The insurance department at Shear's has two agents, each working at a mean speed of eight customers per hour. Customers arrive at the insurance desk at a mean rate of one every six minutes and form a single queue. Management feels that some customers are going to find the wait at the desk too long and take their business to Word's, Shear's competitor. In order to reduce the time required by an agent to serve a customer, Shear's is contemplating installing one of two minicomputer systems: System A that leases for $18 per day and will increase an agent's efficiency by 25% or System B that leases for $23 per day and will increase an agent's efficiency by 50%. Agents work eight-hour days. If Shear's estimates its cost of having a customer in the system at $3 per hour, determine if it should
install a new minicomputer system, and if so, which one?
What will be an ideal response?
No system: $49.20; System A: $50.00; System B: $47.50. Install System B.
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Use this information to answer the following question. Northbrook Corporation is preparing a statement of cash flows. The following transactions occurred during the year: 1 . Sold machinery for $9,000 cash. 2 . Purchased a building for $80,000 cash. 3 . Issued $70,000 worth of stock to acquire an airplane. 4 . Converted long-term bonds by issuing $100,000 worth of stock. 5 . Declared and paid a
$10,000 cash dividend. Transaction 3 would be found on the statement of cash flows in the a. cash flows from operating activities section. b. cash flows from financing activities section. c. noncash investing and financing transactions section. d. cash flows from investing activities section.
The basis used in computing unit cost for the process costing system is made up of certain specific jobs worked on during the fiscal year
Indicate whether the statement is true or false
How does distribution of other organizations’ codes of ethics relate to the code- writing process?
a. Distribution of others’ codes of ethics should come during the development of common themes. b. It should come at the beginning of the process to provide a good benchmark. c. It should come after an initial draft of the code has been created to protect employee contribution. d. Codes of other organizations should never be distributed because plagiarism is a likely result.
For firms facing complex and turbulent business environments
A. goals and objectives that are uncertain prevent opportunism. B. detailed plans are needed to maintain order. C. complacency about predetermined milestones can prevent adaptability. D. traditional strategic controls are usually inappropriate.