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3 years ago

What is the collective responsibility? How is it useful?

1 answer:

6 0

Answer: Collective responsibility is the convention whereby individual members of the government are held accountable for the actions and decisions of the government as a whole. It is a constitutional convention that has existed since the 18th century and is considered a cornerstone of cabinet government. It is important because if a minister takes a wrong decision he has representatives that can tell them that correction of rules should be held.

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Koczela Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 28,000 $ 23,0

astraxan [27]

Answer:

COGS= $241,000

Explanation:

First, we need to calculate the cost of goods manufactured with allocated overhead:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 28,000 + 68,000 + 98,000 + 72,000 - 23,000

cost of goods manufactured= $243,000

Now, we determine the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 57,000 + 243,000 - 61,000

COGS= $239,000

Finally, we close the under/over applied overhead to COGS:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 74,000 - 72,000

Underapplied overhead= $2,000

We need to debit COGS and credit overhead:

COGS 2,000

Manufacturing overhead 2,000

COGS= 239,000 + 2,000

COGS= $241,000

5 0

3 years ago

The risk-free yield curve is flat at 6% per annum. What is the value of an FRA where the holder receives LIBOR at the rate of 9%

Fudgin [204]

Answer:

c. $8.63

Explanation:

Missing word "The forward LIBOR rate is 7%. All rates are compounded semiannually. A. $8.88 , B. $9.12 , C. $8.63 , D. $9.02"

Principal = $1000, FRA Rate = 9 % per annum, LIBOR after 2 years = 7 % per annum, Compounding Frequency: Semi-Annual, Risk-Free Rate = 6 % per annum

The FRA matures 2 years or 24 months from now. Further, the Interest Rate that the FRA hedges will create an interest expense only at the end of the LIBOR loan period which is an additional 6 months after the 24 month period.

Hence, Exchange of Interest Expense at the end of 30 Months = (FRA Rate - LIBOR) x Principal (calculated on a semi-annual basis)

= (0.045 - 0.035) * 1000

= $10

Current Value of FRA = Present Value of Interest Expense at the end of the 30 Months Period

= 10 / [1+(0.06/2)]^(30/6)

= $8.6261

= $8.63

3 0

3 years ago

Southern home cookin' just paid its annual dividend of $0.65 a share. the stock has a market price of $13 and a beta of 1.12. th

Elden [556K]

Cost of Equity as per CAPM = rf +beta*(rm-rf)

rf = risk free rate = 2.5%

beta =1.12

rm-rf = market risk premium = 6.8%

Cost of equity = 2.5+ 1.12*6.8 = 10.116% = 10.12%

5 0

3 years ago

Which of the following is an example of the law of diminishing marginal returns? A. Holding capital constant, when the amount

Irina-Kira [14]

Answer:

The correct answer is option A.

Explanation:

The law of diminishing returns states that as we go on employing more and more unit of input while keeping other inputs constant, the return from each additional unit of input will go on declining.

This means that the output produced from each additional unit of input will go on declining.

Here, as capital is kept constant and labor is increased by a unit, the output at first increases by 5 units from 20 to 25. But later when input is again increased by a unit, the output increase by only 3 units from 25 to 28.

This shows the law of diminishing marginal returns where the marginal returns from a unit of labor is declining.

3 0

3 years ago

What is the weighted average cost of capital (WACC) for ABC Limited which has the following capital structure? $5m of equity wit

katrin2010 [14]

The weighted average cost of capital (WACC) for ABC Limited is 12.63%

The weighted average cost of capital(WACC) of a firm is the average cost of finance incurred by the firm on all its sources of finance.

It is determined as the sum of the cost of each source of finance multiplied by their respective weights in the firm's capital structure.

By weights, I mean the percentage of funding each source contributes to the total finance available at the firm's disposal.

WACC=(weight of equity*cost of equity)+(weight of mezzanine finance*cost of mezzanine finance)+(weight of debt*cost of debt)

weight of equity=equity finance/total finance

cost of equity=15%

weight of mezzanine finance=mezzanine finance/total finance

cost of mezzanine finance=9.5%

weight of debt of finance=debt finance/total finance

total finance=$5m+$2m+$1m

total finance=$8m

WACC=($5/$8*15%)+($2/$8*9.5%)+($1/$8*7%)

WACC=12.63%

Find further guidance on weighted average cost of capital's computation in the link below:

brainly.com/question/25566972

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7 0

2 years ago

What is the collective responsibility? How is it useful?​

What is the collective responsibility? How is it useful?