Answer:
A company agrees to pay more to build a plant in order to be able to change the plant's inputs and/or outputs at a later date if conditions change.
Explanation:
Real option analysis
This is simply described as a form of an analysis of capital budgeting projects. It is often used by managers so as to influence the size and riskiness of a project's cash flows. And this can be done only by taking different actions or at the end of the project's life.
It uses the usual NPV capital budgeting analysis along with an analysis of opportunities as a result of manager's responses to changing circumstances that can change a project's outcome.
Examples of Real Options
1. Investment timing
2. Abandonment/shutdown
3. Flexibility
4. Growth/expansion
Flexibility Option
This type of re option simply allows operations to be changed based on how conditions change during a project's life. It is said to exists when it is useful spending money today, which therefore helps one to maintain flexibility down the line. That is, either inputs or outputs (or both) can be altered.
Ortega Industries manufactures 15,000 components per year. The manufacturing cost of the components was determined to be as follows: Direct materials $ 150,000 Direct labor 240,000 Variable manufacturing overhead 90,000 Fixed manufacturing overhead 120,000 Total $ 600,000 Assume Ortega Industries could avoid $40,000 of fixed manufacturing overhead if it purchases the component from an outside supplier. An outside supplier has offered to sell the component for $34. If Ortega purchases the component from the supplier instead of manufacturing it, the effect on income would be a:
Answer:
Decrease by $30,000
Explanation:
Cost to buy = 15,000 * $34
Cost to buy = $510,000
Note: Since Ortega is buying 15000 units at $34, the $40,000 avoidable cost on fixed manufacturing overhead is non-applicable.
Cost of making = $150,000 + $240,000 + $90,000
Cost of making = $480,000
So, if Ortega purchases the component from the supplier instead of manufacturing it, the effect on income would be decrease by $30,000 ($510,000-$480,000).
The manager of the production department in a graphics company is in conflict with the manager of the sales department over production goals, and the problem is affecting the company. A general manager learns that the conflict has been going on for some time and was never fully addressed by the previous administration. Why was this issue avoided by previous administrators, according to Liddle
Answer: b. Lack of courage
Explanation:
I am unsure of the source of this question but the above should be the correct answer.
Option A is incorrect because one can clearly see that an issue between two managers is no small issue if it is affecting the company.
Option C is also incorrect because an administration is in charge of the entire company and is capable of making these important decisions. The mere fact that the question asks why the previous administration did nothing points to the authority it had.
Option D is most likely incorrect because had there been a lot of issues, the question would have mentioned it.
This leaves option B which makes sense because regardless of the authority the administration had or the level by which the issue affected the company, if the admin had no courage, they would have done nothing.
When using supply and demand to analyze trade, one can assume that the domestic market being small relative to the world market leads to: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices an upward-sloping domestic supply curve. a horizontal world supply curve. a vertical domestic demand curve. a downward-sloping domestic demand curve.
Answer:
a horizontal world supply curve.
Explanation:
When the supply curve is horizontal, it means that supply is perfectly elastic.
Supply is perfectly elastic, if a small change in price leads to supply falling to zero.
Individuals produced their own goods. They then decided to specialise. They formed a group and offered their skills to each other but without the use of money. What is not likely to be the result for the group? A. It will enjoy a rise in its material standard of living. B. It will have a wider choice of goods and services. C. It will need to use a system of barter. D. It will save time in obtaining goods and services.
Answer:
It will save time in obtaining goods and services.
Explanation:
A restaurant food chain has over 680 restaurants. All food orders for each restaurant are required to be input into an electronic device which records all food orders by food servers and transmits the order to the kitchen for preparation. All food servers are responsible for collecting cash for all their orders and must turn in cash at the end of their shift equal to the sales value of food ordered for their I.D. number. The manager then reconciles the cash received for the day with the computerized record of food orders generated. All differences are investigated immediately by the restaurant. Corporate headquarters has established monitoring controls to determine when an individual restaurant might not be recording all its revenue and transmitting the applicable cash to the corporate headquarters. Which one of the following would be the best example of a monitoring control?
A. All food orders must be entered on the computer, and segregation of duties is maintained between the food servers and the cooks.
B. Management prepares a detailed analysis of gross margin per store and investigates any store that shows a significantly lower gross margin.
C. Cash is transmitted to corporate headquarters on a daily basis.
D. The restaurant manager reconciles the cash received with the food orders recorded on the computer.
Answer: Management prepares a detailed analysis of gross margin per store and investigates any store that shows a significantly lower gross margin.
Explanation:
The best example of a monitoring control will be that the management prepares a detailed analysis of gross margin per store and investigates any store that shows a significantly lower gross margin.
The gross margin is regarded as the net sales revenue after the cost of goods sold has been deducted. In a situation where there's variation between the value, then it calls for check to ascertain if any fraudulent activity took place.
What is an example of a comparative advantage of Mexico over the United States?
PLEASE HELP, NO LINKS
Answer:
For example, a trade where the U.S. exports 4,000 refrigerators to Mexico in exchange for 1,800 pairs of shoes would benefit both sides, in the sense that both countries would be able to consume more of both goods than in a world without trade.
hope it's help you plz mark as brain listAutomobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run
Answer:
• One firm to have left.
• At least one will be suffering.
Explanation:
There are four companies in this scenario which means that demand should at least be 4 times the production for all of them to sell.
With demand at only 2.5 times, at least one company will not be selling enough cars to survive in the industry so they will exist.
Another one will stay but will face tough times because a demand of 2.5 times production will not be enough to Carter or three companies.
Which of the following is an example of strategic human resource management?
1. Meeting with members of a particular department to find out why employee turnover is so high
2. All of the answers are examples of strategic human resource management.
3. Hiring replacements for employees who have left a department with high turnover as soon as possible
4. Taking as much time as necessary to hire replacements for employees who have left a department with high turnover
Answer:
1
Explanation:
Meeting with members of a particular department to find out why employee turnover is so high is an example of strategic human resource management. Thus, the correct answer is option 1.
What is strategic human resource management?Strategic human resource management (HRM) is a framework that connects people management and development practices to long-term company goals and outcomes.
It is concerned with longer-term resource concerns in the context of an organization's goals and the changing nature of work. It also influences other HR strategies, such as reward and performance, by establishing how they fit into the larger corporate plan. It contributes to ensuring that the many parts of people management collaborate to drive the behavior and climate required to create value and reach performance goals.
Therefore, option 1 is the appropriate example of strategic human resource management.
To learn more on strategic human resource management, here:
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Solve, using a proportion. If Joe travels 434 miles in 7 hours, how far will he travel in 10 hours at the same speed?
Find his speed by dividing distance by time:
Speed = 434 miles / 7 hours = 62 miles per hour
Multiply speed by time:
62 miles per hour x 10 hours = 620 miles
He will travel 620 miles.
Explanation:
620 miles is your answer
. Use the following information to calculate the dollar cost of using a money market hedge for a 200,000 pounds of payables due in 180 days. Assume the firm has no excess cash. Assume the spot rate of the pound is $2.02, the 180-day forward rate is $2.00, the British borrowing/deposit interest rate is 5%, and the U.S. borrowing/deposit rate is 4% over the 180-day period. a. $391,210. b. $396,190. c. $388,210. d. $384,761. e. None of the above.
Answer:
$400,152.38
Explanation:
Number of days taken in a year = 360
Amount payable = Pounds 200,000
Funds required today = 200,000/(1+0.05*180/360)
Funds required today = 200,000/0.525
Funds required today = 380,952.38 Pounds
Cost of Dollar = 380,952.38*$2.02
Cost of Dollar = $769,523.81
So, the amount of dollar borrowed today is $769,523.81.
Payment of loan after 180 days = $769,523.81*(1+0.04*180/360)
Payment of loan after 180 days = $769,523.81*0.52
Payment of loan after 180 days = 400152.3812
Payment of loan after 180 days = $400,152.38
An example of a normative economic argument is: Group of answer choices arguing that high degrees of income inequality is inefficient because it leads to greater expenditures on health care costs. arguing that universal health care should be adopted because overall costs are lower under that type of health care system. arguing that high degrees of income inequality is inefficient because it leads to greater governmental expenditures on welfare programs. arguing that high degrees of income inequality is immoral and unjust. all of the available answers are correct.
Answer:
arguing that universal health care should be adopted because overall costs are lower under that type of health care system
Explanation:
Normative economics is one that states what should be as opposed to what is obtainable. It is a prescriptive view of a situation involving investment projects, economic development, statements, and scenarios.
In the given instance the normative statement is: arguing that universal health care should be adopted because overall costs are lower under that type of health care system.
The view here is that the present cost in health care system is presently high.
To reduce the overall costs we should use universal health care as a way to reduce costs.
What does fixed or non current assets include?
Answer:
Equipment and properties one plans to use over a long period of time
Explanation:
Fixed asset or non - current asset are also referred to as capital assets. They include those assets of a firm which cannot be consumed or converted into cash with a year. Usually fixed assets forms part of a firms operational equipment or asset. Fixed assets include ; machineries such as powering plants and operational machines and equipments. In general, properties, plants and equipments owned by an organization or business constitutes its fixed or capital assets.
what is one major advantage of creating a division of labor?
Division of Labor's Benefits Many of the benefits of dividing labor in the workplace are self-evident. Saving time is one of them. Assigning tasks to each employee that are best suited to her abilities. Productivity is rising. For the tasks at hand, you only need one set of tools rather than many.
Hope this helps and if it does, don't be afraid to give my answer a "Thanks" and maybe a Brainliest if it's correct?
Task 1: An advertising technique that uses a new kind of technology to communicate its
message
Type your reponse here:
Task 2:
An advertising technique that is most effective at the point of sale (i.e. at the moment the
customer purchases the product)
Type your reponse here:
Task 3:
A real-world case study of a company that was legally penalized for making false advertising
claims
Type your reponse here:
Answer:
Task 1: Contextual Advertising
Task 2: Point of Sale Promotional Advertising technique
Task 3: Airborne Herbal supplement that claimed to have the keep germs and bacteria to prevent common cold and flu
Explanation:
Task 1
Contextual advertising is a form of advertising that uses automated systems that references the identity and he content of the opened page to select and serve adverts on mobile platforms, websites and browsers, including on newly developed social media applications
AdSense is an example of contextual advertising
Task 2
Promotional marketing and advertisement are desirous to customers interested in buying more for less and includes 'deals', 'favorite items', and 'new arrivals'
Task 3
False advertising includes the making of insufficiently verified claims about products that can lead to being legally penalized
The effectiveness of Airborne to keep germs off germs away was being questioned by the Center for Science in Public Interest, due to the non existence of standard scientific studies to support the claim
"Describe the trends and fluctuations in the U.S. employment-to-population ratio and the labor force participation rate from 1980 to 2017. The employment-to-population ratio _______. A. fluctuates less than the labor force participation rate B. followed an upward trend before 2000 and then followed a downward trend C. increases during a recession and decreases during an expansion D. barely responded to the 2008-2009 recession"
Answer: B. followed an upward trend before 2000 and then followed a downward trend
Explanation:
Before the year 2000, there was an upward trend in the employment to population ratio as more Americans were hired per the population. After the year 2000 however, this has faced a downward trend.
There are several reasons for this. One of them was the shift to Asian economies in the early 2000s causing a lot of American companies to outsource. Then there was the 2008 Great Recession which caused high rates of unemployment. The Corona Pandemic led to more job loss and a lot of people became discouraged and stopped looking for work.
Directions:
Select a product or service to sell.
Now determine the target market for your product or service by answering the following questions in a table:
Are your target customers male or female?
How old are they?
Where do they live? Is geography a limiting factor for any reason?
What do they do for a living?
How much money do they make? This is important if you are selling expensive or luxury items.
What other aspects of their lives matter? For example, do they need to be homeowners?
Now, identify your product or service and explain what your target market is and why.
Answer:
1. I intend to sell the luxury car brand, Lamborghini.
2. My main target customers are males.
3. The age range of my target customers is 25 - 45.
4. They live in the cities and urban areas. Geography is a limiting factor because the larger percentage of the males who will patronize the brand have occupations in the cities.
5. They are most likely in the entertainment industry. They could also be top directors in the professional fields.
6. They make $50,000 and above monthly.
7. They are interested in glamor, have high tastes, and associate with the elites in society. They would be financially strong and should have established assets like homes where such expensive cars can be parked.
Explanation:
I intend to sell a luxurious car brand to a target market consisting mostly of males. Most males in the entertainment industry love expensive car brands and are most times competing with themselves on who has the better and latest car. Their age range is 25 to 45-year-old for this group are still in their prime where flashy and expensive things still appeal to them. They would likely reside in the cities where there are good roads for these vehicles and where they can relate with others in the same class.
Identification of a target market is important for it helps the seller to remain focused and not to hit amiss. Time and energy will be thus saved.
How do expectations influence the markets for loanable funds and financial markets? What is the difference between the efficient-market hypothesis and the random walk theory?
(a)
What is the meaning of subsidiary company (2)
Answer:
A subsidiary company is a business that is owned, either partially or completely, by another company. This company is referred to as a parent company.
Explanation:
The economic order quantity (EOQ) of Dennis Co.’s only product is 100 units per month. When developing the budget for the next year, the CFO estimated that the annual demand for the product will increase by 3,000 units, but the cost per order and the carrying cost per inventory unit will remain unchanged at $30 and $15, respectively. What is the estimated annual demand for the next year?
Answer:
5,500 units
Explanation:
Use the economic order quantity (EOQ) formula to calculate the estimated annual demand
EOQ = [tex]\sqrt{\frac{2DS}{H} }[/tex]
Where
EOQ = 100 units
S = Oerdering cost = $30
H = Carrying cost per unit = $15
D = Annua Demand = ?
Placing values in the formula
100 units = [tex]\sqrt{\frac{2D (30) }{15} }[/tex]
Taking Square on both sides
[tex]100^{2}[/tex] = [tex](\sqrt{\frac{2D (30) }{15} })^{2}[/tex]
10,000 = [tex]\frac{2D (30) }{15} }[/tex]
10,000 = [tex]\frac{60D }{15} }[/tex]
10,000 = 4D
D = 10,000 / 4
D = 2,500 units
Now calculate the estimated annual demand
Estimated annual demand = Annual Demand + Expected Increase in next month = 2,500 units + 3,000 units = 5,500 units
AJ's Markets is being liquidated. The mortgage holder is owed $830,000, the other secured creditors are owed $128,000, and the unsecured creditors are owed $329,000. Administrative costs of liquidation, wage and benefit payments, and consumer claims amount to $330,000. The firm owes no taxes. The building, which is mortgaged, just netted $794,000 after sale costs. The remaining assets have yielded $467,000 in net proceeds. How much will the unsecured creditors receive per each dollar they are owed?
A. $.027
B. $.025
C. $.333
D. $1.00
E. $.533
Answer:
B. $.025
Explanation:
Calculation to determine How much will the unsecured creditors receive per each dollar they are owed
First step is to determine the Mortgage unsecured
Mortgage unsecured = $830,000 -$794,000
Mortgage unsecured= $36,000
Second step is to calculate the Funds available after expenses
Funds available after expenses = $467,000 - $330,000
Funds available after expenses = $137,000
Third step is to calculate the Funds available after secured claims
Funds available after secured claims = $137,000 - $128,000
Funds available after secured claims= $9,000
Fourth step is to calculate the Total unsecured claims
Total unsecured claims = $36,000 + $329,000 Total unsecured claims = $365,000
Now let determine Percent unsecured claims paid
Percent unsecured claims paid = $9,000 / $365,000
Percent unsecured claims paid= .025*100
Percent unsecured claims paid=2.5%
Therefore the amount of that the unsecured creditors receive per each dollar they are owed will be $.025
A manufacturing plant located by a busy highway uses and stores highly volatile explosives. The owner of the plant has imposed strict safety measures to prevent an explosion at the plant. During an unusually heavy windstorm, a large tile was blown off the roof of the plant and crashed into the windshield of a passing car, damaging it. The driver of the car brought a strict liability action against the owner of the plant to recover for the damage to the car’s windshield. Is the driver likely to prevail?
Answer: No, because the damage to the windshield did not result from the abnormally dangerous aspect of the plant’s activity.
Explanation:
Based on the information given in the question, the driver will not prevail. This is because the damage to the windshield did not result from the abnormally dangerous aspect of the plant’s activity.
In this case, the owner of the plant has imposed strict safety measures to prevent an explosion at the plant and the damage of the windshield of the car was due to heavy windstorm and not from the plants activities.
How would you ensure products being put out onto the shop floor are of good quality?
Answer:
1.Train Employees
2.Let technology help the process to shop more efficient and better at quality control
3.Upgrade Equipment
4...Keep Your Shop Floor Clean
Explanation:
hope this is helpful
There are many factors that affect an organization. Which factor influences an organization’s structure?
"Although many things can affect the choice of an appropriate structure for an organization, the following five factors are the most common: size, life cycle, strategy, environment, and technology."
Who
among
the halian composers,composed the score for la boheme
swer :
Answer:
La bohème: is an opera in four acts, composed by Giacomo Puccini between 1893 and 1895 to an Italian libretto by Luigi Illica and Giuseppe Giacosa, based on Scènes de la vie de bohème (1851) by Henri Murger.
How can you create any elegant and artistic presentation of a cake or pastry considering the product and its container?
A classmate excitedly tells you of what he believes to be a good deal. He goes on and on about signing up for a free 30-day trial of ad-free music on your smartphone. You decline the offer because you have seen deals like these before. You explain that while he might be enjoying the new Selena Gomez and Miley Cyrus tracks now, he needs to be sure to cancel before the trial is up. The music company is hoping that you will feel indebted to them for all the free music that was streamed and allow the payment to process. This is one application of the
Answer:
reciprocity principle
Explanation:
A reciprocity principle is a form of socio-psychological principle in which individuals generally tend to pay back in good, and in any form of capacity for whatever favor they receive.
Hence, in this case, the music company is hoping the the "reciprocity principle" will work on consumers that subscribe to free music as they might wish to give back to the company based on consumers feeling indebted to them for all the free music that was streamed
A broad differentiation strategy Multiple choice question. appeals to customers who don't tend to be particularly loyal to a brand and who will willingly switch to a different brand if it costs less. is only sustainable with higher-end, more expensive products. is based on offering a unique product or service that a wide range of buyers find appealing and worth paying for. is mostly based on clever advertising capabilities.
Answer:
is based on offering a unique product or service that a wide range of buyers find appealing and worth paying for
Explanation:
A broad differentiation strategy is a strategy of making ones goods or services different from that of competitors in a way that would appeal to a wide range of consumers.
An example of a company that employs broad differentiation strategy is apple. Apple products are deemed to be quite different from that of its competitors
Characteristics of broad differentiation strategy
Firms that use this pricing have higher brand loyalty Firms that use this pricing have higher sales than when compared with competitorsFirms that use this pricing are able to charge a higher price for their products when compared to their competitorsdistinguish between supermarket and hypermarket (five points each)
Answer:
A Supermarket is a large store, but a Hypermarket is much bigger than a Supermarket. Hypermarkets store a higher number of FMCG products than a Supermarket.
An agency problem can occur when A. it is difficult or expensive for the owners to verify what the agent is actually doing. B. the owners and agents have different attitudes toward risk. C. the desires and objectives of the owners and agents conflict. D. executives do not select risky strategies because they fear losing their jobs if the strategy fails. E. all of the above.
Answer:
The answer is E.
Explanation:
In a public company, the directors are the agents of the company while the shareholders are the principals(owners) of the company. Because most times, shareholders doesn't have the needed skills and experience to run businesses, they employ director/management (agent) to run their businesses. Most times there is conflict of interest, for example, the managers might prefer a risky business while the shareholders might prefer less risky, this type of scenario creates agency problem.
Agency problem (principal-agent problem) is a conflict of interest that happens when the directors (agent) don't fully represent the best interest of the shareholders (principal)
So all the options in the question represents agency problem.
Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget.
Beginning cash balance on June 1, $95,000.
Cash receipts from sales, $418,000.
Budgeted cash disbursements for purchases, $273,000.
Budgeted cash disbursements for salaries, $96,000.
Other budgeted cash expenses, $58,000.
Cash repayment of bank loan, $33,000.
Budgeted depreciation expense, $35,000.
A. $111,000.
B. $86,000.
C. $76,000.
D. $53,000.
Answer:
D. $53,000.
Explanation:
The computation of the ending cash balance is shown below:
Beginning cash balance $95,000
Add: Receipts
Cash sales $418,000
Total cash receipts (a) $513,000
Deduct: Payments:
Cash payment for purchases -$273,000
Cash payment for salaries -$96,000
Other cash expenses -$58,000
Repayment of bank loan -$33,000
Total cash payments (b) $460,000
Net receipts /( payments) (a) - (b) $53,000