Employment of medical and health services managers is expected to change by 23 percent between 2012 and 2022.
Medical and health services managers are responsible for the planning and operation of health-care facilities such as hospitals, clinics, and nursing homes. Health care managers, rather than supplying direct patient care, ensure that medical healthcare systems run smoothly so that other health-care workers can do their jobs. Medical and health services managers oversee the operation of health-care services and facilities such as hospitals, clinics, and healthcare departments. While their duties frequently overlap with those of health-care administrators, healthcare leaders are often more concerned with the logistics activities of health-care systems and supervisors than with the day-to-day job of health-care employees.
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(HELP) Which details apply to a financing contract? Check all that apply.
A. requires a credit check
B. are always less expensive than using a credit card
C. includes interest rate information
D. requires a signature for rent-to-own agreements
E. can be broken at any time
(a) during fiscal 2009, costco collected $1,562 cash for membership fees. use the financial statement effects template to record the cash collected for membership fees. (b) in 2009, costco recorded $63,503 in merchandise costs (that is, cost of goods sold). record this transaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2009. use the financial statement effects template to record these merchandise purchases. assume all of costco's purchases are on account, and recorded in accounts payable.
Assume all of costco's purchases are on account, and recorded in accounts payable for evenly over the membership year.
What is meant by purchases?
The organised procurement of products and services on behalf of the buying entity is known as purchasing.To guarantee that necessary materials are obtained quickly and affordably, purchasing actions are required.All items and services purchased for resale or consumption throughout the production process are included in purchases of goods and services, excluding capital goods whose consumption is recorded as consumption of fixed capital.The purchasing process is crucial because it provides firms with a planned method of meeting their demands. Additionally, it enables more intelligent financial planning. Since it necessitates keeping records of every business transaction, a successful purchasing procedure can aid in preventing theft, fraud, or irrational expenditure.To learn more about purchases refer to
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(a) Cash Collected for Membership Fees
Cash: +1,562
(b) Merchandise Costs
Inventory: -63,503
Cost of Goods Sold: +63,503
(c) Merchandise Purchases
Inventory: +63,503
Accounts Payable: +63,503
What is mean by accounts payable? Accounts payable is a term used to refer to money owed to a supplier, vendor or creditor for goods or services purchased on credit. Accounts payable are usually recorded in a company's balance sheet as a liability or debt, and they represent money that must be paid in the future. Accounts payable can include items such as invoices, bills, purchase orders, advances and other forms of credit.Accounts payable are usually classified as current liabilities, meaning that they must be paid within a short period of time, usually within a few months. Companies must keep track of their accounts payable to ensure that payments are made on time. Failing to make payments on time can result in late fees, penalties and interest charges.
(a) Cash Collected for Membership Fees
Debit Credit
Cash Revenue Membership Fees
$1,562 $1,562
(b) Merchandise Costs
Debit Credit
Merchandise Inventory Cost of Goods Sold
$63,503 $63,503
(c) Merchandise Purchases
Debit Credit
Accounts Payable Merchandise Inventory
$63,503 $63,503
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Financial institutions could use an on balance sheet hedging strategy to lock-in the larger spread between _____ and ______ that may be obtainable in foreign markets.
stocks; bonds
government bonds; junk bonds
government bonds, corporate bonds
deposit rates; loan rates
Financial institutions could use an on balance sheet hedging strategy to lock-in the larger spread between government bonds and corporate bonds that may be obtainable in foreign markets.
Financial institutions could use an on balance sheet hedging strategy to lock-in the larger spread between government bonds and corporate bonds that may be obtainable in foreign markets. This strategy involves purchasing government bonds in the domestic market and then simultaneously entering into an offsetting foreign exchange contract to hedge the currency risk associated with the purchase. The institution can then take advantage of the larger spread that may be available in foreign markets while avoiding the additional risk that comes with currency fluctuations. The institution can then earn a greater return on their investment while mitigating the associated risk.
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a change in the number of buyers is a determinant of market
When a change in the number of buyers is a determinant of a monopoly market will result in more buyers.
What is a monopoly market?a market arrangement in which there is just one seller and only one type of goods available. As the only vendor of the goods with no viable alternatives, the seller in a monopoly market has no rivals.In a monopoly market, an entity becomes the sole seller of commodities due to reasons such as government licensing, resource ownership, copyright, and patent protection, as well as high startup costs. These characteristics collectively prevent other sellers from entering the market. Monopolies also have access to information that other merchants do not.The single seller controls the market and sets the price due to the characteristics of a monopoly market. He likes having the ability to determine the price of his items.examples are as followsRailway BoardDefense biardElectricity boardlearn more about the monopoly market
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which viewpoint emphasized the scientific study of work methods to improve the productivity of individual workers?
Robert Winslow The Principles for Scientific Management, written by Taylor, was first published in 1911. Taylor argued that flaws in a specific project method might be scientifically corrected by employing improved management approaches.
Which management theory strives to improve employees' productivity levels?Scientific management is a management paradigm that looks at work flows to increase economic efficiency, notably labor productivity. The manufacturing sectors in the United States saw a boom in the 1880s and 1890s because to Frederick Winslow Taylor's management theory.
What part does work study play in boosting productivity?The primary goal of paid internships is to increase the output of laborers, machinery, and resources. The objective of the study is to figure out the optimum way to carry out each task and to reduce waste, so that reduced weariness leads to more productivity.
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what is the implication of an efficient securities market for the return an investor will earn over a period of time?
An efficient securities market allows investors to earn higher returns over a period of time by providing them with access to accurate and timely information about market conditions.
This means that investors can make more informed decisions about which investments to make, resulting in higher returns over time. Additionally, an efficient securities market also allows investors to take advantage of market opportunities more quickly.
This can increase their returns, as they can capitalize on short-term market moves and capitalize on market inefficiencies. In summary, an efficient securities market can result in higher returns for investors over a period of time.
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in a sale-leaseback transaction, the seller-lessee has retained the property. the gain on the sale should be recognized at the time of the sale-leaseback when the lease is classified as:
The details of the arrangement, such as the lease payments and duration, are made immediately following the asset's sale in a leaseback, also known as a sale-leaseback.
The asset's seller takes on the role of lessee in a sale-leaseback arrangement, while the buyer assumes the role of lessor.
When a company sells an asset it owns and immediately leases it back from the buyer, this is known as a sale-leaseback transaction. After that, the buyer becomes the lessor, while the seller becomes the lessee.
What is the most crucial factor to take into account when accounting for leaseback and sale transactions?
Both leaseback and sale transactions must be looked at to see if the leaseback classification or the seller-lessee repurchase option prevent accounting for the asset transfer as a sale.
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. during the antebellum period u.s. tariffs on imported cotton textiles a. increased profits for british textile producers. b. decreased the prices of cotton textiles in the u.s. c. were supported by the southern states. d. were harmful to u.s. textile producers and their employees. e. none of the above is correct
None of the above is correct. This is because the tariffs made it more expensive to import cotton textiles from Britain and other countries.
During the antebellum period, US tariffs on imported cotton textiles had a complex effect. While the tariffs did increase profits for British textile producers, they did not necessarily decrease prices of cotton textiles in the US. In fact, the tariffs passed by the US Congress in 1824, 1828, and 1832 actually resulted in higher prices of imported cotton textiles and increased profits for US textile producers. The tariffs were also supported by the northern states, not necessarily the southern states, since the northern states had a larger industrial base. Therefore, the tariffs were not necessarily harmful to US textile producers or their employees. Tariffs are taxes levied by one nation on products and services imported from another country in order to influence it, collect money, or safeguard competitive advantages.
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a company had $7,090,000 in net income for the year. its net sales were $16,100,000 for the same period. calculate its profit margin.
The net profit margin arithmetic is straightforward. Divide your net income by your sales or revenue, sometimes called the top line. According to this equation, profit margin for given question will be 44.03%.
Net income for the year= $7,090,000
Net sales for the year= $16,100,000
Profit margin for the year= Net income÷ Net sales
Profit margin for the year= $7,090,000÷ $16,100,000
Profit is defined as the financial benefit realized when the revenue generated by a business activity surpasses the expenditures, costs, and taxes associated with the activity in question. Profits are returned to company owners, who can choose to pocket the money, distribute it to dividends to shareholders or reinvest it into the company. Total revenue less total costs equals profit. Companies report net profit, operating income, and net profit for accounting purposes (the "bottom line"). Profitable businesses are appealing to investors because profits are either distributed to shareholders through dividends or reinvested into the business, increasing stock value.
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which federal law allows consumers to withhold payment for faulty or defective goods or services (within certain limitations) when purchased with a credit card?
The Fair Credit Billing Act is a federal legislation that permits consumers to withhold payment for faulty or defective products or services purchased using a credit card (FCBA). The FCBA is a 1974 consumer protection statute that is implemented by the Federal Trade Commission (FTC).
Consumers have the right under the FCBA to dispute any charges on their credit card account that they feel are inaccurate or unlawful. Charges for faulty or damaged goods or services are included. If a customer challenges a charge, the credit card company must investigate and either remedy the error or explain why the charge is correct.
It's important to note that this has certain restrictions. A customer must contact the creditor within 60 days of receiving the first bill with the inaccuracy. Furthermore, this statute applies solely to credit card bills, not debit card or cash purchases.
The FCBA only applies to credit card purchases conducted in the United States. Different rules may apply if the purchase was made in another nation.
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kansas city has more ___ restaurants per capita than any other us city.
Kansas City has more barbecue restaurants per capital than any other US city. This is due to the city's long history of barbecue culture, which dates back to the early 1900s.
What is capital ?Capital is the financial resources or assets that a business or individual owns and uses to generate income. It can include cash, investments, property, equipment, inventory, and other resources. Capital is used to fund operations, invest in new projects, and expand businesses.
Kansas City is known for its unique style of barbecue, which combines elements of both dry-rub and wet-sauce recipes. The city is also home to some of the most famous barbecue restaurants in the country, including Arthur Bryant's, Gates Bar-B-Q, and Oklahoma Joe's.
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taft corp. uses the equity method to account for its 25% investment in flame, inc. during year 3, taft received dividends of $30,000 from flame and recorded $180,000 as its equity in the earnings of flame. additional information follows: all the undistributed earnings of flame will be distributed as dividends in future periods. the dividends received from flame are eligible for the 65% dividends received deduction. there are no other temporary differences. enacted income tax rates are 30% for year 3 and thereafter. in its december 31, year 3, balance sheet, what amount should taft report for deferred income tax liability?
The current and subsequent income tax rates, if enacted, are 30 percent. The amount that taft ought to report for its deferred income tax liability on its December 31 balance sheet is $9,000
A Deferred Tax Obligation: What Is It?A listing on a company's balance sheet known as a "deferred tax liability" records taxes that are owed but will not be paid until a later date. There is a delay in the liability because the tax is due to be paid at a different time than when it was accrued.
Deferred Income Tax Liability Taft's Recorded Equity in Flame Earnings $180,000 Less Dividends Received in 20X1 ($30,000)
Temporary Difference Before Dividend Deduction $150,000 ($180,000-$30,000)
Less Dividends Received Deduction ($120,000) (80% x $150,000)
Net amount of Temporary Difference $ 30,000 ($150,000-$120,000) Times Tax Rate x 30% Deferred Income Tax Liability, Non-Current $.liability
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in which of the following market structures are entry barriers the highest? group of answer choices perfect competition. oligopoly. monopolistic competition. monopoly.
A monopoly seeks to cover challengers from entering the request as much as possible. walls to entry benefit monopolies by guarding earnings and gains.
A monopoly is a business characterized by a lack of request competition and no vacuity of backups for its products. Monopolies can determine price changes and produce walls to entry for challengers. Monopolies can frequently lead to illegal trade practices, including Charging different prices to different consumers price demarcation), setting prices significantly above the cost of product, dealing inferior products or services, etc. With these practices, monopolies may dissolve sooner or latterly.
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suppose you make an investment of $500 for seven years. at the end of seven years, you receive $750. what annual rate of return did you earn?
You earned a 50% annual rate of return on your investment over seven years.
If you make an investment of $500 and hold it for seven years, you will receive $750 at the end of this period. To calculate the annual rate of return you earned from this investment, use the following formula:
Annual Rate of Return = (Ending Value - Beginning Value) ÷ Beginning Value x 100
For this example, using the values of $500 for the Beginning Value and $750 for the Ending Value, the equation would look like this: (750 - 500) ÷ 500 x 100 = 0.50 x 100 = 50%
Therefore, you earned a 50% annual rate of return on your investment over seven years.
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why do you think comfort taxi was able to attract 16,000 taxi drivers and to adopt the gps-dispatch system within two years, whereas taiwan taxi managed to recruit only 6,700 members over seven years?
Comfort Taxi was able to attract 16,000 taxi drivers and to adopt the GPS-dispatch system within two years because the company offered incentives to drivers who joined the system, such as higher fares and a bonus system.
Comfort Taxi also provided better customer service and more reliable dispatching technology than Taiwan Taxi, which allowed it to attract more drivers. Additionally, Comfort Taxi had a larger marketing budget and was better able to promote its services to potential customers and drivers than Taiwan Taxi.
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Which would you rather have: a daily compounded rate of 0. 045%, a weekly compounded rate of 0. 305%, a monthly compounded rate of 1. 55%, a quarterly compounded rater of 4. 25%, a semiannually compounded rate of 8%, or an annually compounded rate of 18%?What is the effective annual (EAR) of a daily compounded rate of 0. 050%?
_____(round to two decimal places)
the effective annual (EAR) of a daily compounded rate of 0.050% is 0.051%, , the annually compounded rate of 18% is the highest option would be the best.
To compare different rates, it is best to convert them all to an annual effective rate (EAR), which takes into account the effects of compounding. Use the below formula :
EAR = (1 + r/n)^n - 1
where r is the rate and n is the number of times per year the rate is compounded.
When we compare the given options, the annually compounded rate of 18% is the highest.
For the second part of the question, to find the effective annual rate of a daily compounded rate of 0.050%, we can use the formula above with n = 365 (since it's compounded daily)
EAR = (1 + 0.050%/365)^365 - 1
Using a calculator, we find that the EAR is 0.051%.
so the effective annual (EAR) of a daily compounded rate of 0.050% is 0.051%.
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Joy is considering adding a rack of greeting cards to her product offerings at Crawford Books Limited. Joy would need to buy a display rack, which will cost her $400. She can buy a carton of 250 cards for $500. She is thinking of selling the cards for $4. 00 each. At that price, Joy's breakeven point would occur at _________ cards sold.
A. 400
B. 300
C. 200
D. 100
100 sold cards would be the breakeven point for Joy.
The total costJoy would have to spend $400 on a display rack and $500 on a carton of 250 greeting cards if she wanted to sell them at Crawford Books Limited, the place where she works. In order to break even, she would need to sell 100 cards at a price of $4 each. She would therefore need to sell 200 cards in order to turn a profit. Her profit would be $250 if she managed to sell all 250 cards.
If Joy wanted to sell greeting cards at Crawford Books Limited, she would have to spend an additional $400 on a display rack and $500 on a carton of 250 cards. She would need to sell 100 cards at a $4 each price point in order to break even. Therefore, 200 cards would have to be sold for her to make a profit. If she managed to sell all 250 cards, she would make a profit of $250.
Joy will eventually need to compare the potential profit to the price of the display rack and the cards, as well as the additional costs connected with adding this product line. She will be able to decide with confidence whether or not to include the rack of greeting cards in her product lineup by taking into account all of these factors.
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According to symbolic interactionism, which component of the self encourages an individual to follow social norms
Simply put, symbolic interactionists hold that the meanings we give to interactions and events help to shape our society.
What constitutes simple events?Simple occurrences are those in which a single experiment is conducted at such a time and results in a single conclusion. P(E), when E is the event, stands for the chance of simple events. The range of the probability is 0 to 1. For instance, tossing a coin is a straightforward event.
What are events, and what different kinds are there?What are the various probability event types? Complement encounters, simple events, compounded events, definite events, improbable events, dependent occasions, independent events, socially exclusive occasions, exhaustive events, etc. are some examples of the various varieties of events in probability.
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Which of the following is the act of buying an asset to generate returns from it over a period of time while also taking care of risk and volatility?
Investment is the act of buying an asset to generate returns from it over a period of time while also taking care of risk and volatility.
What is risk?Financially speaking, risk is the possibility that a result or investment won't produce the desired results or return. Risk involves the potential for losing all or a portion of the initial investment.
Risk is typically quantified by taking past actions and results into account. Standard deviation is a frequent metric used to measure risk in finance.
The standard deviation gives a measurement of how volatile asset prices are in relation to their average historical values over a specific time period.
The level of willingness and resilience to risk that each investor exhibits is determined by their individual risk profile. Investors typically anticipate bigger profits to make up for increased investment risk.
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chris and jane have rented a banquet hall to celebrate their wedding anniversary. fifty people have already accepted their invitation. the caterers will charge $5 per person for food and $2 per person for drinks. the band will cost $300 for the evening, and the hall costs $200. now chris and jane are considering inviting 10 more people. by how much will these extra guests increase the cost of their party?
There are already fifty people who have accepted their invitation. Each person's meal will cost $5 from the caterers, and drinks will cost $2. You must pay $300 to see the band.
What does "cost" refer to?
A cost is the value of money that has been used to create an item or deliver a service and is now unavailable for use in manufacturing, doing research, selling it to consumers, and accounting. The amount of money spent on the acquisition is regarded as the cost in the event of an acquisition cost.
amount paid, imposed, or equal to a given amount for anything price. the financial commitment (as in work or sacrifice) necessary to acquire something; the average cost of a college degree has climbed dramatically.
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if the value of a firm's net fixed assets equals the value of the accumulated depreciation, from an accounting perspective, the fixed assets are: group of answer choices new. fully depreciated. one-half depreciated. equal in value to the firm's current assets.
From an accounting point of view, a fixed asset is fully depreciated when the value of the net fixed asset equals the depreciation. Depreciation is a counter account to the fixed assets account and is used to reduce the value of net fixed assets.
Accumulated depreciation is a valuation account used to capture the gradual decline in value of a fixed asset as it is used in production or services over its economic life. If the value of depreciation equals the value of net fixed assets, it means that the fixed assets have been fully depreciated. This means that the full value of the asset has been written off as an expense and that there is no residual value of the asset on the balance sheet.
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assume that your roommate is very messy. suppose she gets a $50 benefit from being messy but imposes a $100 cost on you. the coase theorem would suggest that an efficient solution would be for you to
The Coase theorem would suggest that an efficient solution for you is to give your roommate $50 for cleaning the room but do not give more than $100.
What is Coase theorem?The Coase theorem in law and economics describes the economic effectiveness of a financial decision or result in the presence of externalities.According to Coase theorem theory, bargaining will result in a Pareto-efficient outcome regardless of how property is initially distributed if trading in an externality is feasible and transaction costs are sufficiently low. In reality, Coasean bargaining may be thwarted by impediments to negotiation or vague property rights. Ronald Coase, a Nobel Prize winner, is frequently credited with developing this "Coase theorem."Ronald Coase received the 1991 Nobel Memorial Prize in Economic Sciences for this 1960 study and his 1937 paper on the nature of the company (which also highlights the significance of transaction costs).To learn more about Coase theorem from the given link
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how can computation be employed to help people process data and information to gain insight and knowledge?
Computational thinking allows us to take a complex problem, understand what the problem is and develop possible solutions.
How can you use computational thinking in your everyday life?Real-world Examples, when cleaning your room, you may make a to-do list. Identifying separate activities (such as making your bed and putting up your clothing) enables you to recognize the minor steps before beginning to clean. Recognizing a pattern and establishing the succession. Computational skills are described as the ability to rapidly and accurately solve basic addition, subtraction, multiplication, and division problems using mental processes, paper and pencil, and other aids such as a calculator.
Decomposition, pattern recognition, abstraction, and algorithms are the four pillars of computational thinking, according to the BBC. Decomposition encourages pupils to divide difficult issues into smaller, easier ones.
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jane wants to auction off an item, but does not know where to go to find bidders. david offers to find bidders for her, but will charge her $10 per bidder he gets to show up. each bidder will uniformly value the item between [500,1000) . the highest bidder will win the item and pay the second-highest bidder price (vickrey auction). how many bidders should jane pay david to find?
Separate Auctions for Continuous Types. Think about a single-good auction where there are only two bidders, each with a drawn-out private value.
What kind of auction gives the bidder the opportunity to submit successively lower bids?In a reverse auction, the buyer specifies the products and services they wish to buy, and prospective vendors compete with one another to close the deal. Typically, prices in this kind of auction drop with time.
In economics, what is the auction theory?The field of applied economics known as auction theory studies the behavior of bidders in auction marketplaces and how the characteristics of these systems encourage the production of known results. For the purpose of designing actual auctions, auction theory is a useful tool.
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2. the first step in the posting procedure is writing the (a) entry date in the date column of the account. (b) journal page number in the post. ref. column of the journal. (c) account number in the post. ref. column of the account. (d) entry amount in the debit or credit column of the account.
(d) entry amount in the debit or credit column of the account.
Step 1: Enter the Date in the Date Column of the Account: The first step in the posting procedure is to enter the date of the transaction into the date column of the account. This will help keep track of when the transaction was made.
Step 2: Enter the Account Number in the Post. Ref. Column of the Account: The next step is to enter the account number in the post. ref. column of the account. This will help identify which account the transaction is being posted to.
Step 3: Write the Journal Page Number in the Post. Ref. Column of the Journal: After the account number is entered, the journal page number should be entered into the post. ref. column of the journal. This will help you quickly locate the transaction when you are ready to post it.
Step 4: Enter the Entry Amount in the Debit or Credit Column of the Account: After the journal page number is noted, the entry amount should be entered into the debit or credit column of the account. This will help ensure that the correct amount is posted to the account.
Step 5: Record the Posting in the Journal: The final step in the posting procedure is to record the transaction in the journal.
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the day-to-day living conditions of modern americans are very different from what they were in the 20th century. while doing research for an economics project, charlie discovers that more households today, as compared to households 100 years ago, have electricity, air conditioning, and a car.
Our society has experienced economic growth. Americans today live in drastically different circumstances than those of the 20th century. while conducting economics research.
What is the straightforward meaning of economic?Economics is the research of scarcity and how it affects how resources are used, how goods and services are produced, how production and welfare increase over time, and a wide range of other complicated problems that are extremely important to society.
What is an example in the economy?Farmers lower the price of a crop when corn production rises in order to sell more of their harvest. The quantity of corn required to feed the population will increase if the stock is too high.
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which system has complete public ownership of the means of production?
a. Socialism
b. communism
c. anarchism
d. fascism
The system has complete public ownership of the means of production
b. .communism
communism In a communist system, the means of production, such as factories, farmland, and natural resources, are owned and controlled by the state or the community as a whole. There is no private ownership of the means of production, and the goal is to create a classless society where wealth and resources are distributed equally. In theory, the government controls the economy and makes all major decisions regarding production and distribution, guided by the principle "from each according to their ability, to each according to their needs".a. Socialism Socialism is an economic system in which the means of production are owned and controlled by the state, but there's not necessarily a complete absence of private property. c. anarchismAnarchism is a political philosophy that advocates for the abolition of government and the establishment of a society without rulers. It generally advocates for the idea of self-government and the autonomy of individuals and communities.d. fascism: Fascism is a political ideology that prioritizes the interests of the state and the nation above the rights of individuals and groups. Fascism is characterized by authoritarian government, aggressive nationalism, and suppression of political opposition.
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what amount should be reported as depreciation expense in pirn's year-end consolidated income statement?
The amount of depreciation expense to be reported in PIRN's year-end consolidated income statement will depend on the company's depreciation.
What is expense?
Expense is the money spent to purchase goods or services. It is the cost of operating a business, or an individual's outlay of money on day-to-day living. Expenses are typically categorized as either fixed or variable and are recorded in an individual's or business's books of accounts. Fixed expenses are those that remain constant over a period of time, such as rent or insurance. Variable expenses, on the other hand, are those that fluctuate, such as utility bills or travel costs. Expenses can also be further broken down into discretionary and non-discretionary expenses.
The company's accountant would need to review the company's balance sheet and determine the total amount of depreciation expense for the year.
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For most students, the largest single cost of a college education is:
a) The wages are given up to attend school,
b) Tuition, fees, and books,
c) Room and board,
d) Transportation, parking, and entertainment.
Most students, the largest single cost of a college education is the wages given up to attend school
What is the primary expense of a college education?The average cost of attendance at a public 4-year in-state university for a student living on campus is $25,707 each year, or $102,828 over four years. Out-of-state students pay $43,421 each year, for a total of $173,684 over four years. Students at a private, nonprofit institution pay $54,501 each year, or $218,004 over four years.
In brief, the opportunity cost of attending college is the cost of tuition, any associated fees, and any lost money, experience, or enjoyment as a result of your decision to attend college.
When looking for the right college or institution, pricing is typically a major consideration. In certain situations, it may influence a student’s decision about which school to attend. Understanding the specifics of college expenses
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Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it's a great deal. Suppose that the appropriate annual interest rate is 7. 6%. What is the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $800 in annual membership dues? a. 14 years b. 13 years c. 19 years d. 23 years
the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper than paying $800 in annual membership dues is d. 23 years
To solve this problem, you need to use the concept of present value. The present value of an amount to be received in the future is the amount that would be needed today to produce that future amount, assuming a certain interest rate.
In this case, we can use the formula for present value:the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper than paying $800 in annual membership dues is d. 23 years
PV = FV / (1 + r)^n
where PV is the present value, FV is the future value (800 * number of years), r is the interest rate (0.076), and n is the number of years.
To find the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper than paying $800 in annual membership dues, we need to solve for n in the equation PV = $1,500 (cost of lifetime membership) and FV = $800n.
PV = $1,500 = $800n / (1 + 0.076)^n
Using a calculator or a spreadsheet software to solve this equation for n, we get n = 23 years.
Therefore, the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper than paying $800 in annual membership dues is d. 23 years
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