Exhibit 15-5 On January 1, 2016, Roberts Company adopts a compensatory share option plan and grants 40 executives 1,000 shares each at $30 a share. The fair value per option is $7 on the grant date. The company estimates that its annual employee turnover rate during the service period of three years will be 4%. ? Refer to Exhibit 15-5. At the end of 2017, the company estimates that the employee
turnover will be 5% a year for the entire service period. At the end of 2018, only 30,000 options vest as only 30 of the 40 executives actually remain. The compensation expense for 2018 will be (Round off turnover calculations to three decimal places and answer to the nearest dollar.)
A) $49,957
B) $70,000
C) $80,022
D) $82,575
A
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The total overhead cost variance is the difference between what actual overhead cost is and what it should have cost according to the flexible budget for the good units produced
Indicate whether the statement is true or false
In a single-period system, ______.
A. the entire inventory of a product is ordered at one time B. as inventory is consumed it is continuously replenished C. inventory is replenished halfway during a consumption cycle D. the entire inventory of a product is ordered by a single customer
A point of equilibrium is a value that is simultaneously the maximum of a row and the minimum of a column
Indicate whether this statement is true or false.
A national cleaning service sent several crews to New Jersey and New York after Superstorm Sandy in 2012. The crews were trained to deal with mud, mildew, and all the problems of making a flooded home or building inhabitable again. The print and media ads that the cleaning service ran stated that the company had a patented system that would remove all unpleasant odors from flooded structures and leave a clean smell. Its sales reps who contacted owners of apartment complexes and shopping centers promised that the crews could come into an average size of apartment complex and have it looking and smelling like new in two weeks. Several people who rent apartments in the complexes that the service cleaned have commented unfavorably on the sweet smelling air freshener the company used to mask
the smell and noted the moldy odor was still perceptible. Also, the time required to clean a complex was more like four weeks instead of the two as promised. Which provider gap does this example describe? List various strategies that can be used to narrow and possibly eliminate this provider gap. What will be an ideal response?