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3 years ago

Service variability means that the quality of services does not depend on who provides them. True False

Business

1 answer:

viva [34]3 years ago

7 0

Answer: False

Explanation:

Service variability means that the quality of services depends on who provides them. Also where it was provided, when it was provided, and how it was provided are taken into consideration.

Service variability are changes in the quality of identical service that are beung provided by different vendors. It should be noted that the difference in change is due to the nature of the service, delivery method used and the individual providing the service.

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The reported net incomes for the first 2 years of Sarasota Products, Inc., were as follows: 2020, $155,500; 2021, $188,100. Earl

Phoenix [80]

Answer:

Dr retained earnings($21,600+$15,800) $37,400.00

Cr accumulated depreciation $21,600

Cr inventory $15,800

Explanation:

The errors that require adjustment are the overstatement and understatement of depreciation expense as well as the December 2021 overstatement of inventory.

The understatement of inventory in 2020 would have self-corrected itself in 2021 since closing inventory in 2020 deducted from costs of goods available for sale would be introduced as opening inventory in 2021.

net effect of depreciation=understatement -overstatement=$37,500-$15,900=$21,600.00

hence retained earnings would reduce by $21,600.00

for the overstatement of inventory,retained earnings would reduce by $15,800

5 0

3 years ago

What is an expenses?

Lelu [443]

Answer:

It’s like the price or the cost

Explanation:

5 0

3 years ago

Read 2 more answers

Everyone in the organization has a stake in how information is processed and managed.

Korvikt [17]

This is true. Hope I could help!

7 0

3 years ago

7. Identifying costs of inflation Bob manages a grocery store in a country experiencing a high rate of inflation. He is paid in

stiks02 [169]

Answer:

Shoe-leather Costs.

Explanation:

In this scenario, Bob manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value.

What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the Shoes-leather costs of inflation.

A Shoe-leather costs refers to the costs of time, energy and effort people expend to mitigate the effect of high inflation on the depreciative purchasing power of money by frequently visiting depository financial institutions in order to minimize inflation tax they pay on holding cash.

Metaphorically, it ultimately implies that in order to protect the value of money or assets, some people wear out the sole of their shoes by going to financial institutions more frequently to make deposits.

Hence, Bob is practicing a shoe-leather cost of inflation so as to reduce the nominal interest rates.

5 0

3 years ago

The Corner Bakery has a bond issue outstanding that matures in 7 years. The bonds pay interest semi-annually. Currently, the bon

MaRussiya [10]

Answer:

Ans. The after tax cost of this bond is 2.09%

Explanation:

Hi, first we need to establish the cash flow of the bond, so we can find the after tax cost of the bond. After we find the after tax cash flow of the bond, we must use the IRR function of MS Excel to find the semi-annual cost of this debt, but, all after tax debts should be presented in annual basis. Let me walk you through the process. First, let me show you how it should look.

Face Value 100

price 101,4

years 7 years

Coupon 9%

Coupon 4,5% semi-annually

tax 30%

Per Cash Flow After Tax

0 101,4 101,4

1 -4,5 -3,15

2 -4,5 -3,15

3 -4,5 -3,15

4 -4,5 -3,15

5 -4,5 -3,15

6 -4,5 -3,15

7 -4,5 -3,15

8 -4,5 -3,15

9 -4,5 -3,15

10 -4,5 -3,15

11 -4,5 -3,15

12 -4,5 -3,15

13 -4,5 -3,15

14 -104,5 -73,15

Cost of Debt 1,04% semi-annually

Cost of Debt 2,09% annually

Ok, now, as you can see, there are 14 periods, that is because the coupon is paid semi-annually, the way to find the cash flow (I mean, the bond´s coupon) is:

$Coupon (semi-annual)=(Face Value)x\frac{0.09}{2} =4.5$

At the end (period 14), we need to add the face value and the coupon, that is $100+$4.5=$104.5

Now, to find the value of the third column (after-tax cost), we do the following.

$After-tax-Cost=Couponx(1-taxes)=4.5(1-0.3)=3.15\\$

Now, consider this, you are receiving 101.4 for every 100 of debt, that means that you are receiving more money than the emission value, and paying interests over 100 instead of 101.4, that is why we have to use the IRR excel function to find out the semi-annual cost of debt. That is, 1.04%.

Now, to make this an effective annual rate, we calculate it like this.

$EffectiveAnnualRate=(1+semi-annual Rate)^{\frac{1}{2} } -1=(1+0.0104)^{\frac{1}{2} } -1=0.0209$

Finally, the after-tax cost of this debt is = 2.09%

Best of luck.

6 0

3 years ago