The mean cost of the ingredients of a chicken permesan meal bought at the grocery store is $15. Prices from a sample of 50 restaurants for a comparable meal is shown in spreadsheet PRICES. At an alpha level of .05, can we say that eating chicken parmensan at a restaurant is cheaper? Formulate your hypotheses and solve the problem.

What is the P Value:

A. P < .001

B. .02

C. .07

D. 12

A company is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $40,000 in year 4. The firm’s required rate of return is 9%. What is the payback period of this project?

1.95 years

2.46 years

2.99 years

3.10 years

--------- What is the net present value (NPV) of the project?

--------what is the internal rate of return (IRR) of this project?

--------what is the profitability index (PI) of this project?

-------& should the company accept the project?

The information shown below relating to the ending inventory was taken at lower of cost or NRV from the records of Electronics Corp.: Per Unit Inventory Classification Quantity Cost NRV Keyboards Stock A 18 $ 96 $ 75 Stock B 23 82 66 Stock C 21 106 125 Hard drives Stock X 31 195 176 Stock Y 52 187 214 CD burners Stock D 84 90 71 Stock E 212 122 146 Required: 1-a. Determine the valuation of the above inventory at cost by individual items. 1-b. Determine the valuation of the above inventory at cost assuming application of lower-of-cost-or-NRV by classifications. 2. Prepare the entry to record the writedown, if any, to reduce ending inventory to lower of cost or NRV. Assume periodic inventory and the allowance method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) The information shown below relating to the ending inventory was taken at lower of cost or NRV from the records of Electronics Corp.: Per Unit Inventory Classification Quantity Cost NRV Keyboards Stock A 18 $ 96 $ 75 Stock B 23 82 66 Stock C 21 106 125 Hard drives Stock X 31 195 176 Stock Y 52 187 214 CD burners Stock D 84 90 71 Stock E 212 122 146 Required: 1-a. Determine the valuation of the above inventory at cost by individual items. 1-b. Determine the valuation of the above inventory at cost assuming application of lower-of-cost-or-NRV by classifications. 2. Prepare the entry to record the writedown, if any, to reduce ending inventory to lower of cost or NRV. Assume periodic inventory and the allowance method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.

Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $10,000; direct labor, $3,300; and overhead, $1,122. Jobs 103 and 104 were started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 were finished in June, and Job 104 is expected to be finished in July. No raw materials were used indirectly in June. Using this information, answer the following questions. (Assume this company’s predetermined overhead rate did not change across these months.)

1&2. Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs?
3. Using the accumulated costs of the jobs, what predetermined overhead rate is used?
4. How much total cost is transferred to finished goods during June?

If a company applies its cost of capital to all projects, it runs the risk of accepting some negative-NPV projects that are _____ the company’s existing projects.

a. riskier than

b. of lower risk

c. of the same risk

d. of shorter life than

e. of longer life than

ECON 2106 - Costs and Production

1. Which of the following is an implicit cost?

     a. Purchases of inventories

     b. Interest payments on loans

     c. Insurance premiums

     d. Value of owner's salary and benefits lost if they work in the business

2. Which of the following is an explicit cost?

     a. Foregone interest on the owner's savings

     b. Value of the entrepreneur's labor

     c. Interest payments on loans to buy equipment

     d. Lost wages from the entrepreneur's old job

3. The difference between an economist's conception of total costs and bookkeeper's

     conception of total costs is that an economist:

     a. places a lower value on psychic income.

     b. includes psychic income in explicit revenues.

     c. includes many implicit costs that are ignored by bookkeepers.

     d. ignores accounting data.

4. A firm could have positive accounting profits and negative economics profits if:

     a. psychic income were very large.

     b. implicit costs were large.

     c. fixed costs were spread over only a small output level.

     d. explicit costs were ignored by the accountant.

5. Profit:

     a.    is equal to firm's total revenues minus its total costs.

     b. is measured similarly by both economists and accountants.

     c. as measured by bookkeepers, is adjusted for the implicit costs of production.

     d. as   measured by economists, focuses exclusively on the implicit costs of production.

6. Explicit costs:

     a. do not necessarily involve actual outlays of money by a firm's owners.

     b. include wages, rent, interest, and other payments.

     c. minus implicit costs equal total costs.

     d. are relevant for economists, but not accountants.

7. The short run is a period of time:

     a. of insufficient length to vary a firms output.

     b. in which all factors of production can be varied.

     c. long enough for a firm to change its fixed inputs.

     d. during which output can be changed by employing different amounts of variable inputs.

8. The basic characteristic of the short run is that:

     a. a firm does not have sufficient time to change the amounts of any of the resources it employs.

     b. the firm does have time to change its rate of production, but not its productive capacity.

     c. the firm does have time to change the size of its factory or productive capacity.

      d. the firm does have time to change the amount of all of its resources

Use the table below to answer questions 9-10

9. The marginal product of the second unit of the variable input (labor) is

(a)        20                                            (c)        30

(b)        25                                            (d)       50

10.   Diminishing marginal productivity occurs with which unit of labor?

(a)        first                                          (c)        third

(b)       second                                     (d)       fourth

4) In 1970, an average house in Cupertino cost $41,000.

a ) If the average house appreciates in value at 3.3% annually for the past 18 years, what is the price of that house in 1987?

b) Suppose that your property tax was $250 and has increased by 3.5% annually, how much property tax would you have paid over the last 18 years for the house.

5) Suppose further that your maintenance expense during the first year was $200 and has increased steadily by 2.5% annually, prepare a table (Using MS-Excel), that shows, by year, the value of your house, the annual maintenance expense and your property tax and then your profit, if you sell the house in 1987. Assume that the annual change in property tax is determined at the end of the year and then spread through the following year.

Prepare an executive summary document for Tasty Cola that focuses on the cost savings of the outsourcing and contracting process for the business process that you decide to outsource. Your analysis must include the steps below. You need to justify your decision for the business process outsourced (e.g., accounting, editorial, photography, publishing, distribution, printing, layout, advertising, editing, articles, etc.). For the service that you intend to outsource, please do the following. Establish the preliminary performance targets and levels of service that will be required from the selected vendors. Establish the type of contract that you will use for each contract (i.e., fixed, cost-plus, reimbursable, unit). Determine the evaluation criteria you will use to select the preferred vendor(s) (e.g., low price, best value, etc.). Are there different evaluation criteria for different business units? Why? Identify the number of vendors that you will select to provide the services to be outsourced (i.e., one vendor for all services versus individual vendors with specific expertise in each of the services to be outsourced). Construct a timeline that summarizes the bid activities and time duration for each contracting process (i.e., plan purchases and acquisition through select sellers).

Q1

In the aerospace industry, the material cost is small in relation to the total fabricated cost of the material. If we assume approximately 10% of the total value of a pound saved on a sattelite may be spent on raw material, how much can we spend (in dollars per pound) on raw material?

Q2

Using the result of the previous question, which of the following materials can be justified for use in fabrication of a sattelite if a large majority of the sattelite will comprise the material selected?

nickel-based superalloys

silver

palladium

gold

high-strength composites

Q3

Based on the analysis of this section, at most approximately $.20/lb can go toward raw material cost in the fabrication of rail and ship transit carriers. What is the most expensive material that is feasible in the fabrication of the structural components in this sector?

wood

concrete

carbon steel

plastic

PLEASE I NEED CORRECT  ANSWER

Bonita Co. is building a new hockey arena at a cost of $2,620,000. It received a downpayment of $450,000 from local businesses to support the project, and now needs to borrow $2,170,000 to complete the project. It therefore decides to issue $2,170,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 10%. Prepare the journal entry to record the issuance of the bonds on January 1, 2016. Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method.