.
An example of frivolous lawsuits would be when overweight people file suit against manufacturers, distributors or sellers of food products, charging these parties with responsibility for their obesity.
Explanation:
- This does not have serious purpose or view
- The mistake or the complaint cannot be proved
- There is a little possibility of winning but most of the cases people fail to win
- There is no legal merit given to this
- There are so many examples, where people complaint without any valid proof or with the things where they cannot bring proof
- The complaints are not even facts
So, frivolous lawsuits are associated with complaints which cannot be proved.
Early supplier involvement involves in the collaboration with the suppliers and the manufacturers of the products they suggest new ideas and share their ideas in the early stage of the product
Explanation:
Early supplier involvement is much important because it plays a major role in bringing the suppliers and the manufactures in line and they discuss about the product and the new ideas.
Project delivery will be more easy when the developers and the owners discuss upon the ideas and the investments in the products and it is always wiser to involve the early supplier investment so that the product will be better known to both sides.
