Question & Answer

What is the difference between dependent and independent demand for products?

A workpart with starting height h = 100 mm is compressed to a final height of 50 mm. During the deformation, the relative speed of the plattens compressing the part = 200 mm/s. Determine the strain rate at (a) h = 100 mm, (b) h = 75 mm, and (c) h = 51 mm.

Corrs Wholesalers Co. sells industrial equipment for a standard 3-year note receivable. Revenue is recognized at time of sale. Each note is secured by a lien on the equipment and has a face amount equal to the equipment’s list price. Each note’s stated interest rate is below the customer’s market rate at date of sale. All notes are to be collected in three equal annual installments beginning one year after sale. Some of the notes are subsequently sold to a bank with recourse, some are subsequently sold without recourse, and some are retained by Corrs. At year end, Corrs evaluates all outstanding notes receivable and provides for estimated losses arising from defaults. Instructions (a) What is the appropriate valuation basis for Corrs’s notes receivable at the date it sells equipment? (b) How should Corrs account for the sale, without recourse, of a February 1, 2014, note receivable sold on May 1, 2014? Why is it appropriate to account for it in this way? (c) At December 31, 2014, how should Corrs measure and account for the impact of estimated losses resulting from notes receivable that it (1) Retained and did not sell? (2) Sold to bank with recourse?

Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in year 1 and elected to be taxed as an S corporation beginning in year 2.  Johnstone’s earnings and profits at the end of year 1 were $10,000.  Marcus is Johnstone’s sole shareholder, and he has a stock basis of $40,000 at the end of year 1.  What is Johnstone’s accumulated adjustments account at the end of year 2, and what amount of dividend income does Marcus recognize on the year 2 distribution in each of the following alternative scenarios?   Johnstone Corporation Income Statement December 31, Year 2 Year 2 (S corporation) Sales revenue $150,000 Cost of goods sold (35,000) Salary to owners (60,000) Employee wages (50,000) Depreciation expense (4,000) Miscellaneous expenses (4,000) Interest income 10,000   Overall net income $7,000

Identify the selective surface-hardening methods.

Indicate whether the following items are capitalized or expensed in the current year. (a) Purchase cost of a patent from a competitor. (b) Research costs. (c) Development costs (after achieving economic viability). (d) Organizational costs. (e) Costs incurred internally to create goodwill.

How are business credits similar to personal credits?  How are they dissimilar?

Reciprocal method The Brown and Brinkley Brokerage firm is organised into two major sales divisions: institutional clients and retail clients. The firm also has two support departments: research and administration. The research department’s costs are allocated to the other departments based on a log of hours spent on tasks for each user. The administration department’s costs are allocated based on the number of employees in each department.   Records are available for last period as follows.   Required Using the reciprocal method, determine the total cost of operations for each sales division. Use either simultaneous equations or Excel Solver.

Listed below are the transactions of Yasunari Kawabata, D.D.S., for the month of September. Sept. 1 Kawabata begins practice as a dentist and invests $20,000 cash. 2 Purchases dental equipment on account from Green Jacket Co. for $17,280. 4 Pays rent for office space, $680 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $942. 8 Receives cash of $1,690 from patients for services performed. 10 Pays miscellaneous office expenses, $430. 14 Bills patients $5,820 for services performed. 18 Pays Green Jacket Co. on account, $3,600. 19 Withdraws $3,000 cash from the business for personal use. 20 Receives $980 from patients on account. 25 Bills patients $2,110 for services performed. 30 Pays the following expenses in cash: Salaries and wages $1,800; miscellaneous office expenses $85. 30 Dental supplies used during September, $330. Instructions (a) Enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Use the following ledger accounts: Cash, Accounts Receivable, Supplies, Equipment, Accumulated Depreciation—Equipment, Accounts Payable, Owner’s Capital, Service Revenue, Rent Expense, Office Expense, Salaries and Wages Expense, Supplies Expense, Depreciation Expense, and Income Summary. Allow 10 lines for the Cash and Income Summary accounts, and 5 lines for each of the other accounts needed. Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value. Do not use a drawing account. (b) Prepare a trial balance. (c) Prepare an income statement, a statement of owner’s equity, and an unclassified balance sheet. (d) Close the ledger. (e) Prepare a post-closing trial balance.

Assume that you maintain bonds and money market securities in your portfolio, and you suddenly believe that long-term interest rates will rise substantially tomorrow (even though the market does not share the same view), while short-term interest rates will remain the same. a. How would you rebalance your portfolio between bonds and money market securities?  b. If other market participants suddenly recognize that long-term interest rates will rise tomorrow and they respond in the same manner as you do, explain how the demand for these securities (bonds and money market securities), the supply of these securities for sale, and the prices and yields of these securities will be affected. c. Assume that the yield curve is flat today. Explain how the slope of the yield curve will change tomorrow in response to the market activity. (LO2)

Illustrate on four separate diagrams (as in Figure 3.6) the effect of different elasticities of demand and supply on the incidence of a subsidy.

What are the factors on which the selection of feed in a machining operation should be based?

What is the minimum amount by which the pay-off of £500 would have to increase in order for you personally to agree to wait for another 24 hours before receiving it?

1. What other reasons can you think of why perfect competition is so rare? 2. Why does the market for fresh vegetables approximate to perfect competition, whereas that for aircraft does not?

Compute the unit energy for melting for the following metals: (a) aluminum and (b) plain low carbon steel.

Explain the differences and similarities between personal property, real property, intangible property, and natural resources. Also, provide an example of each type of asset.

Assessing a remuneration plan Hailey’s Hair Products has two criteria upon which its reward system is based: (1) rewarding executives for performance and (2) adding to shareholder value. At present, the remuneration package for executives consists of a base salary, annual bonus and stock options. The base salary is considered critical to attract the ‘best’ people to positions with the bonus and stock options encouraging performance that leads to increases in the share price.   Base salaries are set at competitive levels to attract and retain the ‘best’ people. The bonus is payable if executives meet the annual performance targets set by the board at the beginning of the year. The stock options are not able to be exercised until five years after being granted. A recent initiative has meant that executives are able to substitute the bonus payment for stock options (but still with the five year restriction). The board’s remuneration committee is made up entirely of independent directors and makes use of outside advisors to ensure that recommendations are fair to all shareholders.   Required Evaluate the remuneration plan for executives. (LO2, 3 and 4)

What is the connection between the concepts of 'hysteresis’ and ‘propagation mechanisms’?

How are product variety and production quantity related when comparing typical factories?

Reciprocal method. Paul’s Valley Protection Service has three support departments (S1, S2 and S3) and three operating departments (P1, P2, and P3). The direct costs of each department are $30 000 for S1, $20 000 for S2, and $40 000 for S3. The proportions of service provided by each support department to the others are given in the following table. Required Using the reciprocal method, allocate the support department costs to the operating departments.

The total work content for a product assembled on a manual production line is 48 min. The work is transported using a continuous overhead conveyor that operates at a speed of 3 ft/min. There are 24 workstations on the line, one-third of which have two workers; the remaining stations each have one worker. Repositioning time per worker is 9 sec, and uptime efficiency of the line is 95%. (a) What is the maximum possible hourly production rate if line is assumed to be perfectly balanced? (b) If the actual production rate is only 92% of the maximum possible rate determined in part (a), what is the balance efficiency on the line?

Determine the meaning of the following terms. (a) Contributory plan. (b) Vested benefits. (c) Retroactive benefits. (d) Years-of-service method.

There are 20 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage score on the quiz is based on the total number of correct answers. 6.1 Which of the following properties or characteristics are inconsistent with the metals (two correct answers): (a) good thermal conductivity, (b) high strength, (c) high electrical resistivity, (d) high stiffness, and (e) ionic bonding? 6.2 Which one of the metallic elements is the most abundant on the earth: (a) aluminum, (b) copper, (c) iron, (d) magnesium, or (e) silicon? 6.3 The predominant phase in the iron-carbon alloy system for a composition with 99% Fe at room temperature is which one of the following: (a) austenite, (b) cementite, (c) delta, (d) ferrite, or (e) gamma? 6.4 A steel with 1.0% carbon is known as which one of the following: (a) eutectoid, (b) hypoeutectoid, (c) hypereutectoid, or (d) wrought iron? 6.5 The strength and hardness of steel increases as carbon content (a) increases or (b) decreases? 6.6 Plain carbon steels are designated in the AISI code system by which of the following: (a) 01XX, (b) 10XX, (c) 11XX, (d) 12XX, or (e) 30XX? 6.7 Which one of the following elements is the most important alloying ingredient in steel: (a) carbon, (b) chromium, (c) nickel, (d) molybdenum, or (e) vanadium? 6.8 Which one of the following is not a common alloying ingredient in steel: (a) chromium, (b) manganese, (c) nickel, (d) vanadium, (e) zinc? 6.9 Solid solution alloying is the principal strengthening mechanism in high-strength low-alloy (HSLA) steels: (a) true or (b) false? 6.10 Which of the following alloying elements are most commonly associated with stainless steel (two best answers): (a) chromium, (b) manganese, (c) molybdenum, (d) nickel, and (e) tungsten? 6.11 Which of the following is the most important cast iron commercially: (a) ductile cast iron, (b) gray cast iron, (c) malleable iron, or (d) white cast iron? 6.12 Which one of the following metals has the lowest density: (a) aluminum, (b) magnesium, (c) tin, or (d) titanium.? 6.13 Which of the following metals has the highest density: (a) gold, (b) lead, (c) platinum, (d) silver, or (e) tun gsten? 6.14 From which of the following ores is aluminum derived: (a) alumina, (b) bauxite, (c) cementite, (d) hematite, or (e) scheelite? 6.15 Which of the following metals is noted for its good electrical conductivity (one best answer): (a) copper, (b) gold, (c) iron, (d) nickel, or (e) tungsten? 6.16 Traditional brass is an alloy of which of the following metallic elements (two correct answers): (a) aluminum, (b) copper, (c) gold, (d) tin, and (e) zinc? 6.17 Which one of the following metals has the lowest melting point: (a) aluminum, (b) lead, (c) magnesium, (d) tin, or (e) zinc?

Discuss some of the defects that can occur in plastic injection molding

Describe what happens to the individual particles during compaction.