QUESTION What are the differences between futures and forward markets? What are the pros and cons associated with using each one? Difference between futures and forward markets: a. Futures contracts are standardized. Forward contracts are customized. b. Parties in a futures contract hold formal contracts with the futures exchange. Parties to a forward contract hold […]
QUESTION Which is not one of the potential advantages of decentralization? a. Improves motivation and retention b. Supports use of expert knowledge c. Improves customer relations d. Increases goal congruence d. Increases goal congruence Decentralization refers to the delegation of authority at all levels of organization. The decentralization in the organization is likely to improve […]
QUESTION Rachel and Mary both have decided to buy 100 shares of WWW.COM, a hot Internet stock. The market price is $240 per share when Rachel places a market order and Mary places a limit order at $230 per share. One week later, the price of WWW.COM is $305 per share after having increased. How […]
QUESTION Calculate labor variances Johnson, Inc., manufactures lead crystal glasses. The standard direct labor time is 0.3 hour per glass, at a price of $13 per hour. The actual results for the production of 6,900 glasses were 0.2 hour per glass, at a price of $10 per hour. Requirement 1. Calculate the labor price variance […]
QUESTION Preparing an operating budget Tremont, Inc., sells tire rims. Its sales budget for the nine months ended September 30 follows: Quarter Ended 31-Mar 30-Jun 30-Sep ANSWER: CLICK REQUEST FOR AN EXPERT SOLUTION
QUESTION Why managers use budgets Consider the budget for any business. Requirement 1. List the three key benefits companies get from preparing the budget. The companies get the following benefits from preparing the budget:1. Planning: Budgeting helps in planning the activities to be performed by the business and describes the course of actions to be […]
QUESTION Using the payback and rate of return methods to make capital investment decisions Preston, Co., is considering acquiring a manufacturing plant. The purchase price is $1,100,000. The owners believe the plant will generate net cash inflows of $297,000 annually. It will have to be replaced in six years. Requirement 1. Use the payback method […]
QUESTION Product mix under production constraints Lifemaster produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Lifemaster could use all its available machine hours to produce either model. The two models are processed through the same production departments. Data for both models is as follows: Per Unit Deluxe Regular […]
QUESTION Comparing Investment Criteria Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 ANSWER: CLICK REQUEST FOR AN EXPERT SOLUTION
QUESTION Calculating Payback Tulip Mania, Inc., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should they accept either of them? Year Cash Flow (A) Cash Flow (B) 0 ANSWER: CLICK REQUEST FOR AN EXPERT SOLUTION
