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4 years ago

9

When performing the management _____ function, managers measure the results of operations and compare them with the results they

had laid out in their original goals?

1 answer:

taurus [48]4 years ago

7 0

The answer to this question is controlling :)

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Direct Materials Variances The following data relate to the direct materials cost for the production of 20,000 automobile tires:

Otrada [13]

Answer and Explanation:

The computation is shown below:

a. Direct material price variance

= 80,000 × ($2.65 - $2.5)

= $12,000 unfavorable

Direct material quantity variance

= $2.5 × (80,000 - 86,000)

= -$15,000 favorable

ANd, the total direct material cost variance

= $12,000 unfavorable - $15,000 favorable

= -$3,000 favorable

2. The direct material price variance should be reported to the purchasing department while the direct material quantity variance should be reported to the production supervisor and the total material cost variance should be reported to the senior plant management

5 0

3 years ago

Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a

meriva

Answer:

-$37,952.40

Explanation:

The computation of the net present value is shown below:

Particulars Cash flows Discount factor at 12% Present value

Year 1 $130,000 0.8929 $116,077

Year 2 $136,000 0.7972 $108,419.20

Year 3 $123,000 0.7118 $87,551.40

Amount

invested ($350,000) 1 ($350,000)

Net present value -$37,952.40

7 0

3 years ago

The market value of Charcoal Corporation's common stock is $20 million, and the market value of its risk-free debt is $5 million

zlopas [31]

Answer:

The company's cost of capital will be "13%".

Explanation:

The given values are:

Risk free rate

= 5

Beta

= 1.25

Market risk premium

= 8

Now,

⇒ $cost \ of \ common \ stock=Risk \ free \ rate+Beta\times Market \ risk \ premium$

On substituting the estimated values, we get

⇒ $=5+(1.25\times 8)$

⇒ $=15 \ percent$

The total value will be:

= $20 +5$

= $ $25 \ million$

As we know,

⇒ $WACC=Respective \ costs\times Respective \ weights$

⇒ $=(\frac{20}{25}\times15)+(\frac{5}{25}\times 5)$

⇒ $=12+1$

⇒ $=13 \ percent$

Note: % = percent

4 0

3 years ago

Suppose that JPMorgan Chase sells call options on $1.20 million worth of a stock portfolio with beta = 1.60. The option delta is

liberstina [14]

Answer:

Explanation:

a) dollars’ worth of the market-index portfolio should it purchase to hedge its position

=1.60*0.6* $1.2 million

= $115200

b)

delta of call on portfolio=d(c)/d(portfolio value)=0.6 (d=very small change )

=>delta of call on portfolio=d(c)/d(beta*index value)=0.6

=>d(c)/d(index value)=0.6*beta=0.6*1.60=0.96

delta of call on index=d(c)/d(index value)=0.96

delta of put option on index

=delta of call on index-1

=0.96-1

=-0.04

= - 0.04

The delta of a put option is - 0.04

c)

Number of put contracts*delta of put*100*1000*%chg in value of index=%chg in value of index*829,400

=> Number of put contracts=829,400/(delta of put*100*1000)

=> Number of put contracts=829,400/(0.04*100*1000)

=> Number of put contracts=829,400/40000

=> Number of put contracts=20.735=~21

So JP Morgan should buy 21 put contracts.

8 0

4 years ago

Craigmont uses the allowance method to account for uncollectible accounts. its year-end unadjusted trial balance shows accounts

xeze [42]

Amount of bad debts adjusting entry = 0.7% * 945,000 = 0.7/100 * 9450,000 = $6,615

The amount of the bad debts expense adjusting entry = $6,615

7 0

4 years ago

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