Question & Answer

Why may managers choose to set prices that cover all costs including sunk costs.

What is a trimming operation in the context of impression die forging?

How should consolidated financial statements be reported this year when statements of individual companies were presented last year?

What are the two basic types of clamping units?

1.      : What type of team does the new CIO have? What do you see as the key problem with the team?

What decision approach would you have used if you were Tate? Why?

What does the term size effect mean in metal cutting?

What happens to a ceramic material when it is sintered?

: Outline the factors managers should consider that will influence work team effectiveness.

: Describe how motivation is related to individual needs

On February 1, 2014, Hewitt Construction Company obtained a contract to build an athletic stadium. The stadium (for a local high school) was to be built at a total cost of $5,400,000 and was scheduled for completion by September 1, 2016. One clause of the contract stated that Hewitt was to deduct $15,000 from the $6,600,000 billing price for each week that completion was delayed. Completion was delayed 6 weeks, which resulted in a $90,000 penalty. Below are the data pertaining to the construction period. 2014 2015 2016 Costs to date $1,620,000 $3,850,000 $5,500,000 Estimated costs to complete 3,780,000 1,650,000 –0– Progress billings to date 1,200,000 3,300,000 6,510,000 Cash collected to date 1,000,000 2,800,000 6,510,000 Instructions (a) Using the percentage-of-completion method, compute the estimated gross profit recognized in the years 2014–2016. (b) Prepare a partial balance sheet for December 31, 2015, showing the balances in the receivables and inventory accounts.

What is meant by the term transfer efficiency in organic coating technology?

Why are abrasive processes technologically and commercially important?

Identify sources of leader power and the tactics that leaders use to influence others.

: Describe content theories of motivation.

: Describe process theories of motivation.

Widjaja Company is accounting for a longterm construction contract using the percentage-of-completion method. It is a 4-year contract that is currently in its second year. The latest estimates of total contract costs indicate that the contract will be completed at a profit to Widjaja Company. Instructions (a) What theoretical justification is there for Widjaja Company’s use of the percentage-of-completion method? (b) How would progress billings be accounted for? Include in your discussion the classification of progress billings in Widjaja Company financial statements. (c) How would the income recognized in the second year of the 4-year contract be determined using the cost-to-cost method of determining percentage of completion? (d) What would be the effect on earnings per share in the second year of the 4-year contract of using the percentage-of-completion method instead of the completed-contract method? Discuss.

: Explain how the reinforcement perspective can be used to motivate employees.

On June 1, 2012, Andre Company and Agassi Company merged to form Lancaster Inc. A total of 800,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2014, the company issued an additional 400,000 shares of stock for cash. All 1,200,000 shares were outstanding on December 31, 2014. Lancaster Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2014. Each $1,000 bond converts to 40 shares of common at any interest date. None of the bonds have been converted to date. Lancaster Inc. is preparing its annual report for the fiscal year ending December 31, 2014. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,540,000. (The tax rate is 40%.) Instructions Determine the following for 2014. (a) The number of shares to be used for calculating: (1) Basic earnings per share. (2) Diluted earnings per share. (b) The earnings figures to be used for calculating: (1) Basic earnings per share. (2) Diluted earnings per share.

: Discuss how job design influences motivation.

1.       : Psychologists have identified three pathways to happiness: pleasure, engagement, and meaning. Do you think it is the manager’s responsibility to help people find these elements in their work? Discuss.

What income tax issues must a corporation consider before it makes a noncash distribution to a shareholder?

1.       : If an experienced executive assistant discovered that she made the same amount of money as a newly hired janitor, how do you think she would react? What inputs and outcomes might she evaluate to make this comparison?

1.       : Use Herzberg’s two-factor theory to explain why motivation seems to be high and turnover low at Publix, based on the information provided in the chapter opening example.

1.      What do you see as the advantages and disadvantages of the incentive system that Morgan’s is using for sales associates? What impact do you think it is having on the Morgan’s culture? Explain.