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According to the Philadelphia Inquirer, in 2004 the city of Philadelphia planned to spend $14 million to convert the Convention Center into an appropriate venue for the Republican Nominating Convention (RNC). The city engaged Devon Design and Construction in a contractual relationship to complete the work, which was supposed to start 48 days prior to the commencement of the RNC on July 26. However, when negotiations between Philadelphia's mayor and the police union broke down, the Philadelphia Police Patrolmen's Association took to the picket lines surrounding the Convention Center and prevented construction crews from beginning the work. The Inquirer reported that "a truck attempting to deliver steel turned around after a crowd of union members stood at a chain-link gate in front of the arena, shouting 'back it up,' and 'respect the line, buddy.'" Moreover, the Inquirer reported that "On-duty police officers, who had been instructed to prevent pickets from restricting access, did not intervene." Given the tight construction schedule, construction delays are reportedly costing about $100,000 per day. Identify the principal-agent problem that exists in this situation. Are the mayor and the city of Philadelphia facing the classical "hold-up problem" or another problem? Explain.
1) FUTURE CASH FLOWS: Prepare a three (3) year forecast of estimated future cash flows for starbucks and give valid economic/business reasons for your projections. This means you w
Determine the Functions of management accounting: 1. Planning and forecasting: management fixes various targets to be achieved by the business in near future. Planning and fo
CONTIGENCY THEORY Some researchers have argued that the context in which budgetary control is used is as important as the style in which it is implemented and used. This is ter
what is the role of accounting standard board?
Disadvantages of zero base budgeting 1) It is not suitable for all the activities in an organization 2) It has limited application in a profit making organization. In this c
What the traffic can bear pricing Pricing based on what the traffic can bear is not a sophisticated method. It is used by retail traders as well as by some manufacturing firms.
Private sector companies have multiple stakeholders who are likely to have divergent interests.( five stakeholder groups and discuss their financial and other objectives).
The firm's require holding cash may be attributed to the three motives specified below: The transaction motive The precautionary motive The speculative motive.
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Determine the cost according to normality According to normality: under this category cost may be categorized as follows: Normal cost: it is the cost which is normally i
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