The probability of running out of the item during the lead time is approximately 1 - 0.9265 = 0.0735, or about 7.35%.
To calculate the probability of running out of the item if we order right now, we need to determine the number of units we need to order to cover demand during the lead time plus safety stock.
We can use the following formula:
Order Quantity = (Average Weekly Demand x Lead Time in Weeks) + Safety Stock
Order Quantity = (60 x 2) + 16
Order Quantity = 136 units
Since we currently have 120 units in inventory, we need to order an additional 16 units to reach the order quantity of 136 units.
The probability of running out of the item during the lead time can be calculated using the normal distribution formula:
Probability of Stockout = CDF(Z)
where Z = (Order Quantity - Inventory Level) / Standard Deviation of Lead Time Demand
To calculate the standard deviation of lead time demand, we need to first calculate the variance of lead time demand:
Variance of Lead Time Demand = Average Weekly Demand x Lead Time in Weeks
Variance of Lead Time Demand = 60 x 2
Variance of Lead Time Demand = 120
The standard deviation of lead time demand is the square root of the variance:
Standard Deviation of Lead Time Demand = sqrt(Variance of Lead Time Demand)
Standard Deviation of Lead Time Demand = sqrt(120)
Standard Deviation of Lead Time Demand = 10.95 (rounded to two decimal places)
Now we can calculate the value of Z:
Z = (Order Quantity - Inventory Level) / Standard Deviation of Lead Time Demand
Z = (136 - 120) / 10.95
Z = 1.46 (rounded to two decimal places)
Using a standard normal distribution table or calculator, we can find that the cumulative distribution function (CDF) for Z = 1.46 is approximately 0.9265. Therefore, the probability of running out of the item during the lead time is approximately 1 - 0.9265 = 0.0735, or about 7.35%.
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on march 1, jones repair services received cash of $1,200 for service revenue earned. the journal entry to record this transaction would be:
Cash $1200 is credited against the $1200 service revenue debit. This journal entry reflects the rise in service revenue and cash as a consequence of Jones Repair Services being paid for the services they provided.
The following would be the journal entry to reflect the cash payment received by Jones Repair Services on March 1 for service revenue: Debit: $1,200 in cash
Credit: $1,200 in service revenue
This journal entry reflects the growth in the company's cash assets as well as the acknowledgment of service revenue. While the credit to service revenue indicates the acknowledgment of money generated, the debit to cash shows the company's rise in cash holdings. This transaction should be recorded since it demonstrates the cash inflow and the recognition of generated revenue, both of which are crucial for financial reporting and analysis.
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Which component of service-oriented DSS can be described as a subset of a data warehouse that supports specific decision and analytical needs and provides business units more flexibility, control, and responsibility
Answer:
data marts
Explanation:
The data mart is pattern access that is specific for the environment related to the data warehouse. It is mainly used for restoring the customer or client facing data. It is a data warehouse subset that is associated with the particular line of business or team
Here in the question, it is mentioned that it is specific for the decisions, analytical needs, flexibility, responsibility, etc
This represents the data mart
this form will be sent to Lily by the end of January. She will use this form to...
Answer:
\(\large\colorbox{white}{File her income taxes}\)
Explanation:
\(\large\colorbox{orange}{ɪ ʜᴏᴘᴇ ɪᴛ ʜᴇʟᴘs}\)
\(\large\colorbox{lime}{Xxᴊᴀsʜ13xX}\)
What type of degree can you earn from a community college?
A. A Ph.D.
B. A master's degree
C. A bachelor's degree
D. An associate's degree
Answer:
associate's degree
Explanation:
most community colleges offer an associate's ddgree
Answer:
D
Hope I helped
suppose a $3 per-unit tax is imposed on the sellers of this good. how much is the burden of this tax on the sellers in this market?
The burden of the tax on the sellers in this market is $3 per unit, as they have to bear the entire amount of the tax. The sellers will receive P - $3 per unit of the good they sell, and the buyers will pay P + $3 per unit.
If a $3 per-unit tax is imposed on the sellers of a good, the burden of the tax on the sellers can be calculated as follows:
Let's assume the original price of the good in the market is $P and the quantity demanded and supplied are Qd and Qs, respectively. The price paid by the buyers after the tax is imposed is P + $3, and the price received by the sellers is P.
The amount of tax paid by the sellers per unit is $3, which reduces the effective price received by the sellers to P - $3.
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mc qu. 62 reliable construction company bought... reliable construction company bought a backhoe for $100,000, which it expects to be able to use for 20 years. rather than showing an expense of $100,000 in the first year and no expense for the crane over the next 19 years, the company can report depreciation expenses of blank per year in each of the next 20 years because that better matches the cost of the machine to the years it is used.
Reliable Construction Company purchased a backhoe for $100,000, with an expected useful life of 20 years.
Reliable construction company's decision to report depreciation expenses of a certain amount per year for the next 20 years is a sound financial strategy.
This method of accounting for the cost of the backhoe aligns with the years that the company will actually use the equipment, which is more accurate than reporting the entire cost as an expense in the first year.
This approach also allows for better planning of future expenses and helps to avoid any unnecessary financial strain on the company.
Additionally, this method of reporting expenses allows for better tracking of the backhoe's value over time. As the equipment ages, it will decrease in value, and the depreciation expenses reported each year will reflect this change in value. This will help the company make informed decisions regarding repairs, maintenance, and eventual replacement of the backhoe.
Overall, reporting depreciation expenses over the next 20 years is a responsible and financially savvy decision for Reliable construction company. It allows for accurate tracking of expenses and ensures that the cost of the backhoe is aligned with the years it is used.
Reliable Construction Company purchased a backhoe for $100,000, with an expected useful life of 20 years. To better match the expenses associated with the backhoe to the period it is utilized, the company can report depreciation expenses instead of a one-time expense of $100,000 in the first year.
Depreciation is the systematic allocation of the cost of an asset over its useful life, which in this case is 20 years. By using the straight-line method of depreciation, the company can evenly distribute the expense over the 20-year period. To calculate the annual depreciation expense, divide the initial cost of the backhoe ($100,000) by its useful life (20 years):
$100,000 / 20 years = $5,000 per year
Thus, Reliable Construction Company can report an annual depreciation expense of $5,000 for each of the next 20 years, allowing for a more accurate representation of the backhoe's cost and its impact on the company's financial statements. This approach ensures that the construction company's expenses are consistently accounted for during the entire time the backhoe is in use.
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In period 5 , the project status is Under budget ahead of schedule Over budget behind schedule Under budget behind schedule Over budget ahead of schedule Figure 1: Chart showing cumulative Earned Vaiue (EV), cumulative Actual Cosh project. cumulative Planned Value (PV) for a sample 12-month project 3
The project status for period 5 is under budget and ahead of schedule.
The chart given above shows the cumulative earned value (EV), the cumulative actual cost of the project, and the cumulative planned value (PV) for a sample 12-month project. From the given options, it is clear that the project status is "under budget" and "ahead of schedule" in period 5. Cumulative earned value (EV) is the value of the work completed so far. The cumulative actual cost is the cost incurred so far, and the cumulative planned value (PV) is the amount that was planned to be spent on the project so far. By comparing the EV with the PV and AC, it is possible to determine the current status of the project. In this case, since the EV is higher than the PV and AC, the project is under budget and ahead of schedule. This means that the project is progressing well and is likely to be completed before the planned deadline. This is good news for the project team and stakeholders as it means that the project is on track to meet its goals.
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Please help, I'm so behind. How is net pay different from gross pay?
Answer:
Quantity
Explanation:
gross is the total with no type of changes. Net is your total deductions such as tax or anything like that.
At a production and sales level of 2,545 units, bastion company incurred $70,000 of fixed cost and $56,000 of variable cost. When 6,000 units of product are produced and sold the company's cost per unit is: (round your final answer to whole dollars. )
The cost per unit of producing and selling 6,000 units for Bastion company is $17.
To calculate the cost per unit, we need to first determine the total cost of producing and selling 6,000 units. We can use the high-low method to estimate the total cost:
First, let's calculate the variable cost per unit using the data for 2,545 units:
Variable cost per unit = (Total variable cost - Fixed cost) / Number of units
Variable cost per unit = ($56,000 - $70,000) / 2,545
Variable cost per unit = $5.50
Now we can use the variable cost per unit to estimate the total cost of producing and selling 6,000 units:
Total cost = Fixed cost + (Variable cost per unit x Number of units)
Total cost = $70,000 + ($5.50 x 6,000)
Total cost = $103,000
Finally, we can calculate the cost per unit for 6,000 units:
Cost per unit = Total cost / Number of units
Cost per unit = $103,000 / 6,000
Cost per unit = $17.17
Rounding this to the nearest whole dollar, the cost per unit for 6,000 units of product is $17.
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If you pay the balance of your credit card bill before the due date, how much do you pay?
A. The full amount that you owe
B. The full amount you owe, plus a service fee
C. The full amount you owe, plus interest for the past month
D. The minimum payment on your bill
Answer:
If you pay the balance of your credit card bill before the due date, you would pay the minimum payment on your bill.
Explanation:
The benefits of paying your bill in the middle of the statement period include freeing up your line of credit and helping reduce the amount of interest you may pay. Paying your credit card bill in full before the statement closes means you shouldn't have to pay any interest, unless you have been paying down a balance over several months. Most credit card issuers give you a grace period during which you're not liable for paying interest, provided you pay your account in-full before the statement due date. If you pay your balance before the statement closes, you'll see a "payments" line on your statement, reflecting the amount that's been subtracted from your statement balance. Paying your credit card bill early frees up credit on your account - paying your balance in full causes your credit card limit to reset. When you make a credit card payment, the amount of your payment is automatically added back to your credit line, which can be especially useful helpful if you're getting close to maxing out your credit limit.
which of the following is true of limited liability companies? a. a written operating agreement governing all of the relations between members is required in all states. b. in most states, llcs must file annual reports with the state. c. the contribution of a member to a limited liability company must be cash or property.
The correct answer is A. A written operating agreement governing all of the relations between members is required in all states. Limited liability companies (LLCs) are business entities designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.
All states require LLCs to file certain organizational documents in order to establish their legal existence. In most states, LLCs must also file annual reports with the state.
A written operating agreement is the most important document for an LLC, as it governs all of the relations between the members. This agreement outlines the capital contributions made by each member, the distribution of profits and losses, voting rights, and the procedures for dissolving the LLC. It also includes other important details, such as how decisions will be made, how meetings are held, and how to add new members. Although some states do not require an operating agreement to be in writing, it is always a good idea to have one in place. Without a written agreement, it is difficult to determine the rights and obligations of the members and to enforce any of the provisions.
In addition, the contribution of a member to a limited liability company must usually be cash or property, although some states do allow for other forms of contribution such as services or intellectual property. Contributions of cash or property are typically valued based on market values or fair values of the contribution, and the total capital contribution of all members must be equal to the total capital contribution of the LLC.
The correct answer is A.
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Instead of spending the weekend working on the research paper due at the end of next week sam decided to spend the weekend going out to have fun with friends according to freudian theory which system dominated in sams decisions
Answer:
the id
Explanation:
In simple words, the id can be understood as the root of all psychological bravery, as per Freud 's philosophy, rendering it the essential component of identity. The ID is motivated by the concept of immediate satisfaction of all wishes, desires and desires. If these needs are not immediately fulfilled, the effect is a state of discomfort or stress.
Thus, from the above we can conclude that the correct answer is the id.
You plan to open a retail sportswear store. you will hire several employees to help run the store. what types of journals do you need to keep for such a business? why? what kinds of bank, payroll, and tax records will you have to maintain? how could you use a computer to help you keep and manage your records?
Using computers to keep and control documents, documents and documents reduces the amount of bodily storage.
A organization wishes and additionally lets in managers to have easy access to their archives the usage of easy file search methods.
How do computer application help people to control thier work?Computer Applications in Business Management
The key significance of a laptop in business administration is that it increases productivity. Employees are capable to use science to work faster and more efficiently. This helps businesses to meet milestones and deadlines greater quickly, which can decrease overhead expenses.
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https://brainly.com/question/18560228#SPJ4the johannsens know they will be needing to replace the roof on their home soon. if the estimated cost to replace the roof is $25,000 and they need to replace the roof in three years, how much do they need to save each year (at the end of each year) assuming they can earn 8% on their savings?
The Johannsens will need to save $8,149.14 at the end of each year for the next three years in order to have enough money to replace their roof.
This calculation is based on the future value of the $25,000 cost of the roof, which is $31,762.05 after three years with an 8% annual interest rate. By dividing this future value by the number of years they have to save (3), they need to save $10,587.35 per year.
However, since they are saving at the end of each year, they need to adjust this amount by using the present value of an annuity formula. The formula is: P = (FV / ((1 + r)^n - 1)) * (1 + r)^-1, where P is the periodic payment, FV is the future value, r is the annual interest rate, and n is the number of payment periods.
Plugging in the numbers, we get P = ($31,762.05 / ((1 + 0.08)^3 - 1)) * (1 + 0.08)^-1 = $8,149.14.
Therefore, the Johannsens need to save $8,149.14 at the end of each year for the next three years in order to have enough money to replace their roof.
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Which of the following statements about corporate culture is true A. Corporate culture evolves over time B. Corporate culture is intangible C. Corporate culture is based on the accumulated history of the organization D.Corporate culture can have a strong impact on a company's success E. All the above
Answer: All of the above
Explanation:
Corporate culture simply refers to the beliefs, customs and the attitudes that is shared in s particular company. It should be noted that the corporate culture shapes the behaviors of employees in an organization.
It helps in guiding the behaviors of workers and they can either be unwritten rules or those that are documented. They can be based in an organization's history and can evolve with time.
Corporate culture is intangible and can have a strong impact on the company's success. Therefore, the answer to the question is All of the above.
The coordinates of point T are (0,5). The midpoint of is (6,-4). Find the coordinates of point S.
Answer:
Point S is at (10,-11) :)
Explanation:
How often should you update you check register
Answer:
Review your checkbook register at least once a week. Your second goal should be to reconcile your checkbook as soon as possible after receiving your monthly statement. Once you've mastered the following steps, you should be able to balance your account each month within 30 minutes to 45 minutes.
Answer :Review your checkbook register at least once a week.
Explanation:
2. A closer estimate of the total cost can be made by including the estimated sales tax. Use a formula to
calculate the estimated cost for July 2014 using 7% sales tax. Then, write the formula you used and the
estimated cost in the cell below. Hint: Convert 7% into a decimal for the formula. (5 points)
Answer:
=([Cost] * 1.07)
Explanation:
The question has missing details.
The complete question is to calculate write a Microsoft Excel formula that calculates the total cost which includes the sales tax
Assume that the table heading for estimated cost in July 2014 is Cost
The formula to calculated the total cost which includes the sales tax is:
=([Cost] * 1.07)
The above uses structured reference to make reference to the cost in July 2014.
To calculate the total which includes sales tax, we use:
\(Total = Cost * (1 + Sales\ Tax)\)
\(Total = Cost * (1 + 7\%)\)
Convert percentage to decimal
\(Total = Cost * (1 + 0.07)\)
\(Total = Cost * 1.07\)
Hence, the Excel equivalent is:
=([Cost] * 1.07)
Answer:
=([Cost] * 1.07)
Explanation:
The complete question is to calculate write a Microsoft Excel formula that calculates the total cost which includes the sales tax
Assume that the table heading for estimated cost in July 2014 is Cost
The formula to calculated the total cost which includes the sales tax is:
=([Cost] * 1.07)
The above uses structured reference to make reference to the cost in July 2014.
To calculate the total which includes sales tax, we use:
Total = Cost x ( 1 + Sales Tax )
Total = Cost x ( 1 + 7% )
Convert percentage to decimal
Total = cost x ( 1 + 0.07 )
Total = Cost x 1.07
Hence, the Excel equivalent is:
=([Cost] * 1.07)
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the effective interest rate method of amortizing bond discounts and premiums results in a constant amount of interest expense every period.
The flaw in the effective interest rate approach of amortizing bond discounts and premiums is that it produces a fixed amount of interest expenditure each period.
What is the most efficient way of amortization using interest?An accounting technique used to discount a bond is the effective interest approach. Using this method, interest expenditure is calculated over the bond's life based on the amount of any discounts or premiums received when the bond was sold.
Which approach to interest rates works best?The amount of interest expenditure during a specific accounting period correlates with the book value of a bond at the start of the accounting period using the effective interest rate technique. As a result, interest expense grows in proportion to a rise in a bond's book value.
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The condensed financial statements of Oriole Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands. ) ORIOLE COMPANY Balance Sheets December 31 2022 2021 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment (net) $330 $360 640 570 540 470 120 160 1. 630 1. 560 180 180 420 380 530 510 $2. 760 $2,630 $1. 070 $960 490 460 1. 200 1. 210 $2. 760 $2,630 Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity ORIOLE COMPANY Income Statements For the Year Ended December 31 2022 2021 Sales revenue $3,880 $3,540 Costs and expenses Cost of goods sold Selling & administrative expenses Interest expense Total costs and expenses 1. 125 1. 060 2,400 2,330 25 20 3,550 3,410 330 130 99 39 $231 $91 Income before income taxes Income tax expense Net income Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, s. 183 and all other answers to 1 decimal place, s. 1. 8 or 12. 6%) (a) Current ratio (b) Inventory turnover. Inventory on 12/31/20, was $360) Id Profit margin Id Return on assets. (Assets on 12/31/20, were $1. 910. ) le) Return on common stockholders' equity. (Stockholders' equity on 12/31/20 was $920) I Debt to assets ratio (e) Times interest earned. 2022 Current ratio Inventory turnover Pront margin Return on assets Return on common stockholders' equity Debt to assets ratio Times interest earned times
Current ratio of year 2022 is 1.52 : 1 times and of year 2021 is 1.63:1 times.
Given,
Current ratio,
For year 2022,
$1,630 / 1,070
1.52 : 1 times
For year 2021,
$1,560 / $960
1.63:1 times
Profit Margin,
For year 2022,
$231 / $3,880 × 100
6.0%
For year 2021,
$91 / $3,540 × 100
2.6%
Return on Common stockholder's equity,
For year 2022,
$231 / $1,205 × 100
19.2%
For year 2021,
$91 / $1,065 × 100
8.5%
Average Stockholder's equity,
For year 2022,
($1,210 + $1,200) / 2
$1205
For year 2021,
($920 + $1,210) / 2
$1065
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Select choices which are true about total fixed costs? total cost minus total variable cost always decreases as quantity increases always increases as quantity increases always horizontal average fixed cost times quantity always vertical
Total fixed costs refer to the costs that do not vary with the level of production or sales volume. These costs are also known as overhead costs and include rent, insurance, salaries and general administrative costs.
Total fixed costs always remain the same regardless of production or sales volume. As a result, the total cost minus total variable cost always decreases as quantity increases. This is because total fixed costs are not affected by changes in production.
Total fixed costs always increase as quantity increases because the total cost of production is made up of both fixed and variable costs. Average fixed cost is always horizontal, meaning that it does not vary with the level of production. This is because the total fixed cost does not change, no matter how much is produced. As a result, the average fixed cost is calculated by dividing the total fixed cost by the number of units produced.
Finally, total fixed cost is always vertical, meaning that it does not vary with the level of production. This is because the total fixed cost does not change, no matter how much is produced. As a result, the total fixed cost is the same regardless of the amount of production.
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Tyrrell's small lumber company aims to fulfill the economic foundation of business. What first step must his company take to achieve this goal?
-be a good corporate citizen
-save the environment
-obey the law
-earn profits
-do what is right
The first step must his company take to achieve this goal is: earn profit.
What is profit?Profit is what a person gain from the sell of products after deducting their expenses and other production cost.
In order for the company to achieve their set goals which is to fulfil the economic foundation business they need to first of all earn profits from their business.
Therefore the company needs to earn profit.
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With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?a. passage of legislation reducing the workweek to 30 hoursb. an increase in the marginal income tax rate, which would reduce the work effort of individualsc. instituting a tax policy encouraging investment at the expense of consumptiond. instituting a tax policy encouraging consumption at the expense of investment
Establishing a tax structure which it encourages investments above consumption.
What is a simple definition of economy?A community's resource allocation is ultimately determined by a collection of connected processes of production and consumption collectively referred to as an economy. The production and consumption of goods and services as a whole satisfy the needs of the people who reside there and conduct business there.
What is economy and its types?A system of production and exchange of products is called an economy. A state will fail if its economy is unsustainable. Market economy, authoritarian, and mixed economies are the three primary types of economies.
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Why should you make a personal investment plan?
A. To keep your money as safe as possible
B. To avoid financial risk
C. To meet your personal financial goals
D. To make the most money possible
Answer:
to meet your personal financial goals
Explanation:
the tire manufacturing industry is represented by the tire manufacturing association, a industry advocacy group. at its annual meeting, members of the group made presentations on the following: a. price comparisons among companies b. newest marketing techniques c. financing current operations with short-term promissory notes in analyzing whether these presentations violate section 1 of the sherman act, explain which are per se violations and which would be subject to the rule of reason. are the ones subject to the rule of reason legal?
The presentation on price comparisons could potentially be a per se violation, while the presentations on marketing techniques and financing with short-term promissory notes would likely be subject to the rule of reason analysis.
Section 1 of the Sherman Antitrust Act prohibits any agreement, contract, or conspiracy in restraint of trade. To determine whether the presentations made at the annual meeting of the Tire Manufacturing Association violate this section, we need to consider whether they constitute per se violations or whether they fall under the rule of reason analysis.
Price comparisons among companies and financing current operations with short-term promissory notes are likely to be subject to the rule of reason analysis. The rule of reason requires a balancing of the pro-competitive benefits of the conduct against any potential anticompetitive effects. If the conduct has a pro-competitive effect, then it will be considered legal. However, if the conduct has anticompetitive effects that outweigh any pro-competitive benefits, it will be considered a violation of the Sherman Act.
The newest marketing techniques may also be subject to the rule of reason analysis, depending on the specific details of the presentation. For example, if the marketing techniques involve an agreement among the members of the Tire Manufacturing Association to fix prices or limit production, then it would be a per se violation. However, if the marketing techniques involve lawful competition, such as improving product quality or advertising effectiveness, then they would be subject to the rule of reason analysis.
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i have a brainlest for anybody if the can tell me who won the wwe champoinship in 1996
How can choosing the right institution help you manage money effectively?
Answer:
You may get a better job, or it may make you more responsible. The money is the main thing, you will get paid better, so you wont have to worry abt money i guess.
Explanation:
In trading account freight belongs to which side debit or credit?
Answer:
Explanation:
In trading account, freight belongs to the debit side. It is a direct expenses on purchases and manufacturing operation
Freight is the cost incurred in transporting an item to its final destination when the terms are FOB shipping point. It is treated as part of the cost of merchandise and recorded in the inventory if the merchandise has not been sold.
Increase in the cost of freight are recorded on the debit side while decrease are recorded on the credit side.
Question 10 (5 points)
Two prescreening tools for job candidates are the resume and the
employment essay.
advertisement.
application.
letter of recommendation.
The correct answer is C. Application
Explanation:
When employers pre-screen job candidates they verify basic information about candidates such as background, education, skills, experience, etc. to determine if a candidate is suitable for a job and he/she should be interviewed or continue in the process of selection for the job.
In this context, the two main tools used by employers are the resume and the job application. These two documents provide information about the candidate's education, experience, skill, and similar but in the case of the application the information es concise and very specific, while resumes are more detailed and the candidate can include as much information as she/he wants. Thus, the two prescreening tools for job candidates are the resume and the application.
Answer: Application
Explanation: I just took the test
Hope this helps.
If a school is offering a lot in financial aid, what else do you need to consider when trying to determine if a school is going to fit your budget?
If a school is offering a lot in financial aid, what else do you need to consider when trying to determine if a school is going to fit your budget is: Cost Of Attendance .
What is financial aid?Financial aid can be defined as the financial assistant or grant render to student which can help to cover their tuition and other expenses.
On the other hand Cost Of Attendance can be defined as the overall expenses amount that you will have to incur.
This expenses include the following:
Loan feesTuition feeRoom and boardBooksTransportation etcTherefore If a school is offering a lot in financial aid, what else do you need to consider when trying to determine if a school is going to fit your budget is: Cost Of Attendance .
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Answer:
If a school is offering a lot in financial aid, what else you need to consider when trying to determine if a school will fit your budget is the Cost Of Attendance.
If a school is offering a lot in financial aid, you need to consider the cost of attendance (COA) when determining if a school will fit your budget. Financial aid letters from institutes of higher education only include aid for one year. You must reapply for financial aid every year.