I-1 Select one of the following public sector programs: city agency pothole repair or state agency assessment of individual case eligibility for public assistance.  For the selected program: *explain/illustrate how using more than one results/effectiveness indicator may be necessary to avoid perverse incentives, and *briefly describe and illustrate one major approach that a city or state may use to set targets for the above service in a way that tries to coax agencies to achieve greater results/effectiveness (as measured in an Annual Performance Indicators Report) over time. I-2 Define statutory tax incidence and economic tax incidence; briefly present these two concepts in the context of  the property tax on residential rental properties (hint: consider the landlord and consider the tenants). I-3 Specify the accounting formula for estimating revenue yield. Present an illustration of using the so-called accounting formula to estimate the revenue yield  of a new sales tax of 2% upon restaurant meals to be imposed by a city (provide example numbers).  What assumption would one be making about the specific tax base in the face of this new tax? 

ABC Corporation produces and sells 10,000 units of Product X each month. The selling price of Product X is $40 per unit, and variable expenses are $32 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $50,000 of the $90,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be (PLEASE SHOW YOUR WORK BY USING THE HONORLOCK ON-SCREEN CALCULATOR):

To improve political acceptability of efforts to increase revenues by a given amount, strategies that may be pursued by various governmental leaders and/or interest groups might well include:

What are the two main faiths developed in China?

A new state aid program for tutoring reading and math skills to first graders will provide aid to school districts on thebasis of a formula.  The formula incorporates a district’s property wealth per capita and its number of first graders.  While other indicators might be more appropriate, this would be an example of at least trying to distribute aid on the basis of:

ABC Company has two divisions: East and West. The divisions have the following revenues and expenses:     East West Total Sales $500,000 $550,000 $1,050,000 Variable costs $200,000 $275,000 $475,000 Traceable fixed costs $150,000 $180,000 $330,000 Allocated common corporate costs $135,000 $170,000 $305,000 Operating income (loss) $15,000 $(75,000) $(60,000)   The management of ABC Company is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall (total) company operating income (loss) of (PLEASE SHOW YOUR WORK BY USING THE HONORLOCK ON-SCREEN CALCULATOR):

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $117 Units produced 2,900 Units sold 2,500 Variable costs per unit:        Direct materials $32      Direct labor $45      Variable manufacturing overhead $9      Variable selling and administrative expense $2 Fixed costs:        Fixed manufacturing overhead $43,500      Fixed selling and administrative expense $15,000   The total gross margin for the month under absorption costing is (PLEASE SHOW YOUR WORK BY USING THE HONORLOCK ON-SCREEN CALCULATOR):

Which one of the following public services would probably be the least suitable for imposition of user charges upon direct users of the public service in question?

The following data pertains to activity and maintenance cost for two recent periods:   Activity level (units) 8,000   7,000 Maintenance cost $34,000   $31,500   Maintenance cost is a mixed cost with both fixed and variable components. Using the high-low method, the cost formula for maintenance cost is (PLEASE SHOW YOUR WORK BY USING THE HONORLOCK ON-SCREEN CALCULATOR):

There are two parts to this test.  Be sure to do both parts as specified.  Answer both Part I and Part II as specified.   PART I—Answer two out of the three questions in this part as specified.   1)As presented in Mikesell, define the term mandate. Present one specific example of a mandate. As considered in Module 4, specify two potential positives and one potential negative about certain mandates OR one potential positive and two potential negatives. about certain mandates.   2)Consider the strategies of: dire consequences, spend to save, it pays for itself, and geographic dispersion.  Select two of these strategies; define them and present a concrete illustration for each one.   3)The City of Happyville Health Department is preparing a new needs request to add two more full-time restaurant inspectors to its current force of three such inspectors.  Suppose the general role of these inspectors is to protect the public from getting restaurant food-related illnesses.  In part, this is pursued via annual restaurant inspections, and special inspections pursuant to citizen complaints.  Specify one example of a potential indicator (measure) that might realistically be projected for if the proposed increase is approved and for if the proposed increase is not approved. (an actual proposal might use multiple indicators—am just asking for one example here) Present two major specific, diverse examples of pesky questions that a budget reviewer might ask about the actual need for the proposed increase in positions? (an actual proposal might elicit many pesky questions—am just asking for two examples here)