Y = AE is the Keynesian condition for determining equilibrium real GDP. The diagonal 45° line with the label Y = AE denotes this equilibrium state in Figure.
The intersection of the AE curve and the 45° line is all that is needed to determine the equilibrium level of GDP or real national income.
What is the connection between GDP at equilibrium and GDP at full employment?
An economy is in a recession if the real GDP at the moment is less than the output at full employment. An economy is experiencing a boom when current real GDP exceeds output at full employment. We can say that the economy is in long-run equilibrium if the output at the moment is the same as the output at full employment.
How is full employment equilibrium calculated?
When there is full employment in the economy, which means that all willing and capable individuals obtain employment at the current wage rate, this is referred to as the "full employment level of equilibrium."
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when operating cash flows are calculated using the indirect method, if accounts receivable balance increased, then the change is .
If accrued obligations increased over the period, the change is included in the operating cash flows calculated using the indirect approach.
The indirect approach modifies the operating section of the cash flow statement from the accrual method by using increases and decreases in balance sheet line items. Using the indirect technique, net income from an organization's income statement is first subtracted to determine cash flow from operating operations.
To reiterate, on the cash flow statement, an increase in receivables shows a drop in cash, and a decrease in it shows an increase in cash. In order to calculate the amount of cash created, the statement of cash flows is prepared indirectly by adjusting net income for changes in balance sheet accounts.
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which of the following factors negatively affect the growth rate of earnings? higher asset turnover ratio higher profit margin higher leverage lower tax rates higher payout ratio
Higher leverage negatively affect the growth rate of earnings
What is leverage?
In the world of finance, leverage (also known as gearing in the UK and Australia) refers to any strategy that involves borrowing money to make purchases with the expectation that future earnings will be several times greater than the cost of borrowing. This strategy's name comes from the physics concept of a lever, which increases a tiny input force into a larger output force. Successful leverage increases the relatively little amount of capital required for borrowing into substantial quantities of profit. The strategy does, however, come with a significant danger of not being able to repay a sizable debt. Typically, a lender will establish a cap on the amount of risk it is willing to accept, a cap on the amount of leverage it will allow, and would require the acquired asset to be provided as collateral security for the loan.
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in asset-based approaches to valuation, the value of a business is determined based on the value of tangible and intangible assets minus liabilities.
The statement "in asset-based approaches to valuation, the value of a business is determined based on the value of tangible and intangible assets minus liabilities" is true.
What is asset-based valuation?Аsset-bаsed vаluаtion is а form of vаluаtion in business thаt focuses on the vаlue of а compаny’s аssets or the fаir mаrket vаlue of its totаl аssets аfter deducting liаbilities. Аssets аre evаluаted, аnd the fаir mаrket vаlue is obtаined.
The аsset-bаsed аpproаch to vаluаtion focuses on а compаny's net аsset vаlue (NАV), or the fаir mаrket vаlue of its totаl аssets minus its totаl liаbilities, to determine whаt it would cost to recreаte the business
Аsset vаluаtion stаnds out in business vаluаtion methods becаuse it exаmines the totаl vаlue of the compаny’s аssets. This аssets mаy include tаngible items, like compаny cаrs аnd reаl estаte, аnd intаngible items, like intellectuаl property such аs trаdemаrks аnd copyrights.
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which of the following statements about communication in today's business organizations is most accurate? group of answer choices many companies used intranets to communicate with customers, outside vendors, and governmental agencies. smartphones and tablet computers are prevalent in the workplace but do not have the capabilities to replace laptops and personal computers. wireless access is increasingly blanketing entire office buildings, airports, hotels, restaurants, school and college campuses, cities, and other public spaces. the most common workplace use of tablet computers is blogging.
The following statements about communication in today's business organizations is most accurate:
b. Wireless access is increasingly blanketing entire office buildings, airports, hotels, restaurants, school and college campuses, cities, and other public spaces.
What is business communication?
By sharing information with both workers and those outside the firm, business communication aims to assist an organisation in achieving a key objective. It involves the creation, exchange, listening to, and comprehension of written and vocal communications amongst various groups of individuals. How employees interact and do business within a company has a significant impact on how successful the firm will be in the marketplace. Internal business communication—between coworkers—or external business communication—between businesses or consumers—takes place both ways. Using verbal or nonverbal communication techniques, this internal and outward communication can take place. Various limitations might make it difficult for the recipient to comprehend the information being communicated by the sender in these internal and external forms of communication.
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which of the following statements about communication in today's business organizations is most accurate? group of answer choices many companies used intranets to communicate with customers, outside vendors, and governmental agencies. smartphones and tablet computers are prevalent in the workplace but do not have the capabilities to replace laptops and personal computers. wireless access is increasingly blanketing entire office buildings, airports, hotels, restaurants, school and college campuses, cities, and other public spaces. the most common workplace use of tablet computers is blogging.
Which one of the following statements is true? A) The level of safety stock maintained decreases when the desired cycle. service level increases. B) The level of safety stock maintained decreases when the standard deviation of demand during lead time increases. C) In a fixed period inventory system, the value of Q is kept the same from one cycle to another. D) When demand is uncertain and no safety stock is maintained, stock outs will occur during approximately 50 percent of the cycles.
The true statement is Dependent demand is directly related to the demand of other stock-keeping units (SKUs) and can be calculated without needing to be forecasted.
What is SKU?
Retailers use SKU, short for stock keeping unit, to identify and track their merchandise. SKU is pronounced "skew." A SKU is a special code made up of letters and numbers that designates details about each item, including its maker, brand, style, color, and size.Companies develop distinctive SKUs for their products and services. For instance, a shoe retailer develops internal SKUs that include a product's specifications, including its color, size, style, price, maker, and brand. For illustration, the SKU for a pair of purple Bailey Bow Ugg boots in a size 6 might be "UGG-BB-PUR-06."To know more about Stock here
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3. Jiro has £50 000 in a savings account. He intends to leave it there for the next 3
years and has a fixed annual interest rate of 3% per year. How much will his £50 000
be worth after 3 years?
Jiro', £50 000 in the savings account will be worth £54636.35 after 3 years.
What is a savings account?Savings accounts are deposit accounts that often pay more interest than checking accounts that do. Savings accounts place a cap on the number of specific transfers and withdrawals that can be made from the account throughout each cycle of monthly statements. Savings accounts are a secure place to save cash that you might need at a moment's notice. Almost any bank or credit union allows you to start one, frequently totally online and with little to no initial deposit. These accounts consistently pay the stated rate of interest, and while some have little fees, most do not.
Given,
Principle amount P = £50000
Rate of interest = 3% = 0.03
Time period T = 3 year
Total amount = P(1 + R)^T
Total amount = 50000(1 + 0.03)^3
= £54636.35
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(scenario: payoff matrix for steve's skateboards and savannah's highflyers) payoff matrix for firms x and y. if steve were to choose his best response, he would:
A cartel is defined as a group of companies that collaborate to set output and pricing.
Does pay damage your credit?Does Early Personal Loan Repayment Affect Credit Scores? In a nutshell, the conclusion is that paying off a bank loan early may temporarily lower your credit scores. Isn't paying down debt a positive thing, you may be asking. In most cases, it is.
What does Happy Money pay off?From $5,000 to $40,000, Happy Money (formerly Payoff) provides cheap credit card consolidation loans. These loans have minimal annual percent rates (APRs) of about 6% and are intended to assist consumers in paying back their credit card obligations rapidly.
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According to the earned value management (EVM) process, in which of the follawing scenaios would the project manager and client need to reassess the assumptions of a project? More than one answer may be setected Check All That Completing a critical task according to new chent specifications would cause the properti to to over budgetAding two additional developers the project would reduce the schedule by hal resulting in an estimated 60 percent increase in salesA project manager determines that the project will not be completed on timeMarket Research has determined that the product bening worked on does not mete the need of their target market
According to the earned value management (EVM) process, completing a critical task according to new client specifications would cause the project to go over budget, the project manager and client need to reassess the assumptions of a project.
What are the benefits of EVM?TEVM offers more data than standard project tracking does. By responding to the query, "Have we reached where we want to be in the project?," it goes one step further. & When will this project be completed? It makes it easier to pinpoint our current position in the project and determine when it will be successfully completed. In order to respond to problems early on and keep the project on schedule, the value added strategy helps create greater visibility and control over the project operations. It promotes project visibility and accountability and enables clear communication of the tasks involved. Earned value management (EVM fundamental )'s tenet is that the value of a work product is equal to the quantity.
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which of the following is a budgeting approach that can be used as a complement to both traditional and activity-based budgeting systems?
Kaizen Budgeting can be used as a complement to both traditional and activity-based budgeting system.
Traditional Budgeting is a method of preparing the current year's budget using data from last year's budget as the base. The last year's budget will be adjusted based on the inflation rate, consumer demand, market situation, etc., before being use in the current year's budgeting.
Activity-Based Budgeting (ABB) is a budgeting approach that records, researches, and analyzes any cost-incurring activities. Every activities in the organization that incurs a cost is scrutinized for potential ways to create efficiencies. Budgtes will be developed based on these results. This approach does not take historical costs into consideration when creating a budget.
Kaizen Budgeting is a budgeting approach that continually improving processes and reducing costs. Kaizen Budgeting tends to yield gradual improvements over a long period of time. Kaizen Budgeting allows a company to drive down costs below their current levels on a continual basis. Kaizen focuses on finding little areas to be improved. Kaizen Budgeting adds qualilty on the final product through continuus improvement in processes and ends up reducing the average cost of production.
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Complete Question:
Which of the following is a budgeting approach that can be used as a complement to both traditional and activity-based budgeting systems?
a. Time-driven activity based budgeting (TDABB)
b. Master budgeting.
c. Kaizen budgeting.
d. Continuous-improvement budgeting.
Bookstore Data Project, Part 02
The spreadsheet contains actual sales data obtained with permission from the bookstore at UH Main. Answer the following questions. Part 01 + Part 02 = 40 pts. + 60 pts. = total = 100 pts.
In the last 52 weeks of sales, are there items that did not sell any units? If so, give an example. Be specific with the class name, style, graphic ID, style ID, and description of each item. (3 pts.)
What kinds of problems do you think would be created by having extra inventory on hand for a lengthy period of time? Identify at least 2 ideas. (3 pts.)
Choose a Class Name and identify its Style number and description. Compare its 12/21 (columns DQ to DU) sales units, average unit retail price, number of received units, the number of units on order, and the number of units at the end of the month to its respective predictions for 12/22 future sales (columns FY to GC). What would you predict for the sales units, average unit retail price, number of received units, the number of units on order, and the number of units for December of 2023? Justify your conclusions with supporting statements and an appropriate visual. (15 pts.)
Choose a Class Name and identify its Style number and description. Compare its 11/22 (columns DQ to DU) sales units, average unit retail price, number of received units, the number of units on order, and the number of units at the end of the month to its respective predictions for 12/22 future sales (columns FY to GC). What would you predict for the sales units, average unit retail price, number of received units, the number of units on order, and the number of units for January 2023 and February 2023? Justify your conclusions with supporting statements and an appropriate visual. (15 pts.)
Choose a Class Name of inventory items such that there are at least 5 varieties within the Class Name. Using the data of all varieties in this Class Name, which items are the top sellers? Summarize your findings for a manager with an appropriate visual and at least 3 statements that summarize and support your findings. (6 pts.)
Choose a Class Name of inventory items such that there are at least 5 varieties within the Class Name. Using the data of all varieties in this Class Name, which items are poor sellers? Summarize your findings for a manager with an appropriate visual and at least 3 statements that summarize and support your findings. (6 pts.)
Based on the data provided, if the budget to purchase more store inventory in the month of January 2023 was increased by $5000, for which 3 items would you recommend an increased number be purchased? Use the data to investigate and explain your recommendations. (6 pts.)
Suppose that a purchasing budget cut of 4% is necessary for the upcoming year. Based on the data, recommend 3 items that should not be ordered for next buying season. Use the data to investigate and explain your recommendations. (6 pts.)
With the help of this loss and profit (P&L) statement template, you can calculate a company's net earnings for a certain time period by compiling its income and outgoings.
Which inventory do you refer to?All the goods, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory. Example: Only the paper will be regarded as inventory if a daily vendor utilizes a vehicle to distribute newspapers to clients. The car will be considered an asset.
What is the formula for inventory?The cost of products sold must be determined in order to calculate initial inventory (COGS). Add the value for the most recently ending inventory next, then deduct the cost of new inventory.
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jeremy's company gave everyone a paid holiday on the friday before labor day so they could have a long weekend. this type of additional paid holiday is called a holiday.
This kind of extra paid excursion is known as a floating excursion.
The required details for floating holiday in given paragraph
A floating excursion is a paid time off that an worker can determine to tackle an afternoon in their choosing. It’s known as a floating excursion as it can “float” to whichever day the individual chooses. Companies typically offer those similarly to the standard paid vacations as a kind of benefit. People can use floating vacations for numerous purposes, from vacations that aren't nationally identified to non-public activities like birthdays and weddings. Floating vacations, like different benefits, are used as a manner to enhance worker delight and entice pinnacle talent. People admire floating vacations for his or her capacity to offer:
Flexibility–fifty six percentage of humans document that flexibility is the pinnacle manner their place of job ought to higher guide them
Diversity and inclusion–Floating vacations are an possibility in your corporation to permit humans from plenty of cultures and backgrounds to take day off for activities essential to them.
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How much money will the bank need to
loan a purchaser using a 10% down
payment on a $190,000 property?
A. $189,810.00
C. $188,100.00
B. $190,000.00
D. $171,000.00
T/F. Some risk responses may exhibit several of these effects, as with purchasing insurance, which both builds liquidity and transfers the risk-bearing function outside the business.
Purchasing insurance, for example, builds liquidity and transfers the risk-bearing function outside the business, is one example of a risk response that may exhibit multiple of these effects.
The requirement for liquidity decreases when financial risk rises.
The process of identifying, evaluating, and managing threats to an organization's earnings and capital is known as risk management. Financial uncertainty, legal obligations, technological issues, strategic management errors, accidents, and natural disasters are just a few of the many sources of these risks.
An effective risk management program assists an organization in taking into account the entire spectrum of threats it faces. Risk management also looks at how risks and their potential cascading effect on an organization's strategic goals are related.
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a government makes a contribution to its pension plan in the amount of 10000 during the year. the actuarially determined annual required
A government pays $10,000 per year into its pension plan as a contribution. the actuarially calculated mandatory annual contribution for the year. Dutch citizens accumulate 2% of until they reach the required age over a 50-year period.
They are allowed to make an additional $500 contribution for the tax years 2002 through 2005 and an additional $1,000 contribution for the tax years 2006 and later. demand that pension contributions be provided in accordance with the ARC with enough money to cover benefits accrued in the current year. the sums to be decided at the balance sheet date.
The comprehensive actuarial evaluation of the present value. The employer is required to make payments to the plan, and the plan has the responsibility for paying benefits.
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an insurance producer must receive which of the following from the commissioner as evidence of their authority?
Credit restricted line credit insurance, limited lines and casualty insurance. Insurance on the title.
What do you mean when you say insurance?Insurance is a tool for risk management. You get protection against unforeseen financial losses when you purchase insurance. If something unpleasant happens to you, the insurer reimburses you or someone else of your choosing.
What advantages does insurance offer?It provides you with financial assistance from the damage and losses. By enlisting the assistance of several people who are prepared to pay to accept their risks, all insurance coverages fulfill the essential purpose of avoiding damage to the insured. The fund is also used to generate capital through market investing.
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the security education training and awareness (seta) program is a control measure designed to reduce the instances of ______ security breaches by employees. external accidental intentional physica
The safety schooling education and awareness (seta) application is a manipulate degree designed to lessen the times of unintended safety breaches through employees. outside unintended intentional physical.
The required details for SETA in given paragraph
SETA is a application designed to assist corporations to mitigate the variety of safety breaches due to human error. This is performed through making humans privy to data safety regulations and being capable of observe it all through their every day sports to assist save you safety incidents. A SETA application ought to then be tested and a method ought to established. Typically it begins off evolved out with figuring out the scope or targets inside the organization. From there the target target market will then be knowledgeable and the targets could be reviewed and then revised to maximize effectiveness and efficiency. Then method can begin over to permit the humans to apprehend the brand new protocols and expectations.
A few kinds of transport strategies used to tell everybody include: One-on-one education, formal instructions or lectures, seminars, and computer-primarily based totally education.
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management effectiveness ratios measure overall company performance and show how successfully management is at running the business. true or false?
True, management effectiveness ratios measure overall company performance and show how successfully management is at running the business.
Which ratio evaluates the total return on the assets of the company?Return on Assets Totals (ROTA), One approach to gauge the size of a company is to look at its total assets. This ratio gauges how effectively general management can use all of the company's resources to produce profits.
What metrics are used to assess how well a company manages its resources?The inventory turnover ratio, asset turnover ratio, and receivables turnover ratio are efficiency ratios. These ratios gauge a company's capacity to manage its assets and how effectively it uses them to produce revenue.
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a firm has an operating cycle of 120 days, an average collection period of 40 days, and an average payment period of 30 days. the firm's average age of inventory is days.
A firm has an operating cycle of 120 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's average age of inventory is days is 80.
Average inventory age=operating cycle - average collection period
=120-40
=80 days
What is average age of inventory?
The typical number of days it takes a business to sell off its inventory is known as the average age of inventory. Analysts use this indicator to assess the effectiveness of sales. Days' sales in inventory are another name for the average age of inventory (DSI).
How can you figure out how old an organization's inventory is on average?
The cost of goods sold (COGS) for the time period is divided by the average inventory balance, and the result is multiplied by 365 days to determine the average age of the inventory. Over the course of a year, the average age of inventory is computed.
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in-text parenthetical citations do not direct the reader to the publication information on sources cited in a report.
It is true, quotations placed in parentheses do not efficiently direct the reader to the original publication of the cited source.
What are bibliographic citations?They are phrases, sentences or ideas belonging to a foreign text which can be placed in a text that has the same relation to the subject, however, reference must be made to the source from which the information was obtained.
It should be noted that in some reports bibliographic citations do not send the reader to the source from which the information was taken, this is because the citations are short and precise which can be found in parentheses.
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Effects of DeflationThe nominal interest rate is 7% on a 1-year loan for $1,000. The lender had anticipated an inflation rate of 2% for the coming year. During the year, however, the economy experienced deflation of 4%.
The real interest rate expected by the lender was 5%.
Define nominal interest rate?
It is the specified interest rate that is earned or paid by the investor or lender. Therefore, if you as a borrower receive a $100 loan at a rate of 6%, you can anticipate paying an interest fee of $6. Inflation has been accounted for by marking up the rate. The nominal interest rates for short-term loans are determined by central banks.
Lenders were anticipating a real interest rate of 5%. According to this formula, the nominal interest rate I = R + h) is roughly equal to the real interest rate plus the inflation rate.
Therefore, The periodic interest rate is multiplied by the number of periods in a year to create the nominal interest rate, often known as an annualized percentage rate or APR.
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operating income using the contribution margin format income statement is calculated as revenue - variable expenses - fixed expenses.
Running profits the use of the contribution margin layout income statement is calculated as. sales - variable expenses = contribution margin - constant expenses.
The required details about income statement is mentioned in below paragraph.
An income statement is one of the 3 important monetary statements used for reporting a organisation’s monetary overall performance over a selected accounting period. The different key statements are the stability sheet and the coins go with the drift announcement.
The income statement specializes in the sales, expenses, gains, and losses of a organisation at some stage in a selected period. Also called the earnings and loss (P&L) announcement or the announcement of sales and expense, an profits announcement affords treasured insights right into a organisation’s operations, the performance of its management, underperforming sectors, and its overall performance relative to enterprise peers.
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according to , a person is more likely to persuade his or her boss of a business proposal if it is framed in terms of potential gains.
Prospect theory states that a person is more likely to persuade his or her supervisor of a business proposal phrased in terms of possible gains.
Explain the significance of the business proposal.A mission statement and a purpose statement are both included in business presentations. The mission statement describes what you want your firm to accomplish. The objective statement explains why you wrote the business plan, for example, to get funds or to serve as a guide for business operations. A business plan outlines exactly what you intend to do with your company and how you intend to do it. This clarity of vision demonstrates to others that you have given the venture careful consideration. A business proposal explains in detail your aims, how you propose to do company, and what expenses and profit you may expect. A successful proposal demonstrates to the reader how you will mitigate these risks, such as having an attorney on retainer, obtaining various types of insurance, and regularly analyzing competitors' market positions.
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Imagine being an advisor to Hank Harris. What would you suggest should be Seller's Lab competitive strategy going forward?
Seller's lab can use either the cost leadership, cost focus, differentiation leadership, or differentiation focus strategy among the types of competitive strategies available depending on the situation of the company.
What is competitive strategy?A competitive strategy is a long-term marketing plan created by businesses to protect their position in the market and obtain a competitive edge.
There are four types of competitive strategies can be used depending on the situation and objectives of each company-
Cost leadership strategy: The purpose of this strategy is to have lower costs than similar companies, which increases profit.Cost focus: This strategy aims at reducing costs to increase profit.Differentiation leadership: This strategy aims at making the company's products unique in comparison to similar companies.Differentiation focus: This strategy focuses on adding special characteristics to products, which can influence customers' loyalty.Therefore, Seller's Lab would choose the appropriate competitive strategy from the above-mentioned types of competitive strategies for going forward.
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The first step in the human resources planning process is to
The first step in the human resources planning process is to assessment of human resources needs for an organization.
What is Human resources planning process?The process of recruitment and staffing process undertaken by the middle level management is termed as Human resources planning process. It is major activity that related to selection of job for a right person to right place.
This process is very wide and might be time taking to select a right candidate, so that the staffing manager or Human resource executive shall follow below steps:
Assessing Manpower Needs. Based on the work that needs to be done, it should be fairly easy to estimate what your manpower requirements are that would be cater.Therefore the primary function in HR planning process is assessment of the work-force that is required to be posted.
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1.) Super-Tee Co. plans to sell 12,000 T-shirts at $16 each in the coming year. Product costs include:Direct materials per shirt $5.75Direct labor per shirt 1.25Variable overhead per shirt .60Fixed overhead in total $43,000What is the company's contribution margin?a.) $9.00b.) $4.82c.) $10.25d.) $8.40
Therefore, option D is correct and the company's net operating income is $29,200. The company's contribution margin is $8.40.
What are product costs examples?Product expenses include things like allotted plant overhead, direct labor costs, and raw materials. Rent, office amortization, office equipment, & utilities are a few examples of general and administrative costs. Product costs are expenses incurred to produce a good that is meant to be sold to consumers. Direct materials (DM), direct labor (DL), or manufacturing overhead are all part of the cost of the product (MOH).
What is the importance of product cost?Setting the appropriate pricing for a particular product can assist the business in making data-driven decisions, which goes beyond simply setting a standard price. To determine a product's sales price, one must know more than just how much the corporation spends on production. The process of figuring out the expenses associated with producing a specific product is called product costing. The consumption of components and raw materials, labor costs, and overhead expenses specific to one unit are included in this overall cost.
Briefing:1a. Variable product cost per unit = 5.75 + 1.25 + 0.60 = $7.60
b. Total variable cost per unit = 5.75 + 1.25 + 0.60 + 0.80 = $8.40
c. Contribution margin per unit = Selling price - Total Variable cost per unit
= 16 - 8.40
= $7.60
d. Contribution margin ratio = (7.6/16) × 100 = 47.5
e. Total fixed expense for the year = 43000 + 19000 = 62000
2. Price per unit. Total Sales 16= $192000
Less: variable cost 8.40. (100800)
Less: cont. marg per unit (62000)
Net operating Income = $29200
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Which of the following is NOT identified by your authors as a proactive managementtechnique to reduce exposure to foreign exchange risk?
A) matching currency cash flows
B) currency swaps
C) remaining a purely domestic firm
D) parallel loans
D Parallel loans
Forward agreements proactive management technique to reduce exposure to foreign exchange risk:
When we enter into a forward contract, we secure the exchange rate for a future foreign currency payment now.
Through the use of a contract with a third party, such as a trustworthy provider of foreign payments like Clear Treasury, it enables companies to safeguard themselves against exchange rate fluctuations.
1. Forward contracts
A forward contract is a foreign exchange agreement where you lock in the exchange rate of a future foreign currency payment
It allows entities to protect themselves from exchange rate movements by entering into a contract with a third party such as a reputable international payment provider like Clear Treasury.
Strategy tips
Calculate the cost or benefit of buying forward when you purchase. The benefits should outweigh what you pay for signing the contract.
For major trading currencies, such as the US dollar or euro, the contract can be up to 10 years forward.
2. Currency futures
Futures contracts are standard legal agreements between two parties agreeing to buy or sell a given amount of currency at a later date, at a specific fixed price. You can use futures to lock in favourable prices for a transaction you need to make in the future.
Strategy tips
You can trade futures in organised exchanges; thus, they are very liquid.
You can hedge a depreciating currency by selling futures and an appreciating one by buying futures.
3. Optional currencies
Options grant businesses the right, but not the responsibility, to purchase or sell a currency at a particular exchange rate known as the strike price on or before a particular date when the option expires.
Tips for strategy
Options are versatile because they allow the holder to buy, sell, or let the option expire based on the exchange rate.
The option premium is the cost associated with having the choice to either execute the option or let it expire. Therefore, carefully consider the calculations to decide which risks are worth taking on options and which ones aren't.
Currency exchanges
Swaps are agreements between two parties to swap cash flows in one currency for a series of other currencies.3. Currency options
Options give companies the right, but not the obligation, to buy or sell the currency at a specific exchange rate, called the strike price, on or before a specific date when the option expires.
Strategy tips
Options give the holder the choice to buy or sell the currency or let the option lapse based on the exchange rate, so they are flexible.
The flexibility to exercise the option or let it lapse comes with a price referred to as the option premium. So the calculate carefully to determine which risks are worth using options and which ones aren’t.
4. Currency swaps
Swaps are contracts that involve an agreement between two parties to exchange cash flows in one currency for a series of cash flows in another currency. This exchange occurs at agreed intervals over a set period.
Strategy tips
Swaps convert liability in one currency to another, and each party pays interest for the exchanged currency at regular intervals.
Swaps often take place between corporations with international operations or between commercial banks.
5. Hedging with specialised ETFs
Investing in long- or short-term specialised currency ETFs can protect the value of your investment from currency volatility. While it functions like any other ETF, currency ETFs hold currency cash deposits or financial instruments tied to an underlying currency that mirrors its movement.
Examples of currency ETFs include the ProShares UltraShort Euro ETF or the Invesco DB US Dollar Index Bullish Fund.
6. Hedging with CFDs
In a contract for difference (CFD), you agree to exchange the difference in the price of a currency from when the position opens to when it's closed. Thus if the market moves in the predicted direction, the investor profits, but if it moves in the opposite direction, they make losses.
7. Invoicing in the local currency
One of the easiest ways to hedge against the exchange rate risk is receiving and making payments in your local currency.
This strategy does not do away with the risk. Instead, it passes it on to your customer or suppliers, an unrealistic approach in a competitive environment.
8. Netting
Netting involves offsetting exposure in one currency in the same or another currency. In this system, subsidiaries deal only with their local currency, leaving all the transaction exposure to the re-invoicing centre
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True or False: demarketing is a reaction to a surplus of production materials that results in product supply exceeding demand.
Demarketing is a reaction to a surplus of production materials that results in product supply exceeding demand. The statement is false.
What is demand in business?
Demand in economics refers to a consumer's readiness to pay a certain price for products and services as well as their desire to buy them. Demand for a good or service often declines when its price goes up. The amount needed will rise as a product's price drops, in a similar manner.
Consumers and companies are quite familiar with the idea of demand since it makes sense and happens organically during the course of almost any day. For instance, when a product's pricing is low, shoppers who are keeping an eye on it will buy more of it. When costs increase, such as with a change in season, consumers may buy less or maybe nothing at all.
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Which of the following combinations of actions will likely provide the biggest competitive benefits in helping a company achieve a differentiation-based competitive advantage over some/many of its rivals? - Delivering orders to branded footwear retailers in 2 weeks in all geographic regions, spending industry-average amounts for retailer support in all four geographic regions, offering a rebate of as much as $5 in each geographic region, offering free shipping to online buyers in all regions, and charging prices for branded footwear that are $6 per pair higher than the industry-average in the Internet segment and $2 higher than the industry-average in the Wholesale segment in all 4 regions - Building a production facility with 8-million pairs of capacity in Latin America, ceasing production in North America, using all available plant capacity to make branded footwear, using 75% superior materials in producing branded footwear, and spending abol-average amounts on search engine and brand advertising in all four geographic regions - Offering 400 models/styles to buyers in all four geographic regions, maintaining a celebrity appeal rating of 200 or higher in all four geographic regions, selling branded footwear with a 72-star S/Q rating in all four geographic regions, offering a mail-in rebate of $5 in all four geographic regions, and selling branded footwear at prices $3 above the industry-average in both the Internet and Wholesale segments in all four regions - Using 100% superior materials to produce branded footwear at all of the company's plants. 6 delivering orders to branded footwear retailers in 1 week, avoiding trying to win private-label contracts in all four geographic regions (so as to protect the company's image as a maker of premium quality footwear), and establishing production facilities with combined production capacity in Latin America and Europe-Africa of 9-million pairs (without use of overtime) - Raising worker base pay at each production facility by $1,000 each year, achieving and maintaining a celebrity appeal rating of 150 or more in each geographic region, charging prices for branded footwear in both the Internet and Wholesale segments that are the industry-low in all four regions, and offering 300 model/styles in each region for buyers to choose among
The accurate alternative is C Offering four hundred fashions/patterns to shoppers in all 4 geographic regions.
The required details for geographic regions in given paragraph
Offering four hundred fashions/patterns to shoppers in all 4 geographic regions, retaining a celeb enchantment score of two hundred or better in all 4 geographic regions, promoting branded shoes with a 72-supermegacelebrity S/Q score in all 4 geographic regions, imparting a mail-in rebate of $five in all 4 geographic regions, and promoting branded shoes at prices $three above the industry-common in each the Internet and Wholesale segments in all 4 regions.
Reason..
Customer s may be without problems attracted whilst there are exceptional sorts and fashions of the product. In addition it ought to have an appealing price, feature, quality, service, warranty, better S/Q score.
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droughts can affect which of the following? food supply where we choose to live routing of commercial transportation all of the above
Droughts can affect food supply, shortages of drinking water and poor quality drinking water.
What does Drought means?
Drought is a period of unusually dry weather that leads to a shortage of water and below-average crop yields. It is caused by a combination of low levels of precipitation, high temperatures, and other environmental factors such as wind and humidity. Drought can have significant impacts on agriculture, wildlife, and human populations.
What does Agriculture mean?
Agriculture is the science, art, and practice of cultivating the soil, producing crops, and raising livestock for human consumption and other uses. It involves the management and care of the land, crops, animals, and machinery used in farming. Agriculture is also used to refer to the collective methods of producing food, fiber, and other goods through farming and forestry.
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Which of the following is NOT an example of a coordination game with multiple equilibria? Two people decide whether to remain friends or pursue a romantic relationship with the other. Two sellers are in a market where their best option is the same regardless of what the other firm does. Potential protesters decide whether to participate in protests to try to overthrow a government A company decides in which hours to operate for the convenience of its customers and suppliers.
A company decides in which hours to operate for the convenience of its customers and suppliers is not an example of a coordination game with multiple equilibria.
What is coordination game in business?
A coordination game is one in which two players cooperate in order to achieve a common objective. As an illustration, consider two cars who are moving too quickly on a small route and must decide right away which way to swerve to prevent a collision.
Their shared objective is to keep from colliding. They must independently and simultaneously determine which direction to turn. A accident can be averted if both drivers make a right turn. The same thing happens if both drivers make a left turn to avoid a collision. However, they will collide if they veer in opposing directions. When both veer right and when both swerve left, respectively, are the two Nash equilibria.
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