The Southern Division manager of Texcaliber growing concerned that the division will not be able to meet its current period income objectivesThe division uses absorption costing for intersal profit reporting and had an appropriate level of inventory at the beginning of the period. The division manager knows that he can boost production at the end of the period. Tholincreased production will allocate fixed costs over a greater number of units, reducing cost of goods sold and increasing earnings Unfortunately, it unlikely that additional production will be soldresulting in a large ending Inventory balance The division manager has come to Aston , the divisional controller , to determine exactly how much additional production is needed to increase net income enough to meet the division's profit objectives, Aston analyzes the data and determines that the division need to increase inventory by 30% in order to absorb enough fixed costs to meet the division's income abjective. Astasseport this to the division manager: Aston acting ethically?

Suppose that hubert, an economist from an am talk radio program, and kate, an economist from a nonprofit organization on the west coast, are arguing over government bailouts. the following dialogue shows an excerpt from their debate: kate: to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. hubert: indeed, it’s gotten crazy! a government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. kate: i don’t know about that. without a bailout of severely distressed financial firms, the economy will experience a deep recession. the disagreement between these economists is most likely due todifferences in scientific judgments . despite their differences, with which proposition are two economists chosen at random most likely to agree? business managers can raise profit more easily by reducing costs than by raising revenue. central banks should focus more on maintaining low unemployment than on maintaining low inflation. employers should not be restricted from outsourcing work to foreign nations

Costs of production that do not change when output changes.question 17 options: total revenuefixed incometotal costfixed cost

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest.extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of