The tendency for members of highly cohesive groups to conform to group pressures so strongly that they reject the potentially correcting influence of outsiders is known as:
A) escalation of commitment.
B) bias toward an implicit favorite.
C) bounded discretion.
D) groupthink.
D
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Acquisition of greater than 20% of the outstanding stock of a company normally suggests that the investor should use the
A) consolidation method. B) equity method. C) fair-value method. D) straight-line method.
All of the following are goals of an adjustment message except to A) ?rectify the wrong, if one exists
B) ?regain the confidence of the customer. C) ?demonstrate why your company is superior. D) promote future business.
Carcana Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the period to calculate predetermined overhead rates:??MachiningFinishingTotal?Estimated total machine-hours (MHs)1,0004,0005,000?Estimated total fixed manufacturing overhead cost$4,200$8,800$13,000?Estimated variable manufacturing overhead cost per MH$1.90$2.90?During the period, the company started and completed two jobs--Job E and Job G. Data concerning those two jobs follow:??Job EJob G?Direct materials$11,800$8,000?Direct labor cost$19,200$6,700?Machining machine-hours700300?Finishing machine-hours1,6002,400Required:a. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation
base in both departments. What is the departmental predetermined overhead rate in the Machining department?b. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What is the departmental predetermined overhead rate in the Finishing department?c. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job E?d. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job G?e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job E.f. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job G.g. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. If both jobs were sold during the month, what was the company's cost of goods sold for the month? What will be an ideal response?
Sester Corporation has provided the following information concerning a capital budgeting project: Investment required in equipment$750,000 Net annual operating cash inflow$360,000 One-time renovation expense in year 2$70,000 Tax rate 30%After-tax discount rate 7%The expected life of the project and the equipment is 3 years and the equipment has zero salvage value. The company uses straight-line depreciation on all equipment and the depreciation expense on the equipment would be $250,000 per year. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. The net annual operating cash inflow is the difference between the incremental sales revenue and incremental cash operating
expenses. Required:Determine the net present value of the project. Show your work! What will be an ideal response?