1-5 a. Historical costs are not useless in rapidly changing environment. Even though it does not tell us the fair market value of a certain item‚ it gives us an idea of how the price has changed as time passes. It allows us to record the depreciation and forecast the future costs. b. 1-8 2-4 A lotion bundle consists of 2 cases of 4oz‚ 4 cases of 8oz and 1 case of 12oz bottles. For each lotion bundle: Revenue=2*$36+4*$66+1*72=$408‚ Variable cost=2*$13+4*$24.5+1*27=$151 Contribution
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Problem One Cost Concepts and Cost Flow (8 points) The following information is from MM wooden bed Co. for September: Wood used in production Carpenters salary Factory supervisors salary Factory security guard and janitor salary Sales persons salary CEO and CFO salary Advertisement expense Depreciation of factory equipment Factory utilities Oil and lubricants for factory equipment‚ and other miscellaneous materials used in production Wood inventory‚ Sept. 1 Work-in-process inventory
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53 FAIR PRESENTATION---AN ETHICAL PERSPECTIVE ON FAIR VALUE ACCOUNTING PURSUANT TO THE SEC STUDY ON MARK-TO-MARKET ACCOUNTING Sharon S. Seay‚ Macon State College Wilhelmina H. Ford‚ Macon State College ABSTRACT Fair value accounting has received a significant amount of blame as the cause of the current financial crisis. Fair value accounting does not cause illiquidity or volatility in financial markets. Banks‚ rather than accounting‚ caused the existing crisis‚ ultimately through bad lending
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Present value of net annual cash flowsPresent value of salvage valueCapital investmentNet present value | | $34‚000 0 | XX | 5.53482 .50187 | == | ($188‚184)( 0)( 188‚184)( 200‚000)($ (11‚816) | The reduction in downtime would have to have a present value of at least $11‚816 in order for the project to be acceptable. BE12-5 Project A | | CashFlows | X | 9% DiscountFactor | = | PresentValue | | | | | | | | Present value of net annual cash flowsPresent value of salvage
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Time Value of Money Q1. Mr. Sundaram is planning to retire this year. His company can pay him a lump sum retirement payments of Rs 2‚ 00‚000 or Rs 25‚000 life time annuity whichever he chooses. Mr. Sundaram is in good health and estimates to live for at least 20 more years. If his interest rate is 12%‚ which alternative should he choose? Ans Present Value of Annuity 25000*7.469*1.12 = 2‚09‚132 Which is greater than lump sum value of Rs. 2‚00‚000. So Annuity option is better
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Contents Introduction Fair Value Background Advantages of Fair Value Disadvantages of Fair Value The debate on Financial Stability Conclusion References Introduction Society’s major concern is the recent financial crisis which had an unprecedented impact and dire consequences on the global economy and the current economic regulations around the world. The beginning of the economic paradigm change was the major collapse of previously leading financial
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LG’s 47LW5500-ZE and 47LW550 TZCIN Ema 3D TVs have been announced the first Tvs in Europe which have the Carbon Trust enalbles to manage a low carbon footprint labeling scheme. Bi- Geunkwo‚ head of LG’s LLOCO TV Lab. Says that it was their crucial achievement in having environmental brand image. In it’s future vision ‚ the company goes on supporting to produce more- eco-friendly‚ low-coal goods. In contrast‚ Samsung also tries to have an eco-value status and has made plans to achieve environmental
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THE ACCOUNTING REVIEW Vol. 86‚ No. 6 2011 pp. 2075–2098 American Accounting Association DOI: 10.2308/accr-10134 Judging the Relevance of Fair Value for Financial Instruments Lisa Koonce The University of Texas at Austin Karen K. Nelson Rice University Catherine M. Shakespeare University of Michigan ABSTRACT: We conduct three experiments to test if investors’ views about fair value are contingent on whether the financial instrument in question is an asset or liability‚ whether
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journal is available at http://www.emeraldinsight.com/0262-1711.htm Managerial work roles in Asia An empirical study of Mintzberg’s role formulation in four Asian countries 694 Received July 2002 Revised December 2002 Accepted December 2002 Cecil A.L. Pearson Murdoch University‚ Murdoch‚ Perth‚ Australia‚ and Samir R. Chatterjee Curtin University of Technology‚ Perth‚ Australia Keywords Management roles‚ Economic conditions‚ National cultures‚ Asian studies Abstract In an increasingly
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What options are available for disposing of underapplied or overapplied overhead? 4. Job 137 was started and completed during the year. What price would have been charged to the customer if the job required $3‚200 in materials and $4‚200 in direct labor cost‚ and the company priced its jobs at 40% above the job’s cost according to the accounting system? 5. Direct labor made up $8‚000 of the $40‚000 ending Work in Process inventory balance. Supply the information missing below:
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