Discuss the results of the study by Loh and Mian as they relate to the importance of earnings forecasting.
What will be an ideal response?
ANSWER:
The residual income model provides a central role for future earnings forecasts in determining the in-trinsic value of a stock. Loh and Mian provided ev-idence that better earnings forecasts make for wealthier investors. They examined the usefulness of accurate earnings forecasts from security ana-lysts. Each firm year, they sorted analysts based on the accuracy of their forecasts of annual earnings. They found that analysts with the best earnings forecasts provided the best returns, suggesting that their stock-picking ability was real, and showing support for fundamental analysis of accounting da-ta.
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Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance. Direct labor standard (2 hrs. @ $12.75/hr.)$25.50 per finished unitActual direct labor hours 81,500 hrs.Budgeted units 42,000 unitsActual finished units produced 40,000 unitsStandard variable OH rate (2 hrs. @ $14.30/hr.)$28.60 per finished unitStandard fixed OH rate ($336,000/42,000 units)$8.00 per unitActual cost of variable overhead costs incurred$1,140,000 Actual cost of fixed overhead costs incurred$338,000
A. $4,000 unfavorable. B. $25,450 favorable. C. $21,450 favorable. D. $4,000 favorable. E. $21,450 unfavorable..
Which of the following is not a method that may be available to an agency charged with protection of the public?
a. A mandatory recall of a defective product b. Imposing mandatory and binding arbitration regarding the agency's dispute with a manufacturer producing a defective product without prior agreement c. Issuance of a cease and desist order stopping production of a defective product d. All of the above can be valid exercises of an agency's right to protect the public.
The minimax criterion minimizes the maximum payoff
Indicate whether this statement is true or false.
Which of the following focuses on identifying the factors that influence proposed changes to a project, evaluating these influences, and managing the changes in real time during project implementation?
A) quality control determination B) integrated change control C) time management D) procurement management