Question 1
Problem 1: Allen Labinski has prepared the following list of statements about process cost accounting. Identify each statement as true or false. If false, indicate how to correct the statement. 1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. 2. A process cost system is used when each finished unit is indistinguishable from another. 3. Companies that produce soft drinks, motion pictures, and computers chips would all use process cost accounting. 4. In a process cost system, costs are tracked by individual jobs. 5. Job order costing and process costing track different manufacturing costs elements. 6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead. 7. Costs flow through the accounts in the same basic way for both job order costing and process costing. 8. In a process cost system, only one work in process account is used. 9. In a process cost system, costs are summarized in a job cost sheet. 10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the units produced during the period. NOTE: Fill in the table below with your responses; write correction for false statements below the table: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Problem 2: Tharp and Kostrivas is a law firm that is initiating an activity-based costing system. Ben Tharp, the senior partner and strong supporter of ABC, has prepared the following list of activities performed by a typical attorney in a day at the firm. Classify each of the activities listed by Ben Tharp as value-added or non-value-added and defend your classification. How much was value-added and how much was non-value-added? Activities Hours Writing contracts and letters 1.0 Attending staff meetings 0.5 Taking depositions 1.0 Doing research 1.0 Traveling to/from court 1.0 Contemplating legal strategy 1.0 Eating lunch 1.0 Litigating a case in course 2.5 Entertaining a prospective client 2.0 Answer Below: Value-Added Activities Non-Value-Added Activities Questionable Classifications Instructions: Enter or paste your written work and/or click "Attachments" to upload your files. EXERCISE 3-1 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. EXERCISE 4-16 Value-Added Activities Hours Writing contracts and letters Taking depositions Contemplating legal strategy Litigating a case in court Non-Value-Added Activities Hours Attending staff meetings Doing research Traveling to/from court Eating lunch Entertaining a prospective client Questionable Classifications
Question 2
"The Bureau of Labor Statistics? American Time Use Survey showed that the amount of time spent using a computer for leisure varied greatly by age. Individuals age 75 and over averaged .25 hour (15 minutes) per day using a computer for leisure. Individuals ages 15 to 19 spend .9 hour per day using a computer for leisure. If these times follow an exponential distribution, find the proportion of each group that spends: rev: 10_13_2011 1. value: 10 points (a) Less than 14 minutes per day using a computer for leisure. (Round your answers to 4 decimal places.) Proportion and rev: 10_13_2011 check my workeBook LinkView Hint #1 2. value: 10 points (b) More than two hours. (Round your answers to 4 decimal places.) Proportion and rev: 10_13_2011 check my workeBook LinkView Hint #1 3. value: 10 points (c) Between 28 minutes and 84 minutes using a computer for leisure. (Round your answers to 4 decimal places.) Proportion and rev: 10_13_2011 check my workeBook LinkView Hint #1 4. value: 10 points (d) Find the 25th percentile. Seventy five percent spend more than what amount of time? (Round your answers to 2 decimal places.) Amount of time for individuals age 75 and over minutes Amount of time for individuals ages 15 to 19 minutes rev: 10_13_2011 5. value: 10 points A study of long-distance phone calls made from the corporate offices of General Electric revealed the length of the calls, in minutes, follows the normal probability distribution. The mean length of time per call was 3.5 minutes and the standard deviation was 0.70 minutes. (a) What fraction of the calls last between 3.5 and 4 minutes? (Round z-score computation to 2 decimal places and your final answer to 4 decimal places.) Fraction of calls (b) What fraction of the calls last more than 4 minutes? (Round z-score computation to 2 decimal places and your final answer to 4 decimal places.) Fraction of calls (c) What fraction of the calls last between 4 and 5 minutes? (Round your answer to 4 decimal places.) Fraction of calls (d) What fraction of the calls last between 3 and 5 minutes? (Round z-score computation to 2 decimal places and your final answer to 4 decimal places.) Fraction of calls (e) As part of her report to the president, the director of communications would like to report the length of the longest (in duration) 3 percent of the calls. What is this time? (Round z-score computation to 2 decimal places and your final answer to 2 decimal places.) Duration 6. value: 10 points According to the South Dakota Department of Health, the mean number of hours of TV viewing per week is higher among adult women than men. A recent study showed women spent an average of 39 hours per week watching TV and men 33 hours per week. Assume that the distribution of hours watched follows the normal distribution for both groups, and that the standard deviation among the women is 4.7 hours and is 5.3 hours for the men. (a) What percent of the women watch TV less than 43 hours per week? (Round z-score computation to 2 decimal places and your final answer to 4 decimal places.) Probability (b) What percent of the men watch TV more than 30 hours per week? (Round z-score computation to 2 decimal places and your final answer to 4 decimal places.) Probability (c) How many hours of TV do the two percent of women who watch the most TV per week watch? Find the comparable value for the men. (Round your answers to 3 decimal places.) Number of hours Women Men 7. value: 10 points According to a government study among adults in the 25- to 34-year age group, the mean amount spent per year on reading and entertainment is $1,896. Assume that the distribution of the amounts spent follows the normal distribution with a standard deviation of $596. (Round z-score computation to 2 decimal places and your final answer to 2 decimal places. Omit the "%" sign in your response.) (a) What percent of the adults spend more than $2,350 per year on reading and entertainment? Percent % (b) What percent spend between $2,350 and $2,800 per year on reading and entertainment? Percent % (c) What percent spend less than $1,150 per year on reading and entertainment? Percent % 8. value: 10 points The net sales and the number of employees for aluminum fabricators with similar characteristics are organized into frequency distributions. Both are normally distributed. For the net sales, the mean is $180 million and the standard deviation is $25 million. For the number of employees, the mean is 1,500 and the standard deviation is 120. Clarion Fabricators had sales of $170 million and 1,850 employees. (a) Convert Clarion's sales and number of employees to z values. (Negative amount should be indicated by a minus sign. Round your answers to 2 decimal places.) z value Net sales Employees ________________________________________ (b) Interpret the z values obtained in Req 1. (Round your answers to 2 decimal places.) Net sales are standard deviations the mean. Employees is standard deviations the mean. (c) Compare Clarion's sales and number of employees with those of the other fabricators. (Round your answers to 2 decimal places. Omit the "%" sign in your response.) % of the aluminum fabricators have greater net sales compared with Clarion. Only % have more employees than Clarion. 9. value: 10 points The accounting department at Weston Materials Inc., a national manufacturer of unattached garages, reports that it takes two construction workers a mean of 32 hours and a standard deviation of 2 hours to erect the Red Barn model. Assume the assembly times follow the normal distribution. (a-1) Determine the z values for 29 and 34 hours. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) 29 hours corresponds to Z 34 hours corresponds to Z ________________________________________ (a-2) What percent of the garages take between 32 hours and 34 hours to erect? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Percentage % (b) What percent of the garages take between 29 hours and 34 hours to erect? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Percentage % (c) What percent of the garages take 28.7 hours or less to erect? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Percentage % (d) What is the value that separates the 5% of the garages that take the longest to erect? (Round your answer to 1 decimal place.) Hours 10. value: 10 points Fast Service Truck Lines uses the Ford Super Duty F-750 exclusively. Management made a study of the maintenance costs and determined the number of miles traveled during the year followed the normal distribution. The mean of the distribution was 60,000 miles and the standard deviation 2,000 miles. (Round z-score computation to 2 decimal places and your final answer to 2 decimal places. Omit the "%" sign in your response.) (a) What percent of the Ford Super Duty F-750s logged 65,200 miles or more? Percent % (b) What percent of the trucks logged more than 57,060 but less than 58,280 miles? Percent % (c) What percent of the Fords traveled 62,000 miles or less during the year? Percent % 11. value: 10 points The Cincinnati Enquirer, in its Sunday business supplement, reported that the mean number of hours worked per week by those employed full time is 43.9. The article further indicated that about one-third of those employed full time work less than 40 hours per week. (a) Given this information and assuming that number of hours worked follows the normal distribution, what is the standard deviation of the number of hours worked? (Round z value to 2 decimal places and your final answers to 2 decimal places.) Standard deviation (b-1) The article also indicated that 20 percent of those working full time work more than 49 hours per week. Determine the standard deviation with this information. (Round z value to 2 decimal places and your final answers to 2 decimal places.) Standard deviation (b-2) Are the two estimates of the standard deviation similar? (b-3) What would you conclude?
Question 3
1. In the current year, ABC Corporation had the following items of income, expense, gains, and losses: Sales $500,000 Cost of Sales $270,000 Operationg Expenses $100,000 Interest on savings account $14,000 Gain on sale of AT&T stock $ 6,000 Loss on sale of IBM Stock $15,000 What is the taxable income for the year? a) 135,000 b) 141,000 c) 144,000 d) 150,000 2. Topaz Corporation had the following income and expenses during the current year: Revenues $80,000 Expenses $30,000 Gains on sale of Capital assets $ 5,000 Losses on sale of Capital assets $(25,000) What is Topaz's taxable income? a) $30,000 b) $50,000 c) $52,000 d) $20,000 3. On January 31 of this year, Jennifer pays $700 for an option to acquiare 100 shares of Lifetime Corporation common stock for $70 per share. Jennifer exercises the option on June 2. Jennifer sells the srock on April 30 of next year for $10,000. Jennifer basis for the stock immediately before the sales is: a) 0 b) $700 c) $7000 d) $7700 4) Mia is self employed as a consultant. During 2009, Mia earned $180,000 in self employment income. What is Mia's self employment tax? 5) During the current tax year, Frank Corporation generated gross income of $1,900,000 and has ordinary and necessary deductions of $1,400,000. What is the amount of Frank's corporate income tax for the year? 6) Charlie is a dependent on his parent's tax return. He received $750 during the year in dividends, which was his only income. What is his standard deduction? a) $750 b) $950 c) $1,100 d) $5,700 7) Deborah, who is single, is claimed as a dependent on her parent's tax return. She had a part time job during 2009 and earned $850 during the year, which was her only income. What is her standard deduction? a) $850 b) $950 c) $1,150 d) $5,700 8) Cheryl is claimed as a dependent on her parent's tax return. She had a part time job during 2009 and earned $4,900 during the yeaer, which was her only income. What is her standard deduction? a) $950 b) $4,900 c) $5,200 d) $5,450 9) This year, Jason sold some qualified small business stock he held for more than five years. His basis in the stock was $95,000 and he sold it for $30,000 gain. How much of Jason's gain is taxable? a) $0 b) $15,000 c) $30,000 d) $47,500 10) In September of $2009, Amanda sold shared of qualified small business stock for $1,000,000 that had a basis of $200,000. She had held the stock for $7 months. Forty five dats after the sale she purchased other qualified small business stock for $1,100,000. How much of gain will she recognize? a) $0 b) $100,000 c) $800,000 d) $900,000
Question 4
While a bond investor may focus primarily on coupon interest received, the total return on a bond held to maturity may also depend on: A. changes in interest rates. B. capital gain or loss. C. adjustments to par value. D. dividend payments. Reset Selection Mark for Review What's This? Question 2 of 21 5.0 Points While all securities are exposed to market risk to a certain extent, it primarily affects: A. common stocks. B. corporate bonds. C. Treasury securities. D. international investments. Reset Selection Mark for Review What's This? Question 3 of 21 5.0 Points Assume you just purchased a bond for $950. The bond has a face value of $1,000, matures in one year, and has a 5 percent coupon. Your total return on this investment at maturity, assuming no default on payments, will be: A. 5.0%. B. 9.3%. C. 10.5%. D. 12.2%. Reset Selection Mark for Review What's This? Question 4 of 21 5.0 Points It is necessary to calculate a return relative for an investment when the investor desires to take the further step of determining a/an: A. inflation adjusted return. B. arithmetic mean. C. cumulative wealth index. D. discounted cash flow. Reset Selection Mark for Review What's This? Question 5 of 21 5.0 Points A U.S. investor who chooses to buy stock of a foreign company denominated in the local currency is in effect: A. reducing exchange rate risk. B. hedging a portfolio. C. buying dollars. D. selling dollars. Reset Selection Mark for Review What's This? Question 6 of 21 0.0 Points Skip this question. (Maximum number of characters: 60000) Show/Hide Rich-Text Editor Mark for Review What's This? Question 7 of 21 5.0 Points Calculate the arithmetic mean given the following total return values. 0%, 8.3%, 12.6%, -5.2%, and 2.9% A. 3.61% B. 4.35% C. 4.52% D. 5.23% Reset Selection Mark for Review What's This? Question 8 of 21 5.0 Points The value of a geometric mean return calculation, compared to an arithmetic mean, is that it computes: A. compound cumulative returns. B. returns over several years. C. inflation adjusted returns. D. better average single period returns. Reset Selection Mark for Review What's This? Question 9 of 21 5.0 Points To determine real returns on a portfolio, as compared to nominal returns, investors typically take __________ into consideration. A. purchasing power parity B. household income C. the consumer price index D. currency valuations Reset Selection Mark for Review What's This? Question 10 of 21 5.0 Points A standard deviation is commonly employed to understand risk of investments. This arithmetic tool is particularly useful because it measures: A. dispersion. B. weighting. C. mean values. D. concentricity. Reset Selection Mark for Review What's This? Question 11 of 21 5.0 Points The equity risk premium is an important concept in finance, but is often misunderstood. An important source of controversy in this regard is the difference between __________ and __________ risk premiums. A. historical; expected B. realized; guaranteed C. calculated; estimated D. variable; fixed Reset Selection Mark for Review What's This? Question 12 of 21 5.0 Points When an investor looks at a cumulative wealth index, the value change over time is substantially influenced by the effects of: A. indexing. B. inflating. C. discounting. D. compounding. Reset Selection Mark for Review What's This? Question 13 of 21 5.0 Points Mary is evaluating the risk (return deviation) of a model stock portfolio she has constructed. She knows that an ex ante set of returns is a more useful approach. However, she first decides to examine ex post returns because she knows that for a well-diversified portfolio, they are likely to be: A. within one standard deviation. B. reasonably steady across time. C. cumulatively accurate. D. more indicative of future results. Reset Selection Mark for Review What's This? Question 14 of 21 5.0 Points Regardless of the number of assets held in a portfolio or the proportion of total funds placed in each asset, the expected return on the portfolio is always a/an __________ of the expected returns for the individual assets in the portfolio. A. arithmetic mean B. geometric mean C. weighted average D. combined aggregate Reset Selection Mark for Review What's This? Question 15 of 21 5.0 Points Modern Portfolio Theory is similar to principles used in the insurance business, in that its risk reduction properties are founded on the: A. rule of diminishing returns. B. theory of increasing utility. C. law of large numbers. D. principles of cause and effect. Reset Selection Mark for Review What's This? Question 16 of 21 5.0 Points A central tenet of portfolio theory is that diversification can greatly reduce a portfolio's __________ risk. A. systematic B. company specific C. interest rate D. market Reset Selection Mark for Review What's This? Question 17 of 21 5.0 Points Which of the following is a value that can never be a valid correlation coefficient? A. -0.8 B. 0.0 C. 1.0 D. 1.4 Reset Selection Mark for Review What's This? Question 18 of 21 5.0 Points In a portfolio containing two stocks with perfect inverse correlations, the standard deviation of returns will always be: A. zero. B. small. C. large. D. uncertain. Reset Selection Mark for Review What's This? Question 19 of 21 5.0 Points In the case of a portfolio with two securities, the factors that determine total portfolio risk are the variance of each security, the covariance between the securities, and the __________ for each security. A. standard deviation B. dispersion C. geometric mean D. portfolio weights Reset Selection Mark for Review What's This? Question 20 of 21 5.0 Points Jane is an individual investor. She has recently completed an investment strategy utilizing Markowitz portfolio strategy. From this information an observer would most likely conclude that Jane's portfolio is: A. comprised mostly of high return stocks. B. well diversified. C. expected to outperform the market. D. spread across many industry groups. Reset Selection Mark for Review What's This? Question 21 of 21 5.0 Points A central feature of indifference curves is that their shape: A. will vary based on risk preferences. B. always represents an obtainable risk/return profile. C. can occasionally be downward sloping. D. explains return expectations for the overall market.
Question 5
You are a marketing manager interviewing for a new job at several different firms simultaneously. You expect to be asked the same questions in each interview dealing with what you think are some good new marketing opportunities for each firm to pursue. You know that being well prepared for an interview gives you a better chance of being offered the job, so you decided to study each company where you are interviewing. Pick any 3 firms to research. Based on Internet research on these companies, write a 500?750-word research paper proposing at least 3 marketing opportunities that you would strongly suggest that each firm pursue. In your arguments, include the following: * Describe your reasoning for identifying them as worthy of pursuing. * Categorize each marketing opportunity as low-hanging fruit, home runs, or singles, and discuss why (see definitions in course materials). * Discuss the risk in pursuing each opportunity. * Without actually trying to determine each project's ROE, which would you most strongly recommend implementing, and why? * Explain how the marketing opportunity would reflect upon the firm. Would it have a positive or negative public relations effect on the firm? Would it result in great financial improvements, or only a minor improvement? Your report must include a reference list. All research should be cited in the body of the paper.Your report should contain an abstract, a short introduction, and conclusion in addition to the body of the paper.
