Answer:
A. Jordan takes out a loan to start a new business.
Explanation:
A good economy is one in which individuals and businesses are thriving in general sales and profit, lower rates of unemployment, low poverty rate and higher Gross Domestic Products (GDP).
Jordan taking out a loan to start a new business is a pointer to the fact that, there is an enabling environment for business with low interest rate.
Answer:
ACME Drilling should record impairment loss of $6.9 million
Explanation:
According to GAAP, when the fair value of an asset is below the net carrying amount of that asset ( Asset's historical cost - Asset's accumulated depreciation or the net book value of the asset), the Company should record it as asset impairment loss.
In ACME's case, the net book value is $18.6 million while the estimated fair value is only $11.7 million meaning that the platform is actually worth less than it is recorded on ACME's book. Thus, an impairment loss of $6.9 million should be recorded ( $18.6 million - $11.7 million) to realize the fair value of the oil-drilling platform.
The sum of projected sum of future cash flows in this case is not suitable to be used to determine the oil-drilling platform because it has not been discounted to the present value amount, and also, it is not appropriate under GAAP.
Answer:
a) Material price variance = (8.1*62350-386210) = 118825 F
b) Material quantity variance = (6500*8-52020)*8.1 = 162 U
c) Labor rate variance = (24.7*3450-88880) = 3665 U
d) Labor efficiency variance = (6500*.5-3450)*24.7 = 4940 U
e) Variable overhead rate variance = (6.4*3450-21295) = 785 F
f) Variable overhead efficiency variance = (3250-3450)*6.4 =
1280 U
In the long run, imports will most likely be paid for with
exports
Answer:
test marketing
Explanation:
Test marketing is an experimental test of a product in a real life market. Buyers are studied in live shops or market without them knowing. It is conducted on a small scale to see the effectiveness of a marketing strategy.
When the products do not perform well at the test marketing phase it is assumed it will not also perform well in the real market, so they are termed failed products.
The marketing manager in Ithaca maintains a museum of failed consumer products from the test marketing stage.