440 720 320 4880 Plant overhead $122‚000 D/L rate/hour $30 Youngstown has a traditional cost system. It calculates a plant-wide overhead rate by dividing total overhead costs by total direct labor hours. Assume‚ for the calculations below‚ that plant overhead is a committed (fixed) cost during the year‚ but that direct labor is a variable cost. 1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability of the four
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TABLE OF CONTENTS CONCEPTS OF RISK AND UNCERTAINTY 1 Definition Economic Risk Economic risk is the chance of loss because all possible outcomes and their associated probabilities are unknown.Actions taken in such a decision environment are purely speculative‚ such as the buy and sell decisions made by speculators in commodity‚ futures and option markets. All decision makers are equally likely to profit as well as to lose‚ luck is the sole determinant of success or failure. 2 Definition of
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another have sentenced people to death for thousands of years [CA Innocence Project‚ 2009]. It’s simply a disciplinary act that needs to be eliminated. Wouldn’t it be more efficient for Guilty people to sit in jail and live with what they have committed? To think about what they have done day in and day out‚ to have the world judge them and to know that family and friends has shunned them from their lives‚ because of the things that they have done in the past. They may not get over it today‚ maybe
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Article David Durand‚ “The Cost of Capital‚ Corporation Finance‚ and the Theory of Investment: Comment”‚ American Economic Association‚ Vol. 49‚ No. 4 (Sep.‚ 1959)‚ pp. 639-655. Purpose of the paper The focus of this paper is to contradict the results of [Franco Modigliani; Merton H. Miller‚ “The Cost of Capital‚ Corporation Finance‚ and the Theory of Investment: Comment”‚ American Economic Review‚ June 1958‚ 48‚261-97] (hereafter MM) assumptions in related to cost of capital theory. Foundations This
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Should Britain re-instate the death penalty? The majority of Great Britain is Christian‚ since according to the 2011 census‚ 59.4% of the country claimed to be of Christian faith. However‚ there are mixed views on Christianity and capital punishment. Many Christians believe that the Bible supports the use of the death penalty as it clearly says in Genesis 9:6‚ “Whoever sheds the blood of man‚ by man shall his blood be shed.” In addition to this‚ Jesus commands‚ “He who speaks evil of father or mother
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Working Capital This section includes: Definition and classification of working capital Determinants of Working Capital Measurements of Working Capital Working Capital Financing Management of Working Capital Inventory management Cash Management Receivables Management INTRODUCTION : The term working capital is commonly used for the capital required for day-to-day working in a business concern‚ such as for purchasing raw material‚ for meeting day-to-day expenditure on salaries‚ wages‚ rents rates‚ advertising
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INTERNAL RATE OF RETURN Many companies wants to have a return on their investment in a few years and begin to evaluate their projects optimistically calculating an internal rate of real return not yielding results in the end. This does not end up being expected by the companies; According to the article the authors John C. Kelleher and Justin J. MacCormack . They suggest that there is a tendency to a risky behavior‚ Companies started to run the risk of creating unrealistic numbers for themselves
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nonfinancial sectors. 3. The largest deficit unit is (are) A) households and businesses. B) foreign financial institutions. C) the U.S. Treasury. D) foreign nonfinancial sectors. 4. Those financial markets that facilitate the flow of short-term funds are known as A) money markets. B) capital markets. C) primary markets.
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semi-annually. If your required rate of return is 10%‚ what is the value of the bond? How would your answer change if the interest were paid annually? 7) Sharp Co. bonds are selling in the market for $1‚045. These 15 year bonds pay 7% interest annually on a $1‚000 par value. If they are purchased at the market price‚ what is the expected rate of return? 8) You own a bond that pays $100 in annual interest‚ with a $1‚000 par value. It matures in 15 years. Your required rate of return is 10 percent.
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Cost Theory in Economics A central economic concept is that getting something requires giving up something else. For example‚ earning more money may require working more hours‚ which costs more leisure time. Economists use cost theory to provide a framework for understanding how individuals and firms allocate resources in such a way that keeps costs low and benefits high. 1. Function * Economists view costs as what an individual or firm must give up to get something else. Opening a
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