Inflation is 14 percent. Debt is $4 trillion. The nominal deficit is $360 billion. What is the real deficit or surplus

Answer:

Step 1: Identify the activities that generate costs

Step 2: Now we will find cost pools and their relevant cost drivers

Step 3: Assign the cost of each activity (cost pool) on a fair basis which is cost drivers

cost assigned to total products of A = (cost pool/total units of relevant cost driver consumed) *units of cost driver consumed by total # of Products A

Step 4:  Divide the Answer from the step 3 by total units of product A produced to calculate unit cost

Step 5: Add prime cost per unit to it to calculate total unit cost of the product A

Explanation:

The costs in the ABC system are allocated to unit product on more fair basis than the tradition absorption costing which only assume one fair basis for allocation of overhead costs. ABC critisises traditional costing technique for using only one basis for absortion of Overheads.

Suppose both Mr. A and Mr. B drank 5 glasses of juices. Each glass of juice costs $4. According to the Traditional absorption costing technique each individual must pay:

(5 Juices/2)*$4=$10

But ABC says its unfair, use a more appropriate basis for cost allocation. So upon investigating we came to know that Mr. A drank 3 glasses of juice and Mr. B drank 2 glasses of juice. So Mr. A must pay $12(3*$4) and Mr. B must pay $8(2*$4). This is more appropriate or fair basis of absorbing the overhead cost to each individual and is Activity Based Costing.

Answer:

$164,400

Explanation:

Calculation to determine What amount of cash disbursements for insurance would be reported in Sheridan's 2021 net cash provided by operating activities presented on a direct basis

Using this formula

Cash disbursements for insurance =2021 prepaid insurance +Insurance expense-BOY prepaid insurance

Let plug in the formula

Cash disbursements for insurance=$192,000+ $62,000-$89,600

Cash disbursements for insurance=$164,400

Therefore the amount of cash disbursements for insurance that would be reported in Sheridan's 2021 cash provided by operating activities presented on a direct basis is $164,400

Answer:

Many times, clients will shift new people into the project who have no experience with it as they move their key people to new challenges. This issue is: One that is external and intellectual.

Explanation:

External issues do not affect an entity obviously.  The clients shifting new people into projects and moving their key people to new challenges know why they must be doing so.  It may be to encourage organizational learning.  It may be because the key people have been promoted and need to move to higher positions.

Most importantly, it is the clients as entities that we should be concerned and deal with.  Clients like other organizational entities have systems, processes, and policies that they work with to produce results.  Their internal management should remain internal and not be externalized by overtly and overzealous outsiders.

Solving a question by financial calculator method. I am using (Texas Instruments BA II plus)

The answer is Current value = $550

First, since it is Semiannual coupon, then we adjust the interest rate to semi-annual rate and also that multiply by 15 years by 2 since we have 2 semi annual periods per year.

Current value

Also Note that: If using the same calculator as me, key in the numbers first before the function .

Then the Total duration of investment ;N is = 15 * 2 = 30

Then Interest rate; I/Y = 16% / 2 = 8%

After that the Face value; FV = 1000

Now the Semi annual Coupon Payment ; PMT = (8%/2)*1000 = 40

then CPT PV = $549.689

Thus,  the current value of this bond is $550 (rounded to whole number.)

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Answer:

Current value = $550

Explanation:

You can solve this question using a financial calculator. I am using (Texas Instruments BA II plus)

First, since it is Semiannual coupon, adjust the interest rate to semi-annual rate and multiply  15 years by 2 since we have 2 semi annual periods per year.

Note: If using the same calculator as me, key in the numbers first before the function .

Total duration of investment ;N = 15 * 2 = 30

Interest rate; I/Y = 16% / 2 = 8%

Face value; FV = 1000

Semi annual Coupon Payment ; PMT = (8%/2)*1000 = 40

then CPT PV = $549.689

Therefore the current value of this bond is $550 (rounded to whole number.)

Answer:B -

Explanation:Depreciation is added back as an adjustment to the net income in the operating activities section.

Answer:

The correct answer is letter "B": is added back as an adjustment to Net Income in the operating activities section.

Explanation:

Since net income is a starting point for calculating cash flows from operating activities, depreciation costs must be added back to net income if the method being used is the indirect process. Therefore, depreciation spending is recorded in the cash flow statement.

Answer:

This depends on the type of interest charged and the length of the loan. Generally speaking, floating loans should adjust semi-automatically to changes in interest rates. So any change affects them directly.

On the other hand, fixed rate loans, most mortgages and installment loans generally carry a fixed interest rate that doesn't depend on the market interest rate. Some mortgages (around 33% of total) are variable rate mortgages that are affected by changes in the market interest rate, but they adjust on a yearly basis.