Answer:
a.$6,705
Explanation:
The total cost is the sum of the three cost component, Direct materials, direct labours, and factory overhead.
Direct Labor Cost: 71 hours x $15 per hour = $ 1,065
Manufacturing Overhead: 175 machine hours x $14 per hour = $ 2,450
Direct Materials $ 3,190
Total cost: 1,065 + 2,450 + 3,190 = 6,705
Answer:
The answer is: B) The reduction in economic surplus resulting from a market not being in competitive equilibrium.
Explanation:
Deadweight loss is an economic cost to society as a whole when market inefficiencies occur preventing it from reaching its equilibrium point. Market inefficiencies are caused by incorrect allocation of resources.
For example if a price ceiling is established, suppliers will tend to lower the quantity supplied while the quantity demanded either increases or stays the same. That economic deficiency resulting from an unsatisfied demand is what we call deadweight loss.
Other causes for deadweight loss are price floors (reduction of the quantity demanded) and taxation (shifts on the demand or supply curves).
Answer: Options A and C are strengths while options B and D are weaknesses. See explanation below.
Explanation:
a. All employees must take at least five consecutive days off each year.
This is a strength in internal control. This would help to maintain stability in operational process and ensure leave days are effectively utilized. It also prevents staff from taking the leave days in piecemeal and sporadic manner thereby disrupting the operational process and causing team instability. It is also used to ensure leave days are promptly utilised and well accounted for.
b. The accounting department orders merchandise and approves invoices for payment.
This is a weakness in internal control. There should be a check and balance in this regard. In some organizations, proper scrutiny of the vendor and invoice is done by the Procurement Unit and the Expense Control Unit respectively. Even within the accounting department, there is approval hierarchy. Also, the unit within accounting department that is making the order should not be the one to approve the transaction.
c. Cash received over the counter is controlled by the sales clerk, who rings up the sale and places the cash in the register. The daily sales are recorded in the accounting records by the accounting department.
This is a strength in internal control as it ensures checks and balances. Fraud and error can be detected through this means. The accounting department should verify the transactions to the relevant supporting document before recording the transaction in the system.
d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.
This is a weakness in internal control in the sense that checks signed by the officer is binding in the court of law. The officer cannot claim ignorance if anything goes wrong. There is therefore a need for proper scrutiny and relevant questions asked before checks are signed.
Answer:
The correct answer is A. $18,276
Explanation:
First you have to calculate how much you'd end up having at the end of the 25 years period in your savings account.
You calculate the total amount saved for each year, using the formula:
Where
is the total amount in the savings account for this period.
is the total amount in the savings account from the previous period.
is the interest rate.
are the annual deposits being made into the savings account.
Therefore for the first year you'd do:
For the second year:
And so on. You can help yourself calculate the value of this series using programs like Excel.
I have attached an Excel file that has a table with the savings values for each of the 25 years.
So, the 25th year you’ll have $365,529.70 in your savings account. Now you simply divide this number by 20 (that will be the number of years you’ll be withdrawing the same dollar amount from your savings account):
In conclusion, you’d be able to withdraw $18,276.485 each year for the following 20 years after the 25th deposit, if all withdrawals are the same dollar amount.
