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Question 1. Why do firms exist? Who benefits from their existence?
Question 2. How does the theory of the firm differ from short-term profit maximization? Why is the former superior to the latter?
Question 3. What effect would each of the following have on the value of the firm?
a. A new advertising campaign increases the sales of the firm substantially.
b. A new competitor enters the market.
c. The production department achieves a technological breakthrough that reduces production costs.
d. The firm is required to install pollution-control equipment.
e. The workforce votes to unionize.
f. The rate of interest rises.
g. The rate of inflation changes.
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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