What is the main determinant of profit

The industry-low, industry-average, and industry-high cost benchmarks on pp. 5-6 of the latest issue of the glo-bus statistical

Likurg_2 [28]

the industry-low, industry-average, and industry-high cost benchmarks on pp. 5-6 of the latest issue of the glo-bus statistical review

ANSWER:
are worth careful scrutiny by the managers of all companies because when a company's costs for one or more of the cost benchmarks are deemed "out-of-line," managers need to initiate corrective actions in the next decision round.

5 0

3 years ago

An investment advisory firm does its own research, using a group of dedicated employees and has a separate staff of investment a

katen-ka-za [31]

OPTIONS:

A. establish a Chinese Wall between the research personnel and the sales personnel

B. register both the research personnel and the sales personnel in each State where the IA's services are offered

C. cross-train the research personnel and the sales personnel in each other's functions so that in the event of a confidentiality breach, one can take over the functions of the other

D. establish two separate IA firms registered with the State with one only having research personnel and the other only having sales personnel

Answer: A. establish a Chinese Wall between the research personnel and the sales personnel

Explanation: In a bid to maintain confidentiality and avoid leakage of vital information, there must be a barrier between the research personnels who makes findings on investment opportunities and packages for client needs and the sales personnels. This is because, research and investment informations are treated as classified and leakage could lead to bias, whereby some consumers will get the information and make moves before other consumers are informed via official release by the firm.

4 0

3 years ago

On January 1, 2021, the Allegheny Corporation purchased equipment for $115,000. The estimated service life of the equipment is 1

Mazyrski [523]

Answer:

1. $11,000 each year

2. $23,000 and $18,400

3. $15,000 and $12,500

Explanation:

The calculation of the depreciation expense for the 2021 and 2022 is shown below:

1. Straight-line method:

= (Purchase value of equipment - estimated residual value) ÷ (estimated service life)

= ($115,000 - $5,000) ÷ (10 years)

= ($110,000) ÷ (10 years)

= $11,000

In this method, the depreciation is same for all the remaining useful life i.e for 2021 also the same depreciation is applied i.e $11,000

2. Double-declining balance method:

First we have to determine the depreciation rate which is

= One ÷ estimated service life

= 1 ÷ 10

= 10%

Now the rate is double So, 20%

In year 1, the original cost is $115,000, so the depreciation is $23,000 after applying the 20% depreciation rate

And, in year 2, the $(115,000 - $23,000) × 20% = $18,400

3. Units-of-production method:

= (Purchase value of equipment - estimated residual value) ÷ (estimated production units)

= ($115,000 - $5,000) ÷ ($220,000 units)

= ($110,000) ÷ (220,000 units)

= $0.5 per units

For 2021, it would be

= Production units in 2021 year × depreciation per unit

= 30,000 units × $0.5

= $15,000

Now for the 2022, it would be

= Production units in 2022 year × depreciation per unit

= 25,000 units × $0.5

= $12,500

4 0

3 years ago

Barry, a solvent individual but a recovering alcoholic, embezzled $6,000 from his employer. In the same year that he embezzled t

skad [1K]

Answer: Barry must include $6,000 in gross income from discharge of indebtedness

Explanation:

Feom the question above, we are told that Barry embezzled $6,000 from his employer and that even though his employer discovered the theft, the employ did not fire him and told him that he did not have to repay the $6,000 if he attend Alcoholics Anonymous. Barry met the conditions and the employer canceled the debt.

In this case, Barry will have to include the $6,000 he stole in gross income from discharge of indebtedness. The gross income has to do with the sum of the wages, profits, salaries, rents, interest payments, and every other earnings, before the deductions of taxes or other deductions. Since Barry stole the money and.he.has been forgiven, the $6,000 has to be included in the gross income from discharge of indebtedness.

7 0

3 years ago

Describe at least 3 nonprice competition strategies a company could use to convince customers that its product is better than ot

makkiz [27]

3 non-price strategies you could use to increase your customer base is having Better Quality, Better web presence, and Better Customer Service. Better quality means having good, durable products that deliver what they promise. Also better quality means having a product that is worth its money, not just something cheap which falls apart in one use. Better Web Presence means having a nice, interesting, user-friendly website which customers can access at any time to view your products. Also this means that your website is updated regularly with product information. Better customer service means that you should be able to provide good, cooperative customer support for customers who have queries or problems regarding your product. This involves courteous staff who have up-to-date knowledge and are willing to follow up the case.

3 0

3 years ago

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