Exercise 11-1 (10 minutes) 1. 2. 3. Exercise 11-2 (10 minutes) Average operating assets £2‚200‚000 Net operating income £400‚000 Minimum required return: 16% × £2‚200‚000 352‚000 Residual income £ 48‚000 Exercise 11-3 (20 minutes) 1. Throughput time = Process time + Inspection time + Move time + Queue time = 2.8 days + 0.5 days + 0.7 days + 4.0 days = 8.0 days 2. Only process time is value-added time; therefore the manufacturing cycle efficiency
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Chapter 9 reducing project duration Review Questions 1. What are five common reasons for crashing a project? Reasons given could include: • Imposed deadline in which disfavor will be earned by not meeting superior’s deadline • Time to market competitive advantage • Realize benefits from incentive contracts • To make up for lost time and avoid contract penalties • Save extensive overhead costs • Free up resources to work on other projects • Exceed
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the total cost of borrowing over the life of the bond. (4) Would the total bond interest expense be greater than‚ the same as‚ or less than the total interest expense that would be reported if the straight-line method of amortization were used? SOLUTION (a) (1) 2010 July 1 Cash 3‚501‚514 Discount on Bonds Payable 498‚486 Bonds Payable 4‚000‚000 (2) Dec. 31 Bond Interest Expense ($3‚501‚514 X 5%) 175‚076 Discount on Bonds Payable 15‚076
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Chapter 4 Process Costing Chapter 4 Process Costing Solutions to Questions 4-1 A process costing system should be used in situations where a homogeneous product is produced on a continuous basis. 4-2 Job-order and processing costing are similar in the following ways: 1. Job-order costing and process costing have the same basic purposes—to assign materials‚ labor‚ and overhead cost to products and to provide a mechanism for computing unit product costs. 2. Both systems use the same basic
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Chapter 9- Thinking and Language: 9.1- what is Cognition‚ and what are the functions of concepts: Cognition refers to all the mental activities acknowledged with thinking‚ knowing‚ remembering‚ and communication. We form most concepts about prototypes or best examples of a category. 9.2- what cognitive strategies assist our problem solving‚ and what obstacles hinder it? An algorithm is a methodical‚ logical rule or procedure that guarantees a solution to the problem. A heuristic is a
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Chapter 7 - Consolidated Financial Statements - Ownership Patterns And Income Taxes CHAPTER 7 CONSOLIDATED FINANCIAL STATEMENTS - OWNERSHIP PATTERNS AND INCOME TAXES Answers to Problems 1. D 2. B 3. D 4. C 5. C 6. C 7. A Damson ’s accrual-based income: Operational income ................................................................... Defer unrealized gain ................................................................ Damson ’s accrual-based income ......................................
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POSI 3328 Financial Administration Chapter 9 Summation / Review DWN Sunday‚ April 13‚ 2014 The objective of the chapter is to delineate and differentiate between the three major taxes in the United States through analyzing their differences‚ applicability‚ and issues associated with each. As the chapter begins‚ Mikesell explains the beginnings of the income tax and how it evolved from an unstable and unenforced law to a steady revenue to aid in the cost of the Civil War. Throughout our early
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Chapter 19 Completing the Audit / Postaudit Responsibilities |Learning Check | 19-1. The three categories of activities in completing the audit are (a) completing field work‚ (b) evaluating the findings‚ and (c) communicating with the client. 19-2. The activities involved in completing the field work are (a) making subsequent events review‚ (b) reading minutes of meetings‚ (c) obtaining evidence concerning litigation‚ claims‚ and assessments‚ (d) obtaining
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Chapter 9 Estimation and Confidence Intervals 30. A random sample of 85 group leaders‚ supervisors‚ and similar personnel revealed that a person spent an average 6.5 years on the job before being promoted. The population standard deviation was 1.7 years. Using the 0.95 degree of confidence‚ what is the confidence interval for the population mean? A) 6.99 and 7.99 B) 4.15 and 7.15 C) 6.14 and 6.86 D) 6.49 and 7.49 Answer: C 31. The mean weight of trucks traveling on a particular section of I-475
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Chapter 9 GDP is the market value of all the final goods and services produced by all firms located in the United States in a given time period Marginal external cost The cost of producing an additional unit of a good or service that falls on people other than the producer. Efficiency Efficiency is achieved when the marginal social benefit equals the marginal social cost. Which of the following best describes an externality? An effect of a transaction felt by someone other than the
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