UNIVERSITY OF MARYLAND UNIVERSITY COLLEGE
WEEK TWO HOMEWORK ASSIGNMENT
1. What is another word that some authors use as an equivalent to
2. A cost that is not relevant to making a decision is known a
EXAM #2 SCM 300
SECTION 1 5 points per question (145 points total)
In this section provide the term or concept that completes or answers the sentence provided. Here
are a few examples:
Example 1: When you divide a companys annual demand by thei
1. Nano Manufacturing wants to issue 1 million new shares. It has 4 million shares outstanding, which its
investment banking firm estimates $65 million. If the investment banking firm charges a 5%
spread, calculate the offer price and total amount ($) the
Jim and Peter are directors of Sambal Pty Ltd. Sambal Pty Ltd has a constitution which
restricts the amount of money the company can borrow at any one time to $10m. The
company already has a bank loan outstanding from the bank in the amount of
Econ 416: Problems
June 13, 2015
Section 1: decision theory and epistemics
Choice correspondences, WARP and utility functions
Problem 1: Imagine there are four alternatives in the world (that is, X = cfw_a, b, c, d),
and we have the f
Casey Carpet manufactures broadloom carpet in seven processes: Spinning, Dyeing, Plying, Spooling, Tufting, Latexing, and
Shearing. in the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred
Assignment 8.1 Handout
1. Cold Spring produces premium bottled water. Cold Spring purchases artesian water, stores the water in
large tanks, and then runs the water through two processes: filtration and bottling. During February, the
Problem 4-14: First Department - Equivalent Units, Cost per EU, Applying Costs - W/A Methods.
Problem 4A-11 (Problem 4-14 Using FIFO Method)
Honeybutter, Inc., manufactures a product that goes through two departments prior to completion. The
Exercise 5-13: B/E Analysis and CVP Graphing
Chi Omega Sorority is planning its annual Riverboat Extravaganza. The Extravaganza committee has
assembled the following expected costs for the event:
Dinner (per person)
Favors and progr
Brief Exercise 15-2
During January, its first month of operations, Knox Tool & Die accumulated the following manufacturing costs: raw materials $5,710on account, factory
labor $6,430of which $5,370relates to factory wages payable and $1,060relates to payr
BONDS AND THEIR VALUATION
1. Bond yields and price over time
A bond investor is analyzing the following annual coupon bonds:
Annual Coupon Rate
Each of the bonds has 10 yea
The statement of cash flows reports _.
cash flows from operating activities
total changes in stockholders' equity
changes in retained earnings
2. Which of the following does not represent an outflow of cash and therefore would not
Problem 16-16: Joint-cost allocation, insurance settlement.
Quality Chicken grows and processes chickens. Each chicken is disassembled
into five main parts. Information pertaining to production in July 2012 is:
As a rule of thumb, real rates of interest are calculated by subtracting the inflation
rate from the nominal rate. What is the error from using this rule of thumb for
calculating real rates of return in the following cases?
Nominal rate (%)
Future value calculation Without referring to tables or to the preprogrammed function on your
financial calculator, use the basic formula for future value along with the given interest rate, i,
and the number of periods, n, to calcula
1. (TCO B) Unearned rent at 1/1/10 was $7,300 and at 12/31/10 was $8,000. The records indicate cash
receipts from rental sources during 2010 amounted to $40,000, all of which was credited to the Unearned
Rent Account. You are to prepare the missing adjust
Hanson, Inc. makes 1,000 units per year of a part called a "prositron" for use in one of its products.
Data concerning the unit production costs of the prositron follow: Direct Materials $342 Direct
Labor 80 Variable Manufacturing OH 48 Fixed Manufacturin
Solutions Guide: Please reword
14-1. What are financial markets? What function do they perform? How would an
worse off without them?
Financial markets are institutions and procedures that facilitate transactions in all
1. Which one of the following has a maturity value? a. Assets b. Bonds c. Common stock
d. Preferred stock
2. a bond indenture: a. Contains the legal agreement between the firm and the
trustee. b. States the bonds current rating. c. States the yield to mat
1.A bank finances a $10 million, six-year fixed-rate commercial loan by selling one-year
certificate of deposit.
It is an interest rate risk as well as credit risk. It is an interest rate risk because change in interest
rate can change the value of the fi
1. Stockholders of a corporation directly elect
a. the president of the corporation.
b. the board of directors.
c. the treasurer of the corporation.
d. all of the employees of the corporation.
2. Which one of the following would not be considered an advan
Refer to P&G's financial statements and the accompanying notes to answer the following
questions. (a) What alternative formats could P&G have adopted for its balance sheet?
Which format did it adopt? (b) Identify the various techniques of disclosure P&G m
Krisch Enterprises Inc.produces aeronautical navigation equipment.The stockholdersequity accounts of Krisch Enterprises Inc.,with balances on January 1,2010,are as follows:
Common Stock, $20 stated value (250,000 shares authorized, 175,000 shares
P12-6 (Comprehensive Intangible Assets) Montana Matt's Golf Inc. was formed on July
1, 2009, when Matt Magilke purchased the Old Master Golf Company. Old Master
provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the
PR 14-2A On July 1, 2010, Borrower Industries Inc. issued $32,000,000 of 10-year, 12% bonds at an effective interest rate of 13% receiving cash of $30,237,139. Interest on t
payable semiannually on December 31 and June 30. The fiscal year of the company i
. Service firms use similar job costing procedures as manufacturing companies. However, a few slight
differences exist. Which of the following is not a difference between job costing for service firms and
job costing for manufacturing companies? (Points :
Solution Guide: Please reword:
1. The contribution format income statements (in thousands of dollars) for the three
Variable cost of goods sold.
Total variable expense.
Journalize entries for disposal of plant assets. Presented below are selected transactions at
Thomas Company for 2006. Jan. 1 Retired a piece of machinery that was purchased on
January 1, 1996. The machine cost $62,000 on that date. It had a useful life o
Chapter 6: Process Costing
The objective of this chapter is to illustrate accounting for a firm that uses a process cost
system. It also covers operations costing which is a hybrid system where materials are
assigned using job costing concepts and convers
Chapter 9: Standard Costing: A Functional-Based Control Approach
The purpose of this chapter is to introduce a standard cost system and show how
standard costs can be used to control operations and to evaluate performance.
When we have finished this chapt
Chapter 4: Activity-Based Costing
This chapter is an introduction to functional-based cost systems and activity-based cost
systems. It discusses how costs are assigned to products in the systems and why
activity-based costing may provide better product co
Chapter 8: Budgeting for Planning and Control
The purpose of this chapter is to introduce the master budget and show how the various
budgets are calculated.
When we complete this chapter you should be able to:
1. explain the difference between a master bu
Chapter 3: Cost Behavior
This chapter is an introduction to cost behavior and cost estimation methods. Cost
behavior and cost estimation are important cost management topics because the
behavior of costs affects how they can be controlled and reduced. Man