Michael is a college senior who is majoring in marketing. he owns a high-mileage 2005 ford that has a current market value of $2,500. the current replacement value of his clothes, television, stereo, cell phone, and other personal property in a rented apartment totals $10,000. he uses disposable contact lenses, which cost $200 for a six-month supply. he also has a waterbed in his rented apartment that has leaked in the past. an avid runner, michael runs five miles daily in a nearby public park that has the reputation of being extremely dangerous because of drug dealers, numerous assaults and muggings, and drive-by shootings. michael’s parents both work to him pay his tuition. for each of the following risks or loss exposures, identify an appropriate risk management technique that could have been used to deal with the exposure. explain your answer. a. physical damage to the 2005 ford because of a collision with another motoristb. liability lawsuit against michael arising out of the negligent operation of his carc. total loss of clothes, television, stereo, and personal property because of a grease fire in the kitchen of his rented apartmentd. disappearance of one contact lense. waterbed leak that causes property damage to the apartmentf. physical assault on michael by gang members who are dealing drugs in the park where he runsg. loss of tuition assistance from michael’s father, who is killed by a drunk driver in an auto accident.

Which of the following best describes a fractional reserve banking system? a. a banking system in which a large portion of the bank's assets are digital money rather than bills and coins. b. a banking system in which banks keep a portion of deposits on hand to satisfy their customer's demands for withdrawals. c. a banking system in which banks have only partial control over the interest rates they charge on loans. d. a banking system in which net worth is calculated by subtracting a fraction of liabilities from assets. 2b2t

The following data pertains to activity and costs for two months: june july activity level in 10,000 12,000 direct materials $16,000 $ ? fixed factory rent 12,000 ? manufacturing overhead 10,000 ? total cost $38,000 $42,900 assuming that these activity levels are within the relevant range, the manufacturing overhead for july was: a) $10,000 b) $11,700 c) $19,000 d) $9,300

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?