##### What are the general problems with the warranty theory?

What are the general problems with the warranty theory?

In: Accounting

##### Two-Stage ABC for Manufacturing Assume Sherwin-Williams Company, a large paint manufacturer, has determined the following activity...

Two-Stage ABC for Manufacturing
Assume Sherwin-Williams Company, a large paint manufacturer, has determined the following activity cost pools and cost driver levels for the latest period:

Activity Cost Pool Activity Cost

Activity Cost Driver

The sales manager from Pie Smiles has suggested that sales would be $8,200 in year 1. Required: 1. Using exponential smoothing with a weight of α =0.3, develop forecasts for years 2 through to 6 . 2. Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of pies. 3. What effect did the smoothing constant have on the forecast for the sale of pies? 4. Use a 3-year moving average forecasting model to forecast the sales of pies. 5. Using the trend projection model, develop a forecasting model for the sales of pies. 6. Which is the preferred method to predict the sales of pies: exponential smoothing with a smoothing constant of 0.3, a 3-year moving average or a trend line? In your response justify why you made that choice. In: Accounting ##### Explain why portfolio risk (sp) tends to decrease as the number of stocks in the portfolio increases. Explain why portfolio risk (sp) tends to decrease as the number of stocks in the portfolio increases. In: Accounting ##### Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s... Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models appear below.  Ski Guard Golf Guard Fishing Guard Selling price per unit$ 230 $320$ 275 Variable cost per unit $80$ 160 $140 Plastic injection molding machine processing time required to produce one unit 12 minutes 8 minutes 5 minutes Pounds of plastic pellets per unit 14 pounds 15 pounds 13 pounds Required: 1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? 4. Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit? In: Accounting ##### A stock produced returns of 14 percent, 17 percent, and −1 percent over three of the... A stock produced returns of 14 percent, 17 percent, and −1 percent over three of the past four years, respectively. The arithmetic average for the past four years is 6 percent. Show your work here (please be as detailed and organized as possible): 1. What is the missing return (i.e., the return in the fourth year)? 1. What is the geometric average return over the four years? 1. What is the standard deviation of returns of the stock? (Show work below please). In: Finance ##### A 1.5 kg , 20-cm-diameter turntable rotates at 50 rpm on frictionless bearings. Two 470 g... A 1.5 kg , 20-cm-diameter turntable rotates at 50 rpm on frictionless bearings. Two 470 g blocks fall from above, hit the turntable simultaneously at opposite ends of a diameter, and stick. Part A What is the turntable's angular velocity, in rpm, just after this event? Express your answer to two significant figures and include the appropriate units.  w=? In: Physics ##### You have recently joined an established, medium sized firm of auditors as a junior partner. 1. You have recently joined an established, medium sized firm of auditors as a junior partner. Because of your knowledge of the relevant pronouncement, Sam Sandman, the senior partner, discussed the following situations with you: 2. Your firm acts as auditors to Small Ltd and as financial advisers to Ben Big, one of Its directors. Ben Big had instituted a legal action against the company for breach of contract and has sought your firm’s advice relating to certain financial aspects relating to Small Ltd. (5) 3. The chief accountant of Cruz Ltd, a public, but unlisted company, audited by your firm, left unexpectedly. The company has asked your firm to maintain its accounting records for the remaining three months of its financial year until they can appoint a suitable accountant. (5) 4. Your firm acts as auditors to Rex (Pty) Ltd, a company required by its Memorandum of Incorporation to be audited. Rex (Pty) Ltd has lent R5 million to Blax (Pty) Ltd, a company of which Sam Sandman is the non- executive chairman. (7) 5. Your firm has been approached by Calvin Ltd to provide a second opinion on some financial information. Thorpe and Co, Calvin Ltd’s auditors provided the original independent opinion but the directors of Calvin Ltd have indicated that this was not the opinion they were expecting and hence have approached your firm for the second opinion. The directors have also indicated that they do not want your firm to contact Thorpe and Co and that as the opinion is required urgently they will pay whatever fee your firm wishes to charge. (8) Required: Discuss each of the situations above in terms of the Code of Professional conduct. Include in your answer the threats to professional conduct, threats to the fundamental principles and the safeguards in the format as follows: Threat / Fundamental Principal / Safeguard eg Self Review Threat / Objectivity / Audit is accountant In: Accounting ##### Do you think U.S. executives are compensated too highly? Why or why not? Do you think U.S. executives are compensated too highly? Why or why not? In: Finance ##### You have been saving to buy a house. The total cost will be$10 million. You...

You have been saving to buy a house. The total cost will be $10 million. You currently have about$2.3 million. If you earn 5% on your money.

(i)how long will you have to wait until you are able to buy the house?

(ii) At 16% how long will you have to wait?

In: Finance

##### Portfolio analysis You have been given the return data shown in the first table on three...

Portfolio analysis You have been given the return data shown in the first table on three assets—F, G, and H—over the period 2010–2013.

Expected return

Year Asset F Asset G Asset H

2010 16% 17% 14%

2011 17% 16% 15%

2012 18% 15% 16%

2013 19% 14% 17%

Using these assets, you have isolated the three investment alternatives shown in the following table:

Alternative Investment

1 100% of asset F

2 50% of asset F and 50% of asset G

3 50% of asset F and 50% of asset H

a. Calculate the expected return over the 4-year period for each of the three alternatives.

b. Calculate the standard deviation of returns over the 4-year period for each of the three alternatives.

c. Use your findings in parts a and b to calculate the coefficient of variation for each of the three alternatives.

d. On the basis of your findings, which of the three investment alternatives do you recommend? Why?

In: Finance

##### Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 Materials used (kg) 400 700...

 Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 Materials used (kg) 400 700 Material cost ($) 8,000 See purchases Direct Labour (hours) 35,000 46,102 Direct Labour ($) 385,000 507,080 Variable Overhead ($) 350,000 419,161 Fixed Overhead ($) 160,000 161,000

Other Information

Overhead is Allocated on Direct Labour Hours

During the year, 800 kg of materials were purchased for \$5,000

Beginning Inventory: none

Ending Inventory:     100kg

Required:

Calculate the flexible budget amounts for all items.

Calculate the following variances

1.Material Rate

2.Material Efficiency

3.Labour Price

4.Labour Efficiency

5.Variable Overhaed Rate

9.Assume that the Material, Labour and Variable Overhead variances are inter-related. What is the most likely single cause of these variances. Briefly explain your answer.

In: Accounting

##### You know the process of due diligence both in IPO and VC funding. What are the...

You know the process of due diligence both in IPO and VC funding. What are the critical differences between these two?

In: Finance

##### Design an experiment to determine the strength of the magnetic field of Earth using the available...

Design an experiment to determine the strength of the magnetic field of Earth using the available equipment.

Available equipment: A large coil of wire (with stand in the center), compass, ammeter, 10Ω and 50Ω resistors, power supply, ruler.

A) Perform the experiment and record your measurement and calculations in an appropriate format. Be explicit about what model you're using to calculate the magnetic field. Vector diagrams may assists you. Include important measurements. Determine the magnitude of the Earth's magnetic field.

B) Identify at least 3 sources of error in your experiment and evaluate how they affect your data. Identify at least 1 shortcoming in your experimental design and what you would do to fit it, Summarize these. Hints: Just saying human error is not acceptable.