During a recent review, ABC Corporation discovered that it has a serious internal control problem. It is estimated that the impact associated with this problem is $1 million and that the likelihood is currently 5%. Two internal control procedures have been proposed to deal with this problem. Procedure A would cost $25,000 and reduce likelihood to 2%; procedure B would cost $30,000 and reduce likelihood to 1%. If both procedures were implemented, likelihood would be reduced to 0. 1%.
Required:
a. What is the estimated expected loss associated with ABC Corporation's internal control problem before any new internal control procedures are implemented?
b. Compute the revised estimate of expected loss if procedure A were implemented if procedure B were implemented and if both procedures were implemented.
c. Compare the estimated costs and benefits of procedure A, procedure B, and procedures combined. If you consider only the estimates of cost and benefit procedure(s) should be implemented?
Answers
a. The estimated expected loss before any new internal control procedures are implemented is $50000. b. The revised estimate of expected loss with each procedure implemented is Procedure A is $55000.
a. The estimated expected loss before any new internal control procedures are implemented is:
Expected loss = Impact x Likelihood = $1 million x 5% = $50,000
b. The revised estimate of expected loss with each procedure implemented is:
Procedure A: Likelihood = 2%
Expected loss = Impact x Likelihood = $1 million x 2% = $20,000
Revised estimated expected loss = $50,000 - $20,000 + $25,000 = $55,000
Procedure B: Likelihood = 1%
Expected loss = Impact x Likelihood = $1 million x 1% = $10,000
Revised estimated expected loss = $50,000 - $10,000 + $30,000 = $70,000
Procedures A and B: Likelihood = 0.1%
Expected loss = Impact x Likelihood = $1 million x 0.1% = $1,000
Revised estimated expected loss = $50,000 - $1,000 + $25,000 + $30,000 = $104,000
c. Procedure A costs $25,000 and reduces likelihood to 2%, resulting in a revised estimated expected loss of $55,000. Procedure B costs $30,000 and reduces likelihood to 1%, resulting in a revised estimated expected loss of $70,000. Both procedures combined cost $55,000 and reduce likelihood to 0.1%, resulting in a revised estimated expected loss of $104,000.
Comparing the costs and benefits, it appears that Procedure A is the most cost-effective as it results in the lowest revised estimated expected loss at the lowest cost. However, the decision ultimately depends on ABC Corporation's risk tolerance and budget constraints.
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Related Questions
Describe the type of society in which there would be a high demand for a wide variety of products.
Answers
Answer:
They work together to regulate supply, Demand, and prices.
Explanation:
i got it right ;)
Answer: The correct answer is:
A society with a modern economy drives the supply and demand for products based on the production, distribution, and consumption of various goods and services. Demand for commodities (physical products) within the economy drives product price and availability. Some farm commodities require a food distribution system to deliver products from local or remote farms to the markets and consumers. In a society where the economy is healthy and thriving, the demand for goods and services would be higher for popular products, which would also drive up the prices.
Explanation: This answer has been confirmed correct.
According to the article, why might employers want to ensure that they have cause when terminating an employee?
Answers
Reasons to terminate an employee is because of sexual harrasment, Drug or alchohol use, damaging company property, or unethical behaviour and service.
inventory at the beginning of the year cost $13,300. during the year, the company purchased (on account) inventory costing $83,500. inventory that had cost $79,500 was sold on account for $94,600. at the end of the year, inventory was counted and its cost was determined to be $17,300.a) Calculate the cost of goods sold.b) What was the dollar amount of Gross Profit?c) Prepare journal entries to record these transactions, assuming a perpetual inventory system is used.
Answers
a) Calculation of the cost of goods sold:
In order to calculate the cost of goods sold, we will use the following formula:
Beginning inventory + Inventory purchased - Ending inventory = Cost of goods sold
The given values are:
Beginning inventory = $13,300
Inventory purchased = $83,500
Inventory sold = $79,500
Inventory remaining = $17,300
Now let's plug in these values into the formula:
Cost of goods sold = $13,300 + $83,500 - $17,300
= $79,500
Therefore, the cost of goods sold is $79,500.
b) Calculation of Gross Profit:
To calculate the Gross Profit, we will use the following formula:
Revenue - Cost of goods sold = Gross Profit
The given values are:
Inventory sold = $79,500
Revenue from sales = $94,600
Now let's plug in these values into the formula:
Gross Profit = $94,600 - $79,500
= $15,100
Therefore, the Gross Profit is $15,100.
c) Journal entries to record these transactions:
Given that a perpetual inventory system is used, we need to make journal entries for every transaction. Journal entries for the given transactions are as follows:
To record the purchase of inventory on account:
Inventory A/c ……Dr 83,500
Accounts Payable A/c ……Cr 83,500
(Being purchase of inventory made on account)
To record the sale of inventory on account:
Accounts Receivable A/c ……Dr 94,600
Sales A/c ……Cr 94,600
(Being the sale of inventory made on account)
To record the cost of goods sold:
Cost of goods sold A/c ……Dr 79,500
Inventory A/c ……Cr 79,500
(Being the cost of goods sold during the year)
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drawing increase the investment of the owner true or false
Answers
pretty sure this is correct lol
What is the FIRE movement?
Answers
Answer:
The FIRE movement is a lifestyle movement with the goal of gaining financial independence and retiring early.
a penetration pricing strategy tends to be most effective:
Answers
A penetration pricing strategy tends to be most effective when:
With a penetration pricing strategy, a business initially sets a relatively low price for its good or service in an effort to increase market share and draw clients. This tactic tries to fast enter the market and lure clients away from rival businesses. In order to entice people to buy, the technique involves decreasing the price of new products. The price reduction is only momentary.
This tactic is employed by marketers to position a product as a cost-effective alternative. A business using a penetration pricing strategy invites competitors to enter the market and compete on price or other considerations by setting a low beginning price. Increased competition could arise from this, which would be beneficial for customers but could also lower firm's profit margins.
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Complete Question:
A penetration pricing strategy tends to be most effective when:
a. when there are goods in high demand.
b.tempts competitors to enter the market.
c.provides a large profit per unit sold
what are creative unique products example flying water bottle plz don’t give me actual already made products
Answers
Need any more ideas?
Petra adjusts her management style based on the reaction of her employees to a project. She does not employ the same tactics every time. What approach to management is Petra using
Answers
The approach to management Petra uses is called Flexibility.
Flexibility means adapting to situations as they arise. In management, it means management's ability to change approach to situations regarding their work environment.
Flexibility is important to management because it enables organizations address diverse employee needs. Also, Managers need to adapt to day-to-day shifts in workplace schedules – employee personal issues, an unexpected influx of work and more etc.
It therefore means that Petra is using approach to management called flexibility, which enable her change management style based on the reaction of her employees to a project.
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Under what circumstances is it appropriate to represent an SRS
using informal techniques only?
Answers
In specific circumstances, representing an SRS using informal techniques only is acceptable. A software requirement specification (SRS) is a comprehensive explanation of the needs for a software system that is to be established.
SRS is used to establish software as well as establish customer requirements. If there is a requirement to create a basic and straightforward software system, an SRS may be established using informal methods. Informal techniques are defined as techniques that are used to create simple and straightforward software system requirements in a less formal environment.Explanation:When there is no requirement of complex software system, and the customer’s needs are met with informal techniques, representing SRS using informal techniques is acceptable. A software system that is straightforward, with less scope for complexity, can be represented using an informal technique for SRS. Informal techniques may involve creating a sketch of the software system on paper, creating a user case diagram, or simply putting the requirements in an email or other basic format.Informal methods can be beneficial in producing a software system quickly and efficiently. Furthermore, informal SRS methods are much less expensive than formal SRS methods. It is essential to note that informal SRS methods should not be used for more complex software systems. For complex systems, the creation of a formal SRS is essential to ensure that all requirements are covered and the project is delivered on time.
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true/false. the administrative assistant of the company's ceo is asking about a printer for her use only. it seems the shared department printer is overused, making the assistant wait to print the ceo's last minute documents.
Answers
True. The administrative assistant of the company's CEO is asking about a printer for her use only. It seems the shared department printer is overused, making the assistant wait to print the CEO's last-minute documents.
An administrative assistant is an employee who provides administrative support to an individual or group of people within an organization. The role of administrative assistants can vary greatly depending on the organization, but typically includes tasks such as managing schedules, answering phones and emails, organizing files and paperwork, and assisting with special projects.
In the given scenario, the administrative assistant of the company's CEO is asking for a printer for her use only because the shared department printer is overused. This makes the assistant wait to print the CEO's last minute documents, which is an inconvenience. Therefore, the statement "the administrative assistant of the company's CEO is asking about a printer for her use only" is true.
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If the market for soccer balls is saturated and the market for soccer nets is open, which combination makes the most sense for Sabrina’s Soccer?
Answers
If the market for soccer balls is saturated and the market for soccer nets is open, a combination which makes the most sense for Sabrina’s Soccer is: F.
What is a production possibilities curve?A production possibilities curve (PPC) is also referred to as the production possibilities diagram or the production possibilities frontier (PPF) and it can be defined as a type of chart that is typically used for illustrating the maximum and best combinations of two products that can be produced by a producer (manufacturer) in an economy, if they both depend on these two (2) factors;
Technology is fixed.Resources are fixed.Based on the production possibilities curve (see attachment), we can reasonably infer and logically deduce that the maximum and best combinations that would offer the most sense for Sabrina’s Soccer is option F with 0 for soccer balls and 5 for soccer nets.
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Question 5 of 10
When gathering information, which of the following tasks might you need to
perform?
A. Apply standards, such as measures of quality, beauty, usefulness,
or ethics
B. Seek out ideas from others and share your own ideas
C. Study objects, conduct lijsts, research written materials, and ask
questions
D. Fill out forms, follow procedures, and apply math and science
SEN
Answers
Consider an economy where we have 200 consumers. All 100 Type A individuals have an identical utility function given by U₁ = (X₁)ª. (X₂)¹-a, a € (0, 1) where X₁ is the amount of good 1 consumed and X₂ is the consumption level of good 2. All 100 Type B individuals have an identical utility function given by UB= (X₁). (X₂)¹-8, B € (0, 1), where X₁ is the amount of good 1 consumed and X2 is the consumption level of good 2. All the consumers are endowed with labour L and capital K. In the economy there are two firms, firm A and firm B, producing good 1 and good 2 re- spectively with the production function: y₁ = f(l, k) = Min[l, k] for firm A and y₂ = g(l) = 21 for firm B, where I and k represent amount of labour and capital employed in the production process. Type A consumers equally own the first firm and the rest Type B consumers equally own the second firm. All the agents in the economy behave competitively. i) Calculate the equilibrium prices for this economy, assuming the price of capital, good 1 and good 2 as r, p₁ and p2 respectively. Assume the wage rate to be 1. Explain your answer in terms of the capital labour ratio of the economy. ii) Due to some pandemic assume that the labour endowment for all reduces to SL, where 8 € (0, 1). Then discuss its impact on the model economy. (7+3)
Answers
i) To calculate the equilibrium prices, we need to consider the conditions for profit maximization and utility maximization.
For firm A, the profit-maximizing condition is given by the marginal product of labor (MPL) equal to the wage rate (w), which is 1 in this case. Since the production function for firm A is y₁ = min(l, k), the MPL is 1 when l ≤ k, and 0 when l > k. Therefore, in equilibrium, the capital labor ratio (k/l) for firm A will be 1.
For firm B, since the production function is y₂ = 21, there is no labor capital trade-off. The profit-maximizing condition is given by the marginal product of labor equal to the wage rate, which is 1. Hence, in equilibrium, the labor employed by firm B will be such that MPL = 1.
Now, for consumers, we need to find the equilibrium condition where the marginal rate of substitution (MRS) equals the price ratio (p₁/p₂). Type A consumers' utility function is U₁ = (X₁)ª. (X₂)¹-a, and Type B consumers' utility function is UB = (X₁). (X₂)¹-8. By setting the MRS equal to the price ratio, we can find the equilibrium consumption levels of goods 1 and 2 for both types of consumers.
ii) If there is a reduction in labor endowment for all agents due to a pandemic, it would impact the equilibrium in the model economy. With a reduced labor endowment, the overall production levels of both firms would decrease, resulting in a lower output of goods 1 and 2. This would likely lead to a decrease in the equilibrium consumption levels for both types of consumers.
Additionally, the reduction in labor endowment may also affect the equilibrium prices. Since the equilibrium prices are determined by the conditions of profit maximization and utility maximization, a decrease in labor endowment could potentially lead to changes in the capital-labor ratio and the equilibrium consumption levels, which in turn could influence the equilibrium prices.
Overall, the impact of the reduced labor endowment would depend on the specific magnitude of the reduction and the elasticity of production and consumption functions in the model.
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what are the three main types of off-price retailers?
Answers
Off-price retailers include outlet stores, chains, and online, offering discounted products for bargain-seeking shoppers.
1. Outlet Stores: Outlet stores are physical retail locations that offer discounted merchandise from various brands.
These stores typically sell excess inventory, discontinued items, or products with minor imperfections.
Outlet stores are often located in outlet malls or shopping centers and provide customers with the opportunity to purchase branded products at lower prices.
2. Off-Price Chains: Off-price chains are retail stores that specialize in offering discounted merchandise on a consistent basis.
These chains purchase surplus or overstocked inventory from manufacturers or other retailers and sell them at reduced prices.
They typically carry a wide range of products across various categories such as clothing, home goods, electronics, and more.
3. Online Off-Price Retailers: Online off-price retailers operate through e-commerce platforms and offer discounted merchandise to online shoppers.
These retailers source their products from various suppliers and brands, offering a wide selection of discounted items.
Online off-price retailers have gained popularity due to the convenience of online shopping and the ability to access discounted products from the comfort of one's home.
All three types of off-price retailers cater to consumers looking for discounted prices, providing them with opportunities to save money while still purchasing quality products.
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Allen Furniture Company is considering offering an inexpensive line of college dorm and apartment furnishings. If they move forward, they will renovate part of their store to accommodate this new stock. Before spending the money to redesign the store, they first want to find out customer interest. In a short response of approximately 100 words, describe some of the steps they should take as they consider this project.
Answers
Answer:
Allen Furniture Company should look into conducting a survey to gauge customer interest to find what they look for, need, and find attractive. They could do so by going to college campuses and conducting random interviews. For their apartment furnishings, they could look online to see what kind of product sell and do an analysis of customer interest that way and they could also conduct a survey for people that live in apartments. They could also look into a consultant that specializes in the field and is experienced with what customers like or want.
someone help me plz Why is the 50-20-30 rule easy for people to follow, especially those who are new to budgeting and saving?
Answers
Answer:
makes it simpler and more organized to figure out how to spend $, less overwhelming, financial stability.
A travel company launches a new app that makes the process of booking your next vacation into a game. This is best categorized as using social media to ______ the customer. Multiple choice question. engage give an experience to educate excite
Answers
The process employed by the travel company is to excite the customers through Social media.
What is the process called?The process employed is an example of the company promotional activities which aims to induced potential and existing customers.
In conclusion, the process employed by the travel company is to excite the customers through Social media.
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A company wants to determine what price consumers will pay for a new sandwich. At one store, the company charges $3. 59. At another comparable store, the company charges $4. 59. Sales are tracked at both locations for a one-month period. The data collected in this example is __________ data
Answers
Sales are tracked in both locations over a period of one month. The data collected in this example is quantitative data.
What is quantitative data?It corresponds to information that can be measured numerically, that is, it is numerical and statistical data, generating non-subjective and reliable conclusions.
Therefore, quantitative data provide a structured and reliable basis for a research project, through information measured by graphs, indexes and calculations.
In this case, since the company wants to determine what price consumers will pay for a new sandwich. and compares the prices at the locations, the data collected in this example is qualitative data.
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__________ is an example of extinction. multiple choice allowing employees to get work done from home giving letters of commendation shouting at employees forgetting to say thanks for a favor providing employees with a threat of punishment
Answers
An example of extinction is employees forgetting to say thanks for a favor providing employees with a threat of punishment
What is extinction?
Extinction is the psychological term for the gradual weakening of a conditioned response that causes the behavior to decline or cease.
For example,
you may discontinue allowing overtime pay, which served as a positive incentive during the busy season, to get staff members to leave work early or come in on the weekends.
Hence choice 3rd is correct.
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Dividends are paid out of profits, and:
(A) dividends are paid before a firm's taxes are paid.
(B) dividend payments must be approved by the firm's board of directors.
(C) dividends are guaranteed.
(D) dividends are usually paid twice a year.
(personal finance question)
Answers
Dividends are given out of profits, and it is commonly pay off twice a year. Option D is correct.
What are dividends?A dividend is defined as the amount of profit that is available for the distribution by a corporation to its shareholders, this amount of profit is given only when an enterprise earns a profit.
The majority of dividends are paid four times a year, on a quarterly basis, but some companies pay dividends twice a year.
Therefore, option D is correct.
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You are looking at two locations. Traveling to downtown from Location A involves 3 miles of backroads at 30 MPH.
Traveling to downtown from Location B involves 1 mile of backroads at 30 MPH and 5 miles of highway at 60 MPH. Which location has the
shorter trip to downtown?
A or B?
Answers
Answer: A
Explanation:
A location has the shorter trip to downtown because traveling to downtown from Location A involves 3 miles of backroads at 30 MPH.
What is Traveling?To travel by automobile, rail, plane, or ship from one location to another journey. To travel from one location or point to another to make some kind of progress to travel from one location to another as a representative of a company.
Thus, A, is the right way to travel.
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how should the organization keep track of the number of candy bars ordered and the number sold
Answers
Trade discount is given to encourage buyers make purchases in ____ quantities.
Answers
Answer:
Bulk
Explanation:
Trade discount is the reduction in the retail price of products that arises from bulk sales or purchases.
The balance on a credit card, that charges a 20%
APR interest rate, over a 1 month period is given in
the following table:
Days 1-5: $200 (initial balance)
Days 6-20: $350 ($150 purchase)
Days 21-30: $150 ($200 payment)
What is the finance charge, on the average daily
balance, for this card over this 1 month period?
finance charge = $ [?]
Round to the nearest hundredth.
Enter
Answers
The balance on a credit card, that charges a 20% APR interest rate, the Finance charge is given as
$4.3055
This is further explained below.
What is the APR interest rate?Generally, The interest rate that is applied to a loan, mortgage loan, credit card, etc. is referred to as an annual percentage rate of charge, which sometimes corresponds to a nominal APR and sometimes corresponds to an effective APR.
The annual percentage rate of charge is the interest rate for the entire year, as opposed to just a monthly fee or rate. It is a fee for financing that is presented in the form of an annual rate.
Interest rate APR = 12%
Average balance = ((200*5)+(350*15)+(150*10))/30
Average balance = $258.33
Average balance*APR/12
Finance charge =\(\frac{258.33*20 \%}{12 }\)
Finance charge = $4.3055
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1. One advantage of sole proprietorship is:
A. -easing of starting.
B -availability of different talents.
C -unlimited life of the company.
D -double taxation
Answers
What kinds of products
and property do cyber-
protection laws cover?
Answers
Answer:
Act of threatening to share information about a person to the public, their friends or family, unless a demand is met or money is paid
Explanation:
Which of the following strategies is used in the following ad:
A. famous association
B. join the bandwagon
C. promotional deal
D. repetition
Answers
Answer:
a
Explanation:
help!!!!! need ASAP!!!
A country that allows the value of its currency to be set by global supply and
demand for that currency has a(n) exchange rate.
A. fixed
B. inflated
c. trade-weighted
D. flexible
Answers
Answer:
D. flexible
Explanation:
An exchange rate set by the market forces is a flexible exchange rate or a floating exchange rate. The demand and supply forces of the currency determine the exchange rate in the Forex market. Since governments are a major stakeholder in a country's exchange rate, it makes some efforts to influence the exchange rate.
If the demand for a currency is high, its value increases, meaning other countries will spend more buying it. When demand is low, its value declines, which makes imports expensive.
Answer:D
Explanation:
If the quantity demanded at a price of $10 is 2,000 and the quantity demanded at a price of $8 is 2,400, a price-discriminating monopolist would want to:
Answers
Answer:
D. sell 2.000 units for $10 each and then sell an additional 400 units for $8 each
Explanation:
Since in the question it is mentioned that
Quantity demanded is 2,000 at a price of $10
And, the other case is
Quantity demanded is 2,400 at a price of $8
So here we can conclude that
The quantity demanded of 2,000 would be at a price of $10
And, the additional units i.e. 400 (2,400 - 2,000) would be at a price of $8
Therefore the correct option is d.
What is the advantage of using a job scout? personal finance
Answers
Domain knowledge. Tech recruiters know the fundamental aspects regarding the human component of technology development just as sales recruiters know which skills are in high demand among sales teams; and how people can proactively fit into the selling process. They know account-based, social, solution-based, and other methods of selling; and which type of selling credentials or experience matches each framework. Specialist job recruiters under retainer arrangement with top brands know the corporate culture and preferred worker personas of the companies they serve. This insider knowledge enables sales recruiters to orchestrate the best and longest lasting people-job matches in the industry.
Time-saving. Because sales recruiters operate with surgical precision, both employers and job seekers who use their services save considerable amount of time compared to casting very wide nets using traditional ways of job search. Sales recruiters unburden employers from the task of creating a shortlist of good candidates. They also help job seekers avoid doing multiple interviews for each company they apply to by simulating the filtering effect of the interview process for them.
Trust. Top sales recruiters know the terrain and the dynamics of what they are doing such that they consistently deliver acceptable outcomes. This reliability builds trust, especially among hiring managers who are often beset with hundreds of diverse resumes that require long, tedious hours of diligent review just to sift a few good candidates from hordes of unqualified applicants. Job seekers handled by leading sales recruiters get extra mileage on their application, as a result of employer trust.
Passion/driven to perform. Aside from being experts, specialist job recruiters are passionate about their role and are driven to perform because outcomes dictate their profitability. Like sales professionals, for example, sales recruiters need to “close winning deals” between a company and a sales applicant. The more such deals they close, the better their revenue and reputation get. That means you can expect job recruiters to share the responsibility of job-hunting for you.
Cost-effective (for job seekers). Some sales recruiters do not charge fees from job seekers up front. That means sales professionals can seek help from multiple job recruiters without paying anything until they successfully land a job. However, payback happens upon any successful onboarding. Some recruiters — especially those focusing on the C-suite — which provide premium services do require payment at the onset. Nearly all job recruiters charge participating employers for their specialist services, either via a retainer, contingency, or other types of arrangement.
Good hand in the negotiation table. Job recruiters have excellent negotiation skills, developed from years of balancing employer, job seeker, and sales recruiter priorities (they make money by playing off the relative values being exchanged by jobseekers and employers). These negotiation skills sometimes result to better compensation packages for jobs seekers but not always.
Game-changing career advice. Some specialist job recruiters provide crucial career advice for free. Because they need to close acceptable deals with employers, they need to prime all talents under their care for every hiring challenge ahead. As domain experts, they know which skills, certifications, or credentials a job seeker needs to successfully land a particular sales role. They even advise applicants on how they should behave and answer questions during interviews.