You are managing flexible production where you can smoothly adjust to changes in demand and supply conditions. As demand for your product increased, you are capable of ramping up production using your current workforce and technology.
Explanation:You are managing a type of production known as flexible production. This means you are able to adapt to changes in demand and supply conditions smoothly. Here, the unexpected high demand for your product led to an increase in both the output price and profitability. This, in turn, influenced you to demand more labor to increase production. Flexible production allows you to increase production without needing to make significant changes to your facilities or labor force.
Furthermore, in this context, technology refers to several methods of combining inputs to produce outputs. The key is to search for a production technology that enables you to produce the desired level of output at the lowest cost, hence maximizing profits. For instance, the firm might opt to hire more labor or invest in more efficient machinery to enhance production.
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If the government sets a price floor of $5 per bushel, ____ bushels of corn are produced, of which ___ are purchased by consumers, and _____ by the government. The program costs the government ___. Farmers receive ____ in total revenue .
Answer: If the government sets a price floor of $5 per bushel, Say 1000 bushels of corn are produced, of which 300 bushels are purchased by consumers, and 700 bushels by the government. The program costs the government $3500. Farmers receive $5000 in total revenue.
Explanation: A price floor is a legitimate minimum value that the government sets on a product in the market, usually to protect the suppliers/farmers. Using the ballpark values as in the answer, to estimate and explain the concept of a price floor:
Say total quantity produced is 1000 bushels of corn from which the Market demands 300 bushels. Given that the government has set a price floor at $5 per bushel; then the Government has to buy the surplus bushels of corn in the market from the farmers.
Surplus bushels = Quantity produced – Quantity purchased
1000 bushels – 300 bushels = 700 surplus bushels of corn to be purchased at $5 each by the government
Therefore: It would cost the government (700 bushels x $5 =) $3,500 to mop up the surplus in the market and pay the farmers. The 300 bushels purchased by consumers would yield (300 x $5 =) $1,500 in earnings for the farmers. Total earning by the farmers = $3500 (from the government) and $1500 from consumers) = $5000.
I hope this helps to understand the concept of price floors.
Explain what happens when markets do not have enough competition.
Answer:
The price will be higher and output lower in absence of competition.
Explanation:
When the market does not have enough competition, it provides a certain degree of market power to the existing producers. They are able to regulate prices and output.
It is likely that the suppliers will provide a fewer quantities of goods at a higher price, in order to maximize their profits. The socially optimal level of output will not be produced in the market.
The resources will not be efficiently allocated and deadweight loss will exist.
Considering high achievers, which situation is likely to have the greatest effect on achievement behavior?
A) 10% chance of success
B) 25% chance of success
C) 50% chance of success
D) 75% chance of success
E) 100% chance of success
Answer: 50% chance of success.
Explanation:
A high achievers most times isn't very sure of the outcome of an event, but when there is 50% chance of him achieving his goal, he takes the move and ensures to give in his best while hoping for the best. The ability to take a risk in the midst of uncertainty separates a low achiever from a high achiever. As high achievers are able to take wise risks when the need demands.
On January 1, 2014, Huber Co. sold 12% bonds with a face value of $1,000,000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $1,077,250 to yield 10%. Using the effective-interest method of amortization, interest expense for 2014 is ____.
Answer:
$107,418.13
Explanation:
Interest expense using the effective interest method = Part A + Part B
Where:
Part A = bonds' selling price x 6 months effective interest rate = $1,077,250 x 5% = $53,862.50
Part B = { bonds' selling price - [(face value x stated interest for 6 months) - (bonds' selling price x 6 months effective interest rate)]} x 6 months effective interest rate
= { $1,077,250 - [($1,000,000 x 6%) - ($1,077,250 x 5%)]} x 5% = [ $1,077,250 - ($60,000 - $53,862.50)] x 5% = ($1,077,250 - $6,137.50) x 5% = $1,071,112.50 x 5% = $53,555.63
Interest expense = $53,862.50 + $53,555.63 = $107,418.13
Your large business just issued bonds for $10 million. You are excited about utilizing the new funds to expand. As you create your budgets for the upcoming years you need to keep in mind that your company will need to ________.
Answer:
pay annual interest and repay the whole $10 million at the maturity date.
Explanation:
You have to avoid the feeling of being able to spend freely, the same feeling you get when you start to use your first credit card. You feel great because you can buy all the things you want but eventually you have to pay the bill and it comes with interest.
This sense of fake ownership of the money is something very common specially in big corporations. Try to remember when GM, Chrysler and Ford were burning cash a decade ago while being bankrupt (or almost bankrupt in Ford's case). They overspent simply because there were still some people that were willing to lend them money until the bill came in and no money was left.
Mike and Jane Lewis, a married couple filing a joint return, paid funeral expenses of $10,000 for their dependent child in the current year. Select the appropriate tax treatment of the funeral expenses.
Answer:
Funeral expenses are not tax deductible for any type of individual.
According to IRS, funeral and burial expenses can be deducted only if they are paid by the dead person's estate. In other words, no living person can deduct funeral expenses. Only in case you die, the executor of your estate can deduct funeral expenses form your estate taxes.
Disposable personal income is A. personal income minus indirect business taxes. B. national income minus depreciation. C. personal income minus personal taxes. D. national income minus personal taxes.
Answer:
C. personal income minus personal taxes.
Final answer:
Disposable personal income is the personal income minus personal taxes, and represents the income that individuals can use for saving or consumption. The correct option is c.
Explanation:
Disposable personal income is C. personal income minus personal taxes. This is the amount of money that households have left after paying federal, state, and local taxes. In other words, it is the income that individuals can actually use for consumption or saving. To clarify, disposable personal income is calculated by taking the total personal income earned by the citizens from wages, investment interest, and other sources and then subtracting the personal current taxes they pay to the government. It does not take into account indirect business taxes, depreciation, or subtracting personal taxes from the national income.
"Jenn switched jobs to one that was within a half mile of her home and she could walk on most days. After about three months, her new boss announced the company was moving 15 miles outside the city. This would mean that Jenn would now have an hour and half commute that involved a subway and two busses. Her stressor would be considered a"A. strong stressor.B. negative stressor.C. hassle.D. positive stressor.E. crises.
Answer:
C. hassle
Explanation:
It is a genuine nuisance having to commute longer than what you are used to. However, Jenn's issue cannot be defined as a true stressor, as it is something she would probably get used to in the long run.
On the other hand, real stressors would refer to work and workplace issues per se. For example, a negative stressor can be a long-term inability to avoid conflict with managers, which is directly influencing job stability and our feeling of economic safety. On the other hand, a positive stressor (or eustress) refers to the positive excitement related to events we are looking forward to, for example, our promotion.
Strong stressors and crises are related to exceptionally tough issues to overcome. For example, continuous burnout that makes us unable to cope with work is something a lot more serious than the hassle of a longer commute.
What is the definition of supply-side fiscal policy?Click or tap a choice to answer the question.fiscal policy that minimizes cyclical upturns and downturns in the economyfiscal policy that emphasizes tax cuts rather than government spendingfiscal policy aimed at impacting long-run aggregate supply rather than aggregate demandfiscal policy that taxes higher-income workers at a higher percentage rate than lower-income ones
Answer:
fiscal policy aimed at impacting long run aggregate supply rather than aggregate demand
Explanation:
Supply-side fiscal policy is a strategy involving government taxation and spending aimed at influencing the productive capacity of the economy. It mainly focuses on long-term aggregate supply by encouraging business investments and enhancing worker productivity. A prime example is a fiscal policy that emphasizes tax cuts.
Explanation:In economics, Supply-side fiscal policy refers to the strategies that influence the economy's productive capacity through government taxation and spending. The supply-side policy primarily focuses on enhancing long-term aggregate supply, emphasizing methods such as tax cuts and investments geared towards businesses to improve productivity and stimulate economic growth. These strategies result in regular shifts to the right of the aggregate supply curves, facilitating growth in the quality and quantity of resources over time as the population grows, businesses invest in new capital, and technology improves. It is different from demand-side fiscal policy, which aims at impacting aggregate demand instead.
In this regard, a fiscal policy that emphasizes tax cuts rather than government spending would accurately describe the concept of supply-side fiscal policy. Policies favoring tax reductions can lead to higher business investment, improved worker productivity, and in the long run, increased economic growth.
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What type of receivable is evidenced by a formal instrument and normally requires the payment of interest? A trade receivable An account receivable Past-due accounts receivables A note receivable
Answer:
A note receivable
Explanation:
A note receivable is a composed guarantee to get a particular measure of money from another gathering on at least one future dates. This is treated as a benefit by the holder of the note. Past due records receivable are some of the time changed over into notes receivable, in this manner giving the indebted person more opportunity to pay, while additionally once in a while including an individual assurance by the proprietor of the account holder.
Harvey’s, a large and successful retail chain on the West Coast, decides to expand its operations across the U.S. Which of the following organizational structures should Harvey’s use?
a. basic
b. simple
c. multidivisional
d. functional
Answer:
Letter c is correct. Multidivisional.
Explanation:
The multidivisional organizational structure is best suited for implementation at Harvey's. This structure is generally used by companies that are expanding due to higher levels of diversification.
Its main feature is the division of various strategic business units that have the authority to manage losses and profits. The major benefits realized by the multidivisional structure are increased supervision and control, the process of comparing and distributing resources across units, and the motivation to improve internal management.
Samantha is a single mom and the administrative assistant for the marketing department. Her son's soccer games begin right after school so Samantha often has to choose between supporting her son at his games and working. Samantha is experiencing role ________.
A. overload
B. conflict
C. clarity
D. ambiguity
Answer:
The correct answer is (B)
Explanation:
A conflict is a clash of interest. The idea of conflict might be close to home, racial, class, standing, political and universal. Samantha is encountering a conflict of interest where she has to choose whether to watch her son's football match or go to work. Conflicts usually can lead to misunderstandings between two parties and they must be resolved by communication.
Final answer:
Samantha is experiencing role B. conflict as she has to choose between supporting her son at his soccer games and fulfilling her responsibilities as an administrative assistant for the marketing department.
Explanation:
Samantha is experiencing role conflict. Role conflict occurs when one or more roles are contradictory, leading individuals to have difficulty in fulfilling the requirements of each role. Thus, it occurs when an individual experiences challenges in fulfilling the expectations of different roles they hold, leading to tension and stress.
This conflict arises when the demands of one role interfere with another, causing difficulties in balancing responsibilities. Managing conflicting expectations from various roles, such as work and family, can result in psychological strain and a sense of being torn between competing obligations. In Samantha's case, she has to choose between supporting her son at his soccer games and fulfilling her responsibilities as an administrative assistant for the marketing department.
Unlike leaders, managers: Question 15 options: inspire and motivate others to find their own solutions. are concerned with control and limiting the choices of others. are more concerned with what work gets done. focus on vision, mission, goals, and objectives.
Answer: are more concerned with what work gets done.
Explanation: In simple words, leadership refers to the process of motivating and influencing others to work for the achievement of common goals. However, management refers to eh processes under which an individual plans, directs and monitors the activity of others for the achievement of goals.
Managers belongs to the business activity but leaders could be working for non benefiting activities. Every leaders is manager but not every manager is a leader
Hence leaders tries to overall develop their followers while managers use their subordinates as the resource for wetting the work done.
Managers focus on task completion and maintaining the status quo in the organization. They practice transactional leadership, focused on systems of rewards and punishments to achieve organizational goals. Leaders, especially transformational ones, inspire and motivate others, fostering critical thinking, and emphasizing vision and mission.
Explanation:Unlike leaders, managers are often more goal-oriented and mainly concerned with ensuring tasks and jobs are completed efficiently. This style of leadership is often called transactional leadership, which focuses on supervision, organizational goals, and achieving these through systems of rewards and punishments. Managers essentially maintain the status quo and are more focused on what work gets done, rather than inspiring and motivating others to find their own solutions.
Transformational leaders, on the other hand, tend to lead in an expressive way, promoting emotional health and ensuring people feel supported. They encourage critical thinking and problem solving, and are charismatic and inspirational. They focus on vision, mission, goals, and objectives and inspire others to do the same.
Of course, these are generalizations and many individuals embody both transactional and transformational characteristics in their leadership or management roles depending on the circumstances.
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Real per capita GDP in China in 1959 was about $350, but it doubled to about $700 by 1978, when Deng Xiao Ping started market reforms. Chinese per capita real GDP doubled again in only seven years, reaching $1,400 by 1986. What was the average annual economic growth rate between 1979 and 1986?
Answer:
10.4%
Explanation:
In macroeconomics class we are told that if an economy grows by 10%, it will take them 7 years to double its size.
The answer is not exactly 10%, but it's pretty close:
(1 + x%)⁷ = 2
1 + x% = ⁷√2
1 + x% = 1.104
x% = 1.104 -1 = 0.104 or 10.4%
We can check the answer: 1.104⁷ = 2
A machine is purchased on September 30, 2009, for $60,000. Useful life is estimated at four years and no residual value is anticipated. The Double Declining Balance depreciation method is used. The acquiring company's fiscal year ends on December 31. Depreciation for 2010 should be: $15,000 $30,000 $26,250 None of the above.
Answer:
$30,000
Explanation:
Given
Cost of assets purchased on September 30, 2009 = $60,000
Useful life = 4 years
Annual depreciation using the straight line method = $60000/4
= $15,000
Using the Double Declining Balance depreciation method is used
Annual depreciation = 2 × $15,000
= $30,000
Depreciation for 2010 is $30,000.
__________ is a form of warehousing that combines classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment.
a) postponement
b) a hub-and-spoke system
c) assortment
d) spot stock
Answer:
Postponement warehousing,
Explanation:
Postponement warehousing, is form of warehousing that combines classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment.
hub and spoke, consists of one hub (central location), at which the warehouse is located and it is transported to different locations through routes called spokes.
assortment is a form of warehouse in which a wide array of goods are held close to the source of demand to ensure short lead time.
spot stocking refers to company's goods stocked in a small warehouse for easy access. Often done seasonally.
Postponement is the warehousing form that merges traditional storage with light manufacturing tasks to delay final product assembly or packaging, which aligns with just-in-time delivery principles.
The form of warehousing that combines classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment is known as postponement. This system aligns with the principles of just in time delivery, reducing the need for large inventories and allowing for more flexible and efficient supply chain management. Companies utilizing postponement leverage logistics and locational criteria to minimize storage costs and maximize responsiveness to market demands.
Plastix Produx Company is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, Plastix Produx wants a court to review it. First, however, the firm must use all of the potential administrative remedies. This is
a. an actual controversy at issue.
b. standing to sue.
c. the exhaustion doctrine.
d. the ripeness doctrine.
Answer:
The correct answer is c. the exhaustion doctrine.
Explanation:
"Exhaustion" refers to one of the limitations of intellectual property rights. Once a product protected by an intellectual property right has been marketed by your SME or by others with your consent, your SME is no longer entitled to exercise the intellectual property rights of the commercial exploitation of this given product, since it They have "sold out." Sometimes this limitation is also called the "first sale doctrine", since commercial exploitation rights on a given product end with the first sale of the product. Unless the legislation specifically provides otherwise, your SME may not control or oppose subsequent acts of resale, rental, loan or other forms of commercial use by third parties. There is a fairly broad consensus that this applies at least within the framework of the national market.
What are the gains to be had from simplifying the tax code? A. Increased efficiency of households and firms. B. Greater clarity of the decisions made by households and firms. C. Resources from the tax preparation industry freed up for other endeavors. D. All of the above.
Answer:
The correct answer is D. All of the above.
Explanation:
Simplification in the field of taxes can be observed considering the tax structure, if it implies a complex tax system there will be higher compliance and administration costs, but the complexity of the system is sometimes difficult to eliminate. There are few simple things in tax compliance.
There are complications that can be avoided and these usually begin with the fact that the officials of the Tax Administration are unaware of the tax regime or the provisions of the tax laws. Usually this is linked to a limited knowledge of tax law as a discipline with a dogmatic of its own. The public function in the field of tributes is often occupied by assuming the Turkish proverb that says: "If Allah gives you authority, it will also give you the intelligence necessary to know how to command."
Regularly every official in the area of tax law is a kind of legal autarchy that knows spontaneously and naturally the subject under his responsibility. Thus, in each general rule or in each resolution or decree, concepts that are clear in the Tax Code are redefined, but redefined to give it another meaning in accordance with the notions just arrived at the Administration. Arranged with the pragmatic and practical statute that on the road the load is rigged.
A corporation's management a. owns the corporation. b. hires the board of directors. c. is liable for the corporation's debts. d. operates and controls a corporation in its day-to-day activities.
Answer:
d: operates and controls a corporation in its day-to-day activities
Explanation:
Creams-R-Us is known for making facial lotions and creams, which are mostly promoted to women. They introduced a modified version of their facial lotion targeted to men. Creams-R-Us is employing a _____ product strategy.
Answer:
product modification strategy
Explanation:
Product modification strategies are usually carried out with products that are already in its maturity stage. It basically refers to adding modifications that increase the perceived value or use of the product, in an attempt to appeal to broader markets. That way the life cycle of the product will be extended.
The main difference with a product line extension strategy, is that a product modification strategy is used to reach new markets, while product line extension is used to increase the sales within an existing market.
The correct term for the strategy employed by Creams-R-Us is a market segmentation product strategy.
When a company like Creams-R-Us takes an existing product and modifies it to target a different segment of the market, in this case, men, they are engaging in market segmentation. This strategy involves dividing a broad target market into subsets of consumers with similar needs, wants, or characteristics, and developing or modifying products to cater to the preferences of these specific segments. By creating a modified version of their facial lotion specifically for men, Creams-R-Us is addressing the unique skincare needs and preferences that may exist within the male consumer segment. This approach allows the company to expand its customer base and increase its market share by tailoring its products to different groups within the overall market.
Suppose a perfectly competitive firm and industry are in long-run equilibrium and the firm earns an economic profit in the short run. Which of the following is likely to occur in the long run?
Answer:
The answer is the market supply curve will shift to the right, and the market price will decrease.
Explanation:
It is likely to the market supply curve will shift to the right, and the market price will decrease.
On October 1, 2022, Sunland Company places a new asset into service. The cost of the asset is $124000 with an estimated 5-year life and $22000 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Sunland Company uses the straight-line method of depreciation
Answer:
The depreciation expense is $5,100
Explanation:
The depreciation expense under the straight line method is computed as:
Depreciation expense = Asset Value - Salvage Value / Useful life of asset
where
Asset value is $124,000
Salvage Value is $22,000
Useful life of asset is 5 years
And asset is purchased on October, So depreciation will be computed from October to December, So, the number of months are 3
Depreciation expense = ($124,000 - $22,000) / 5 × 3 / 12
= $102,000/ 5 × 3 / 12
= $20,400 × 3 / 12
= $5,100
Concert promoters still sometimes hire persons to count or photograph how many persons enter a venue or fill the seats inside in order to make their own estimate of ticket sales to compare with counts from the venue. True or false?
The given statement, "Concert promoters still sometimes hire persons to count or photograph how many persons enter a venue or fill the seats inside in order to make their own estimate of ticket sales to compare with counts from the venue" is TRUE .
Explanation:
Concert promoters plan and host live music concerts, taking good care of everything from the setting of the price of tickets and the promotion of performances.
Fan customs differ depending on the city. Many fans will buy tickets within a few days or even allow walking on the same day that a concert is performed.
It can be difficult later to track payments to tickets sold for money, therefore an audience will always be undercounting.
In these cases, the venue might shorten the developer or the promoter might shorten the artist. In order to generate a separate crowd size estimate, some developers place hired people at the main gate of the event to count the public as they stream or photograph the crowd in their seats.
Final answer:
Concert promoters sometimes hire individuals to count or photograph attendees to compare with venue counts. This method of cross-verification ensures accuracy in reported attendance and reflects practices around ticket sales, demand, and pricing strategies. The correct statement is true.
Explanation:
The statement that concert promoters still sometimes hire people to count or photograph attendees to make their own estimate of ticket sales is true. This practice can serve as a method of cross-verification against the venue's counts and is used to prevent discrepancies in ticket sales, ensuring transparency and accuracy in reported attendance numbers. Considering the unique nature of each ticket at events where attendance is tracked meticulously, promoters and event organizers take these measures to reconcile ticket sales and actual attendance. This ensures the financial integrity of the event, especially considering factors like the inelastic demand for tickets for bands with fanatical followings, where even high ticket prices do not deter fans from attending their concerts. However, promoters and bands may sometimes set ticket prices below the maximum possible to maintain goodwill among fans, encouraging them to spend more on merchandise and other ancillary items.
How much could the Simpsons receive on a home equity line of credit on their home with a market value of $225,000 and their equity of $60,000 with having an outstanding mortgage of $125,000 (consider 80% LTV) ?
Answer:
$55,000
Explanation:
The Simpsons could potentially receive up to $55,000 from a home equity line of credit, calculated by taking 80% of the home's value ($180,000) and subtracting the outstanding mortgage amount ($125,000).
Explanation:The Simpsons want to calculate how much they could receive from a home equity line of credit (HELOC) on their home valued at $225,000 with an equity of $60,000 and an outstanding mortgage of $125,000, considering an 80% loan-to-value (LTV) ratio.
First, we calculate the maximum loan amount based on the home's market value:
80% of $225,000 (market value) = 0.80 × $225,000 = $180,000.
Then, we subtract the amount owed on the mortgage to determine the potential credit line:
$180,000 (80% LTV) - $125,000 (outstanding mortgage) = $55,000.
Therefore, the Simpsons could potentially receive up to $55,000 from a HELOC.
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Question 27
What is the name given to unemployment that occurs because people do not have the required job skills?
seasonal
frictional
cyclical
structural
Question 28
Which of the following is a major export of the United States?
agricultural products
scientific instruments
ceramic figurines
recreational equipment
Question 29
Which of the following is a characteristic of a developed country?
low life expectancy
low literacy rates
low industrial output
low unemployment
Question 30
Which of the following organizations focuses on getting rid of poverty?
World Bank
United Nations Development Fund
North American Free Trade Agreement
United Way Development Agency
Question 31
Which of the following is NOT a function of a 21st century bank?
pay interest
lend money
accept tax payments
issue credit cards
Question 32
Which of the following is NOT a characteristic of a horizontal merger?
help lower costs
help improve products
two companies that produce the same product
government controlled
Question 33
An industry that has four large firms that provide ______ of the supply of the product is called an oligopoly.
75%
65%
55%
45%
Question 34
The law of __________ is defined as the willingness of producers to produce or supply more of a good as the price of the good increases.
demand
increasing costs
supply
increasing prices
Question 35
Which of the following is described by this statement?
As the prices of some goods rise, consumers cut back on the amount of items that they normally purchase and demand for these goods decreases.
substitution effect
income effect
increment effect
demand effect
Answer:
Seasonal
Explanation:
Unemployment basically means that a person is having skills but not in the required field due to which he/she is not employed that is not working.
Seasonal unemployment is a type of unemployment that occurs because people do not have the required skills.
For example a labour under construction work is employed only when he gets the work of construction and is good at that work but times when there is no construction work in process he is unemployed.
Another best example is that of an Agricultural worker or a Farmer who is employed in specific seasons only like those who are into more of work in summers rather than winters keeping in mind the types of seasonal vegetables or fruits the famers are dealing with.
Which of the following is notone of the assumptions of the basic EOQ model?
A. Annual demand requirements are known and constant.
B. Lead time does not vary.
C. Each order is received in a single delivery.
D.Quantity discounts are available.
E. All of the above are necessary assumptions.
Answer:
D. Quantity discounts are available.
Explanation:
The computation of the economic order quantity is shown below:
= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
The total cost is computed below:
= Purchase cost + ordering cost + carrying cost
These three components are required to compute the total cost and for calculating the economic order quantity, the ordering cost and the carrying cost is required.
The number of orders would be equal to
= Annual demand ÷ economic order quantity
The average inventory would equal to
= Economic order quantity ÷ 2
The total cost of ordering cost and carrying cost equals to
Ordering cost = Number of orders × ordering cost per order
Carrying cost = average inventory × carrying cost per unit
No quantity discounts are available.
Final answer:
Option D, 'Quantity discounts are available,' is not an assumption of the basic EOQ model; the model's basic assumptions include a constant demand, non-varying lead time, and single delivery for each order.
Explanation:
The question relates to the assumptions of the Economic Order Quantity (EOQ) model, which aids in determining the ideal order quantity that minimizes costs associated with inventory management. When examining the listed options, it's clear that option D, 'Quantity discounts are available,' is not a basic assumption of the EOQ model.
The EOQ model assumes that the cost per unit of product is constant and doesn't account for possible discounts that might be applied with different order sizes. The assumptions of a constant demand, non-varying lead time, and receiving orders in a single delivery are all parts of the basic EOQ model. However, the availability of quantity discounts is not a necessary assumption for this model.
Which of the following auditing procedures will provide evidence to support management’s assertions regarding the allocation and valuation of inventories?
A) Vouching inventories to receiving documents.
B) Determining the replacement cost of inventories.
C) Vouching inventory counts to accounting records.
D) Tracing items reported in the accounting records to inventory counts.
Answer: Option C
Explanation: In simple words, vouching refers to the process in which an auditor confirms that something is accurate and true as described earlier.
While performing auditing, the auditor performs the vouching function by physically counting the inventory and compare the count results with the statements that are presented by the firm to make sure that the documents are accurate.
Hence from the above we can conclude that the correct option is C.
Andrew paid $30 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Andrew's friend Nick learns that Andrew bought a potato cannon, he asks Andrew if he will sell it for $60, and Andrew agrees, since he would have sold it for $45. Nick is thrilled, since he would have paid Andrew up to $80 for the cannon. Andrew is also delighted. What is the total surplus generated from Andrew’s sale to Nick?
Answer:
The total surplus from Andrew's sale to Nick is $35.
Explanation:
The total surplus is the sum of producer surplus and consumer surplus.
The consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the price he/she actually has to pay.
While producer surplus is the difference between the minimum price a producer is willing to accept for a product and the price he/she actually gets.
Consumer surplus for Nick
= $80 - $60
= $20
Producer surplus for Andrew
= $60 - $45
= $15
Total surplus from generated from Andrew's sale to Nick
= $20 + $15
= $35
The WACC for a firm is 19.75 percent. You know that the firm is financed with $75 million of equity and $25 million of debt. The cost of debt capital is 7 percent. What is the cost of equity for the firm?
a. 19.75%
b. 24.00%
c. 32.50%
d. 58.00%
Answer:
b. 24.00%
Explanation:
The formula to compute WACC is shown below:
WACC = Weightage of debt × cost of debt + (Weightage of common stock) × (cost of common stock)
19.75% = (0.25 × 7%) + (0.75 × cost of equity)
19.75% = 1.75% + (0.75 × cost of equity)
18% = (0.75 × cost of equity)
So, the cost of equity would be = 24%
Weighted of debt = ($25 million ÷ $100 million) = 0.25
And, the weighted of common stock = (Common stock ÷ total firm)
= $75 million ÷ $100 million
= 0.75
Because eric is a price taker, this last condition can also be written as
Answer:
The question is incomplete, I need more elements to answer.
Explanation: