Case 1.1 Industry and Strategy Analysis a. Apply Porter’s five forces framework to the specialty coffee retail industry. 1. Rivalry among Existing Firms. Direct rivalry among existing firms is often the first order of competition in an industry. Starbucks competes with a broad scope of coffee beverage retailers‚ including fast-food chains‚ doughnut chains‚ and convenience stores associated with many gas stations. Also‚ there are a number of companies that were growing chains of retail coffee
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selling and administrative expenses c. sales minus cost of goods sold and selling and administrative expenses d. sales minus cost of goods sold and depreciation expense 8. During this century‚ financial management has: a. undergone dramatic changes b. basically following the trends of the nineteenth century c. changed during the Depression‚ then reverted back to a prior orientation d. none of the above 9. Which of the following are tax deductible expenses for a business? a. common
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Opening Work in Progress – Closing Work in Progress C. Prime Cost ( ) Prime cost is the DIRECT expenses which can be traced back to each unit of production. It consists of: (1) Direct Materials ( ) (2) Direct Wages ( ) (3) Direct Expenses e.g. Royalty ( ) Factory Overheads ( ) Indirect expenses in the factory which helps production of goods. e.g. Indirect wages‚ rent and rates of the factory‚ depreciation of plant and machinery‚ factory fuel and power‚ etc. ) Work in Progress ( Where goods have not
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are the differences among valuation‚ depreciation‚ amortization‚ and depletion? Is it appropriate to calculate depreciation using two different methods? Why? Which depreciation method provides you the highest depreciation expense in the first year? Why? Valuation refers to the asset being recorded and disclosed at current market price regardless of whether that price is above or below cost. Depreciation is the allocation of the cost of a plant asset to expense over its useful or service life in
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Income is only reported when earned and expenses are only reported when incurred. Since cash is always recorded when it is received an accountant will have to make adjustments to the financial statements to account for its prepaid and accrued expenses. (Nobels‚ et al. 134) A prepaid adjustment is where expenses are paid in advance for future expenses. Now‚ the business must record the transaction when the cash is paid‚ but it must record accurately the expense as it is incurred. For example‚ a business
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INVENTORY – PERIODIC INVENTORY SYSTEM In a Periodic Inventory System‚ no effort is made to keep up – to – date records of either the inventory or the cost of goods sold. Instead‚ these amounts are determined only periodically __ usually at the end of each year. It is used by very small businesses having manual accounting systems. Questions 1 – 3 (Meigns & Meigns)‚ Question 4 (Fess & Warren) Question 1:- Mach IV Audio uses periodic inventory system. One of the
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Inflation is assumed Chapter 1 True / False Questions 1. Inflation is assumed to be a temporary problem that does not affect financial decisions. FALSE 2. Financial Capital is composed of long-term plant and equipment‚ as well as other tangible investments. FALSE 3. Real Capital is composed of long-term plant and equipment. TRUE 4. During the 1930s‚ financial practice revolved around such topics as the preservation of capital‚ maintenance of liquidity‚ reorganization
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Chapter 1 Even numbered discussion questions from page 20 & 21 #2What type of partnership allows some of the investors to limit their Liability? Explain. A limited partnership allows some investors to limit their liability. With a limited partnership some partners are known as general partners and have unlimited liability for any debts the company may have. The other partners of the company are called limited partners. This means they are only responsible for their initial contribution
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- Wages of administration people were - wages of distribution workers were 100 000‚ out of which: 60 000 30 000 10 000 Depreciation of production machines and buildings were Depreciation of administrative buildings were Depreciation of distribution cars were 20 000 10 000 5 000 Costs of marketing were 80 000 Interest costs related to loans received were 5 000 Tax expenses were 3 000 10 printing machines were produced in December. Six of those machines were sold (sales price of one printing machine
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ACC121 FINAL EXAM – Problems (130 points total) First 10 problems @ 11 points each; 1 problem @ 20 points Student name _Katerina Worley______________________ Date _6/23/15____________________ 1. Given the following information about purchases and sales during the year‚ compute the cost to be assigned to ending inventory under each of three methods: (a) average-cost‚ (b) FIFO‚ and (c) LIFO. (Show your work.) Assume that a periodic inventory system is used. Jan. 1 Beginning inventory 225 items
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