Consider the following scenario to understand the relationship between marginal and average values. Suppose Edison is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns with Edison's free-throw percentage for each game and his overall free-throw average after each game. Game Game Result Season Total Game Free-Throw Percentage Average Free-Throw Percentage 1 8/10 8/10 80 80 2 4/10 12/20 3 2/8 14/28 4 2/4 16/32 5 6/8 22/40 On the following graph, use the orange points (square symbol) to plot Edison's free-throw percentage for each game individually, and use the green points (triangle symbol) to plot his overall average free-throw percentage after each game. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Game Free-Throw Percentage Average Free-Throw Percentage 0 1 2 3 4 5 100 90 80 70 60 50 40 30 20 10 0 FREE-THROW PERCENTAGE GAME You can think of the result in any one game as being Edison's marginal free-throw percentage. Based on your previous answer, you can deduce that when Edison's marginal free-throw percentage is above the average, the average must be . You can now apply this analysis to production costs. For a U-shaped average total cost curve, when the marginal cost curve is below the average total cost curve, the average total cost must be . Also, when the marginal cost curve is above the average total cost curve, the average total cost must be . Therefore, the marginal cost curve intersects the average total cost curve .

In each of the following scenarios, identify the accounting conventional rule that applies.
1. The company’s vehicles, which would only have a small scrap value if the company goes into liquidation.

2. The proprietor who has supplied the business capital out of his own private bank account.

3. Electricity consumed in period 1 and paid for in period 2.

4. The proprietor who argues that the accountant has got a motor vehicle entered twice in the books of account.

5. Equipment originally purchased for GHS 500,000 which would now cost GHS 555,000.

6. A company agrees to a five-year construction contract.

7. A demand by the company’s chairman to include every detailed transaction in the presentation of the annual accounts.

8. A company borrowed $100,000 in December and will make its only payment for interest when the note comes due six months later. The total interest for the six months will be $3,600. On the December income statement, the accountant reported interest expense of $600.

9. A retailer wishes to report its merchandise inventory on its balance sheet at its retail value.

10. Near the end of the current year, a company required a customer to pay $200,000 as a deposit for work that is to begin in the following year. At the end of the current year the company reported the $200,000 as a liability on its balance sheet.

11. The creative chief executive of a corporation who is personally responsible for numerous inventions and innovations is not reported as an asset on the corporation's balance sheet.

12. A company sold merchandise of $8,000 to a customer in December. The company's sales terms require the customer to pay the company in 30 days. The company's income statement reported the sale in December.

13. A corporation pays its annual property tax bill of approximately $12,000 in one payment each December 28. During the year, the corporation's monthly income statements report Property Tax Expense of $1,000.

14. A large company purchases a $250 digital camera and expenses it immediately instead of recording it as an asset and depreciating it over its useful life.

15. Accountants might recognize losses but not gains in certain situations. For example, the company might write-down the cost of inventory, but will not write-up the cost of inventory.

MERCOSUR is a free trade block, with current member countries including Argentina, Brazil, Paraguay, and Uruguay. The Bravo Luggage Company is a Latin American firm based in Buenos Aires, Argentina. Bravo has seen a sharp increase in orders over the last few months and needs to increase the amount of material purchased. Currently, the materials used to manufacture Bravo luggage come from suppliers in Paraguay. Bravo managers have been approached by suppliers from Mexico and China who are both offering very competitive prices on materials.

1. Which of the following questions would be most important for Bravo managers to evaluate when determining which supplier to use?

A) How will using non-South American material affect the Bravo brand name?

B) What other MERCOSUR nations sell leather and fabric supplies for luggage?

C) What will be the total cost of materials shipped from Paraguay, Mexico, and China?

D) Are other countries planning to join MERCOSUR in the near future?

2. Which of the following best supports using a supplier from Paraguay over a supplier from Mexico or China?

A) MERCOSUR members agree to use exporters from other MERCOSUR nations.

B) The Mexican supplier is in closer proximity to Bravo than the Chinese supplier.

C) Mexican and Chinese suppliers would pay the same tariff to export to Argentina.

D) Bravo could avoid tariffs because Paraguay is a member of MERCOSUR.

3. Which of the following should be considered when making the decision to use a MERCOSUR supplier or a non-MERCOSUR supplier?

A) Will the additional tariffs charged on non-MERCOSUR supplier offset the cost savings?

B) Do other MERCOSUR nations use outside suppliers?

C) What percentage of tariffs will Argentina receive?

D) How will Bravo managers handle the free trade area?

4. If the material prices from the Chinese and Mexican suppliers are both competitive enough to cover up the additional tariffs, which of the following should be most considered when choosing between the Chinese and Mexican supplier?

A) will Mexico join MERCOSUR in the future?

B) is China a member of the WTO?

C) which supplier requires higher transportation cost?

D) all of the above

CHAP 22

Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows:

At the beginning of July, GBC management planned to produce 380,000 bottles. The actual number of bottles produced for July was 385,000 bottles. The actual costs for July of the current year were as follows:

Assume that your company or agency is concerned about near-term economic conditions and wishes to obtain a qualitative forecast of sales or service in the upcoming quarter. Assume also that you are the market analyst for your company or agency planning to use one or more of the leading economic indicators (LEI) published by the US Department of Commerce to formulate your qualitative forecast. You can Google TheLeading Economic Indicator

All early civilizations – i.e. prehistoric, Near Eastern, Egyptian, Aegean, Greek, and Roman – attempted to represent the human figure within their art. Within this essay, provide a comprehensive analysis of the similarities and differences in the representation of the human form in these early depictions. Address not only the artistic portrayal of the human body, but also how these art forms were significant within the culture in which they were created. Provide specific artwork examples (including identifying data, such as titles or source references) throughout your essay

Tyler and Sherry Hughes, both graduate students, moved into an apartment near the university. Sherry wants to buy renter’s insurance, but Tyler thinks they don’t need it because their furniture isn’t worth much. Sherry points out that, among other things, they have some expensive computer and stereo equipment. To help the Hughes resolve their dilemma, suggest a plan for deciding how much insurance to buy, and give them some ideas for finding a policy.

A buoy bobs up and down, undergo- ing near simple harmonic motion. Which of the following statements are true about the buoy?

(a) The buoyancy force is a maximum when the buoy moves the fastest.
(b) The buoyancy force is always a maximum when the displacement of the buoy from equilibrium is greatest.
(c) The acceleration of the buoy is maximum when it’s speed is zero.
(d) The acceleration of the buoy is zero when it’s speed is zero.
(e) The time it takes the buoy’s velocity to go from a minimum to maximum is the same amount of time it takes it’s acceleration to go from a minimum to a maximum.

1. A group of private investors borrowed $30,053,950million to build 300 new luxury apartments near a large university. The money was borrowed at 5% annual interest, and the loan is to be repaid in equal annual amounts over a 40-year period. Annual operating and maintenance expenses are estimated to be $5,202 per apartment. This expense will be incurred even if an apartment is vacant. The rental fee for each apartment will be $14,241 per year, and the worst case occupancy rate is projected to be 89%. Investigate the sensitivity of annual profit (or loss) to changes in annual operating and maintenance expense.