Question & Answer

What are the major differences between postretirement healthcare benefits and pension benefits?

Describe the kinds of insurance premiums an employer can pay on behalf of an employee without triggering includible compensation to the employee.

How are state-sponsored 529 educational savings plans taxed if investment returns are used for educational purposes? Are the returns taxed differently if they are not ultimately used to pay for education costs?

Drawing an indifference curve diagram that illustrates Giffen behaviour can be difficult. Given that the substitution effect of the price change must be relatively small, how do you draw the indifference curves: i.e. how bowed in towards the origin should they be?

A pin made of alloy steel is press-fitted into a hole machined in the base of a large machine. The hole has a diameter of 2.497 in. The pin has a diameter of 2.500 in. The base of the machine is 4 ft x 8 ft. The base and pin have a modulus of elasticity of 30 x 106 lb/in2, a yield strength of 85,000 lb/in2, and a tensile strength of 120,000 lb/in2. Determine (a) the radial pressure between the pin and the base and (b) the maximum effective stress in the interface

] In constructing a keyword search, what should the keyword search include?

Piecewise linear cost function; regression measurement error The following is the description of a cost: Total fixed costs are $50 000 per month and the variable cost per unit is $10.00 when production is under 1000 units. The variable cost drops to $9.00 per unit after the first 1000 units are produced.   Required (a)          Write the algebraic expression of the cost function and graph it. (b)          Assume that the cost function just described is a reasonable representation of total costs. If the accountant performed regression analysis on weekly observations of this cost and did not realise that there were two relevant ranges, what problems would arise in the cost function that was produced? In other words, how would the cost function be mismeasured?

Louis files as a single taxpayer.  In April of this year he received a $900 refund of state income taxes that he paid last year.  How much of the refund, if any, must Louis include in gross income under the following independent scenarios?  Assume the standard deduction last year was $6,300. a.       Last year Louis claimed itemized deductions of $6,550.  Louis’s itemized deductions included state income taxes paid of $1,750. b.       Last year Louis had itemized deductions of $4,800 and he chose to claim the standard deduction.  Louis’s itemized deductions included state income taxes paid of $1,750. c.       Last year Louis claimed itemized deductions of $7,740.  Louis’s itemized deductions included state income taxes paid of $2,750.

What is the chemical formula of ethylene, the monomer for polyethylene?

Why might it be argued that a redistribution of consumption, while not involving a Pareto improvement, could still be desirable?

What are the three major stages in the production of silicon-based integrated circuits?

Discuss the basic accounting problem that arises in handling each of the following situations. (a) Assets purchased by issuance of common stock. (b) Acquisition of plant assets by gift or donation. (c) Purchase of a plant asset subject to a cash discount. (d) Assets purchased on a long-term credit basis. (e) A group of assets acquired for a lump sum. (f) An asset traded in or exchanged for another asset.

At what company was the Six Sigma quality program first used?

a.       Because Nikki’s 28.57% discount ($14,000 – $10,000/$14,000) is less than Shine Company’s gross profit percentage, the bargain purchase from her employer does not result in taxable income. b.     Nikki will recognize $25 of taxable income from the discounted services provided by Shine Company.  Discounts more than 20% for services are taxable. Thus, Nikki’s taxable discount is $25 ($125 Discount received – (20% x $500)=$25).

In a turning operation on aluminum, cutting speed = 900 ft/min, feed = 0.020 in/rev, and depth of cut = 0.250 in. What horsepower is required of the drive motor, if the lathe has a mechanical efficiency = 87%? Use Table 21.2 to obtain the appropriate unit horsepower value.

Do any groups of people gain from inflation?

Spoilage journal entries Jones Company manufactures custom doors. When job 186 (a batch of 14 custom doors) was being processed in the machining department, one of the wood panels on a door split. This problem occurs periodically and is considered normal spoilage. Direct materials and labour for the door, to the point of spoilage, were $35. In addition, a storm caused a surge in electricity, and a routing machine punctured the wood for job 238. This incident occurred at the beginning of production, so spoilage amounted to only the cost of wood, at $200.   Required (a)     Prepare the journal entries for normal and abnormal spoilage. (b)     Now suppose that the wood from abnormal spoilage can be sold for $25. Record the journal entries for the disposal value. (c)      Jones Company is considering hiring someone to inspect all wood after it arrives at the plant, but prior to production. Discuss the pros and cons of hiring an inspector.

Are organized stock exchanges used to place newly issued stock? Explain. (LO5)

Why might the Fed have difficulty in controlling the economy in the manner desired? Be specific. (LO2; LO3)

Compare the relative merits of (a) quotas on output, (b) limits to the amount of land used for a particular product and (c) farmers being required to take land out of food production.

A product whose total work content time = 50 minutes is to be assembled on a manual production line. The required production rate is 30 units per hour. From previous experience with similar products, it is estimated that the manning level will be close to 1.5. Assume that the uptime proportion and line balancing efficiency are both = 1.0. If 9 seconds will be lost from the cycle time for repositioning, determine (a) the cycle time and (b) the numbers of workers and stations that will be needed on the line.

Job Costing, determination of manufacturing overhead rates One Glass Brewery estimates the following activity for the coming year:       At the end of the financial period the following information was collected:       Required (a)   What was the predetermined manufacturing overhead rate calculated at the beginning of the year? (b)   What was the actual manufacturing overhead rate for the year? (c)    Explain the difference between the rates calculated in (a) and (b) above.

Which factors might be considered by financial market participants who are assessing whether an increase in money supply growth will affect inflation? (LO5)

Describe a passive monetary policy. (LO2; LO3)

Future direction of accounting information Think about the type of work you will perform in your future career.   Required (a)     Give examples of the types of financial and non-financial information you will probably use in your work. (b)     List several methods you could use to produce information that will help predict future operations for your employer or for clients. (c)     What types of continuous learning do you foresee in your career? (d)     Explain why you may need to use creative or innovative ideas in your career.