Answer:
1. To reduce the company's tax bill, Jack uses total cost to value inventory instead of using product cost as required by law.
- Competence: accounting records must follows applicable laws, regulations and standards, you must IRA and GAAP rules when preparing financial statements and tax reports.
2. Since Emilie works in the accounting department, she is aware that profits are going to fall short of analysts' projections. She tells her aunt to sell stock in the company before the earnings release date.
- Confidentiality: accounting records must b confidential unless you are authorized to disclose them, and you are not authorized to disclose the information to your aunt.
3. Veronica pays a Mexican official a bribe of $50,000 to allow the company to locate a factory in that jurisdiction so that the company can take advantage of the cheaper labor costs. Without the bribe, the factory cannot be located in that location.
- Integrity: you must abstain from performing illegal activities, and bribery is illegal.
4. There is a failure in the company's backup system after a system crash. Month-end reports will be delayed. Kayla, the manager of the division experiencing the system failure, does not report this upcoming delay to anyone since she does not want to be the bearer of bad news.
- Credibility: you must report all relevant and important information regardless of whether that information will make you bad or not.
Answer:
A price floor set above the equilibrium price will result in a surplus of supply.
Explanation.
An equilibrium price refers to the price at which demand for a service or product is equivalent to the quantity of the product or service supplied in the market.
Setting a price floor above the equilibrium price essentially means that the set prices will be higher than what demand is willing to pay for the product or service. Demand will therefore purchase fewer quantity of the product offered by supply at the prevailing price than they would have at equilibrium price.
Since the price floor will raise the product price to considerably higher than the equilibrium price, supply will be willing to provide higher volumes of the product at the prevailing price than at equilibrium price.
This will lead to a mismatch in the market between supply and demand resulting into a surplus.
Answer:
TIE 6.26238
Explanation:
Times Interest Earned:
EBIT = earnings before Interest and Taxes
Answer:
The indifference point is 5,895 units
Explanation:
Giving the following information:
In-house:
Unitary variable cost= $11.5
Fixed cost= 30,000
Buy:
Unitary variable cost= $16.25
Fixed cost= 2,000
<u>To calculate the indifference point, we need to establish the total cost formulas for each option:</u>
In-house:
Total cost= 30,000 + 11.5x
x= number of units
Buy:
Total cost= 2,000 + 16.25x
x= number of untis
<u>Now, we equal both formulas and isolate x:</u>
30,000 + 11.5x = 2,000 + 16.25x
28,000 = 4.75x
5,895 = x
The indifference point is 5,895 units
<span>To create a competitive advantage that is sustainable over time, the international company should try to develop competencies that create value for customers and value they are willing to pay for in that item.
When you have a competitive advantage you are creating value in your product that make a consumer buy it over another similar product. Making sure the item and the value created for the customer match the price point it's set at.
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