Rice Dazzle Inc. has been making the same breakfast cereal for 50 years. Recently, sales have plummeted. To counteract this, the company created a new package that included an endorsement by a celebrity. As a result, sales increased close to previous highs. However, the cereal itself remained the same. According to the VRIO framework, is the new packaging a valuable resource for Rice Dazzle?
The new packaging did not improve the product itself.
According to the VRIO framework, in order for the packaging to be a valuable resource it has to enable the company to exploit opportunities or defend against threats, it also needs to help organizations to increase the perceived customer value by increasing differentiation or/and decreasing the cost of the product. If the resources do not meet this condition, it can lead to competitive disadvantage.
For the statements below select the appropriate terms from the given choices. 1. A revenue not yet recognized; collected in advance. 2. Office supplies on hand that will be used in the next period. 3. Interest revenue collected; not yet recognized. 4. Rent not yet collected; already recognized. 5. An expense incurred; not yet paid or recorded. 6. A revenue recognized; not yet collected or recorded. 7. An expense not yet incurred; paid in advance. 8. Interest expense incurred; not yet paid.
Following are the appropriate terms that are used in Business terms.
1. Advance income received - As it is prepaid
2. Stock / Current Asset - Depending upon the choice given
3. Advance interest received - Prepaid Advance
4. Accrued rent- Amount yet to be credited
5.Outstanding Expense - That is yet to be paid
6. Accrued Income - Revenue yet to be generated
7.Prepaid Expense - Paid in Advance
8. Outstanding Interest - Yet to be paid.
Above are the proper words that are used to in the Business terms that are globally used by any kind of enterprise.
The statements refer to common business and accounting concepts such as deferred revenue, accrued revenue, and prepaid expense among others. These terms help in recognizing and recording revenue and expenditures in the right accounting period.
Here are the appropriate terms for each statement:
Deferred Revenue - A revenue not yet recognized; collected in advance.
Prepaid Expense - Office supplies on hand that will be used in the next period.
Unearned Revenue - Interest revenue collected; not yet recognized.
Accrued Revenue - Rent not yet collected; already recognized.
Accrued Expense - An expense incurred; not yet paid or recorded.
Unbilled Revenue - A revenue recognized; not yet collected or recorded.
Prepaid Expense - An expense not yet incurred; paid in advance.
Accrued Interest - Interest expense incurred; not yet paid.
Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $38,000. The annual cash inflows for the next three years will be: Year Cash Flow 1 $ 19,000 2 17,000 3 12,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the financial calculator method. a. Determine the internal rate of return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. With a cost of capital of 14 percent, should the equipment be purchased? No Yes
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
Using a financial calculator to find the IRR :
Cash flow for year zero = $-38,000.
Cash flow for year one = $ 19,000
Cash flow for year two = $17,000
Cash flow for year three = $12,000
IRR = 13. 74%
If the cost of capital is 14%, the equipment shouldn't be purchased because the IRR is less than the cost of capital.
I hope my answer helps you.
Learning curves are useful for measuring work improvement for repetitive, simple jobs requiring short times to complete.a) true b) false
Learning curves are indeed useful for measuring work improvement in repetitive, simple tasks. They represent worker improvement in efficiency and reduction in mistakes over time, as these tasks are completed on a repetitive basis.
The statement, 'Learning curves are useful for measuring work improvement for repetitive, simple jobs requiring short times to complete', is true. A learning curve is a concept that represents improvement in efficiency of production as workers increase in skill through repetition of tasks. This concept is often used in business and economics to measure work improvement, particularly for jobs that are simple and repetitive in nature. For instance, when an assembly line worker repeats the same task over and over, they typically become faster and make fewer mistakes over time, thus increasing productivity.
False. Learning curves have limited application for assembly-lines with short, repetitive jobs.
Nolan Company's cash account shows a $29,193 debit balance and its bank statement shows $28,152 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $2,801. The June 30 bank statement lists $32 in bank service charges; the company has not yet recorded the cost of these services. In reviewing the bank statement, a $80 check written by the company was mistakenly recorded in the company’s books as $89. June 30 cash receipts of $3,853 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement. The bank statement included a $34 credit for interest earned on the company’s cash in the bank. The company has not yet recorded interest earned. Prepare a bank reconciliation using the above information.
Bank reconciliation is practice of reconciling the bank account balance in a company's book to the balance reported by the bank i order to discover and correct any discrepancy
Bank reconciliation for Nolan for the month of June
Bank statement balance 28,152
Add bank deposit 3,853 3853
Less outstanding check (2801) (2801)
Cash book balance 29,193
Add back error in check (89-80) 9
Interest Earned 34 43
Less bank charges 32 (32)
In 2016, Teller Company sold 3,000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $270,000. The same selling price, variable expenses, and fixed expenses are expected for 2017. What is Teller's break-even point in units for 2017
Breakeven point is the number of units produced and sold where net income is art on it is where revenue equals cost.
The formula for calculating break even points = F / (P - V)
F = fixed cost
P = price
V = variable cost per unit
$270,000 / ($600 - $420) = 1500
I hope my answer helps you
You are asked to lend money for a major commercial real estate development in a foreign country. There is some talk about a further devaluation of the foreign country's currency. What information do you need to assess the creditworthiness of this project? In your evaluation of the project, be sure to take into account translation exposure and economic exposure (operating and transaction), as well as exchange risk.
Please see explanation below
Before Investment for the real estate development in a foreign country, it is very crucial to determine the viability of the project, and more importantly how the cash flows are being populated over the period. One of the major risks involved in investing in foreign country is the currency exchange risk. The value of currencies for the countries continue to fluctuate based on several economic conditions and other macro factors.
If a regulator in a foreign country is devaluing the country’s currency, then it goes in favour of exporters, as the foreign consumers can afford to buy more goods and services with the same amount. However, the people residing in the the country(importers) faces a huge trouble spending in foreign country due to currency devaluation.
To identify the creditworthiness of the project we need information regarding the property prices, its growth, and public spending in the country where we want to make our investment. Secondly, we need the historical data of currency devaluation event (if any) to assess the actual impact it will have on the economy once the devaluation takes place. Thirdly, we need to identify the exposures or the risk involved in operating the business in the foreign country, and how are we go about mitigating the risk from transaction and operating exposure.