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3 years ago

When wages per unit of time go up but flow rate stays the same, what happens to the costs of direct labor

Business

1 answer:

Sphinxa [80]3 years ago

3 0

The increase in the wages will lead to an increase in the cost of the direct labor.

It should be noted that a wage simply means the payment for a contract done. It's usually the payment for a job done weekly.

In this case, when wages per unit of time go up but flow rate stays the same, the costs of direct labor will also increase as well.

Learn more about wages on:

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Assume personal tax rates are lower than corporate tax rates. From a tax-paying shareholder point of view, how should a firm spe

ASHA 777 [7]

Answer: e. repurchase shares

Explanation:

If the personal tax rates are lower than corporate tax rates then the company should engage in an activity that would put money into the pockets of shareholders such that they would take advantage of the lower personal tax rates.

The best way to do that would be a share repurchase. The company would probably buy at above market rates which would give shareholders capital gain and they wouldn't have to pay much taxes on it as personal rates are lower.

4 0

3 years ago

Exercise 6-11A Record transactions using a perpetual system (LO6-5) DS Unlimited has the following transactions during August. A

ZanzabumX [31]

Answer and Explanation:

The journal entries are shown below:

On Aug 6

Inventory (60 × $150) $9,000

To Accounts Payable $9,000

(being inventory purchased on account is recorded)

On Aug 7

Inventory Dr $350

To Cash $350

(Being freight charges paid in cash)

On Aug 10

Accounts Payable $600 (4 × $150)

To Inventory $600

(Being returned inventory is recorded)

On Aug 14

Accounts Payable ($9,000 - $600) $8,400

To Inventory ($8,400 × 3%) $252

To Cash $8,148

(Being cash paid is recorded)

On Aug 23

Accounts Receivable ($170 × 40) $6,800

To Sales revenue $6,800

(Being sales is recorded)

Cost of goods sold $6,070

To Inventory $6,070

(Being cost is recorded)

6 0

3 years ago

A useful way of standardizing financial statements is to choose a _______ year and then express each item relative to that amoun

aev [14]

A useful way of standardizing financial statements is to choose a base year and then express each item relative to that amount.

This is further explained below.

<h3>What is a financial statement?</h3>

Generally, Financial statements are written documents that represent a company's commercial operations as well as its financial performance within a certain period of time.

Audits of financial accounts are often conducted by government agencies, accounting firms, and other organizations for the objectives of ensuring their correctness and meeting the requirements for taxation, financing, and investing.

In conclusion, Selecting a base year and then expressing each item in terms of its relationship to that amount is a practical strategy for standardizing financial statements.

Read more about financial statements

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6 0

2 years ago

High flyer, inc., wishes to maintain a growth rate of 16 percent per year and a debt-equity ratio of 0.90. the profit margin is

Xelga [282]

Answer: The dividend payout ratio is 46.19%.

We follow these steps in order to arrive at the answer:

We begin with the DuPont identity of RoE.

<u>DuPont Identity:</u>

$RoE = Net Profit Margin * Asset Turnover Ratio * Equity Multiplier$

Now,

$Equity Multiplier = \frac{1}{Debt Ratio}$

And Debt Ratio is also expressed as:

$Debt Ratio = \frac{D/E}{1+D/E}$

where D/E represents the Debt-Equity Ratio.

Substituting the value of D/E ratio from the question in the debt ratio formula above we get,

$Debt Ratio = \frac{0.9}{1+0.9}$

$Debt Ratio = \frac{0.9}{1.9}$ ----(1)

Substituting (1) in the equity multiplier formula above we get,

$Equity Multiplier = \frac{1}{\frac{0.9}{1.9}}$

$Equity Multiplier = \frac{1.9}{0.9}$

Substituting Equity Multiplier from above and the relevant numbers from the question in the DuPont identity we get,

$RoE = 0.048 * 1.08 * \frac{1.9}{0.9}$

$RoE = 0.10944$

The relationship between RoE and earnings growth rate g is given by the following formula:

$RoE = \frac{g}{(1-p)}$ , where p is the dividend payout ratio.

Plugging in the values in the formula above we get,

$0.10944 = \frac{0.16}{(1-p)}$

$1-p = \frac{0.16}{0.10944}$

$1-p = 1.461988304$

p = 0.461988304 or 46.19%

3 0

3 years ago

Which of the following is an example of an action that is part of making a

Alla [95]

Answer: B Im pretty sure

Step by step explanation:

The meaning of rational is doing someone with reason or logic so B seems like the rational answer..

3 0

3 years ago

Read 2 more answers