Define data and information and provide an example that differentiates between the two. Explain why information is so important to managers.
What will be an ideal response?
Data are raw, unsummarized, and unanalyzed facts such as volume of sales, level of costs, or number of customers. Information is data that are organized in a meaningful fashion, such as in a graph showing the changes in sales volume or costs over time. Data alone do not tell managers anything; information, in contrast, can communicate a great deal of useful knowledge to the person who receives it. Students' examples will vary but must explain the type of data and the relevant information that can be obtained from the data.
Managers cannot plan, organize, lead, and control effectively unless they have access to information. Information is the source of knowledge and intelligence managers need to make the right decisions.
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On April 1, 2018, Morton Company invests $50,000 in Johnson Company stock. Johnson pays Morton a $2,000 dividend on November 30, 2018. Morton sells the Johnson stock on December 31, 2018 for $54,500. Assume the investment is categorized as a short-term equity investment and that Morton does not have significant influence over Johnson.
Requirements: 1. Journalize the transactions for Morton's investment in Johnson's stock. 2. What was the net effect of the investment on Morton's net income for the year ended December 31, 2018.
Alpine Productions uses a standard cost system for recording transactions. Alpine reported the following data for the year ended December 31:
Sales revenues: $800,000
Cost of goods sold (standard costing): $382,000
Selling & administrative expenses: $105,000
What is the net operating income on a standard cost income statement?
A) $312,665
B) $316,765
C) $421,765
D) $313,000
In a high-involvement organization, top management determines and dictates the direction in which the business is heading.
Answer the following statement true (T) or false (F)
Unless one of the parties contractually assumes the risk, the __________ discharges a contract if supervening circumstances make fulfillment of the purpose which both parties had in mind impossible
a. bankruptcy law b. frustration of purpose doctrine c. perfect tender rule d. impossibility of performance doctrine