I guess the correct answer is may want to buy one of these solutions prematurely
One of the dangers in researching vendor solutions is that users and analysts may want to buy one of these solutions prematurely.
Answer:
C. The company paid a lower cost per hour for labor than allowed by the standards.
Explanation:
direct labor rate/price variance = (AR - SR) x AH
Any favorable variance will result from a lower actual rate than the standard rate. Any difference in the actual number of hours will result in a variance of labor efficiency.
In this case, assuming that actual hours were the same as standard hours, 5,000 x 5 = 25,000 direct labor hours were employed. This means that the actual rate was:
-8,000 = (AR - 15) x 25,000
AR - 15 = -8,000 / 25,000 = 0.32
AR = $14.68
In this type of situation, both Ramsay and the company will be investigated for the tax fraud case. Even if Ramsay was found not guilty, the company will still be investigated since the company is a separate entity and there is an alleged big amount hidden in company's assets. If the company is found guilty, it will still be liable for the case even if Ramsay was found not guilty. Most likely, the investigators will try to tie the case back to him anyway since he is one of the main representatives of the company.
Answer:
False
Explanation:
As maximization of the earnings per share might not be the same thing as the wealth maximization which is the primary goal of the company because the company not only has to generate higher profits but also manage all the risks of the entity which might increase by unethical trading in race to increase earnings per share. Furthermore, to enjoy less costly debt finance which would increase the earnings per share, would result in increase in financial risk, which might again head the company towards disaster if not well managed.
The other solid point against the statement would be that the primary purpose can not be the maximization of earnings per share as it stresses upon spending less on corporate social responsibility and as the result the company stock will be less valued at stock exchange. The less valued stock is because the companies like Dow and S & P Global adds no green value to the stock if the company is not spending on social responsibility programs.
Hence the statement is incorrect.
Answer:
C. Becomes negative when output increases beyond some particular level.
Explanation:
Monopoly occurs when there is a single firm or individual selling a particular good or rendering a particular services. In this situation, the monopolist is the price maker and has extensive market control.
However, the Marginal revenue curve of a monopoly is negatively sloped and lies below average revenue.
This is because take for instance, a firm produces and Sells biscuit for $4. At that price, buyers are willing to buy not more than 10. However, if the firm wants to increase quantity sold from 10 to let say 15, they will need to lower the prices. Now in doing so, the marginal revenue becomes negative. This is as a result of the reduction in price in order to sell more quantity. Remember that marginal revenue is the revenue gained by producing one extra unit of product.
So, in reality, the firm actually increases in total revenue because they end up selling more, but also reduces the marginal revenue while doing so.
