Answer: 90 days and 4.06 times
Explanation:
Short term operating cycle = Average production process time + Days finished goods kept on hand + Days Accounts receivable outstanding]
= 40 + 15 + 35
= 90 days
Assuming a 365 day year, the cycle will turnover;
= 365/90
= 4.0556
= 4.06 times
Answer: (B) The authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply and significant control over the amount of invested capital.
Explanation:
The profit center is the type of center in which the authority makes various types of decisions that affect the major profits. It also include the power for choosing the market and the sources.
The profit center is the type of business unit which basically generate the various type of revenue and cost. It is the type of department that generate the income by using the organization resources. The profit center has the significant control on the amount of the invested capital.
Therefore, Option (B) is correct.
Answer:
The correct answer is B. Consumers will be unable to buy all the gas they want at the temporary price ceiling price.
Explanation:
At the time that the offer is recent for price control, demand can be stimulated by the existence of a more reasonable and affordable price for the consumer, so that there is an excess of demand against supply, which is It would imply that it should result in an increase in prices that should lead to an optimum level or breakeven point being reached at any given time, a situation that will not occur precisely because of price control.
By resenting the offer while increasing demand, despite the possible shortage, this shortage does not result in a price increase that would be normal, precisely due to the hand of the state that prevents free market development , since it restricts one of the factors that energizes it, which is the price.
The price of goods and services, as well as can increase or decrease the supply, can also increase or decrease demand, a game that alone should maintain a price that satisfies both consumers and producers, but when price control is introduced , only consumers will be satisfied, a situation that causes bidders to stop producing.
Answer:
Both projects should be accepted as their cash-flow 's present values are all positive once they are discounted at WACC rate.
Explanation:
To find whether one or both projects should be accepted, we have to calculate the present value of the two cash-flows each project generates. Besides, both projects have the same risk characteristics as the firm's average project, WACC should be used as a discount rate.
- Project L present value (in thousands of dollars) = -100 + 10/1.1^1 + 60/1.1^2 + 80/1.1^3 = $18.783
- Project S present value (in thousands of dollars) = -100 +70/1.1 + 50/1.1^2 + 20/1.1^3 = $19.985
As both projects generate positive discounted cash-flow, both of them should be accepted.
Answer:
The predetermined overhead rate for the recently completed year was closest to: $11.54 per machine-hour
Explanation:
Predetermined Overheads = Budgeted Fixed Overheads / Budgeted Activity
= $ 838,730 / 72,700
= $11.536864 or $11.54 per machine-hour.
