Answer:
$876,205.93
Explanation:
Calculation for the value of the Treasury note
FV= 1,000,000
N=3*2
N=6
PMT=3%*1,000,000/2
PMT=30,000/2
PMT= 15,000
I/Y=7.7/2
I/Y= 3.85
Using financial calculator to find the present value of the treasury note
Present Value = $876,205.93
Therefore the present value of the treasury note will be $876,205.93
Answer:
D. Switching cost strategy
Explanation:
The software manufacturer has incorporated the use of switching cost strategy by making it difficult for customers to substitute their software product for another.
Switching costs: it is also known as switching barrier. This is a the cost incurred by the customer as a result of changing brands, product, services or suppliers.
The higher the cost of switching; the lesser a customer would be willing to switch between brands, the lower the switching cost; the higher the customer would be willing to switch between brands.
Switching cost includes:
• Psychological cost: This is the cost of a customer deciding whether the new product or services would be better than the old product
• Effort-based cost: This refers to the effort a customer will put in while switching brands such as the paperwork involved.
• Time cost: The amount of time used while a customer is switching product
Strategies used by firms to discourage its customers from switching
1. Charging a high cancellation fee for service cancellations.
2. Adopting a lengthy cancellation process for service cancellations.
3. Requiring significant paperwork for service cancellations.
Answer:
If the company budgets 40% for income tax expense, the budgeted net income will be $16,002
Explanation:
Total expense of the company = COGS + Depreciation expense + Interest expense + Other expenses = $48,500 + $1,500 + $250 + $41,880 = $92,130
Pretax income = Sales - Total expense = $118,800 - $92,130 = $26,670
Income tax expense = $26,670 x 40% = $10,668
The budgeted net income = Pretax income - Income tax expense = $26,670 - $10,668 = $16,002
Answer:
The correct answer is certified public.
Explanation:
Certified Public Accountants have studied this profession, possess their diplomas and must pass a public accountant exam. To use the CPA designation, these accounting professionals are required to educate themselves at a university about government law and pass a rigorous exam.
A CPA accountant can work within a company or create his own company to offer his professional services. Depending on the requirements of each state, the certification must be renewed every two (2) years. So CPAs have a higher level of responsibility than accountants or accountants.
A Certified Public Accountant (CPA) in addition to keeping the balance books of companies, performs tax and financial audit services for individuals, companies and non-profit organizations.
For this reason, accountants perform functions that are not at the professional level of accountants or Certified Public Accountants (CPAs). As companies grow, so do financial responsibilities when filing taxes. And CPAs are certified to handle or control any type of tax or accounting situation.
A Certified Public Accountant (CPA) must be current and qualified by the American Institute of Certified Public Accountants. The exam that a CPA accountant must pass is four parts and must be completed in a period of two years.
