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3 years ago

One of the lessons that we learned from the Ford Pinto case was that:_________

Business

1 answer:

Oksi-84 [34.3K]3 years ago

6 0

Answer: option 3

Explanation:

Background to the case:

The cases involving the explosion of Ford Pinto's due to a defective fuel system design led to the debate of many issues, most centering around the use by Ford of a cost-benefit analysis and the ethics surrounding its decision not to upgrade the fuel system based on this analysis.

Basis of analysis:

Should a risk/benefit analysis be used in situations where a defect in manufacturing could lead to seriously bodily harm and even worse death, such as in the Ford Pinto situation?

Rule of the court:

There hasn’t really been a definite decision about the case and arguments both for and against such an analysis have been made. It is an economically efficient method which has been accepted by courts for numerous years, however, juries may not always agree, so companies should take this into account.

Discretion is expected to be used.

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Regling Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $4

Leto [7]

Answer:

Dr Vacation pay expenses $40,000

Cr Vacation pay payable $40,000

Dr Pension expenses $222,750

Cr Cash $185,000

Cr Unfunded pension liability $37,750

Explanation:

Regling Company Journal entries

Dr Vacation pay expenses $40,000

Cr Vacation pay payable $40,000

Dr Pension expenses $222,750

Cr Cash $185,000

Cr Unfunded Pension liability $37,750

8 0

3 years ago

A stock has a beta of 1.48 and an expected return of 17.3 percent. A risk-free asset currently earns 4.6 percent. If a portfolio

pshichka [43]

Answer:

.66; .34

Explanation:

Calculation of weight of the stock and weight of the risk free asset

stock expected return = 17.3%

stock beta value = 1.48

risk free asset beta value is = 0

risk free asset return = 4.6

portfolio beta is = 0.98

let taken weight of the stock is X

so weight of the risk free asset is = 1-X

portfolio beta = stock weight*beta+riskfree weight*beta

0.98 = X*1.48+(1-X)*0

0.98= 1.48X+0

1.48X= 0.98

X = 0.66

66%

weight of the risk free asset is = 1-0.66

= 0.34

= 34%

3 0

3 years ago

If a firm invests amount P0 at an interest rate of r%, then a year later invests amount P1 at the same rate, then the total am

Yuki888 [10]

Answer:

interest rate = 5.01%

Explanation:

$a (1+r)^{2} + b (1+r) = c$

p0= a = 1000

p1= b = 2400

amount = c= -3623

rate = ?

Because the first amount is investment for a period of 2 years, and the second 1 year, we can solve for rate using the quadratic equation:

$x = \frac{ - b +/- \sqrt{b^{2} - 4ac} }{2a}$

$1000 (1+r)^{2} + 2400 (1+r) = 3623$

$1000 (1+r)^{2} + 2400(1+r) - 3,623 = 0$

A = 1000

B = 2400

C = -3623

$x = \frac{ - 2400 \sqrt{2400^{2} - 4*1000*-3623} }{2*1000}$

x1 = 1.0501111083677623

x2 = -3.4501111083677625

We use the positive root:

x1 = 1.0501111083677623 = (1+r)

1.0501111083677623 - 1 = r = 0.0501111 = 5.01%

EDIT several problems with the math tool but kind of worked

8 0

4 years ago

Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing ov

Anuta_ua [19.1K]

Answer:

a. The materials price variance for September is $17,390 Unfav

b. The materials quantity variance for September is 81 Unfav

c. The labor rate variance for September is 6,102 Unfav

d. The labor efficiency variance for September is 107,954 Fav

e. The variable overhead rate variance for September is $6,586 Fav

f. The variable overhead efficiency variance for September is 2,940 Fav

Explanation:

a. According to the given data we have the following:

Std material qty for actual output= (10700*8.50)= 90,950

Std material price per liter= $8.1

Actualq ty purchased= 93,100

Actual qty used =90,960

Actual price= (771,500/93,100)=$8.286788

Therefore, Material price variance= Actual qty prucased (Std price - Actual price)

Material price variance= 931,00 ($8.10 -$8.29) = $ 17,390 Unfav

b. To calculate the materials quantity variance for September we would have to use the following formula:

Material qty variance= Std price (Std quantity-Actual quantity)

Material qty variance= $8.10(90950-90960)= 81 Unfav

c. To calculate the labor rate variance for September we would have to use the following formula:

Labour rate variance= Actual hours (Std rate-Actual rate)

Std labour hours allowed= (10700*0.60)= 6420 hours

Std rate per hour= $ 25.70 per hour

Actual labour hours= 6000 hour

Actual rate per hour=(160302/6000)=26.717

Therefore, Labour rate variance= 6000 (25.70 -26.717) = 6,102 Unfav

d. To calculate the lthe labor efficiency variance for September we would have to use the following formula:

Labour Efficiency variance= Std rate (Std hourrs-Actual hours)

Labour Efficiency variance=25.70 (6420 -6000) = 107,954 Fav

e. To calculate the variable overhead rate variance for September we would have to use the following formula:

Variable Oh rate variance= Actual hours (Std OH rate-Actual OH rate)

Std variable OH rate per hour: 7 pr hor

Actuall variable OH rate per hour (35414/6000): 5.902 Per hour

Therefore, Variable Oh rate variance= 6000 ( 7.00 -5.902) = $ 6,586 Fav

f. To calculate the variable overhead efficiency variance for September we would have to use the following formula:

Variable OH efficiency variance= Std OH rate (Std hours-Actual hours)

Variable OH efficiency variance= 7.00 (6420 - 6000) = 2,940 Fav

5 0

4 years ago

Alex works as an accountant at a pharmaceutical company. his job frequently demands that he work overtime. lately, his health ha

Alex

The answer to this question is a Negative Valence. The term Valence in psychology means an emotional value of a person’s attraction to a specific event or thing that can be either positive feeling or a negative feeling. Negative Valence often co notates the words such as fear, anger, sickness, death, etc.

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4 years ago