12. Which of the following statements is (are) correct?
(x) The local oak table producer has an increase in inventory of 25 tables in 2012. In 2013 it sells all 25 tables to consumers. The value of increased inventory will be counted as part of GDP in 2012 and the value of the tables sold in 2013 will not increase GDP in 2013.
(y) A wheat farmer in Montana buys a new tractor made during the current period that was produced by a German company in the U.S. state of Iowa. As a result, U.S. investment and U.S. GDP increase, but German GDP is unaffected.
(z) A U.S. firm produces sweatshirts in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the sweatshirts to consumers. If the firm does not add additional sweatshirts to inventory in the second quarter then investment, for the firm, decreases in the second quarter.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

13. Michigan Tea Company sold $18 million worth of tea it produced. In producing this tea it purchased $6 million worth of ingredients from foreign countries and paid $1 million to workers who reside in Canada but commute to the United States. How much did these transactions add to GDP of the United States?
A. $24 million
B. $18 million
C. $17 million
D. $12 million

14. Which of the following statements about nominal GDP is (are) correct?
(x) Betsy works at her home to produce goods and services for her family. Unpaid production of goods and services, by Betsy at her home, is not included in the calculation of gross domestic product (GDP).
(y) The value of illegally produced goods are included in GDP because the goods are traded in a market.
(z) Ross, a United States citizen, works only in Canada. The value added to production from his employment is included in Canadian GDP but not the GDP of the United States.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

E. $11 million

1.      According to most estimates, the size of the "underground" economy in the United States could be as large as

a.       The “above-ground” economy

b.      The economy of China

c.       10% of GDP

d.      The state of Rhode Island

2.      The GDP per capita tells us

a.       The amount of output each person would get if the economic pie were sliced evenly.

b.      The amount of output each worker would get if the economic pie were sliced evenly.

c.       The ratio of the maximum amount of output any person gets to the minimum amount of output each person gets.

d.      The median amount of output each person gets, adjusted for inequality.

3.      In the early 1940s, military planners needed to know the size of the economy so they could determine

a.       The size of the tax base in the case of war

b.      How many tanks and planes the economy could produce

c.       The military budget for the next five years

d.      Whether military spending was too large

4.      Government social benefits paid to individuals are

a.       Known as transfer payments, and are counted as part of government consumption and investment

b.      Known as transfer payments, and are typically used to fund personal consumption

c.       Known as output of government, and are counted as pert government consumption and investment

d.      Known as output of government, and are typically used to fund personal consumption

5.      GDP is defined as the dollar value of __________ in a given year.

a.       The total output of the economy

b.      All outputs used in the economy

c.       All intermediate and final goods produced in the economy

d.      The total purchases made in the economy

6.      In GDP calculations, the work of stay-at-home parents is

a.       Counted only for equivalent hours

b.      Not counted

c.       Counted as intermediate inputs

d.      Counted at 50%

7.      Government consumption includes all

a.       Salaries paid to factory workers

b.      Fuel for nuclear submarines

c.       Cola served in a company cafeteria

d.      Pencils bought by a private university

8.      Imports enter the calculation of GDP

a.       With a positive sign

b.      With a negative sign

c.       As an addition to changes in private inventories

d.      Through the personal consumption category

9.      Which of the following is NOT an element of the underground economy?

a.       Off the books babysitting

b.      Illegal drug deals

c.       Commissioned salespeople

d.      Cash only under the table businesses

10. If gross domestic purchases are ________, then net exports are ________.

a.       Greater than gross domestic product; greater than net imports

b.      Equal to zero; also equal to zero

c.       Greater than gross domestic product; positive

d.      Less than gross domestic product; positive

11. Gross domestic product does NOT include

a.       Personal consumption

b.      Intermediate inputs

c.       Residential investment

d.      Net exports

12. If a foreign car manufacturer builds a plant in the United States, the new plant will

a.       Increase U.S. GDP by the amount produced

b.      Have no effect on GDP because it is a foreign company

c.       Decrease U.S. GDP by the amount produced because of foreign ownership

d.      Increase U.S. GDP by the net exports of the company

suppose that a hotel has 100 rooms and the hotel is accepting overbooking anticipating some cancellations. The probability for cancellation is 0.07.

a) What is the probability that somoen who made a reservation will be turned away if this hotel has allowed for 110 resevations?

b. 105 reservation

c. why did the answer to part b go down

American Movieplex, a large movie theater chain, leases most of its theater facilities. In conjunction with recent operating leases, the company spent $28 million for seats and carpeting. The question being discussed over breakfast on Wednesday morning was the length of the depreciation period for these leasehold improvements. The company controller, Sarah Keene, was surprised by the suggestion of Larry Person, her new assistant.

Required:

1. How would increasing the depreciation period affect American Movieplex’s earnings?
2. Does revising the estimate pose an ethical dilemma?
3. Who would be affected if Person’s suggestion is followed?

American Movieplex, a large movie theater chain, leases most of its theater facilities. In conjunction with recent operating leases, the company spent $28 million for seat and carpeting. The question being discussed over breakfast on Wednesday morning was the length of the depreciation period for these leasehold improvements. The company controller, Sarah Keene, was surprised by the suggestion of Larry Person, her new assistant.

Keene: Why 25 years? We've never depreciated leasehold improvements for such a long period.

Person: I noticed that in my review of back records. But during our expansion to the Midwest, we don't need expenses to be any higher than necessary.

Keene: But isn't that a pretty rosy estimate of these assets' actual life? Trade publications show an average depreciation period of 12 years.

Read through the dilemma. For the Original Post*, you will be arguing in favor of Larry Person's proposal to increase the depreciation period for leasehold improvements. Remember to use logic and the accounting principles you have learned thus far to develop your argument. You must include at least three points as to why this route is the best route to go (with one of those points being related to the learned accounting principles).

American Movieplex, a large movie theater chain, leases most of its theater facilities. In conjunction with recent operating leases, the company spent $28 million for seat and carpeting. The question being discussed over breakfast on Wednesday morning was the length of the depreciation period for these leasehold improvements. The company controller, Sarah Keene, was surprised by the suggestion of Larry Person, her new assistant. Keene: Why 25 years? We've never depreciated leasehold improvements for such a long period. Person: I noticed that in my review of back records. But during our expansion to the Midwest, we don't need expenses to be any higher than necessary. Keene: But isn't that a pretty rosy estimate of these assets' actual life? Trade publications show an average depreciation period of 12 years. Read through the dilemma.

For the Original Post*, you will be arguing in favor of Larry Person's proposal to increase the depreciation period for leasehold improvements. Remember to use logic and the accounting principles you have learned thus far to develop your argument. You must include at least three points as to why this route is the best route to go (with one of those points being related to the learned accounting principles).

Amy Richardson had been a well-paid sales manager of a major hotel chain for 15 years. Due to a hotel owner's illness, Amy was offered the opportunity to purchase a hotel near a seaside vacation area she had often visited. After obtaining a lawyer and a financial accountant to assist her, Amy did an analysis of the most recent financial statements of the hotel. Since the hotel had consistently shown a profit during the past few years, Amy thought that the price of the hotel was reasonable, so she decided to purchase the hotel. She resigned her position, obtained a loan, and purchased the hotel.

During the first year as a hotel manager, Amy received an offer from a tour operator who proposed to guarantee a considerable number of room reservations, including during the off-season. However, she turned down the offer because the tour operator asked for a 20% price reduction compared to the regular room rate. A few weeks later, she decided to shut down the restaurant, located in the main building of the hotel, in order to save expenses. With regard to general expenses, she was particularly concerned with the high room cleaning and service costs. On the sales side, although the reservations for the cheaper standard rooms were a bit sluggish, the more expensive large-size superior rooms had a very good occupancy rate of over 90%. The following year, there was a severe economic downturn and also a very bad weather season that reduced the number of guests and also caused a resulting mold situation in the hotel building that required expensive repair work. Amy ran short of cash, became emotionally distraught, and eventually had to sell the hotel at a significant loss.

Question:

Analyze Amy’s purchase decision and the subsequent events using the following key management accounting tools and concepts: Cost-Volume-Profit Analysis, Using Relevant Costs to Make Short-Term Decisions, Cost Management Using Full Costs and Budgeting. Make sure that you clearly indicate how each tool/concept could be used to explain potential management errors that Amy had made and could have helped her to improve decision-making and the financial results of the business.

Amy Richardson had been a well-paid sales manager of a major hotel chain for 15 years. Due to a hotel owner's illness, Amy was offered the opportunity to purchase a hotel near a seaside vacation area she had often visited. After obtaining a lawyer and a financial accountant to assist her, Amy did an analysis of the most recent financial statements of the hotel. Since the hotel had consistently shown a profit during the past few years, Amy thought that the price of the hotel was reasonable, so she decided to purchase the hotel. She resigned her position, obtained a loan, and purchased the hotel.

During the first year as a hotel manager, Amy received an offer from a tour operator who proposed to guarantee a considerable number of room reservations, including during the off-season. However, she turned down the offer because the tour operator asked for a 20% price reduction compared to the regular room rate. A few weeks later, she decided to shut down the restaurant, located in the main building of the hotel, in order to save expenses. With regard to general expenses, she was particularly concerned with the high room cleaning and service costs. On the sales side, although the reservations for the cheaper standard rooms were a bit sluggish, the more expensive large-size superior rooms had a very good occupancy rate of over 90%.

The following year, there was a severe economic downturn and also a very bad weather season that reduced the number of guests and also caused a resulting mold situation in the hotel building that required expensive repair work. Amy ran short of cash, became emotionally distraught, and eventually had to sell the hotel at a significant loss.

Required:

Analyze Amy’s purchase decision and the subsequent events using key management accounting tools and concepts. Make sure that you clearly indicate how each tool/concept could be used to explain potential management errors that Amy had made and could have helped her to improve decision-making and the financial results of the business.

• Introduction to Management Accounting
• Cost-Volume-Profit Analysis   
• Using Relevant Costs to Make Short-Term Decisions
• Cost Management Using Full Costs
• Budgeting

What is the difference between a management contract, a brand, and a hotel franchise agreement? Are all three necessary to run a successful hotel?

Western Europe emerged slowly out of Feudalism. As early nation states formed, it was the smaller states that had the advantage, such as Holland.   Eventually a larger England eclipsed Holland yet maintain a long-term advantage over the larger France and Spain. Ultimately, after many centuries the very large United States become the model of a successful modern, capitalist economy. If trade and population are so important, why did it take almost 1,000 years to develop a very large capitalist nation state?  

Need a few pages to write about this so as much information as possible would be nice

References and sources if possible, or any site that would help answer