Question 5 of 23Alice isn't sure which labor rate to use in her project budget. Which employee labor rate would you tell her to use? Select an answer: burdened rates salaries plus bonus billable rates salaries
Since in the question it is mentioned that Alice is not sure about the labor rate that used in the project budget so here the billable rate should be used as it refers to the rate that billed for the amount of work done with respect to the project. It is to be charged upon the number of hours worked
Therefore in the given situation, the correct option is third i.e. billable rates and the same is to be considered
When deciding on a labor rate for her project budget, Alice can use billable rates, which are the hourly rates charged to clients for the work performed by employees.
When deciding which labor rate to use in a project budget, Alice can consider using billable rates. Billable rates refer to the hourly rate charged to clients for the work an employee performs. By using the billable rates, Alice can ensure that she includes the cost of labor that directly contributes to generating revenue for the project.
An example of contractionary fiscal policy is: a. an increase in government expenditures, or an increase in taxes, or both. b. a decrease in government expenditures, or a decrease in taxes, c. or both. an increase in government expenditures, or a decrease in taxes, or both. d. a decrease in government expenditures, or an increase in taxes, or both. e. increasing government expenditures while holding taxes constant.
An example of contractionary fiscal policy is: d. a decrease in government expenditures, or an increase in taxes, or both.
Contractionary fiscal policy aims to reduce aggregate demand in an economy, which is to typically to combat inflation or cool down an overheating economy. It can be achieved through various means, including reducing government expenditures and increasing taxes.
Both actions decrease the overall amount of money circulating in the economy, which can lead to reduced consumer spending and business investment, helping to bring down inflationary pressures. Thus, generally combining a decrease in government expenditures with an increase in taxes can be an even more potent form of contractionary fiscal policy, as it addresses both the particular sides of the fiscal equation.
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Rocky Mountain Bikes' Colorado warehouse has 50 Pack Rat Deluxe Bike Baskets in stock at a moving average price of $25.13 each. They purchase 300 from Rat-a-tat-tat Bike Products at $25.54 each and transfer 100 from their Texas warehouse where the moving average price is $25.25 each. Assuming all of the baskets mentioned above have been received in Colorado and there have been no sales from Colorado, what is the current moving average price and total inventory valuation for Pack Rat Deluxe Bike Baskets in the Colorado warehouse.
Rocky Mountain Bikes
Current moving average price is:
Total inventory valuation is:
Item Qty Price Moving Total Total Value
average price Qty
Inventory 50 $25.13 50 $1,256.50
Purchase 300 $25.54 $25.48 350 $8,918.50
Transfer 100 $25.25 $25.43 450 $11,443.50
Rocky Mountain Bikes' Colorado warehouse uses the moving average price to value the inventory. The moving average price is computed by creating a constantly updated average price. This smoothens the price data.
Suppose an industry is made up of 16 firms. Three firms each sell 12 percent of the industry's total output; another three firms each sell 8 percent; another five firms each sell 5 percent; and the last five firms each sell 3 percent. What is the eight-firm concentration ratio in this industry?
Answer: The eight-firm concentration ratio in this industry is 0,7.
Explanation: The concentration ratio measures the proportion of total production produced by, in this case, the first eight largest companies in an industry. It is calculated by dividing the market share of the first eight firms in the industry by the total market share.
So: The first 8 firms sell: 3 each 12%. The next 3 each 8%. And thirdly 2 firms each 5%.
Then we calculate: (3x12) + (3x8) + (2x5) = 70% These companies represent 70% of the industry's total output.
So the concentration ratio is = = 0,7
Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $390 cash per truck for the cost of their annual tune-ups. Paid $312 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $438,750 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d.
Answer: a. Capital expenditure
b. Revenue expenditure
c. Revenue expenditure
d. Capital expenditure
Capital expenditures are usually huge expenditure on fixed assets such as land or building and they re usually incurred to generate revenue for the business.
Revenue expenditures are usually for short term basis and are operating expenses, that us required to run the business daily.
Based on the above explanation, the answers to the following will be:
a. Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. - Capital expenditure
b. Paid $390 cash per truck for the cost of their annual tune-ups. - Revenue expenditure
c. Paid $312 for the monthly cost of replacement filters on an air-conditioning system. - Revenue expenditure.
d. Completed an addition to a building for $438,750 cash. - Capital expenditure
Check the attachment for the journal entry
The $78,000 equipment motor replacement and the $438,750 building addition are capital expenditures. The $390 truck tune-ups and the $312 for air-filter replacements are revenue expenditures. Relevant journal entries: 'Equipment' debited and 'cash' credited $78,000, then 'Building' debited and 'cash' credited $438,750.
The transactions can be classified as either a revenue expenditure or a capital expenditure. 1. Paying $78,000 cash to replace a motor on equipment that extends its useful life by four years and completing an addition to a building for $438,750 cash are considered capital expenditures because they are significant investments that will benefit the company for more than one accounting period. 2. Paying $390 cash per truck for the cost of their annual tune-ups and paying $312 for the monthly cost of replacement filters on an air-conditioning system are both classified as revenue expenditures because they only benefit the current accounting period. The journal entries to record transactions A and D would be: Equipment (Debit $78,000), Cash (Credit $78,000) and Building (Debit $438,750), Cash (Credit $438,750).
The best cost system to use for a company producing a continuous stream of similar items would be a: Group of answer choices Production costing system. Job order system. No cost system is required when jobs are similar. Process costing system.
The Best Cost System is the "Process Costing System"
A Process Costing System amasses costs when an enormous number of indistinguishable units are being created. Right now, is generally proficient to collect expenses at a total level for an enormous group of items and afterward dispense them to the individual units delivered. The supposition that will be that the expense of every unit is equivalent to that of some other unit, so there is no compelling reason to follow data at an individual unit level. The great case of a procedure costing condition is an oil treatment facility, where it is difficult to follow the expense of a particular unit of oil as it travels through the processing plant.
Answer: Process costing system.
Explanation: A process costing system used in the manufacturing industry that accumulates the costs of producing a continuous stream of similar items.
It is calculated thus:
Cost per unit = cost of unit/ expected output in unit.
Using process costing method is very efficient to accumulate costs at an aggregate level for a large batch of products and then allocate the cost to the individual units produced.
There are three types of process costing and they are:
1. Weighted Average Cost
2. FIFO - First In First Out
3. Standard Cost
Which one of the following statements is TRUE?(A) One tool of corporate governance is choosing a good investment banker. (B) One tool of corporate governance is how the company's charter affects the likelihood of a takeover. (C) One tool of corporate governance is a company's tax avoidance strategy. (D) Creditors have a claim on a firm's earning stream through the dividend payments they receive. (E) One tool of corporate governance is stock repurchases.
Correct Answer is "A"
(A) One tool of corporate governance is choosing a good investment banker.