1. Which statement is correct regarding homeowner’s insurance?

1. Replacement cost policy pays the homeowner the cost of replacing the damaged property with an item of a similar brand and quality.
2. Homeowner’s policy specifies a deductible that the homeowner is responsible for paying before any insurance coverage is provided by the insurer.
3. Homeowner’s insurance provides insurance in the event of property damage, theft, or personal and third-party liability relating to homeownership.
4. The mortgage lender typically requires that the homeowner’s insurance policy covers at least the mortgage.
5. All the above.

The Joan Company uses the process cost system and average cost method. The following production data are for the month of July, 20--. Production Costs Work in process, beginning of month: Materials $18,500 Labor 8,750 Factory overhead 4,850 $ 32,100 Costs incurred during month: Materials $93,500 Labor 42,450 Factory overhead 33,550 169,500 Total $201,600 Production Report Units In process, beginning of month 4,000 Finished and transferred during month 28,000 Work in process, end of month 10,000 Stage of completion 40% (a) Prepare a cost of production summary for the month. (b) Prepare the journal entries to record production for the month

2. Describe a fixed cost, variable cost. Explain why the variable and fixed costs are important in cost accounting. Give your opinion

The following terms are used to describe various economic characteristics of costs:

Required:
Choose one of the preceding terms to characterize each of the amounts described below. Each term may be used only once.
A. The cost of including one extra child in a day-care center.
B. The cost of merchandise inventory purchased five years ago. The goods are now obsolete.
C. The cost of feeding 300 children in a public school cafeteria is $450 per day, or $1.50 per child per day. What economic term describes this $1.50 cost?
D. The management of a high-rise office building uses 3,000 square feet of space in the building for its own administrative functions. This space could be rented for $30,000. What economic term describes this $30,000 of lost rental revenue?
E. The cost of building an automated assembly line in a factory is $700,000; a manually operated assembly line would cost $250,000. What economic term is used to describe the $450,000 variation between these two amounts?
F. Refer to the preceding question and assume that the firm is currently building the assembly line for $700,000. What economic term is used to describe the $700,000 construction cost?

What must be true about the relationship between marginal abatement cost and marginal damage cost to achieve the efficient level of pollution? While the efficient level can be defined in principle, why might policy instruments to obtain the efficient level be difficult to implement in practice?

Given the following cost information for company XYZ.

The following table shows a demand schedule facing a monopolist.

Quantity: 0    1   2   3   4   5   6   7   8   9  10

Prices:     25 25 24 23 22 21 20 19 18 17 16

The marginal cost of the production is always 13.00 and the profit maximizing output, average a total cost is $20.00

1. What is the profit maximizing (or loss minimizing) output for this?
2. What is the price at which that output will sell in the market?
3. Compute the total cost
4. Compute the total revenue
5. compute profit or loss at the maximizing output level

Monitoring the Cost Of Money: Interest Rates

Interest rates, the cost of money, influence most all factors related to personal and corporate capital budgeting. The more obvious personal information for the cost of money is the rates associated with a mortgage or car loan. As a CFO you would “shop” interest rates to find the best rate for your financing needs.

1. Would you, as the CFO, finance your projects as soon as possible if the cost of capital was expected to drop? Please explain.

2. More importantly, where do you find the information to analyze expected changes in interest rates?

3. Please list references and in-text citations.

Use the cost and revenue data to answer the questions.

If the firm is a monopoly, what is marginal revenue when quantity is 2525 ?

MR = $

Not a valid number

tools

x10^y

What is marginal cost when quantity is 1515 ?

MC = $

Not a valid number

tools

x10^y

If this firm is a monopoly, at what quantity will marginal profit be $0.00?

quantity =

Not a valid number

tools

x10^y

If this is a perfectly competitive market, which quantity will be produced?

quantity =

Not a valid number

tools

x10^y

Comparing monopoly to perfect competition, which of the statements are true? Select all that apply.

The monopoly is likely to be less responsive to consumers.

The perfectly competitive market's ouput is lower.

The monopoly's price is higher.