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3 years ago

The basic idea behind moral hazard is that ________.

Business

1 answer:

Kobotan [32]3 years ago

3 0

Answer: people tend to take more risks if they do not have to bear the costs of their behavior

Explanation:

Moral hazard is a form of reckless behavior by an individual who doesn't directly bear the cost of the reckless behavior.

Moral hazard takes several forms like the examples of : polluting waters with chemicals, throwing refuse into drainage, mismanagement of public amenities.

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Williams manufactures a variety of iron products, made to customer specifications, in small batches. Willie Williams, owner, is

Shtirlitz [24]

Answer:

Explanation:

Question: If the step-down method is used in this case, which sequence of allocations is not valid?

The step method will allocate a portion of a service department to others service department cost thus, increasing the cost of these.

In this case cost from Janitorialo will go into HR and Data serivces.

Is important to understand that these method have as goal to allocate their cost into production department. The production department receive cost from the service department. They do not allocate into service. Never.

Having said that statement; the conclusion is that option C is incorrect as it is doing a distribution of produciton department into service department.

6 0

4 years ago

Transaction

Paul [167]

Answer:

Explanation:

1o1hundred

4 0

4 years ago

An investor has $25,000 that he can invest today. In addition to this amount, he can also invest $12,000 per year for 30 years (

TiliK225 [7]

Answer:

Explanation:

First, find the Future Value (FV) of the annuity deposits and the one time payment. You can do that using a financial calculator with the following inputs;

N = 30

I/Y = 8%

PV = -25,000

PMT = 12,000

then compute the future value ; CPT FV = $1,610,964.96

Next, the $1,610,964.96 the amount the investor will have at the beginning of retirement in order to make annual withdrawals. Therefore, that would be the new PV you will use to find the annuity amount as follows;

N = 25

I/Y = 8%

PV = -1,610,964.96

FV = 0

then compute annual deposits; CPT PMT = $150,913

6 0

3 years ago

Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during January,

Yakvenalex [24]

Answer:

Required a.

January income statement for Sorensen Manufacturing Company

Sales $1,200,000

Less Cost of Sales ($675,000)

Gross Profit $525,000

Less Expenses :

Selling expense ($215,000)

Administrative expense ($125,000)

Net Income / (Loss) $185,000

Required b.

Work In Process Inventory = $120,000

Finished Goods Inventory = $85,000

Explanation:

Manufacturing Cost Schedule (Determination of Work In Process Inventory)

Direct Materials $180,000

Indirect Materials ($250,000 - $180,000) $70,000

Direct Labor $450,000

Factory Overheads $180,000

Total Cost of Goods Manufactured $880,000

Less Transferred to finished goods ($760,000)

Closing Work In Process Inventory $120,000

Finished Goods T- Account (Determination of Finished Goods Inventory)

Debit :

Transferred from Work In Process $760,000

Totals $760,000

Credit:

Trading Account $675,000

Ending Finished Goods Inventory $85,000

Totals $760,000

7 0

4 years ago

What must the Nederlander Organization do effectively to take its musicals to foreign markets?

mart [117]

The Nederlander Organization must effectively use teaser and revealers promotion campaigns to take its musicals to foreign markets.

Option a

Explanation:

Nederlander Organization will adopt to the use of teaser and revealers promotion campaigns for its musical foreign market. After doing the market analysis and known about the customer’s interest the company will go with the strategy called revealers promotion campaigns.

This is an advertising campaign which creates a curiosity in the minds of consumers till the brands last ad. This type of campaign will keep the consumers always think about the product and ad which is going to be launched soon.

4 0

3 years ago