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kupik [55]
3 years ago
14

The objective of maximizing value for the shareholders provides an important theme in corporate finance. This objective is not w

ithout criticism. Which of the following is NOT a criticism. Select one: a. The objective is blind to social and ethical costs associated with value maximization. b. The objective does not well account for the fact that managers are naturally inclined to act in their own best interests, which are not always in line with that shareholders. c. It assumes that accrual based profits are superior to cash flows. d. It assumes some level of market efficiency.
Business
1 answer:
Illusion [34]3 years ago
4 0

Answer:

D

Explanation:

Agency conflicts arises  when the objectives of managers isn't aligned with that of shareholders.

Due to the objective of maximising value for shareholders, managers might be induced to engage in aggressive accounting practices in order to present a higher profits than might actually exist. This practice is unethical. This places more emphasis on profits than cash flows.

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If 11 workers can produce a total of 54 units of a product and the 20 worker has a marginal product of six units what is the ave
Rufina [12.5K]

Answer:

If 11 workers can produce a total of 54 units of a product and the 20 worker has a marginal product of six units what is the average product of 12 workers?

11 workers= 54 units

12 workers= ?

12 x 54/11= 59 units

Explanation:

7 0
3 years ago
_____ pricing occurs when the price of each unit as a multi-unit package of the same item is less than the price of each unit if
lora16 [44]

Answer:

E

Explanation

Multiple Unit Pricing is selling a product at a lower price than that of other products of the same categoryThis is true, in case of bulk orders.

A product is sold at a pre-decided price, which is equal or less than the maximum retail price or list price of the product.

Multiple Unit pricing is a pricing strategy which is used to push the sales of the product.

7 0
4 years ago
Rory’s company sells laptop computers for $700 and high-end desktop computers for $1,800. The variable costs for the laptops tot
EastWind [94]

Answer:

The weighted-average unit contribution margin is $610

Explanation:

Hi, first we need to find the contribution margin for each line of product. This is as follows.

Laptops

Price-Var.Cost= Contrib.Margin

700-300=400

Desktops

1,800-700=1,100

Now, the weighted-average unit contribution margin is as follows.

Contrib.Margin(Laptops)*Percent(Laptops)+Contrib.Margin(DeskT)*Percent(DeskT)

1,100*0.3+400*0.7=610

So, the weighted-average unit contribution margin for this company is $610

Best of luck

5 0
3 years ago
On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,200,000 for $5,000,000. Rigsby appropriately uses the i
ivann1987 [24]

Answer:

Instalment receivables (net) of $2,905,600 is the correct answer.

Explanation:

Instalment Receivables ($5,000,000 - $460,000) = $4,540,000

Deferred gross profit ($1,800,000 - $165,600) = $1,634,400

Instalment Receivables (Net) = $2,905,600

6 0
3 years ago
Emco Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined ove
Andru [333]

Answer:

B. overstate the predetermined overhead rate.

Explanation:

As we know

The Predetermined overhead rate would be equal to

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours or machine hours)

In the given question, the direct labor cost is used for computing the predetermined overhead rate which is already wrong.

To find out the predetermined overhead rate, we always use the indirect cost instead of direct cost

This error could overstate the predetermined overhead rate as it would increase the indirect labor due to which overhead is also increased. So, automatically the rate would also be increased.

8 0
3 years ago
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