Proponents of globalization support developing countries by providing entrepreneurs access to foreign investment capital, enabling the rapid diffusion of new ideas and innovations, and creating more jobs for people in developing countries. would argue that it helps support economic growth. Here option D is the correct answer.
Proponents of globalization argue that it could make the world a better place and solve deep-seated problems such as unemployment and poverty. Marginalized people have the opportunity to exhibit on the global market.
Globalization has increased the awareness of consumers around the world to various investment opportunities, economic trends, and new products. Socially speaking, globalization provides better connections for people around the world. Culturally, it facilitates an increased exchange of values and ideas.
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lucky started a new business last year. since it was the first year of operation, the business purchased $10,000 in machinery and used the straight-line method for depreciation. business is booming, so lucky purchased $15,000 in equipment during the current year to help meet production demands. which of the following statements is true regarding the depreciation choices available to lucky?
The new machinery can be depreciated under the same method or a different method than the previously purchased machinery.
In accountancy, depreciation is a term that refers to two aspects of the identical concept: first, the real decrease of truthful price of an asset, such as the lower in price of factory gadget each year as it's miles used and wear, and 2nd, the allocation in accounting statements of the unique cost of the belongings to durations wherein the property are used (depreciation with the matching precept). Depreciation is consequently the lower inside the fee of property and the technique used to reallocate, or "write down" the cost of a tangible asset (which includes equipment) over its beneficial existence span.
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In an interview, you are asked to compare the following statements regarding different authentication concepts and identify the correct statement. Which of the following statements is correct?
A person's vein can be used to uniquely authenticate an individual.
During the interview, you will be asked to compare the following statements about different concepts of authentication and identify the correct statement. This is because a person's vein can be used to uniquely authenticate that a statement is true.
Authentication is the process of determining whether someone or something is actually who they say they are. Authentication technologies provide system access control by verifying that a user's credentials match those of an authorized user's database or data authentication server.
Certification ensures secure systems, secure processes, and the security of company information. A palm vein scan is a recently developed form of biometric authentication. A palm vein scanner uses infrared illumination to reveal the unique vein pattern of a person's palm and uses the scanned data for proper identification.
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true or false: one indicator of an effective team is the ability to change and adapt to different situations.
The given statement is true because one indicator of an effective team is the ability to change and adapt to different situations.
People that are rigid or inflexible struggle to adapt to novel circumstances. Employees with these qualities may come across as uninterested or uncommitted. They might be reluctant to take risks, worry that they won't succeed, push back against adjustments that might make their working lives better, and exhibit a refusal to grow from their failures. They frequently struggle to hear and take feedback into account.
Even in leaders, a lack of adaptation can be disastrous. Leaders must be able to analyze their team's processes and recognize any modifications that may be required for success in the future.
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in this decision point activity, you explored how our differences lead us to be better suited for certain tasks and how those differences, if used to our advantage, can cause us all to be better off. now, you will see how these same ideas can be applied not just to individuals, but also to economies as a whole. the supply of labor in china is much higher than the supply of labor in the u.s. which has resulted in much cheaper wages for the average chinese worker compared to the average u.s. worker. additionally, the u.s. labor force tends to be trained for higher skilled, more specialized tasks. using this information and what you leaned in this decision point, complete the following statement. given that china and the united states are large international trading partners, the manufacturing industry in china is likely the manufacturing industry in the united states since chinese companies have a opportunity cost and a advantage in manufacturing compared to american companies.
Complete statement Given that China and the United States are large international trading partners.
The manufacturing industry in China is likely larger than the manufacturing industry in the United States since Chinese companies have a lower opportunity cost and a comparative advantage in manufacturing compared to American companies.
China having a labor-intensive economy has a larger manufacturing industry overall than any other country in the world. So naturally, its opportunity cost is low in this aspect which gives them the comparative advantage in producing more. China's population and large labor force give them an edge over others in the united states since Chinese companies have an opportunity cost.
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If a person agrees that resources should be paid based upon the value of their creation, then income payments based on marginal revenue product provide a fair and distribution of society's income.
equitable, equitible, or equal
If a person agrees that resources should be paid based upon the value of their creation, then income payments based on marginal revenue product provide a fair and distribution of society's income.
equitable, equitible, or equal
Sales is the whole quantity of profits generated through the sale of goods and services related to the primary operations of the enterprise. commercial revenue can also be called sales or as turnover. a few businesses acquire sales from hobby, royalties, or other fees.
Revenue definition says that it's miles the overall sum of money obtained from wearing out the enterprise operations inclusive of income.
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read the argument below and determine the underlying principle that was used to come to the conclusion presented: individuals who burn themselves by inappropriately using fireworks should not be allowed to receive free healthcare. that is an example of a self-inflicted injury. if an individual’s actions have caused the injury to themselves, they should have to make a financial contribution towards their treatment. which other argument uses the same underlying principle as the argument above?
If an individual’s actions have caused injury to themselves, they should have to make a financial contribution towards their treatment. Hence, option B is appropriate.
What is the Financial Contribution?
Contribution of money The word "financial contribution" refers to I the direct transfer of money, such as grants, loans, as well as equity infusions; (ii) the prospective direct transfer of money or liabilities, including such loan guarantees; and (iii) the aforementioned or failure to collect money owed that would otherwise be due.
A monetary payment of any value made from a board member's officeholder account or personal finances is referred to as a "financial contribution."
Hence, option B is correct.
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if the economy is in equilibrium at y1 in panel (a) and the government increases spending, the result will likely be:________.
If the economy is in equilibrium at Y1 in panel (a) and the government increases spending, the result will likely be inflation.
Hence, option C is the correct answer.
One argument for this is that a rise in government spending might raise production costs. This would increase inflation as a result. The rise in inflation may lower the real interest rate as long as the Federal Reserve does not temper it with tighter monetary policy.
At equilibrium, total income and total expenditures are equal, with total expenditures being the sum of all four economic sectors or the total expenditures of the economy. Real GDP is at its potential output, the actual unemployment rate is equal to the natural rate of unemployment (roughly 6%), and the actual price level is equal to the anticipated price level if an economy is said to be in long-run equilibrium.
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NOTE: The given question is incomplete on the portal. Here is the complete question.
QUESTION: If the economy is in equilibrium at Y1 in panel (a) and the government increases spending, the result will likely be:
a) an increase in unemployment.
b) a decrease in interest rates.
c) inflation.
d) deflation.
what would you use to show new employees the process of signing up for health benefits? a bar chart an organizational chart a flowchart
An organizational chart can be used to show new employees the process of signing up for health benefits.
What is Organizational Chart?An organizational chart is a visual representation of a company's internal structure that shows the relationships, functions, and responsibilities of each individual within the organization. It is one method of imagining a bureaucracy.
The most popular use of an organizational chart is to display the structure of a company, a government, or another type of organization. Org charts can be constructed in a variety of ways and are useful for a variety of purposes. They could serve as a resource for planning, a management tool, or a personnel directory.
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this type of financial institution does not take deposits, but gathers money from charging premiums for coverage. this is a (n) .
Insurance Company is a type of financial institution does not take deposits, but gathers money from charging premiums for coverage.
What does Insurance Company mean?
An insurance company is a company that provides various types of insurance to both individuals and businesses. They protect policyholders financially against a variety of risks, such as death, disability, illness, and property damage. Insurance companies assess risk and set premiums for insurance policies based on factors such as policy type, insured age, health, and lifestyle.
What does premiums mean?
A "premium" is the amount of money paid by the buyer to the seller for a financial product or service. Insurance, investments, and other financial products are commonly associated with premiums. In the case of bond premiums, they can also refer to the cost of borrowing money.
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monopolistic competitor wishing to maximize profit will select a quantity where marginal cost equals demand. marginal cost equals average cost. marginal revenue equals marginal cost. marginal revenue equals average cost. if a firm is producing a quantity where marginal revenue exceeds marginal costs, the firm should existing levels of production in order to . expand ; increase profitability decrease ; increase total revenue expand ; decrease total costs decrease ; increase profitability if a firm is producing a quantity where marginal cost exceeds marginal revenue, the firm should existing levels of production in order to . decrease ; increase total revenue decrease ; increase profitability expand ; increase profitability expand ; decrease total costs
The correct option s for the given questions are:
(c). marginal revenue equals marginal cost(d). Expand; increase profitability(d). Decrease; increase profitabilityWhat is Monopolistic Competition?Monopolistic competition is a type of market structure in which several businesses sell unique items to consumers. Businesses in this market structure have the potential to generate money in the near term. On the other hand, they experience no economic gains over the long run.
On the line between monopoly and perfect competition, monopolistic competition is an imperfect kind of competition. It possesses both traits. Due to the differentiated nature of the items and the downward sloping demand curve, it possesses the monopolistic attribute of market control over its brand. The fact that there are a lot of customers and sellers is the ideal competitive aspect.
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The correct order of questions is,
1. monopolistic competitor wishing to maximize profit will select a quantity where
(a). marginal cost equals demand.
(b). marginal cost equals average cost.
(c). marginal revenue equals marginal cost.
(d). marginal revenue equals average cost.
2. If a firm is producing a quantity where marginal revenue exceeds marginal costs, the firm should _____ existing levels of production, in order
to _____.
a) Decrease; increase total revenue
b) Expand; decrease total costs
c) Decrease; increase profitability
d) Expand; increase profitability
3. If a firm producing a quantity where marginal cost exceeds marginal revenue, the firm should _____ existing levels of production, in order
to _____.
a) Expand; decrease total costs
b) Expand; increase profitability
c) Decrease; increase total revenue
d) Decrease; increase profitability
this type of assumption/principle requires a business to disclose all information about the business that is important for a lender or investor to know in financial statements or in the financial statement notes.
Full disclosure principle requires a business to disclose all information about the business that is important for a lender or investor to know in financial statements of in the financial statement notes.
Full Disclosure Principle is one of Accounting Principles and states that a business has to includes all relevant and necessary information for the understanding of a company's financial statements in public company fillings.
Full disclosure principle ensures that the readers and users of a business' financial information will not be mislead by any lack of information. This principle also ensures stakeholders, creditors and investors to be aware of the any relevant information and are fully informed about the company when making business decisions related to the company.
In accounting, full disclosure principle is a part of GAAP or Ganerally Accepted Accounting Principles. The key components of GAAP are
Principle of regularityPrinciple of consistencyPrinciple of sincerityPrinciple of permanence of methodsPrinciple of non-compensationPrinciple of prudencePrinciple of continuityPrinciple of periodicityPrinciple of materiality or full disclosurePrinciple of good faithLearn more about Full Disclosure Principle here: https://brainly.com/question/13082087
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FILL IN THE BLANK. __________________ calls for establishing cost reduction targets for products or services that an organization is currently providing to customers.A. Target costingB. Kaizen costingC. Process reengineeringD. Activity-based costing
Kaizen calls for establishing cost reduction targets for products or services that an organization is currently providing to customers.The difference between the contemporary price and the goal cost is the “cost reduction,” which management wishes to achieve.
A crew is formed to combine things to do such as designing, purchasing, manufacturing, marketing, etc., to discover and gain the target cost.
Is Kaizen costing phase of target costing?6 The most important distinction between goal and kaizen costing is that target costing is applied during the graph stage whereas Kaizen costing is utilized for the duration of the manufacturing stage of a product's life
Market driven costing can go via 5 steps including: establish company's long-term income and income objective; enhance the combine of products; become aware of target selling charge for each product; discover profit margin for each product; and calculate allowable price of each product.
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https://brainly.com/question/9504887#SPJ4in which of the following does a company not make significant changes to either the product or its positioning and communication? question content area bottom part 1 a. straight product extension b. promotion c. communication adaptation d. product invention e. product adaptation
In straight product extension a company not make significant changes to either the product or its positioning and communication.
A product extension is when a new item in the same product category uses the name of an existing product brand. Product line extensions are a procedure used by businesses with well-known brands to change certain aspects of a product or line of products in order to appeal to a more specialised market group. Vertical and horizontal product line expansions are the two different types. Horizontal extensions involve maintaining a product's pricing and quality while altering characteristics like flavour or colour to set it apart from competitors' offerings. To generate cheaper and more expensive goods, vertical expansions involve raising and lowering the quality and price. These product line expansions frequently share a lot of similarities with the current products in a brand's portfolio, but they target particular brand consumers in this way.
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After calculating its dollar cost of forward hedging, Mullen is now considering a money market hedge on the 300,000 pound payable. In particular, Mullen can earn 5.00% over the next year by depositing pounds in a British bank today. Suppose that the spot rate for the pound today is $1.18.
In order to have 300,000 euros in one year, Mullen would only need to deposit approximately ______ pounds. In order to get that amount of pounds, assuming a spot rate for the pound of $1.18, Mullen would only need approximately _______.
Mullen does not wish to use its own cash balances for this hedge, so it will need to borrow dollars at a rate of 8.00%.
If Mullen borrows these dollars, it will need to repay approximately _______.
1st blank options:
a.) 228,571.43
b.) 257,142.86
c.) 285,715.29
d.) 200,000
blank 2 options:
a.)$269,714.29
b.)$370,857.15
c.)$337,142.86
d.)$303,428.57
Blank 3 options:
a.)$254,880.00
b.)$364,114.29
c.)$473,348.58
d.)436,937.15
In this case, Mullen Co. would want to credit score about 200,000 pounds1+5.00%=190,476.19 pounds200,000 pounds. If Mullen is to make this credit score today, it will want about 190,476.19 pounds.
What is "hedging"?You can construct a hedge by using buying any other asset or through closing out a short role on one. Purchasing an asset transfers threat to the customer in a similar way to exercising an option. Short promoting is a more direct way to implement a hedge.
How does hedging work?To hedge is to take the opposite function in a securities or investment to counteract the charge danger of an present keeping in the realm of finance. Therefore, a trade that is made with the aim of lowering the threat of destructive modifications in the price of every other asset is referred to as a hedge.
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brainly.com/question/28212917#SPJ4a customer contacts her registered representative to buy an otc stock. rather than buying the shares directly from a market maker, the broker-dealer contacts another broker-dealer and that firm buys the shares from a market maker. since this creates two levels of transaction fees, it is referred to as:
Another broker-dealer is contacted, and that company purchases the shares from a market maker. This is known as interpositioning since it results in two levels of transaction costs.
Interposition is the unlawful act of placing an extraneous third party, often another broker-dealer, between the client and the best price currently on the market with the express intent of earning additional fees at the expense of the consumer.
The act of putting a different broker-dealer between a customer and the best market is known as interposition. Interposition is not allowed unless it can be shown that the client got a better deal as a result.
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budget evaluations offer opportunities to explain differences between actual and budgeted amounts. true false
The statement "budget evaluations offer opportunities to explain differences between actual and budgeted amounts." is a true statement Option A
What are budget evaluations?Generally, Businesses need budgets that are robust and based on reality, and frequent assessment is the only way to guarantee that a company's budget will continue to satisfy its requirements.
When evaluating your budget, you should compare what you really spent to what you had originally budgeted to spend. 1 In a perfect world, you should evaluate your financial situation at the end of each month, and then use that evaluation to guide your budget planning for the next month.
Evaluations provide an opportunity to provide an explanation for discrepancies between actual and planned amounts.
The potential for adverse effects of budgeting, such as budgetary slack, is something that managers need to be aware of. The objectives that are expressed in a budget should be difficult to achieve but not impossible.
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CQ not found
suppose that as a project manager, you provide detailed plans and frequent project updates to both the team and stakeholders. what project management value does this represent? 1 point
The project management value stands for effective Communication that works.
The process of managing a team's efforts to complete a project on time and within budget is known as project management. Project documentation is typically created at the beginning of the development process and contains descriptions of this data. The three main limitations are scope, time, and budget.
In other words, the goal of project management is to plan and manage a project so that its stated goals and deliverables are met. It entails identifying and managing risks, as well as careful resource management, prudent budgeting, and clear communication among multiple teams and stakeholders.
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as a job applicant, what does sending a thank-you message after an interview do for you? check all that apply. ensures you get the job alerts your references reminds the interviewer of your visit sets you apart from other applicants suggests good manners
After an interview, you can demonstrate your politeness by writing a thank-you note. It also helps the hiring manager remember who you are and what strengths you would bring to the position.
What should be included in an interview thank-you note?
I am so grateful that you met with me today.It was a pleasure to learn more about the team and the position, and I am very excited about the opportunity to join [Company Name] and assist your team in [bring in new clients, develop world-class content, or do anything else awesome you would be doing]
After an interview, should you send a thank-you note?
Sending a thank-you email within the first 24 hours of your interview is ideal.Doing so demonstrates your dedication to the position.In addition, it keeps you front and center among the people you met as they consider other candidates.
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sales in the electric car industry are growing slowly, but profits from electric cars continue to be negative due to high production and marketing costs. the electric car industry is in which stage of the product lifecycle?
Vehicles run by electricity are becoming more and more popular. EV sales made for 5.6% of the overall vehicle market in Q2 2022 (up from 2.7% in Q2 2021).
People are switching to the electric vehicles because they provide cleaner energy and offer better performance. Government subsidies continue to support the use of electric vehicles. The future of EVs faces many difficult challenges. The customer acceptance, charging infrastructure, chip and battery shortages, dependency on rare earth resources (lithium, tin, graphite, nickel, etc.), and the potential for numerous owners are the six main areas where they can be the summed up.
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he costs of quality training and quality improvement projects would be classified as what type of quality cost?
The costs of quality training and quality improvement projects would be classified as a prevention cost.
What is a prevention cost?In a firm, a preventive costs refers to any expenditures incurred that are intended to minimize the number of defects in products and services. For example, a company could invest in training programs for the operators of its production machinery, to ensure they understand how to manufacture parts correctly.
As well, a firm may engage in statistical process control analysis to detect when a process is beginning to produce goods that are out of specification. In conclusion, the prevention cost is any company spending intended to reduce the number of errors in products or services.
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meyer's grocery signed a contract to build a store in richmond, kentucky. soon afterward, meyer's breached the contract. which of the following can sue meyer's to enforce the contract?
A) a local home improvement store that hoped to sell building materials to the construction crew
B) neighborhood residents who were looking forward to shopping at Meyer's
C) the operator of a food truck,who intended to sell lunch to the construction crew
D) None of these are correct.
In a case whereby Meyer's grocery signed a contract to build a store in richmond, kentucky. soon afterward, meyer's breached the contractoption that describe how he can can sue meyer's to enforce the contract is D) None of these are correct.
What is a contract?A contract can be descrkikbed as the legally enforceable agreement that can be established between two or more parties that which helps to create as well as and governs mutual rights and obligations between them.
It should be noted that contract can involves the transfer of services, money, or a promise to transfer any of those at a future date hoever it can be considered as a promise enforceable by law and any breech can attract penalities from thye party that is giulty, from the case above we can see that neighborhood residents who were looking forward to shopping at Meyer's can not be sue and other mentioned options.
Therefore, option D is correct.
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patrick works as a marketer at petonix, a business comprised of marketing, development, designer, and leadership teams. amir and the other teams have instructions to work from the same standards and to follow the same principles. why is it important that all teams at a user-focused organization work from the same standards and follow the same principles?
A user-centered organization is one that centers all of its innovation and operational efforts on its users, customers, and community in order to serve their needs.
The underlying tenet of user-centered design is that you are more likely to produce goods that people will appreciate if you collect data from consumers and apply your findings to product design.
Simple drawings, mockups, or wireframes are frequently used in the user-centered design process for some or all of the designs. Instead of producing the final product and then having to make expensive revisions if it doesn't match customer demands, this results in a far faster and more affordable design process.
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cheung software has decided to go public and has hired an investment firm to handle the offering. the investment firm’s role is to be a(n):
Cheung software has decided to go public and has hired an investment firm to handle the offering. the investment firm’s role is to be a(n): underwriter.
Investment is the willpower of money to purchase of an asset to achieve an increase in price over a time period. investment calls for a sacrifice of a few gift asset, which include time, money, or attempt. In finance, the purpose of investing is to generate a return from the invested asset.
Funding entails placing capital to use today so as to increase its value over time. An funding calls for putting capital to work, within the shape of time, cash, attempt, and so on., in hopes of a greater payoff within the destiny than what became at first installed.
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what is one of the difficulties that emerges when the government uses price regulation? this can sometimes compromise .
A surplus of supply results from the higher price regulation discouraging consumers from purchasing agricultural products.
What does price regulation entail?The practice of setting prices by a regulatory body, legal statute, or governmental organization is known as price regulation. Pricing can be set at a minimum and/or maximum according to this policy.
What kind of pricing regulation does the government use?A price control strategy is the setting of a lower or higher selling price cap for particular goods and services. In other words, the maximum and minimum prices for goods and services are determined by the government.
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darren notices that many people viewed specific products on his website without purchasing them. he creates a display ad to drive sales of those exact products. which option will best suit darren's marketing goal?
Darren notices that many people viewed specific products on his website without purchasing them. He creates a display ad to drive sales of those exact products. Dynamic Remarketing will best suit Darren's marketing goal.
What is Dynamic Remarketing?
You can remarket to customers who have already visited your website or downloaded a mobile app. The superior form of traditional remarketing is dynamic remarketing, which enables you to display advertisements to prior visitors that include the goods and services they looked at on your website.
You can remarket to customers who have already visited your website or downloaded a mobile app. With the help of dynamic remarketing, you can go one step further by displaying adverts to past visitors that feature the goods and services they looked at on your website. By inviting prior visitors back to your site to finish what they started, dynamic remarketing assists you in generating leads and sales by sending messaging customized to your target.
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on december 31 spearmint, incorporated, issued $450,000 of 9 percent, 3-year bonds for cash of $461,795. complete the necessary journal entry for spearmint, incorporated, by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
General Ledger Needed for Spearmint, Incorporated states that the amount of cash is $139,875 (debit), the amount of the discount on the bonds due is $10,125 (debit), and the amount of the bonds due is $150,000. (credit).
Define credit and debt with an example.
Interest is Due. $625. Create a debit (increase) for cash and a credit entry (notes or loans payable) for the loan. The cost of interest for the year must also be recorded. You would credit the monthly due account & credit the cash account when you paid the interest in December.
What distinguishes debit from credit?
A debit is a sum that is transferred from one account to another and raises assets. Credit is the sum due that the debtor is obligated to pay to the creditor.
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differential chemical produced 18,000 gallons of preon and 24,000 gallons of paron. joint costs incurred in producing the two products totaled $7,600. at the split-off point, preon has a market value of $6.00 per gallon and paron $3.00 per gallon. compute the portion of the joint costs to be allocated to preon if the value basis is used.
Preon's portion joint cost is $4,140
Peron portion joint cost = (Preon sale value /total sales value) × Joint cost
Product Production unit Sales value
Preon 14,000 6× 14,000 = 84,000
Paron 28,000 2× 28,000 = 56,000
Total sales value 140000
Preon portion joint cost = (84,000 /140,000) × 6,900=$4,140
A joint cost is an expenditure that advantages a couple of product, and for which it is not viable to split the contribution to each product. The accountant wishes to decide a regular approach for allocating joint costs to merchandise.
Producers incur many fees in the production manner. it's far the fee accountant's process to trace these prices returned to a sure product or technique for the duration of production. a few expenses cannot be traced returned to a single price object. some fees advantage multiple product or method inside the production manner.
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a store has the following sales figures: year sales (in millions of dollars) 1 10 2 5 3 8 4 15 what is its sales forecast for year 2 using the naïve method?
The sales forecast for year 2 using the naïve method is 10.
What exactly is a sales forecast?A sales forecast is an estimate of future sales revenue. A sales forecast estimates how much your company expects to sell in a given time frame.
The naive forecast simply uses last year's actual demand to calculate the forecast for this year. This method assumes that there is no trend or seasonality in the forecast for the current year. All of these are either reflected in previous year sales or do not exist. As a result, in the given question, the forecast for year 2 should be similar to the forecast for year 1.
In conclusion, it's 10.
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true or false: leadership is a narrow term that only refers to formal positions such as ceo and cfo.
leadership is a narrow term that only refers to formal positions such as ceo and cfo. The statement given in question is false.
Just what is leadership?Leading a team or an organization is "the action of doing so." Leadership is simply about taking chances and questioning the existing quo, to put it simply. Others are inspired by leaders to take on new and better challenges. Curiously, leaders pursue innovation rather than doing so out of necessity. By examining the team's accomplishments and progress, they gauge success. To limit risk and produce predictable results, management, on the other hand, entails assigning duties and motivating individuals to obey the rules. Planning, organizing, leading, and controlling are the manager's four primary responsibilities.
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inventory analysis a company reports the following: cost of goods sold $317,550 average inventory 63,510 determine (a) the inventory turnover and (
Analysis of inventory in an organization states the following: Average inventory of 63,510 units and cost of goods sold of $317,550 yield an inventory turnover of 5 units.
What does a review of the inventory mean?You can choose how many items to keep on hand to meet demand without incurring excessive storage expenses by employing inventory analysis. The items that a company eventually plans to sell to clients are represented by inventory, an asset on the balance sheet.
What is inventory turnover?Inventory turnover is the rate at which inventory stock is purchased, used up, and replaced. The inventory turnover ratio is calculated by dividing the cost of the items by the average inventory for the same time period. Good sales are normally indicated by a higher ratio, whereas poor sales are typically indicated by a lower ratio.
The inventory turnover ratio can be calculated by:
inventory turnover ratio= COGS / Average inventory
We put numbers in the formula
COGS = $317,550
Average inventory = $63,510
Inventory turnover ratio = $317,550/ $63,510
Inventory turnover ratio = 5
Most of the time, a larger ratio indicates that more sales are coming from the inventory.
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