Question & Answer

What is the significance of the term ‘endogenous’ in endogenous growth theory? What, according to this theory, determines the long-run rate of economic growth?

Direct and indirect costs; and cost driver selection         LO2,3 Venture Buses operates throughout the south-eastern suburbs of Melbourne, with its depot located in Cheltenham. Every day, fuel is delivered and stored in tanks located in the depot. This fuel is used by all the buses and administration vehicles. The accountant has been requested to develop a system to assign the cost to the different vehicles in the depot. He has asked your assistance in coming up with a way to identify the fuel costs. Required (a) From the perspective of the depot, is the cost of fuel a direct or indirect cost? (b) From the perspective of the vehicles attached to the depot, can the cost be classified as either direct or indirect?  Briefly explain. (c) What system would be required to have the cost classified as direct?  (d) If the accountant decided to go with an indirect cost classification, how could the cost be allocated? (e) Identify some factors that would determine which method would be the best for the assignment of fuel costs to the vehicles.

Explain agency theory and how it relates to reward systems.

There are 12 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. 27.1 Which of the following are the usual objectives of heat treatment (three best answers): (a) increase hardness, (b) increase melting temperature, (c) increase recrystallization temperature, (d) reduce brittleness, (e) reduce density, and (f) relieve stresses? 27.2 Of the following quenching media, which one produces the most rapid cooling rate: (a) air, (b) brine, (c) oil, or (d) pure water? 27.3 On which one of the following metals is the treatment called austenitizing be performed: (a) aluminum alloys, (b) brass, (c) copper alloys, or (d) steel? 27.4 The treatment in which the brittleness of martensite is reduced is called which one of the following: (a) aging, (b) annealing, (c) austenitizing, (d) normalizing, (e) quenching, or (f) tempering? 27.5 The Jominy end-quench test is designed to indicate which one of the following: (a) cooling rate, (b) ductility, (c) hardenability, (d) hardness, or (e) strength? 27.6 In precipitation hardening, the hardening and strengthening of the metal occurs in which one of the following steps: (a) aging, (b) quenching, or (c) solution treatment? 27.7 Which one of the following surface-hardening treatments is the most common: (a) boronizing, (b) carbonitriding, (c) carburizing, (d) chromizing, or (e) nitriding? 27.8 Which of the following are selective surface-hardening methods (three correct answers): (a) austenitizing, (b) electron beam heating, (c) fluidized bed furnaces, (d) induction heating, (e) laser beam heating, and (f) vacuum furnaces?

Compare and contrast the lifetime learning credit with the American opportunity tax credit.

1.       : Studies have suggested that extroverts contribute less to teams and are poor listeners, yet other studies suggest that they are more likely to earn six-figure incomes. Discuss why you think this might be the case.

If this ‘fair’ solution were adopted, what effect would it have on the industry MC curve in Figure 8.3?

Golf Corp. (GC), a calendar-year, accrual-method corporation, held its directors’ meeting on December 15 of year 1. During the meeting, the board of directors authorized GC to pay a $75,000 charitable contribution to the World Golf Foundation, a qualifying charity.

A furniture company that makes upholstered chairs and sofas must cut large quantities of fabrics. Many of these fabrics are strong and wear-resistant, which properties make them difficult to cut. What nontraditional process(es) would you recommend to the company for this application? Justify your answer by indicating the characteristics of the process that make it attractive.

Presented below are two independent situations. Situation A: Annie Lennox Co. reports revenues of $200,000 and operating expenses of $110,000 in its first year of operations, 2014. Accounts receivable and accounts payable at year-end were $71,000 and $29,000, respectively. Assume that the accounts payable related to operating expenses. (Ignore income taxes.) Instructions Using the direct method, compute net cash provided by operating activities. Situation B: The income statement for Blues Traveler Company shows cost of goods sold $310,000 and operating expenses (exclusive of depreciation) $230,000. The comparative balance sheet for the year shows that inventory increased $26,000, prepaid expenses decreased $8,000, accounts payable (related to merchandise) decreased $17,000, and accrued expenses payable increased $11,000. Instructions Compute (a) cash payments to suppliers and (b) cash payments for operating expenses.

Moon Hardware is planning to factor some of its receivables. The cash received will be used to pay for inventory purchases. The factor has indicated that it will require recourse” on the sold receivables. Explain to the controller of Moon Hardware what “recourse” is and how the recourse will be reflected in Moon’s financial statements after the sale of the receivables.

'A firm will always prefer to make more profit rather than less.’ Do you agree with this statement? Is it compatible with alternatives to the profit-maximising theory of the firm?

The molten filler metal in brazing is distributed throughout the joint by capillary action. What is capillary action?

A drilling operation is to be performed with a 12.7 mm diameter twist drill in a steel workpart. The hole is a blind hole at a depth of 60 mm and the point angle is 118°. The cutting speed is 25 m/min and the feed is 0.30 mm/rev. Determine (a) the cutting time to complete the drilling operation, and (b) metal removal rate during the operation, after the drill bit reaches full diameter.

What expenses are deductible when a taxpayer combines both business and personal activities on a trip? How do the rules for international travel differ from the rules for domestic travel?

Threshold Concept 9) 1. What risks are involved in buying the latest version of the iPhone? Compare these with the risks of buying a house. (Threshold Concept 9) 2. Give some examples of ways in which it is possible to buy better information. Your answer should suggest that there is profitable business to be made in supplying information. (Threshold Concept 9) 3. Is there a role for government intervention in the provision of information?

A plastic extrusion process produces round extrudate with a mean diameter = 28.6 mm. The process is in statistical control and the output is normally distributed with standard deviation = 0.53 mm. Determine the process capability.

Evaluate grading scheme; professional responsibilities Variance analysis reflects information about actual performance relative to a standard. Variance analysis reports provide managers with information about the performance of employees, from direct labour to supervisors and managers. Grades provide similar information for recruiters who want to hire graduating students. Following is information about Professor Grader’s performance measurement system.   Professor Grader is popular; almost all of his students receive As. This phenomenon is widely attributed to Professor Grader’s superior teaching skills. Grades for this professor’s courses are determined as follows:       A student needs 700 points for an A, 600 points for a B, 500 for a C, and 400 for a D. From the 200 points given for perfect attendance, a student loses 5 points for every class missed (out of 40 class meetings); however, attendance is seldom taken.   If the major assignment paper is 20 pages or longer, 200 points are earned; 10 points are lost for each page less than 20 (thus, a 12-page paper is worth 120 points).   Professor Grader has given the same mid-semester exam for the past 20 years. To reduce the number of exam copies in students’ files, Professor Grader does not return the exams; grades are simply reported to individual students. A student group obtained a copy of the exam 15 years ago. They have chosen not to share the exam with any person not a member of the group; thus Professor Grader usually observes that grades on this exam are nearly normally distributed.   The final exam is a take-home exam that the students have two weeks to complete.   Required (a)     Is it possible to develop a perfect system for measuring student performance in a course? Why? (b)     How much variation is likely in student performance for each of the four graded items? Explain. (c)     Describe the weaknesses in Professor Grader’s grading system as a performance measurement system. (d)     What are Professor Grader’s professional responsibilities to various stakeholders in this situation? (e)     Discuss whether Professor Grader has acted ethically in this situation. Describe the ethical values you use to draw your conclusions. (f)      Is it ethical for students in this situation to access a copy of the prior mid-semester exam or to seek assistance in completing take-home assignments? Does Professor Grader’s system affect the students’ responsibilities? Describe the ethical values you use to draw your conclusions.

Chris Spear invested $15,000 today in a fund that earns 8% compounded annually. To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 8% annual interest compounded semiannually?

A dowel pin made of steel (elastic modulus = 209,000 MPa) is to be press fitted into a steel collar. The pin has a nominal diameter of 16.0 mm, and the collar has an outside diameter of 27.0 mm. (a) Compute the radial pressure and the maximum effective stress if the interference between the shaft OD and the collar ID is 0.03 mm. (b) Determine the effect of increasing the outside diameter of the collar to 39.0 mm on the radial pressure and the maximum effective stress.

Explain how CUs’ exposure to liquidity risk differs from that of other financial institutions. Explain why CUs are more insulated from interest rate risk than some other financial institutions. (LO7)

Floyd Corporation has the following four items in its ending inventory. Replacement Cost Net Realizable Value (NRV) NRV Less Item Cost Normal Profi t Margin Jokers $2,000 $2,050 $2,100 $1,600 Penguins 5,000 5,100 4,950 4,100 Riddlers 4,400 4,550 4,625 3,700 Scarecrows 3,200 2,990 3,830 3,070 Determine the final lower-of-cost-or-market inventory value for each item.

How would the principle of weighing up marginal costs and benefits apply to a worker deciding how much overtime to work in a given week?

Assume that the Fed’s primary goal is to reduce inflation. How can it implement monetary policy to achieve this goal? What is a possible adverse effect of such action by the Fed (even if it achieves this goal)? (LO3)

The 2011 Annual Report of Tootsie Roll Industries contains the following information. (in millions) December 31, 2011 December 31, 2010 Total assets $857.9 $858.0 Total liabilities 191.9 190.6 Net sales 528.4 517.1 Net income 43.9 53.0 Instructions Compute the following ratios for Tootsie Roll for 2011. (a) Asset turnover. (b) Return on assets. (c) Profit margin on sales. (d) How can the asset turnover be used to compute the return on assets?