A hotel is considering changing its waiting line system. In the current system, hotel guests divide themselves equally between the lines that form in front of 4 hotel clerks
The manager is considering having hotel guests wait in one line and then proceed to the next available clerk. If average service time is 10 minutes and the average number of arrivals per hour is 12 guests, determine which system results in the lowest customer waiting time.
Answer: Current system: λ = 12/4 = 3. W = .333 hour or 20 minutes.
Proposed system: W = .1812 or 10.8 minutes, so the proposed system results in less waiting time.
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Martin Corporation granted an incentive stock option to employee Caroline on January 1, 2012. The option price was $150, and the FMV of the Martin stock was also $150 on the grant date. The option allowed Caroline to purchase 160 shares of Martin stock. Caroline exercised the option on August 1, 2016, when the stock's FMV was $250. Unless otherwise stated, assume Caroline is a qualifying employee. If Caroline sells the stock on September 5, 2018, for $350 per share, she must recognize (ignore alternative minimum tax)
A. long-term capital gain of $16,000 in 2018. B. long-term capital gain of $32,000 in 2018. C. ordinary income of $16,000 on the exercise date and a long-term capital gain of $16,000 in 2018. D. 0. No gain or loss is recognized at exercise or sale with incentive stock options.
The internal rate of return will be higher if
A. the cost of capital is lower. B. the cost of the investment is higher. C. the cost of the investment is lower. D. the cost of capital is higher.
The reports generated by a reporting system can be classified as:
A) static. B) dynamic. C) fluid. D) Both A and B E) All of the above
There are two basic types of cost accounting systems: job order costing and periodic costing.
Answer the following statement true (T) or false (F)