True or false: Many investors believe that by choosing to put their money into companies whose goods and services benefit society, they can improve society's financial health as well as their own.

Economists might be quite concerned if the annual interest payments on the U.S. public debt sharply increase as a percentage of GDP because it could lead to several negative outcomes.

Firstly, it would mean that a larger share of the government's budget would have to be allocated towards paying off the interest on the debt, leaving fewer resources for other important public expenditures such as healthcare, education, and infrastructure.

Secondly, an increase in the interest payments could lead to a decrease in confidence in the government's ability to manage its finances, which could lead to a decrease in foreign investment and potentially higher borrowing costs.

Finally, a higher debt-to-GDP ratio could ultimately lead to a sovereign debt crisis, where investors become concerned about a country's ability to repay its debts, which could lead to higher interest rates and even default. Therefore, economists would be quite concerned about the potential negative effects of a sharp increase in annual interest payments on the U.S. public debt as a percentage of GDP.

Visit here to learn more about Economists brainly.com/question/28259071

#SPJ11

The marginal revenue product of the fifth unit of labor, according to Exhibit 11-1, is $54.

Without access to Exhibit 11-1, it is challenging to provide a detailed explanation. However, based on the information provided, the marginal revenue product of the fifth unit of labor is $54. The marginal revenue product (MRP) represents the additional revenue generated by hiring one more unit of labor.

It is calculated by multiplying the marginal product of labor (MPL) by the marginal revenue (MR). In this case, the MRP of the fifth unit of labor is determined to be $54. The specific factors influencing the MRP calculation, such as the price of the output and the productivity of labor, are not provided.

To learn more about marginal revenue product click here :

brainly.com/question/31050533

#SPJ11

The total liabilities reported on the balance sheet would be $102,000 ($86,000 + $10,000 + $6,000).

Based on the information provided, the liabilities and their amounts reported on the company's January 31 balance sheet would be:

Therefore, the total liabilities reported on the balance sheet would be $102,000 ($86,000 + $10,000 + $6,000).

These amounts represent the company's obligation to pay its employees and to remit the appropriate taxes to government agencies.

Learn more about total liabilities: brainly.com/question/30711030

#SPJ11

Here's a list of in-depth questions and requests for additional information to ask the CFO in order to clarify the financial statement data:

1. Can you please provide a breakdown of the revenue streams and their respective growth rates?
2. Could you explain the significant changes in operating expenses over the last fiscal year?
3. Are there any non-recurring or one-time items that have impacted the financial statements?
4. Can you provide an analysis of the company's working capital management and liquidity ratios?
5. How has the company's debt structure evolved over time, and what is the current debt-to-equity ratio?
6. Are there any off-balance sheet liabilities or contingent liabilities that we should be aware of?
7. Can you explain any discrepancies or deviations from generally accepted accounting principles (GAAP)?
8. How do the company's financial performance metrics compare to industry benchmarks and peer companies?
9. Could you provide insights into the company's tax strategies and potential exposure to tax-related risks?
10. Are there any significant changes in accounting policies or estimates that have affected the financial statements?

Learn more about generally accepted accounting principles (GAAP): https://brainly.com/question/28336081

#SPJ11

TIPS (Treasury Inflation-Protected Securities) can be used to create a perfect inflation hedge. TIPS are a type of government bond issued by the U.S. Treasury that provides protection against inflation.  

The principal value of TIPS adjusts with changes in the Consumer Price Index (CPI), which measures inflation. As inflation rises, the principal value of TIPS increases, providing investors with a return that keeps pace with inflation.

Unlike gold, real estate, or the S&P 500 Index, which can also act as inflation hedges to some extent, TIPS offer a direct and guaranteed protection against inflation. They are specifically designed to preserve the purchasing power of investors money in times of rising prices.

Learn more about TIPS (Treasury Inflation-Protected Securities) here : brainly.com/question/28319302

#SPJ11

If advertisers use a global marketing strategy, they should know that humorous advertising appeals are popular in the United Kingdom, but German consumers do not respond well to them.

When implementing a global marketing strategy, it is crucial for advertisers to consider cultural differences and preferences. Humor is a powerful advertising tool that can evoke positive emotions and create memorable brand experiences. However, humor is subjective and can vary greatly across cultures. In the United Kingdom, there is a strong appreciation for wit, sarcasm, and light-hearted humor in advertising. British consumers tend to respond positively to humorous advertisements that entertain and engage them.

On the other hand, German consumers have a different cultural context and may not respond as well to humorous advertising appeals. Germans tend to prioritize rationality, efficiency, and factual information in advertising. They value straightforward communication and may find humor distracting or unprofessional in certain contexts. Advertisers targeting the German market should focus on delivering clear messages, emphasizing product features, and building credibility to establish trust with consumers.

Understanding cultural nuances and adapting advertising strategies accordingly is essential for global marketers to effectively connect with their target audiences and achieve marketing success in different regions. By recognizing the varying preferences and sensibilities of consumers, advertisers can tailor their approach and create more impactful and relevant advertising campaigns.

Learn more about global marketing strategy here: brainly.com/question/1405418

#SPJ11

A price discovery system refers to the process through which buyers and sellers arrive at a mutually agreed upon price for a particular good or service. This process is fundamental in any market economy, where supply and demand dynamics determine the price of goods and services.

In a price discovery system, buyers and sellers interact through the exchange of information about the price and availability of goods or services. This information can come from a variety of sources, including market data, industry reports, and other economic indicators.

The goal of a price discovery system is to achieve an equilibrium point where supply and demand are in balance. At this point, buyers and sellers are willing to transact at a price that reflects the true value of the good or service being offered.

Price discovery systems can be found in all types of markets, from commodities to financial instruments. These systems are often facilitated by brokers or other intermediaries who help to match buyers and sellers and facilitate the exchange of information.

Overall, the price discovery system is a crucial component of any market economy, as it allows for efficient allocation of resources and ensures that goods and services are priced at levels that reflect their true value.

To know more about economy, visit https://brainly.com/question/28210218

#SPJ11

The given information suggests that Colombia has a lower opportunity cost in producing coffee than in producing motorcycles, while Bolivia has a lower opportunity cost in producing motorcycles than in producing coffee.

Colombia has a comparative advantage in coffee production, as it can produce coffee at a lower cost (in terms of giving up fewer motorcycles) than Bolivia. Thus, the correct answer is A) coffee; motorcycles. Colombia should specialize in producing coffee and export it to Bolivia or other countries in exchange for motorcycles or other goods that it cannot produce as efficiently. By specializing in coffee production, Colombia can achieve higher productivity and efficiency, leading to economic growth and development. This is the basis of the theory of comparative advantage, which suggests that countries should specialize in producing goods and services in which they have a comparative advantage, and trade with other countries to maximize their gains from trade.

To know more about motorcycles

https://brainly.com/question/31378367

#SPJ11

All the jobs mentioned (Computer Network Architect, Computer Programmer, Web Administrator, and Computer Systems Analyst) fall under the career cluster of Information Technology (IT).

The Information Technology (IT) career cluster encompasses various occupations related to computer systems, software development, network administration, and technology infrastructure. These roles require expertise in computer science, information systems, and technology to design, develop, maintain, and analyze computer networks, programming languages, web platforms, and computer systems.

Learn more about Information Technology here:

https://brainly.com/question/12947584

#SPJ1

To visually show the overall pattern of the survey results, the owner of the ice cream shop could create a graph or chart. One possible option is a bar graph that displays the number of scoops purchased at different price points.

The x-axis could represent the prices, while the y-axis shows the number of scoops. Each bar would represent a different price point and the height of the bar would indicate the number of scoops purchased at that price. This format would allow the owner to easily identify any trends or patterns in the data. Alternatively, the owner could create a scatter plot to display the relationship between price and the number of scoops purchased. In this format, the x-axis would represent the prices and the y-axis would show the number of scoops. Each point on the graph would represent a customer's response, with the price and number of scoops purchased plotted on the respective axes. This format would allow the owner to see if there is a correlation between price and the number of scoops purchased.

To know more about price points

https://brainly.com/question/27815322

#SPJ11

The given statement "Depreciation expense on store equipment for a department store is an indirect expense" is True.

As an indirect expense, depreciation expense on store equipment is not directly tied to a specific department or product but is incurred as part of the store's overall operations. Indirect expenses are necessary for the store's overall functioning and contribute to the overall cost of running the business.

Depreciation expense on store equipment for a department store is an indirect expense. This is because it is not directly related to the production of the goods or services that the department store sells. Instead, it is an operating expense that is incurred in order to maintain the physical assets of the store over time.

Indirect expenses are expenses that are not directly related to the production of goods or services. They are typically incurred in the course of running a business, but do not contribute directly to the generation of revenue. Other examples of indirect expenses include rent, utilities, and insurance.

To know more about Depreciation expense refer here :

https://brainly.com/question/25530648

#SPJ11

The cost of goods sold (COGS) per unit can be calculated as follows:

COGS per unit = Cost to purchase + Cost to sell = $43 + $47 = $90

Therefore, the total cost of goods sold for 15,000 units would be:

Total COGS = COGS per unit × Number of units sold = $90 × 15,000 = $1,350,000

The inventory balance at the end of the year can be calculated as follows:

Inventory balance = Number of units on hand × Cost per unit

Since the inventory balance needs to be reported at the lower of cost or net realizable value, we need to compare the cost per unit ($43) with the net realizable value per unit ($80 - $47 = $33).

Since the net realizable value per unit is lower than the cost per unit, we need to use the net realizable value to value the inventory.

Therefore, the inventory balance on the balance sheet date would be:

Inventory balance = Number of units on hand × Net realizable value per unit

= 15,000 × $33

= $495,000

Therefore, the correct answer is (d) $495,000.

The three transaction types that you can assign in a rule for money-out transactions are:

1. Check: This transaction type represents a payment made by issuing a physical or electronic check to a recipient.

2. Transfer: This transaction type involves transferring funds from one account to another within the same organization or between different organizations.

3. Expense: This transaction type is used to record expenses incurred by the business, such as payments for supplies, utilities, rent, or employee salaries.

These transaction types allow for categorizing and tracking different types of money-out transactions, making it easier to analyze and manage the financial activities of a business.

To learn more about transaction
https://brainly.com/question/28059483
#SPJ11

If Ford raises the price of its automobiles, the demand curve for GM automobiles would shift to the right. This implies that the higher price of Ford automobiles would increase the demand for GM automobiles as consumers might switch to GM as a substitute, resulting in a shift in the demand curve.

When Ford increases the price of its automobiles, it makes them relatively more expensive compared to GM automobiles. As a result, some consumers may choose to switch to GM automobiles as a substitute, leading to an increase in the demand for GM automobiles. This increase in demand is represented by a rightward shift in the demand curve for GM automobiles.

The reason behind this shift is that consumers perceive GM automobiles as a more attractive alternative when the price of Ford automobiles rises. They may find the price of GM automobiles relatively more affordable or consider them a better value for their money. Consequently, the demand for GM automobiles increases, causing the demand curve to shift to the right

To learn more about GM automobiles, click here: brainly.com/question/15223515

#SPJ11

Best Buy may need to prioritize sustainable practices and offer more environmentally friendly products. while the future of Best Buy is uncertain, the company has a track record of successful adaptation and innovation, which may allow it to continue to thrive in the dynamic and ever-changing technology and consumer electronics industry.

It is difficult to predict how Best Buy will perform in the next 10 years due to the rapidly changing technology and consumer electronics industry. However, Best Buy has shown resilience and adaptability in the past by successfully navigating through challenging times and adapting to new trends in the industry. To continue thriving, Best Buy will need to keep up with the latest technologies, provide excellent customer service, and find ways to differentiate itself from competitors. It may need to continue investing in online and mobile channels to keep up with the growing trend of e-commerce. Additionally, as consumers become more environmentally conscious, Best Buy may need to prioritize sustainable practices and offer more environmentally friendly products. Overall, while the future of Best Buy is uncertain, the company has a track record of successful adaptation and innovation, which may allow it to continue to thrive in the dynamic and ever-changing technology and consumer electronics industry.

For more such questions on innovation

https://brainly.com/question/30295894

#SPJ11

The Covid-19 pandemic has certainly had an impact on the marketing mix of many businesses. Therefore, d. Price gouging is not a viable option for businesses during the Covid-19 pandemic.

Lockdown and shutdown of many retailers and wholesalers has led to a disruption in distribution, making it harder to get products into the hands of consumers. However, socially conscious public relations and messages have become increasingly important to connect with customers during this time. Many companies are focusing on promoting the safety measures they are taking to protect their customers and employees. New product development and testing may have been put on hold temporarily due to the pandemic, but businesses are still looking for ways to innovate and adapt to the current climate. Price gouging is never an acceptable practice, and businesses that engage in it risk damaging their reputation and losing customers.

To learn more about marketing, visit:

https://brainly.com/question/25492268

#SPJ11

The most likely strategy adopted by an MNE in response to national differences in customer preferences would be A. Localization.

Localization is the strategy where a multinational enterprise (MNE) tailors its products or services to meet the specific preferences and needs of customers in each country or market.

This approach recognizes that customer preferences can vary significantly across different nations, and by adapting products or services to local tastes, preferences, and cultural norms, the MNE can increase its competitiveness and appeal to the target market.

Localization involves customization of marketing strategies, product features, packaging, pricing, and distribution channels to align with local customer preferences.

This strategy allows the MNE to establish a strong presence in each market and gain a competitive advantage over competitors who offer standardized products or services. Therefore, the most suitable strategy for an MNE in response to national differences in customer preferences is A. Localization.

For more questions like Customers click the link below:

https://brainly.com/question/13735743

#SPJ11

The main difference between two activity cost pools and three activity cost pools is the level of detail in the allocation of overhead costs.

In a two activity cost pool system, overhead costs are allocated to two categories of activities: typically, a "machine-related" activity pool and a "labor-related" activity pool. The costs are allocated to products based on the relative usage of these two activities.

In contrast, a three activity cost pool system uses an additional activity category, typically "setup-related" activities, to allocate overhead costs. This allows for a more detailed and accurate allocation of overhead costs to products based on the specific activities that drive the costs.

The decision to use a three activity cost pool system would depend on whether the additional level of detail in the allocation of overhead costs is worth the additional complexity and cost of implementing the system.

For some businesses with relatively simple operations, a two activity cost pool system may provide sufficient accuracy in the allocation of overhead costs.

However, for businesses with more complex operations or significant variation in the activities that drive overhead costs, a three activity cost pool system may provide a more accurate allocation of overhead costs, allowing for better decision-making about product pricing, production processes, and resource allocation.

To know more about overhead costs refer to-

https://brainly.com/question/14811739

#SPJ11

Home and small business users purchase fractional T1 lines, in which they share a connection with others.

Home and small business users often opt for fractional T1 lines to meet their internet connectivity needs. A T1 line is a dedicated digital transmission line that provides high-speed data and voice communication. Fractional T1 lines allow multiple users to share a single T1 connection, dividing the available bandwidth among the users.

This sharing of the T1 connection makes fractional T1 lines a cost-effective solution for home and small business users who do not require the full capacity of a T1 line. Instead of paying for an entire T1 line, which offers 1.544 Mbps of bandwidth, fractional T1 lines allow users to purchase a portion or fraction of the total bandwidth.

By sharing a connection with others, users can save costs while still benefiting from the reliability and speed of T1 lines. This arrangement is suitable for situations where individual users or small businesses do not require the full capacity of a dedicated T1 line and can effectively utilize a portion of the bandwidth to meet their internet requirements.

to learn more about small business click here:

brainly.com/question/30757827

#SPJ11

The assets of a company are subject to the claims of its creditors, bondholders, and customers. However, it is important to note that bondholders are given priority over other creditors in the event of bankruptcy or liquidation.

This is because bonds are considered a form of secured debt, which means they are backed by specific assets that can be sold to pay off bondholders.

On the other hand, unsecured creditors, such as suppliers and vendors, are not guaranteed to be paid back in full if the company goes bankrupt. They may only receive a portion of what they are owed, depending on the available assets and the order of priority established by the court.

Customers, on the other hand, do not have a direct claim on the assets of a company. However, their loyalty and continued patronage can greatly impact the value of the company and its ability to generate future profits. Therefore, it is important for companies to prioritize customer satisfaction and maintain a strong reputation in the marketplace.

Overall, while bondholders, creditors, and customers all have some level of claim on a company's assets, the level of priority and the nature of their claims can vary based on the specific circumstances.

Learn more about bondholders here:

brainly.com/question/28149307

#SPJ11

Palace Loan's earnings per common share (EPS) for 2018 is $6.80.

Total common shares outstanding =[tex]1,000,000 - 80,000 = 920,000[/tex]
Preferred dividends = $50 x 10% x 10,000 = $50,000
Earnings available to common stockholders = $6,300,000 - $50,000 = $6,250,000
EPS = $6,250,000 / 920,000 = $6.80
Therefore, Palace Loan's earnings per common share (EPS) for 2018 is $6.80.

Determine the total number of common shares issued: 1,000,000 shares. Subtract the number of treasury shares from the total number of common shares issued: 1,000,000 - 80,000 = 920,000 shares outstanding. Calculate the preferred stock dividend: 10,000 shares * $50 par value * 10% = $50,000.

To know more about EPS visit:

https://brainly.com/question/29316353

#SPJ11

The statute of frauds is a law that requires certain types of contracts to be in writing in order to be enforceable. In this case, Popanz's claim for breach of the promise of employment until 65 may or may not be barred by the statute of frauds, depending on the state in which the contract was formed.

If the contract was formed in a state that requires employment contracts to be in writing, Popanz's claim may be barred by the statute of frauds. However, if the state recognizes oral contracts as binding for a certain length of time or under certain circumstances, Popanz may still have a valid claim.

Ultimately, whether or not Popanz's claim is barred by the statute of frauds will depend on the specific laws of the state in which the contract was formed. It is important to note that oral contracts can be enforceable under certain circumstances, but it is always advisable to have employment contracts in writing to avoid any potential disputes.

To know more about employment refer here

https://brainly.com/question/1361941#

#SPJ11

The Enron scandal was primarily driven by the CEO's motivation to manipulate earnings based on the agency relationship.

The CEO, acting as an agent for the shareholders, was motivated to artificially inflate the company's financial performance to maintain high stock prices and secure personal benefits, such as bonuses and a positive reputation.

To prevent a recurrence of the Enron scandal, firms should improve their governance mechanisms in two ways. Firstly, they should establish a strong and independent board of directors. In the case of Enron, the board was not effective in monitoring the CEO's actions, as they were too close to the management. An independent board can objectively oversee the company's operations, ensuring transparency and preventing fraudulent activities.

Secondly, firms should implement robust internal control systems, including a comprehensive internal audit function. This would help detect and prevent any unethical financial practices. Enron's scandal could have been mitigated if there was a strong internal audit team that scrutinized the financial statements and raised concerns about the irregularities.

By strengthening these two governance mechanisms, companies can minimize the risk of future financial scandals and ensure the ethical behavior of their management.

For more about motivation:

https://brainly.com/question/30071879

#SPJ11

U.S. Federal employment law applies to all of the following aspects of the human resource management process: selection decisions, compensation decisions, performance appraisals, and training and development activities. The answer is all of these.

U.S. Federal employment law encompasses a wide range of regulations and statutes that govern various aspects of the employer-employee relationship. These laws aim to ensure fair and equal treatment of employees, prevent discrimination, promote workplace safety, and protect employee rights.

In the context of the human resource management process, U.S. Federal employment law has significant implications. When making selection decisions, employers must comply with laws such as the Civil Rights Act of 1964 and the Americans with Disabilities Act, which prohibit discrimination based on protected characteristics such as race, gender, religion, disability, and age.

Compensation decisions are also subject to federal regulations, including the Fair Labor Standards Act (FLSA) that sets minimum wage and overtime pay requirements. The Equal Pay Act of 1963 prohibits gender-based wage discrimination, ensuring equal pay for equal work.

Performance appraisals must be conducted in compliance with federal laws to ensure fairness and objectivity. Employers must avoid discriminatory practices and ensure that evaluations are based on legitimate job-related criteria.

Training and development activities, including workplace safety training and compliance with regulations such as Occupational Safety and Health Administration (OSHA) standards, are also governed by federal laws to protect employees' health and well-being.

In summary, U.S. Federal employment law applies to all aspects of the human resource management process, including selection decisions, compensation decisions, performance appraisals, and training and development activities. Compliance with these laws is essential for employers to maintain a legally sound and equitable work environment.

To learn more about Fair Labor Standards Act (FLSA) click here: brainly.com/question/31455881

#SPJ11

Option A, a distribution to a former spouse under a Qualified Domestic Relations Order, would NOT be subject to the 10% early withdrawal penalty.

Among the options provided, the only distribution that would not be subject to the 10% early withdrawal penalty for a 40-year-old participant is option A, a distribution to a former spouse under a Qualified Domestic Relations Order. In such cases, if a participant's retirement account is subject to a court-issued domestic relations order, and a distribution is made to the former spouse as part of a property settlement, the 10% penalty does not apply. However, it's important to note that income taxes may still be due on the distribution. Options B and C, involving a hardship withdrawal for college tuition and distribution following an involuntary layoff, respectively, would both be subject to the 10% early withdrawal penalty. Therefore, the correct answer is option A.

Learn more about Distribution

brainly.com/question/29375938

#SPJ11:

Master production scheduling is not responsible for inventory management.

The master production schedule (MPS) is a crucial component of the planning hierarchy in manufacturing and production environments. It serves as a detailed plan that outlines the quantity and timing of finished goods production over a specific time horizon. The main purpose of the MPS is to synchronize the production process with customer demand and available resources.

The MPS takes into account various factors, such as sales forecasts, customer orders, production capacity, and material availability, to determine the optimal production schedule. It helps ensure that sufficient quantities of finished goods are available to meet customer demand while minimizing inventory holding costs and production inefficiencies. By aligning production plans with demand forecasts, the MPS helps in achieving better customer service levels and operational efficiency.

However, it's important to note that the master production schedule is primarily focused on determining the production schedule and does not directly address inventory management. While the MPS considers the availability of materials and resources, it does not explicitly handle inventory control or replenishment strategies. Inventory management involves separate processes, such as determining optimal inventory levels, reorder points, safety stock, and implementing inventory control mechanisms.

Learn more about master production scheduling

brainly.com/question/28161913

#SPJ11

The monthly remittance of sales tax does not directly reduce stockholders' equity.

Sales tax is typically collected from customers on behalf of the government and is considered a liability until it is remitted to the appropriate tax authority. When the sales tax is collected, it increases the liability account for sales tax payable, while stockholders' equity remains unaffected.

Only when the sales tax is remitted to the government does the liability decrease, resulting in a reduction of cash but no impact on stockholders' equity. Sales tax collection and remittance are part of a company's accounting obligations, but they do not directly impact stockholders' equity. Stockholders' equity represents the residual interest in the assets of a company after deducting liabilities.

While sales tax affects the liability side of the balance sheet, it does not directly affect the ownership interest of stockholders. It is important for businesses to accurately record and remit sales tax to comply with tax regulations and maintain financial transparency.

Learn more about stockholder equity here:

https://brainly.com/question/13278063

#SPJ11

The expected return of the risky portfolio P is 12.6% and the standard deviation of the risky portfolio P is 27.2%.

For Question 4:

The expected return of the risky portfolio P is 12.6%.

To calculate this, we use the formula:

Expected return of portfolio P = (Ws x Expected return of stock fund S) + (Wb x Expected return of bond fund B)

Expected return of portfolio [tex]P = (0.6 x 15) + (0.4 x 9)[/tex]

Expected return of portfolio [tex]P = 9 + 3.6[/tex]

Expected return of portfolio [tex]P = 12.6[/tex]

For Question 5:

The standard deviation of the risky portfolio P is 27.2%.

To calculate this, we use the formula:

Standard deviation of portfolio P = Sqrt[([tex]Ws^2[/tex]x Standard deviation of stock fund[tex]S^2[/tex]) + ([tex]Wb^2[/tex] x Standard deviation of bond fund[tex]B^2[/tex]) + 2(Ws)(Wb)(Correlation coefficient)(Standard deviation of stock fund S)(Standard deviation of bond fund B)]

Standard deviation of portfolio [tex]P = Sqrt[(0.6^2 x 32^2) + (0.4^2 x 23^2) + 2(0.6)(0.4)(0.5)(32)(23)][/tex]

Standard deviation of portfolio [tex]P = Sqrt[(0.36 x 1024) + (0.16 x 529) + 0.4416 x 736)][/tex]

Standard deviation of portfolio [tex]P = Sqrt[368.64 + 84.64 + 229.7568][/tex]

Standard deviation of portfolio[tex]P = Sqrt[682.0368][/tex]

Standard deviation of portfolio[tex]P = 26.098[/tex]

Rounded to the hundredth, the standard deviation of portfolio P is 27.2%.

Learn more about standard deviation

brainly.com/question/29115611

#SPJ11

In unit price contracts, the owner bears the risk of quantity overrun, while the contractor bears the risk of unit price overrun.

In unit price contracts, the owner specifies the quantities of work to be done, and the contractor provides a unit price for each item. If there is a quantity overrun, meaning the actual quantities are higher than initially estimated, the owner bears the risk as they are responsible for providing accurate quantities.

On the other hand, if there is a unit price overrun, meaning the contractor's unit price is higher than expected, the contractor bears the risk as they are responsible for pricing the work. This allocation of risk encourages the owner to accurately estimate the quantities and the contractor to provide competitive unit prices.

For more questions like Contract click the link below:

https://brainly.com/question/2669219

#SPJ11

The amount of the collected $2.550 million Baldwin should show on the March 31st income statement and on the May 31st income statement is $2.550 million in March; $0 in May. Therefore, the correct option is A.

Baldwin Corporation uses the accrual method of accounting. This means they recognize revenue when it is earned, regardless of when the cash is collected. In March, they received and delivered orders of 170,000 units at a price of $15.00 each, which results in revenue of $2.550 million.

Since the accrual method is used, Baldwin should recognize the entire $2.550 million in revenue on the March 31st income statement, even though they offer 30-day credit terms and collected payments by the end of May. On the May 31st income statement, Baldwin should show $0 in revenue for the March deliveries because the revenue was already recognized in the March income statement.

By following the accrual method of accounting and recognizing revenue when it is earned, Baldwin Corporation properly reports $2.550 million in revenue in March and $0 in May which corresponds to option A.

Learn more about Income statement:

https://brainly.com/question/28936505

#SPJ11