A municipality taxing hotel guests to obtain funding for a new sports stadium should consider all of the following, except

Pat, the human resources manager, has significant experience handling ethical issues in the workplace. over the years he has rec

tino4ka555 [31]

<span>Due to Pat's background his ideal role in the organization is and Ethics and Compliance Officer. In this role, Pat would serve as the organizations central point in arbitrating issues around ethics as well as formulating policy and strategies for compliance and auditing thereof.</span>

5 0

3 years ago

Past performance review shows that vanessa is a good employee

aliina [53]

Answer: True, if the employee provides good work history

Explanation:

5 0

3 years ago

Read 2 more answers

Define agency costs, and describe agency costs of financial distress and agency benefits of leverage

Aleks04 [339]

Answer:

In accounting, agency costs are the costs of hiring an agent in order for him/her to act on behalf of a principal. In finance, agency costs are much broader since they imply costs that may appear due to conflicts of interests between the agent and the principal. E.g. a manager who seeks to accomplish short term goals in order to collect a bonus but hurts the long term objectives and goals of the stockholders.

Agency costs of financial distress refers to the costs associated with conflicts of interest that may result in a company being insolvent, specially in the long run. This type of costs are not necessarily related to operating costs, instead they result from management decisions and strategies, e.g. higher cost of capital or debt, or even excessive spending.

Agency benefits of leverage result from stockholders benefiting from the agent's decision to keep equity low, and if needed, obtain financing from debt sources.

5 0

4 years ago

Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the compl

lord [1]

Answer:

WATERWAYS CORPORATION

1. Overhead Rates and Actual Cost

Activity Cost Activity-based Actual Cost

Pools Overhead Rates Assigned

Irrigation Installation $148 ($1,928,440/13,030) $1,925,480 ($148 * 13,010)

Machining $0.05 $1,668,800

(all machine use) ($1,668,750/33,375,000) ($0.05 * 33,376,000)

Customer Orders $11 ($28,600/2,600) $28,182 ($11 * 2,562)

Design $109 ($763/7) $654 ($109 * 6)

Selling $15 ($306,000/20,400) $309,150 ($15 * 20,610)

2. Classification of activities by level, unit level, batch level, product level, or facility level:

Testing of products (if all items are tested) Unit level

Testing of products (if all items are not tested) Batch level

Designing new products Product level

Packaging Unit level

Molding Product level

Assembling Batch level

Depreciation Facility level

Machine maintenance Facility level

Advertising Product level

Equipment setups Batch level

Electricity required to run equipment Unit level

Requisitioning materials Unit level

Explanation:

a) Data and Calculations:

ABC system for Waterways.

WATERWAYS CORPORATION

Activity Cost Estimated Expected Use

Pools Cost Drivers Overhead of Cost Drivers Actual Use

per Activity of Drivers

Irrigation Installation Labor cost $1,928,440 13,030 13,010

Machining

(all machine use) Machine hours 1,668,750 33,375,000 33,376,000

Customer orders Number of orders 28,600 2,600 2,562

Shipping none (direct) N/A N/A traced directly

Design Cost per design 763 7 6

Selling Number of sales calls 306,000 20,400 20,610

4 0

3 years ago

Thornton Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two differen

Mumz [18]

Answer:

The correct answer for first plane is 2.7 years and for second plane is 3 years and first plane should be accepted.

Explanation:

According to the scenario, the computation of the given data are as follows:

Payback period = Cost of first airplane ÷ Annual cash inflow

First plane cost = $13,770,000

Cash flow = $5,100,000

So, Payback period for first plane = $13,770,000 ÷ $5,100,000

= 2.7 years

Second plane cost = $27,900,000

Cash flow = $9,300,000

So, Payback period for second plane = $27,900,000 ÷ $9,300,000

= 3 years

First plane should be accepted as it has less payback period.

4 0

3 years ago

A municipality taxing hotel guests to obtain funding for a new sports stadium should consider all of the​ following, except

A municipality taxing hotel guests to obtain funding for a new sports stadium should consider all of the following, except