Answer:
General Mills, Inc.
a) Income Statement for the fiscal year ended May 29, 2016
Revenue $16,563.1
Cost of goods sold $10,733.6
Gross profit $5,829.5
Total expenses (other than cost of goods sold) 4,092.7
Net income $1,736.8
Balance Sheet as of the fiscal year ended May 29, 2016
Cash, ending year 763.7
Noncash assets 20,948.6
Total assets $21,712.3
Total liabilities 16,405.2
Stockholders' equity 5,307.1
Liabilities + equity $21,712.3
Statement of Cash Flows for the fiscal year ended May 29, 2016
Cash from operating activities 2,629.8
Cash from investing activities 93.4
Cash from financing activities* (2,293.7)
Net cash flow $429.5
Cash, beginning year 334.2
Cash, ending year 763.7
b) A negative amount for cash from financing activities reflects the reduction of long-term debt, which is a positive sign of the company’s ability to retire debt obligations.
c) Following ratios:
(i) Profit margin = 10.49%
(ii) Asset turnover = 0.76
(iii) Return on assets = 8.00%
(iv) Return on equity = 32.73%
Explanation:
a) Data and Calculations:
Revenue $16,563.1
Cost of goods sold $10,733.6
Cash from operating activities 2,629.8
Cash, ending year 763.7
Cash, beginning year 334.2
Total liabilities 16,405.2
Stockholders' equity 5,307.1
Cash from investing activities 93.4
Noncash assets 20,948.6
Total expenses (other than cost of goods sold) 4,092.7
Cash from financing activities* (2,293.7)
(i) Profit margin = $1,736.8/$16,563.1 * 100 = 10.49%
(ii) Asset turnover = $16,563.1/$21,712.3 = 0.76
(iii) Return on assets = $1,736.8/$21,712.3 * 100 = 8.00%
(iv) Return on equity = $1,736.8/$5,307.1 * 100 = 32.73%
Why do we need an organizational structure?
Structure will give employees more clarity, help manage expectations, enable better decision-making and provide consistency.
You have just applied for a 30year 100000 mortgage at a rate of 10%.what must be annual payment be?
Answer:
The correct answer is "$10,607.92".
Explanation:
Given:
Amount borrowed,
P = 100000
Interest rate,
r = 10%
or,
= 0.1
Time,
= 30 years
Now,
The annual payment will be:
⇒ [tex]A=P\times \frac{r(1+r)^n}{(1+r)^n-1}[/tex]
[tex]=100000\times \frac{0.1(1+0.1)^{30}}{(1+0.1)^{30}-1}[/tex]
[tex]=10,607.92[/tex] ($)
Razor Corporation's cost of preferred stock is 8%. The company's stock sells for $100 a share with selling costs are $5. What is the annual dividend to the preferred stock
Answer:
Razor Corporation
The annual dividend to the preferred stockholders is:
= $8 per share
Explanation:
a) Data and Calculations:
Cost of preferred stock = 8%
Selling price per preferred stock = $100
Annual dividend to the preferred stock = $100 * 8% = $8 per share
b) The $8 per share annual dividend of Razor's preferred stock dividend is computed by applying the fixed percentage to the preferred stock's total par value. In the above case, it is assumed that the par value or nominal value of the stock is $100. The cost of selling or issuing the stock is not factored when calculating the dividend.
A firm has a total market value of assets of $300 that includes $40 million of cash and 12 million shares outstanding. If the firm uses $30 million of its cash to repurchase shares, what is the new price per share
Answer: $25.00
Explanation:
Original share price:
= Value of assets / Shares outstanding
= 300 million/ 12 million
= $25.00
Company uses $30 million to buy shares which means that it buys:
= 30 million / 25
= 1,200,000 shares
New value of assets:
= 300 million - 30 million cash used
= $270 million
New price per share:
= 270 million / (12,000,000 - 1,200,000 shares)
= 270 million / 10,800,000
= $25.00
ll else being equal, an increase in the yield to maturity of a bond will result in: a. a lower risk of suffering losses in the market values of the bond portfolios. b. a decrease in the rate of return at which the cash flows from the portfolios can be reinvested. c. an increase in the maturity value of the bond. d. a greater interest rate price risk on a long-term bond than on a short-term bond. e. an increase in the market price of the bon
Answer:
d. a greater interest rate price risk on a long-term bond than on a short-term bond.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
Generally, most bonds with shorter maturity time respond less dramatically to changes in interest rates when compared to bonds having longer maturity.
This ultimately implies that, the risk associated with short bonds isn't really significant because their interest rates are less likely to change substantially within that short period of time unlike bonds with longer maturity.
Yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.
For example, when a bond is issued at a par or face value of €1,000, at maturity the investor would be paid €1,000. But because bonds are being sold before its maturity, it would trade below its face value.
All else being equal (ceteris paribus), an increase in the yield to maturity of a bond will result in a greater interest rate price risk on a long-term bond than on a short-term bond.
An interest-rate risk can be defined as the risk associated with bond owners due to fluctuating interest rates. This risk has a direct level of impact on the value of fixed income securities such as bonds.
Mark owns a driving range in New York City. He has taken notice of the three competitors who are located very close to his business. Mark decides to look at his competitors' pricing and then determine his best pricing strategy based on all of the information. In this scenario, Mark is utilizing ________.
Answer:
competitor-based pricing
Explanation:
Since in the given situation, it is mentioned that mark look to the competitor pricing and them measures it pricing startegy
So here Mark is utilizing competitor based pricing as the mark has decided the price that depend upon his competiton. It is mainly applied for those products who are almost same with the competitor products.
Therefore the above should be the answer for the given scenario.
If the best surgeon in town is also the best at cleaning swimming pools, then according to economic reasoning, this person should
Answer:
specialize in being a surgeon because its opportunity cost is lower.
Explanation:
Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
Assuming the best surgeon in town is considered to be the best at cleaning swimming pools, then from an economic perspective and reasoning, this person should specialize in being a surgeon because its opportunity cost is lower.
This ultimately implies that, the benefits, profits or value associated with cleaning swimming pools i(alternative forgone) is lower compared to what is obtainable from being a surgeon.
The cross price elasticity between gasoline and driving :___________.
a. is positive so they are complements.
b. is negative so they are substitutes
c. is positive so they are substitutes.
d. is negative so they are complements
Answer:
d. is negative so they are complements
Explanation:
The gasoline and driving are complement to each other that means if the price of the gasoline is increased so there should be the less pricing as it will become costlier now and if the price of the gasoline is decreased so there is more driving. It has an inverse relationship between two goods
So, the cross price elasticity of goods would be negative
Hence, the option d is correct
After considering the Burberry story, identify which business-level strategy the company is attempting to pursue?
a. Focused Differentiation
b. Focused Low Cost
c. Broad Low Cost
d. Integrated Differentiation and Low Cost
Answer:
The answer is "Option a".
Explanation:
The concentrated product differentiation wants to deliver unique characteristics which satisfy the business requirements of a specific market. Many companies who adopt a focused product differentiation focus exclusively on a certain distribution platform, also including selling upon on the Internet alone.
By studying that tale of Burberry, the company is trying it develop a strategy of places in the world. The strategy of places in the world involves the arise from different of products to a limited group of customers for premium objects usually.
how can an oligopoly cause market failure
Answer:
Inefficiency, instability and indeterminacy brought about by oligopoly may result in a market crash. The firm's supremacy is established as the capacity is established more and more, but little is produced in order to create artificial barrier to entry.
Explanation:
The promise of bigger profits gives oligopolists an incentive to cooperate. However, collusive oligopoly is inherently unstable, because the most efficient firms will be tempted to break ranks by cutting prices in order to increase market share.
Oligopoly causes market failure when the whole market is controlled by the suppliers by managing the prices of goods and services.
What is oligopoly?
Small numbers of suppliers control markets in an oligopoly. It is generally referred to as competitiveness among a small number of people and is a type of imperfect competition.
Because of this interconnection, market participants in an oligopolistic environment are not able to act independently of one another. As a result, these firms must determine whether to raise, drop, or keep a fixed price.
In an oligopoly, as there are few suppliers to decide the prices of goods and services which can lead to supply and demands of the goods sometimes, they can raise prices so high and sometimes too low depending on the factor of decision making.
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Jane Industries manufactures plastic toys. During October, Jane's Fabrication Department started work on 10,000 models. During the month, the company completed 11,000 models, and transferred them to the Distribution Department. The company ended the month with 1,500 models in ending inventory. There were 2,500 models in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is being followed. Beginning work in process was 25% complete as to conversion costs, while ending work in process was 50% complete as to conversion costs.
Required:
What were the equivalent units for conversion costs during October?
Answer:
11,125 units
Explanation:
Particulars Units
Beginning WIP (2500*0.75) 25% is completed 1,875
Units started and completed during the month 8500
[10,000 -1500 as ending Inventory]
Ending Inventory [1500*0.50] 750
Equivalent units 11,125
So, the equivalent units for conversion costs during October is 11,125 units
Service levels are reported accurately is an example of which control
Answer:
Service level measures the performance of a system. Certain goals are defined and the service level gives the percentage to which those goals should be achieved. Fill rate is different from service level.
Examples of service level:
Percentage of calls answered in a call center.
Percentage of customers waiting less than a given fixed time.
Percentage of customers that do not experience a stockout.
Percentage of all parts of an order being fulfilled completely
(Explanation) if one component part of an order is not filled the Service Level for that order is Zero, If all the component parts of an order are delivered except one is filled at 51%, the service level for that order is 51% (This system is often used in supply chain delivery to manufacturing), This is a very different from a simple order fill measurement which does not consider line items on the order.
Explanation:
thank me later
Candle Corp. applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $80 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order include: Direct materials of $44,000; 300 direct manufacturing labor-hours at $25 per hour; and a 20% markup rate on total manufacturing costs. The bid price for this special order is ________.
Answer:
The total Bid price for special order is $90,600.
Explanation:
The allowable increase for a constraint is Group of answer choices how much resource to use to get the optimal solution. the amount by which the resource can increase given shadow price. how many more units of resource to purchase to maximize profits. the amount by which the constraint coefficient can increase without changing the final optimal value.
Answer: the amount by which the resource can increase given shadow price.
Explanation:
The allowable increase refers to the amount by which the coefficient of the objective function can be increased without bringing about a change in the optimal basis.
The allowable increase for a constraint is the amount by which the resource can increase given shadow price. Therefore, the correct option is B.
The following activities occur at Greenwich Corporation. a company that manufactures a variety of products.a. Various individuals manage the parts inventories.b. A clerk in the factory issues purchase orders for a job.c. The personnel department trains new production workers.d. The factory’s general manager meets with other department heads such as marketing to coordinate plans.e. Direct labor workers assemble products.f. Engineers design new products.g. The materials storekeeper issues raw materials to be used in jobs.h. The maintenance department performs periodic preventive maintenance on general-use equipment.Required:Classify each of the activities above as either a unit-level, batch-level, Product-level, or organizationsustaining activity.
Answer:
Product level activities have to do with the individual products themselves and issues concerning them.
Batch level activities are related to uses that concern a group of products including their sales and raw material acquisition.
Unit level activities are those that concern the production volumes of units and include direct materials and direct labor.
Organization sustaining or Facility level entails issues that relate to the general facility used in production and is more of an administrative measure.
Batch Level Activities
b. A clerk in the factory issues purchase orders for a job.
g. The materials storekeeper issues raw materials to be used in jobs.
Product Level Activities
a. Various individuals manage the parts inventories.
f. Engineers design new products.
Unit Level Activities
e. Direct labor workers assemble products.
Organization sustaining Level
c. The personnel department trains new production workers.
d. The factory’s general manager meets with other department heads such as marketing to coordinate plans.
h. The maintenance department performs periodic preventive maintenance on general-use equipment.
Which statement is true of the relationship between risk and return?
O The grear the risk, the greater the potential return.
O The relationship between risk and return varies.
The greater the risk, the lower the potential return.
O The relationship depends on the individual investment.
Answer:
the relationship depends on the individual investment
Answer:
The relationship depends on the individual investment
What is one of the key phases of procurement processes that employ competitive bidding mechanisms?
what kind of life insurance policy issued by mutual insurer provides a return od divisible surplus
Answer:
participating life insurance policy <- A mutual insurer issues life insurance policies that provide a return of divisible surplus.
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A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease to $15 per unit, fixed costs increase to $900,000, and the selling price does not change, break-even point in units would:
Answer:
remain the same
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
Initial Breakeven quantity = $720,000 / ($30 - $18) = 60,000
New Breakeven quantity = $900,000 / ($30 - $15) = 60,000
Breakeven point remained the same
A manufacturer reports the information below for three recent years.
Year 1 Year 2 Year 3
Variable costing income 140,000 146,400 143,950
Beginning finished goods inventory (units) 0 2,200 1,700
Ending finished goods inventory (units) 2,200 1,700 1,800
Fixed manufacturing overhead per unit 1.20 1.20 1.20
Compute income for each of the three years using absorption costing.
Year 1 Year 2 Year 3
Absorption costing income
Answer:
Year 1
Fixed Overhead in ending inventory = (2,200 * $1.20) = $2,640
Year 2
Fixed Overhead in ending inventory = (1,700 * $1.20) = $2,040
Fixed overhead in beginning inventory = (2,200 * $1.20) = $2,640
Year 3
Fixed Overhead in ending inventory = (1,800 * $1.20) = $2,160
Fixed overhead in beginning inventory = (1,700 * $1.20) = $2,040
Absorption costing income
Particulars Year 1 Year 2 Year 3
Variable costing income $140,000 $146,400 $143,950
Fixed Overhead in ending inventory $2,640 $2,040 $2,160
Fixed overhead in beginning inventory $0 ($2,640) ($2,040)
Absorption costing income $142,640 $145,800 $144,070
Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years
and an estimated residual value of $25,000.
A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method
of depreciation?
B. What was the book value of the equipment on January 1 of Year 4?
C. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the
entry to record the sale.
D. Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead
of $300,000, journalize the entry to record the sale.
Answer:
A. Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. $322,500
C. Dr Cash $300,000
Dr Accumulated Depreciation-Equipment $52,500
Dr Loss on disposal of Equipment $22,500
Cr Equipment $375,000
D. Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
Explanation:
A. Calculation to determine What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation
Year 1 Depreciation expense Year 1=($375,000-$25,000)/20 years
Year 1 Depreciation expense Year=$17,500
Year 2 Depreciation expense Year=($375,000-$25,000)/20 years
Year 2 Depreciation expense Year=$17,500
Year 3 Depreciation expense Year=($375,000-$25,000)/20 years
Year 3 Depreciation expense Year=$17,500
Therefore the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation is :
Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. Calculation to determine What was the book value of the equipment on January 1 of Year 4
Book value of Equipment=[$375,000-($17,500*3)]
Book value of Equipment=[$375,000-$52,500)
Book value of Equipment=$322,500
Therefore the book value of the equipment on January 1 of Year 4 is $322,500
C. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $300,000
Accumulated Depreciation-Equipment $52,500
($17,500*3)
Dr Loss on disposal of Equipment $22,500
($322,500-$300,000)
Cr Equipment $375,000
(To record sales)
D. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
($17,500*3)
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
($325,000+$52,500-$375,000)
(To record sales)
Use the drop-down menus to indicate whether each of the following events would be recorded as revenues or expenses at the time it happens under accrual-basis and cash-basis accounting methods.
Event Accrual-Basis Cash-Basis
September: Receive cash in advance from customers for services to be performed in November.
selectRecord revenueDo not record revenue
selectRecord revenueDo not record revenue
October: Purchase supplies totaling $10,000 on account.
selectRecord expenseDo not record expense
selectRecord expenseDo not record expense
November: Receive cash for services performed in November.
selectRecord revenueDo not record revenue
selectDo not record revenueRecord revenue
November: Perform services for customers who paid in advance during October.
selectRecord revenueDo not record revenue
selectRecord revenueDo not record revenue
December: Pay cash for the supplies that were purchased in October.
selectRecord expenseDo not record expense
selectRecord expenseDo not record expense
Answer and Explanation:
The classification is as followS:
Transactions Accrual basis Cash basis
1. Cash received in advance Not record record the revenue
2. Purchase supplies Not record Not record the expense
3. Received cash for services record revenue record revenue
4. Perform services Record revenue Not record the revenue
5. Pay cash for the supplies Not record record the expense
In this way it should be classified
U.S.-based Myva Foods Inc. is expanding its business to the Asian market. Which of the following will NOT be effective in the company's efforts to expand to international markets?
A) paying close attention to the cultural differences between Myva's home country and the host countries.
B) finding new ways to blend the Four Ps of the marketing mix in the new market by making an effort to understand the local culture.
C) applying the same marketing mix Myva uses in the U.S.market to the Asian market.
D) putting more effort into planning strategies for the international markets,even though it has experienced success in the U.S.market.
Answer:
Myva Foods Inc.
The attempt that will NOT be effective in the company's efforts to expand to international markets is:
C) applying the same marketing mix Myva uses in the U.S. market to the Asian market.
Explanation:
Expanding to the Asian market requires a different marketing mix than Myva is currently using in its U.S. home market. This means that if it applies the same marketing mix in the Asian market, it may likely remain unsuccessful. The two markets have cultural differences. So, it must find new ways to blend the Four Ps of Price, Product, Promotion and Place, to reflect its understanding of the Asian culture.
The attempt that will NOT be effective in the company's efforts to expand to international markets is: Applying the same marketing mix Myva uses in the U.S. market to the Asian market.
What is international market?International market refers to any geographical region where a company conducts business that is outside the territorial boundaries of its company's home country.
With regards to the above, expanding to the Asian market requires a different marketing mix than Myva is currently using in its U.S. home market. This is because if it applies the same marketing mix in the Asian market, it may likely remain unsuccessful.
Also, the two markets have different culture. It must therefore find new ways to blend the Four Ps of Price, Product, Promotion and Place, to reflect its understanding of the Asian culture.
Hence, the attempt that will NOT be effective in the company's efforts to expand to international markets is: Applying the same marketing mix Myva uses in the U.S. market to the Asian market
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If capital rents for $25 per unit per hour, labor can be hired for $9 per unit per hour, the level of total factor productivity is normalized to 1, and the firm is minimizing costs.(a) Determine whether the production function exhibits diminishing marginal returns to each input.
Answer:
Following are the solution to the given question:
Explanation:
The decrease of a marginal input return implies that its input is increasing by one unit, thereby decreasing its marginal input product.
Function of production
[tex]F(K, L) = AK^{\frac{3}{4}} L^{\frac{3}{4}}[/tex]
Its capital products subject (MPK) is derived by differentiating the factor of production from K.
[tex]MPK = \frac{3}{4}\times AK^{\frac{3}{4}} - 1L^{\frac{3}{4}}\\\\MPK = \frac{3}{4}AK^{-\frac{1}{4}}L^{\frac{3}{4}}\\\\MPK = \frac{3}{4}\times A\times (\frac{L^{\frac{3}{4}}}{K^{\frac{1}{4}}})[/tex]
Note: When a value is changed from numerator to denominator, then the power symbol shifts between positive to negative.
Since k is in the denominator, K decreases [tex]\frac{3}{4}\times A\times (\frac{L^{\frac{3}{4}}}{K^{\frac{1}{4}}})[/tex], and therefore MPK is reduced.
There's hence a decreased effective return on capital again for production function.
Its marginal labor product (MPL) is determined by distinguishing the manufacturing function from L.
[tex]MPL = (\frac{3}{4})\times AK^{\frac{3}{4}}L^{\frac{3}{4}}-1\\\\MPL = (\frac{3}{4})AK^{\frac{3}{4}}L^{-\frac{1}{4}}\\\\MPL = (\frac{3}{4})\times A\times (\frac{K^{\frac{3}{4}}}{L^{\frac{3}{4}}})[/tex]
The denominator of L reduces L [tex](\frac{3}{4})\times A\times (\frac{K^{\frac{3}{4}}}{L^{\frac{3}{4}}})[/tex] and therefore reduces MPL.
So there is a decreasing marginal return to labor in the production function.
Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 186,000 in October, 194,500 in November, and 191,000 in December. Glaston assigns variable overhead at a rate of $0.70 per unit of production. Fixed overhead equals $143,000 per month. Compute the total budgeted overhead for October.
Answer:
Budgeted overhead (October)= $273,200
Explanation:
Giving the following information:
Production= 186,000 in October
Predetermined variable overhead= $0.70 per unit.
Fixed overhead equals $143,000 per month.
To calculate the budgeted overhead for October, we need to use the following formula:
Budgeted overhead (October)= 0.7*186,000 + 143,000
Budgeted overhead (October)= $273,200
a sales rep, has just learned that she will be allowed to text with her colleagues and clients during work hours. What is the best advice you can give her to ensure that she is using this tool professionally
Answer:
Remember this is your workplaces, if you wouldn't do it in front of your boss, dont do it at all.
Explanation:
It can be very tempting to text or play on your phone while bored at work. It's best to put it away and use it only during lunch.
Garcia Company issues 11.5%, 15-year bonds with a par value of $450,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 9.5%, which implies a selling price of 113 3/4.
Required:
Prepare the journal entry for the issuance of these bonds for cash on January 1.
Answer:
Journal Entry
Date Account Titles and Explanation Debit Credit
Jan 1 Cash $511,875
Bond payable $450,000
Premium on bond payable $61,875
($450,000*13.75%)
(To record issue of bonds at premium)
Q1. Identify the different types of external and internal trends that have impact on HRM? Give an example of each trends in your own words. (Words limit up to 350)
Answer:
Internal influences on HRM - Corporate objectives, Operational strategies, Marketing strategies, Financial strategies
External influences - Market changes, economic changes, social changes, technology changes, Political & legal changes
Explanation:
Internal influences on HRM
a) Corporate objectives
Example – Objective of cost optimisation leads to restructuring, redundancies, delayering, etc.
b) Operational strategies
Example – Improvisation is IT system may require reduction in staff and training of staff or hiring of new staff
c) Marketing strategies
Example – A new sales team is required to sell a new product or to enter into a new geography
d) Financial strategies
Example – Reduction in cost of training programme would require HRM team to outsource training
External influences
a) Market changes
Example – Loss in business in specific segment or region require changes in divisional management or job losses
b) Economic changes
Example – When economy is low, there will be more unemployment and hence availability of people at low cost.
c) Technological changes
For example – Introduction of technology platforms to create social networking with employees and customers
d) Social changes
Example – Adoption of flexible working options in times of pandemic
e) Political & legal changes
Example – Changes in maximum working time and other employment rights affect the workforce planning and remuneration of HRM
difference between authority and responsibility
Answer:
An authority is a power to give orders and ask your subordinates to perform certain duties. Authority can be given to a person by government’s executives, owner of an organization, or by the representatives of GOD.
An authority is a legitimate power to influence people to compel them to perform the task given to them. For example, a mob has the power to punish a criminal, but they don’t have legitimate authority to punish the criminal.
The authority lies in the hands of the law. Similarly, in an organization, the authority lies in the hands of a manager to get organizational tasks accomplished by his subordinates.
However, the authority of the manager is limited to a particular department of the organization. He has no authority on his employees outside the organization.
Authority is the consequence of the position of an individual in an organization. A person can only be at the superior position of the organization if he has authority; a person with no authority can never be on the top position of an organization.
Therefore, the degree of authority is highest at the top level, and its degree keeps on decreasing the levels of the organization. That means only a person at the top level can give orders to the people at a low level and can compel them to perform tasks given to them, and a person at lower level can’t give orders to the people at the top or his peers.
Authority can be of two types such as official authority (where authority is given to a person by the organization he works for), and other is a personal authority (where authority is given to a person because of his ability to influence people in the organization.
What is the Responsibility?
Being responsible
Responsibility is a moral duty or an obligation of an employee, whether he is a manager or subordinate to fulfill the task given to them. The responsibility starts as soon as the job is assigned to the employee and finish with the completion of the task.
The person is responsible for the consequence of his performance in the task. The responsibility comes with authority.
A manager is responsible for the accomplishment of the task. The responsibility moves upwards in the organization from a lower level of employees to the upper level of management.
The responsibility is originated from the superior-subordinate relationship in an organization. Because of this relationship, the manager can do a task from his subordinates with responsibility.
Difference between authority and responsibility
Difference between authority and responsibility
AUTHORITY RESPONSIBILITY
An authority is a power or right that a person gets because of his designation, role, or job. A responsibility is an obligation that an employee has to fulfill the work bestowed on him
An authority is the outcome of a formal position in an organization. A responsibility is the outcome of a superior-subordinate relationship.
An authority is a legal right given to a person. A responsibility is consequence of authority.
It is a delegation of authority. It is an assumption of responsibility.
The flow of authority is from the upper level to lower level. The flow of authority is from lower level to upper level.
Authority requires the ability to give orders. Responsibility requires the ability to follow orders.
The authority lasts for a long period of time. The responsibility ends as soon as the work bestowed on the employee is complete.
The objective of the authority is to make decisions and implement them effectively. The objective of responsibility is to perform duties effectively assigned by the superiors.
Warner Company purchases $52,200 of raw materials on account, and it incurs $62,200 of factory labor costs. Supporting records show that (a) the Assembly Department used $31,900 of the raw materials and $44,200 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs. g
Answer and Explanation:
The journal entry is given below:
Work in process - finishing department $28,800 ($62,200 - $44,200) × 160%
Work in process - assembly department $70,720 ($44,200 × 160%)
To Manufacturing overhead $99,520
(Being the overhead allocated to assembly and finishing department)
Here the work in process is debited as it increased the assets and the manufacturing overhead is credited as it decreased the expesne