Question & Answer

Why have large banks’ noninterest income levels typically been higher than those of smaller banks? (LO2)

A resistance seam-welding operation is performed on two pieces of 2.5-mm-thick austenitic stainless steel to fabricate a container. The weld current in the operation is 10,000 amps, the weld duration = 0.3 sec, and the resistance at the interface is 75 micro-ohms. Continuous motion welding is used, with 200-mm-diameter electrode wheels. The individual weld nuggets formed in this RSEW operation have diameter = 6 mm and thickness = 3 mm (assume the weld nuggets are disc-shaped). These weld nuggets must be contiguous to form a sealed seam. The power unit driving the process requires an off-time between spot welds of 1.0 s. Given these conditions, determine (a) the unit melting energy of stainless steel using the methods of the previous chapter, (b) the proportion of energy generated that goes into the formation of each weld nugget, and (c) the rotational speed of the electrode wheels

Job costing; overhead rates The Eastern Seaboard Company uses an estimated rate for allocating factory overhead to job orders based on machine hours for the machining department and on a direct labour cost basis for the finishing department. The company budgeted the following for last year:       During December, the cost record for job 602 shows the following:   Required (a)     What is the estimated overhead allocation rate that should be used in the machining department? In the finishing department? (b)     What is the total overhead allocated to job 602? (c)      Assuming that job 602 consisted of 200 units of product, what is the unit cost for this job? (d)     What factors affect the volume of production in a period? Can we know all of the factors before the period begins? Why? (e)      Explain why the company would use two different overhead allocation bases.

On July 1, 2014, Agincourt Inc. made two sales. 1. It sold land having a fair value of $700,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,101,460. The land is carried on Agincourt’s books at a cost of $590,000. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $400,000 (interest payable annually). Agincourt Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Instructions Record the two journal entries that should be recorded by Agincourt Inc. for the sales transactions above that took place on July 1, 2014.

Balanced scorecard at individual level; strategy map; boundary systems Required (a) Reflect on the management accounting case and the balanced scorecards used by Qantas and Virgin Australia as part of their incentive plans. How might they use a strategy map in the process of developing their scorecards? (b) With reference to the management accounting case, explain how the airlines might be able to use the balanced scorecard as a form of boundary system.

The cost of equipment purchased by Charleston, Inc., on June 1, 2014, is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 525,000 units. During 2014, the machine was operated 6,000 hours and produced 55,000 units. During 2015, the machine was operated 5,500 hours and produced 48,000 units. Instructions Compute depreciation expense on the machine for the year ending December 31, 2014, and the year ending December 31, 2015, using the following methods. (a) Straight-line. (d) Sum-of-the-years’-digits. (b) Units-of-output. (e) Declining-balance (twice the straight-line rate). (c) Working hours.

1.      What additional investigation might Whitley and Vinson undertake before settling on a plan of action toward Cam?

Under what circumstances would adherence to money supply targets lead to (a) more stable interest rates; (b) less stable interest rates than pursuing discretionary demand management policy?

How do people’s expectations influence the extent of crowding out?

Where can authoritative IFRS related to the accounting for leases be found?

Oasis Company has used the dollar-value LIFO method for inventory cost determination for many years. The following data were extracted from Oasis’ records. Price Ending Inventory Ending Inventory Date Index at Base Prices at Dollar-Value LIFO December 31, 2014 105 $92,000 $92,600 December 31, 2015 ? 97,000 98,350 Instructions Calculate the index used for 2015 that yielded the above results.

Look ahead to Table 3.1. It shows the income elasticity of demand for various foodstuffs. Explain the difference in the figures for milk, fish and fruit juice..

Trace through the effects on the foreign exchange market of a fall in the money supply.

Suppose you asked your favorite AI query tool the following question: “In 2024, Josie is age 14, has $5,000 of interest income and no earned income. How much is Josie's standard deduction for federal income tax purposes?”  The AI tool provided the following response:   For the tax year 2024, the standard deduction amount for a dependent child like Josie with only unearned income (such as interest income) and no earned income is generally limited to the greater of: 1. $1,200, or 2. Her earned income plus $350 (but not more than the regular standard deduction amount). Since Josie has no earned income in 2024, we would consider the first option: Josie's standard deduction = $1,200 Therefore, Josie's standard deduction for federal income tax purposes in 2024 would be $1,200. Please note that tax laws and figures can change from year to year, so it's essential to refer to the most up-to-date IRS guidelines and tax tables for the specific tax year in question.   Is the AI response correct? Explain.

When is revenue recognized under the cost-recovery method?

A fiberglass composite is composed of a matrix of vinyl ester and reinforcing fibers of E-glass. The volume fraction of E-glass is 35%. The remainder is vinyl ester. The density of the vinyl ester is 0.882 g/cm3 , and its modulus of elasticity is 3.60 GPa. The density of E-glass is 2.60 g/cm3 , and its modulus of elasticity is 76.0 GPa. A section of composite 1.00 cm by 50.00 cm by 200.00 cm is fabricated with the E-glass fibers running longitudinal along the 200-cm direction. Assume there are no voids in the composite. Determine the (a) mass of vinyl ester in the section, (b) mass of Eglass fibers in the section, and (c) the density of the composite

In 2014, Hollis Corporation reported net income of $1,000,000. It declared and paid preferred stock dividends of $250,000. During 2014, Hollis had a weighted average of 190,000 common shares outstanding. Compute Hollis’s 2014 earnings per share.

Shauna and Danielle decided to liquidate their jointly owned corporation, Woodward Fashions Inc. (WFI).  After liquidating its remaining inventory and paying off its remaining liabilities, WFI had the following tax accounting balance sheet.     FMV        Tax basisAppreciation Cash$  200,000$     200,000 Building      50,000         10,000        40,000 Land    150,000         90,000        60,000 Total$  400,000$     300,000$    100,000

What is the common approach used in all of the material addition technologies to prepare the control instructions for the RP system?

How would you set about measuring the external costs of road transport?

Why should Bank of England determination of the rate of interest in the discount and repo markets also influence rates of interest in the parallel markets?

A cylindrical riser with diameter-to-length ratio = 1.0 is to be designed for a sand casting mold. The casting geometry is illustrated in Figure P10.25, in which the units are inches. If the mold constant in Chvorinov's rule = 19.5 min/in2 , determine the dimensions of the riser so that the riser will take 0.5 min longer to freeze than the casting itself.

What particular sectors might a distributional analysis of the impact of trade consider?

For what reasons are plant assets retired? Define inadequacy, supersession, and obsolescence.

Assume that just some of the members of a common market like the EU adopt full economic and monetary union, including a common currency. What are the advantages and disadvantages to those members joining the full EMU and to those not?