A product that has a very clear advantage compared to the current products is likely to diffuse across society more slowly than a simple product.
What does "Product Life Cycle" mean?
The stages that a product goes through from the time it is launched to the market until it is discontinued are included in the product life cycle. Four stages make up a product life cycle: introduction, growth, maturity, and decline. Many items are still in a stage of extended maturity. In every product life cycle, the product, however, eventually disappears from the market. Numerous causes, including saturation, competition, a decline in demand, and even lower sales, may be to blame for this.
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quizlet what document assists provider offices with the development of compliance manuals? a. oig internal compliance plan b. oig work plan c. oig investigation plan d. oig compliance program guidance
OIG Compliance Plan Guidance document assists provider offices with the development of compliance manuals.
Workplace compliance is the act of adhering to federal, state, or local laws and regulations. All businesses, regardless of size, must comply with compliance regulations. They must also meet certain obligations regarding data security, privacy, and worker safety.
The purpose of compliance is to comply with internal policies and procedures consistent with state law. Implementing compliance procedures protects the company's reputational risk, improves the company's vision and values, and prevents and detects violations.
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redlining is the act of encouraging people to sell or rent their homes on the basis that the entry of members of a protected class into the neighborhood will reduce property values.True or False
False. Blockbusting is the practice of pressuring homeowners to sell or rent their properties on the pretext that the arrival of people from a protected class in the area will lower property values.
What is Blockbusting ?
Blockbusting is the term used to describe the practice of placing African American homeowners in previously all-white neighborhoods in an effort to accelerate white flight and a decline in housing prices. This strategy has historically been employed by real estate speculators to capitalize on bias-driven market instability.
Speculators approached white property owners with tales of impending depreciation after purposefully adding an African American homeowner to a block. Fearful home owners frequently sold their properties to these speculators for a significant discount. In a self-fulfilling prophecy, housing prices further declined as white residents sold their homes at even lower prices as they started to leave in large numbers.
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ima rich purchased 100 shares of stockits, inc.'s $1 par value common stock for $5 per share. which statement is true regarding the effect of this transaction on stockits' financial statements?
Stockholders' equity on the balance sheet goes up, as does the financing activities section on the statement of cash flows.
The entry to record the payment of previously declared dividends has what effect on the accounting equation.The installment of both money and stock profits influences the bookkeeping condition by quickly diminishing how much held income for the organization. This necessitates adjusting accounting entries in other financial accounts to account for the dividend type.
Which financial statement provides a summary of the changes in each stockholders equity account's balance?As a snapshot in time, the balance sheet provides an overview of assets, liabilities, and shareholders' equity. The primary focus of the income statement is on a company's expenses and revenues during a specific time period.
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the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force is known as
Sale management includes the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force.
What is sales management?
Sales management involves organizing, directing, and managing personal selling activities for the sales team, such as hiring, choosing, training, inspiring, compensating, and reviewing.
A business discipline called sales management is dedicated to managing a company's sales activities and putting sales tactics into practice. It is a crucial business function because the majority of commercial enterprises are driven by net sales from the selling of goods and services and the subsequent profit.
Stage 1: Initial.
Stage 2: Motivate.
Stage 3: Execute.
Stage 4: Coach.
Stage 5: Align.
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when monopolistically competitive firms realize losses in the short run, some firms will ___ the industry, ____ market shares and prices and eliminating losses for the remaining firms
exit
increasing
When monopolistically competitive firms realize losses in the short run, some firms will exit the industry, increasing market shares and prices and eliminating losses for the remaining firms.
Monopolistically competitive is a form of imperfect competition in which a large number of producers or organisations market distinctive goods that are not exact replacements. Restaurants, shoe stores, clothing brands, and other businesses or organisations are examples of those participating in monopolistic competition.
Generally speaking, a monopolistic competitive market is one that has a relatively low entry barrier and a high number of firms (producers).
Therefore, in a monopolistic competition, firms have some influence over pricing, make their own choices, and ultimately have the freedom to enter or depart the market. As a result, these businesses incorporate aspects of both monopoly and competition.
The marginal revenue of a monopolistically competitive firm equals the marginal cost when it reaches long-term equilibrium.
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refer to scenario 13-1. suppose korie purchases the factory using $200,000 of her own money and $200,000 borrowed from a bank at an interest rate of 6 percent. what is korie's annual opportunity cost of purchasing the factory?
The Korie's annual opportunity cost of purchasing the factory is $18,000
Calculation:
The calculation of the Korie's annual opportunity cost of purchasing the factory is shown below:
Opportunity cost = interest on his money + interest paid on borrowed money
= (0.03) of ($200,000) + (0.06) of ($200,000)
= $6,000 + $12,000.
= $18,000
Hence, Korie's annual opportunity cost of purchasing the factory is $18,000
What is opportunity cost and example?“Opportunity cost” of a resource, means the value of the next-highest-valued use of that resource. for example, when you spend time and money watching a movie, you can't spend that time at home reading a book, and you can not spend the cost on books.
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which of the following is the appropriate general journal entry to record the declaration of cash dividends? a. cash dividends distributable cash b. paid-in capital cash dividends payable c. cash dividends cash dividends payable d. retained earnings cash
c) cash dividends, cash dividends payable is the appropriate general journal entry to record the declaration of cash dividends.
A cash dividend is a percentage of the company's profit that the board of directors has authorized to be distributed as dividends to the company's shareholders in exchange for their investments. The dividend payment obligation is then satisfied by paying cash or by bank transfer.
The company's net profits from the financial year are used to pay the cash dividend. A firm is not required to issue dividends; alternatively, the money may be reinvested in other corporate growth initiatives.
Therefore the correct option is c.
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Incoterms are the terms agreed upon by nation states that allow for the incorporation of companies as recognized globally. t/f
It is false that incoterms are the terms agreed upon by nation states that allow for the incorporation of companies as recognized globally.
The International Chamber of Commerce (ICC) published a set of pre-defined commercial terminology known as the Incoterms or International Commercial Terms in relation to international commercial law. Incoterms outline importers' and exporters' responsibilities for organizing shipments and transferring obligation at key points in the transaction. They are frequently used in international business transactions or procurement procedures, and trade councils, courts, and international lawyers support their use.
The Incoterms regulations, which consist of a set of three-letter trade phrases connected to customary contractual sales practices, are largely designed to make it apparent what is involved in the worldwide or international transportation and delivery of goods, as well as the associated costs and hazards. Sales contracts are informed by Incoterms, which specify the obligations, expenses, and risks associated with the delivery.
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the demand for labor is: group of answer choices derived from the demand of a product. unrelated to the demand for a product. proportional to the market supply curve. always inelastic.
When utilized to predict the potential market for goods, the demand that is derived from the demand for another commodity can be a great investing approach.
What do supply and demand in economics mean?In economics, demand refers to consumers' willingness and ability to buy a specific quantity of an item or service at a specific price. The availability of a specific quantity of an item or service at a given price is referred to as supply.
Which of the following variables will produce a rightward change in the labor demand curve?When there are more workers, the supply curve will shift to the right. The number of workers may rise as a result of immigration, population growth, and other factors.
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The demand for labor is derived from the demand of a product.
What do supply and demand in economics mean?In economics, demand refers to consumers' willingness and ability to buy a specific quantity of an item or service at a specific price. The availability of a specific quantity of an item or service at a given price is referred to as supply.
Which of the following variables will produce a rightward change in the labor demand curve?When there are more workers, the supply curve will shift to the right. The number of workers may rise as a result of immigration, population growth, and other factors. The curve representing labor demand will move to the right as human capital rises. More workers are available to work at the present wage rates as human capital increases. Because a rise in labor supply will result in lower pay, the demand for laborers will rise.
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a furniture company wants to start using campaign manager 360 to start advertising across mobile platforms, focusing primarily on smartphones. which scenario represents a consideration to bear in mind for advertising on a smartphone?
Campaign manager 360 to start advertising across mobile platforms, focusing primarily on smartphones. Their mobile website is linked to a mobile-optimized advertisement for a sectional couch.
A lengthy video advertisement leading viewers to their mobile design company is an innovative idea for coffee tables. It needs a reliable Wi-Fi and broadband connection to create a dynamic animation for throw pillows. Extra huge, dynamic, and with extremely exact flying requirements, the creative for all 8 by 10 carpets.
For marketers and agencies, there is a web-based ad management solution called Campaign Manager 360. You may manage your digital marketing across websites and mobile devices with its aid. The tools for ad serving, targeting, verification, and reporting are extensive.
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in the north american industry classification system (naics) classification system, the broadest classification would be:
The broadest classification in the North American Industry Classification System (NAICS) would be: a two-digit industry.
For the purpose of gathering, evaluating, and publishing statistical data pertaining to the American corporate economy, Federal statistics agencies classify commercial establishments according to the North American Industry Classification System (NAICS). NAICS codes can be used to look up market and industry statistics, competitor data, financial information, and more. The Standard Industrial Classification (SIC) system was replaced with NAICS codes in 1997 (for more information, see "What is a SIC code?"). The North American Industry Classification System, or NAICS, is used to classify firms in North America using a six-digit number depending on the major sort of work they do. The valuation will be incorrect if your client enters the incorrect NAICS industry code or Revenue/EBITDA data.
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financial institutions that hold fixed-rate mortgages in their asset portfolios are exposed to risk, because they commonly use funds obtained from short-term customer deposits to make long-term mortgage loans. group of answer choices exchange rate prepayment reinvestment rate interest rate exchange rate
Financial institutions that hold fixed-rate mortgages in their asset portfolios are exposed to interest rate risk, because they commonly use funds obtained from short-term customer deposits to make long-term mortgage loans.
The amount of interest due per period as a percentage of the amount lent, deposited, or borrowed is referred to as the interest rate (called the principal sum). The total interest on a lent or borrowed amount is determined by the principal amount, the interest rate, the compounding frequency, and the length of time it is lent, deposited, or borrowed.
The annual interest rate is the rate over a one-year period. Other interest rates are applicable over different time periods, such as a month or a day, but they are typically annualized.
The interest rate is defined as "an index of the preference... for a dollar of present [income] over a dollar of future [income]."
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Full question:Financial institutions that hold fixed-rate mortgages in their asset portfolios are exposed to ____ risk, because they commonly use funds obtained from short-term customer deposits to make long-term mortgage loans.
a. interest rate
b. exchange rate
c. reinvestment rate
d. prepayment
e. exchange rate
after successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of schenkel enterprises. unfortunately, you will be the only individual voting for you. if the company has 525,000 shares outstanding and the stock currently sells for $38, how much will it cost you to buy a seat if the company uses straight voting? assume that the company uses cumulative voting and there are four seats in the current election; how much will it cost you to buy a seat now?
A Board of Directors is a group of people who jointly supervise the activities of an organization, which can be either a for-profit business, a nonprofit organization, or a government agency.
What does Government Agency mean?
A government agency is a government department or organization established to carry out specific public administration functions. Government agencies are responsible for enforcing laws and regulations, providing services, and safeguarding the public interest. The Environmental Protection Agency (EPA), the Federal Bureau of Investigation (FBI), and the Internal Revenue Service are examples of government agencies (IRS).
If the company uses straight voting, you will need to own one-half of the shares, plus one share, inorder to guarantee enough votes to win the election. So, the number of shares is :
$ 525,000 / 2 = $262,500
So, one share= $265.500 / 2 = $131,250
$131,250 is the cost to buy a seat now.
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we have many options to decrease our energy use. some steps require some investment of money but have a quick pay-back time. what is the first thing a homeowner should do if he or she wants to make some changes that will save energy? installing attic insulation, since heating and air conditioning use the most energy
You may save money, improve our energy security, and lessen the pollution caused by non-renewable energy sources by reducing energy use in your house. Reducing your electrical demands is the first step if you intend to build a small renewable energy system, such as a solar electric system or small wind turbine, to generate your own electricity because it enables you to buy a smaller and less expensive equipment.
Around 1000 kWh are consumed nationwide on average each month. Even bigger savings can be attainable if you utilise more. There are numerous strategies to lower your home's electricity usage:
Appliances and electronics: Invest in energy-saving devices and use them properly.
Lighting: Make energy-efficient product purchases, use them wisely, and increase the amount of natural light in your home.
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curanderos question 2 options: a) work primarily with young persons. b) typically train through apprenticeships. c) can legally bill insurance companies for their services. d) are sued for malpractice more often than are doctors. e) do not recognize any western categories of disease.
Curanderos b) typically train through apprenticeships.
Curanderos are shamans or native healers in Latin America and the United States. Curanderos is a Spanish word meaning the one who heals. Curanderos provide remedies for physical, emotional, mental, and spiritual illness through shamanistic and spiritistic remedies. They specialize in traditional medicine which could supplement western medicines or contrast them too.
Curanderos use natural elements such as mud, water, and herbs as remedies. They could also use Catholic elements such as Holy Water and prayers. Curanderos do not have formal medical training like doctors. They either inherit the gift of healing or gain knowledge by apprenticeship. They do not have any office for working. They work usually from home which makes it affordable to seek a curandero's help.
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a useful rule of thumb is that the higher the marginal benefit a consumer gains from a product, the lower the consumer's demand for the product will be. more price-sensitive the consumer will be. higher the buyers' reservation price will be. more the consumer will seek substitutes for the product.
The lower the consumer demand for a product, the more price-sensitive consumers become, the higher the reservation price of buyers, and the more consumers seek alternatives to a product.
Also known as a marginal benefit, there is a marginal utility for each additional unit purchased for consumption after the initial unit was purchased. The term utility is used to describe the satisfaction attributed to the units consumed by the consumer.
Marginal benefit is the maximum amount a consumer is willing to pay for an additional good or service. Consumer satisfaction tends to decline as consumption increases.
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meteor company purchased inventory on march 4, 2024, at a price of $30,000, subject to credit terms of 2/10, n/30. meteor uses the net method for recording purchases and uses a periodic inventory system. required: 1. prepare the journal entry to record the purchase. 2.
1.
Dr Purchases 30,070
Cr Accounts payable 30,070
2.
Dr Accounts payable 30,070
Cr Cash 30,070
3.
Dr Accounts payable 30,070
Dr Interest expense 930
Cr Cash 30,000
Meteor Co. Journal entry
1.
Dr Purchases 30,070
($31,000 x .97)
Cr Accounts payable 30,070
2.
Dr Accounts payable 30,070
Cr Cash 30,070
3.
Dr Accounts payable 30,070
Dr Interest expense 930
(31,000-30,070)
Cr Cash 30,000
Since the company purchased merchandise at a price of $31,000 in which it was been subject to credit terms of 3/10 that means 100%-3% credit term will give us 97% credit term ×$31,000 which enabled us to arrived at 30,070.
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according to the passage, reducing commuting time for drivers can have which of the following effects? choose 1 answer: drivers become more productive employees than they previously were. mass transit gets extended farther into suburban areas than it previously was. mass transit carries fewer passengers and receives less government funding than it previously did. drivers become more willing to live farther from their places of employment than they previously were.
Drivers are now more inclined to live further away from their workplaces than we previously were.
By employment, what do you mean?
The state of holding a paying career being employed—is most commonly referred to as employment. To hire someone is to compensate them for their labor. Employees are given jobs by employers. Employee is one of three different employment status categories. Self-employed and employed.
Which four sorts of job are there?
The following professions are the most prevalent:
A job that is full-time. The most typical employment classification is full-time work.Running sporadically. Open-ended contracts are common for people who work part-time.A contract job.Work under a contract.To know more about Employment visit:
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A corporation issued 6,400 shares of $10 par value common stock in exchange for some land with a market value of $98,000. The entry to record this exchange is:
A. Debit Land $98,000; credit Common Stock $64,000; credit Paid-In Capital in Excess of Par Value, Common Stock $34,000.
B. Debit Land $98,000; credit Common Stock $98,000.
C. Debit Land $64,000; credit Common Stock $64,000.
D. Debit Common Stock $64,000; debit Paid-In Capital in Excess of Par Value, Common Stock $34,000; credit Land $98,000.
E. Debit Common Stock $98,000; credit Land $98,000.
The entry to record the exchange of land for shares would be A. Debit Land $98,000; credit Common Stock $64,000; credit Paid-In Capital in Excess of Par Value, Common Stock $34,000.
How to record the issuance of shares?When shares are issued, the entry to record this issuance would include a credit to the common stock account of the amount that the stock was issued for. The Paid-In Capital in Excess of Par Value would be credited if the stock is issued for higher than par value.
The land account will be debited in this instance because it is an asset and assets are to be debited when they increase.
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John has an adjustable life insurance policy and he decides that he no longer needs the large
amount of coverage he has. Therefore, as John’s coverage decreases, his premiums:
Are increased
Are stopped
Remain constant
Are reduced
An adjustable life insurance policy's premiums drop over time while its cash value grows on its own. As a result, you are effectively making an invisible income that will eventually be utilized to pay your death benefit.
What exactly is adjustable-premium life insurance?Adjustable life insurance combines the advantages of term and whole life insurance, giving policyholders the freedom to alter the length of coverage, face value, premiums, and length of the premium payment period.
How does a life insurance policy with adjustable premiums work?Adjustable life insurance is a kind of permanent insurance. Adjustable life insurance, unlike a term policy, is valid for the entirety of your life as long as payments are paid. The amount of the cash value in their policies as well as the death benefit can all be changed by policyholders on a regular basis.
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Benefits are offered by employers to attract good employees. please select the best answer from the choices provided t f
Benefits are offered by employers to attract good employees False.
What function do benefits serve? What are some instances of benefits?Any advantages provided to employees in addition to their pay are considered benefits. Medical, disability, and life insurance, retirement benefits, paid time off, and fringe benefits are the most frequently offered perks. Benefits can be quite worthwhile. Monthly costs for only medical insurance can reach several hundred dollars.
Quiz about modular benefit plans: What are they?Employees can choose their desired bundle from a variety of available modules under the modular design (or benefit plans). These lessons are then organized to address typical workplace scenarios.
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a marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and so collects monthly data for 25 firms. he estimates the model: sales
When testing whether Advertising is significant at the 10% significance level, the conclusion is to reject H0; advertising is significant.
When do we reject the null hypothesis?When the p-value is less than or equal to your significance level, reject the null hypothesis. The alternative theory, which contends that the effect is widespread, is supported by your sample data. The null must be removed when the p-value is low as a mnemonic device.
Given that the p value of 0.0608 is smaller than the 10% level of significance in the result above, we may reject the null hypothesis that advertising is not important. The null hypothesis is accepted if the tabulated value in the hypothesis test is greater than the computed value. If not, it is turned down.
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A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and so collects monthly data for 25 firms. He estimates the model: Sales = β0 + β1 Advertising + ε. The following table shows a portion of the regression results. Coefficients Standard Error t-stat p-value Intercept 40.10 14.08 2.848 0.0052 Advertising 2.88 1.52 −1.895 0.0608 When testing whether Advertising is significant at the 10% significance level, the conclusion is to _______________________________. not reject H0; advertising is significant reject H0; advertising is not significant not reject H0; advertising is not significant reject H0; advertising is significant
describes how a product looks and appears to a buyer; it has an advantage of creating distinctiveness that is difficult to copy.
Design describes how a product looks and appears to a buyer; it has an advantage of creating distinctiveness that is difficult to copy.
Product distinctiveness evaluation is the capacity of consumers to perceive merchandise different from competition In a single word, exclusive. A advanced characteristic this is precise, special, or differentiating for a agency is a different competence.
Clients pick out that particular feature entirely with a specific company or logo and are drawn to that employer–or remain dependable–because of it.
Records subject and processing are the number one procedures to assess product area of expertise.
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Drawing on her account at Regional Bank, Samantha writes a check to Isabella, who deposits the check in her account at Local Bank. Once the check has cleared, which of the following will occur to the money supply?M1 will increase.
there will be no change in M1.
M1 will decrease.
M2 will increase.
The correct answer is that there will be no trade in M1.
What occurs when a bank is required to preserve extra money in reserve it has less cash for loans?The reserve ratio is the amount of reserves—or cash deposits—that a financial institution should maintain on to and not lend out. The higher the reserve requirement, the much less money that a financial institution can doubtlessly lend—but this excess money additionally staves off a banking failure and shores up its balance sheet.
What occur when the statutory reserve requirements are lowered by way of bank Negara?The selection to limit the SRR is undertaken to preserve adequate liquidity in the domestic financial system. This will continue to aid the environment friendly functioning of the home monetary markets and facilitate high quality liquidity administration by using the banking institutions.
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https://brainly.com/question/14368059#SPJ4debt securities held primarily for sale in the near term to generate income on short-term price differences are known as
Securities purchased and held primarily for short-term sales to profit from price fluctuations are referred to as trading securities.
Financial instruments known as debt securities give their owners the right to receive regular interest payments. Debt securities, in contrast to equity securities, call on the borrower to pay back the principal amount borrowed. The perceived creditworthiness of the borrower will have an impact on the interest rate for a debt security. differences.
A company that plans to sell securities in the near future for a profit that it anticipates will come from increases in the price of the securities is said to be trading securities. This category of securities includes both debt and equity securities. The most typical classification for securities investments is this one.
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what term is used to describe all public information that might be germane to a patent applicant’s claim of novelty? a. trade secret b. copyright c. intellectual property d. prior art
Option (d), the prior art is any publicly accessible information that might be pertinent to a patent applicant's assertion of originality.
What is prior art, exactly?The term "prior art" describes the sources of knowledge that can be utilized to judge the novelty and/or inventiveness of the subject matter claimed in a patent application.
A previous art search might be useful to determine whether an idea qualifies for patent protection. You can't decide whether to file for a patent on your idea without first doing a previous art search.
Early in the patent process, prior art research can help with the development of patent applications to reduce the risk of rejection, ascertain the chance that a patent will be granted, and foresee potential objections against patentability that a patent examiner may make.
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boland manufacturing prepared a 2019 budget for 120,000 units of product. actual production in 2019 was 130,000 units. to be most useful, what amounts should a performance report for this company compare? question 8 options: the actual results for 130,000 units with the original budget for 120,000 units. the actual results for 130,000 units with a new budget for 130,000 units. the actual results for 130,000 units with last year’s actual results for 134,000 units. it doesn’t matter. all of these choices are equally useful.
If boland manufacturing prepared a 2019 budget for 120,000 units of product. The amounts that a performance should report for this company compare is: D. The actual results for 130,000 units with a new budget for 130,000 units.
What is actual production and budgeted production?Actual production can be defined as the real production that a company tend to produce while on the other hand budgeted production can be defined as what a company plan to produce.
Since the company budgeted 120,000 units of product in the year 2019 in which the actual production in the same year was 130,000 units instead of 120,000 units. The performance should report should record 130,000 units which was the actual production.
Therefore the correct option is D.
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Inventory requires considerable investment for most manufacturers, wholesalers, and retailers. This problem is complicated by the fact that most goods are manufactured four to nine months before they are actually sold to consumers. Manufacturers that engage in this type of speculative production often need short-term financing to do all of the following except
Manufacturers that engage in this type of speculative production often need short-term financing to do all of the following except buy equipment.
The term "short-term finance" refers to funding requirements for a brief period, often less than a year. It is often referred to as working capital finance in firms. This kind of financing is typically required because of the inconsistent cash flow into the firm, the seasonal nature of operations, etc.
Small business owners can access the cash they need to pay unexpected bills, bridge cash flow gaps, purchase inventory, or seize business opportunities with the aid of short-term business loans.
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the risk-free rate is 5%, and the expected return on the market is 15%. what is the beta on a stock with an expected return of 17%?
The beta on a stock is 1.2
Following are the steps to for calculation of β
Er= Rf (Rf - Re)β
where Er is expected return; Rf is risk free return; Re is
expected rate of return
17% = 5% + [15% - 5%]βs;
βs = 1.2
What is expected return?
The anticipated value of a financial investment's return is known as the expected return. It is a measurement of the random variable's distribution's center, which is the return.
Investors must determine the expected return of each holding in their portfolio along with the overall weight of each holding in order to determine the expected return of the entire portfolio.
The fundamental anticipated return methodology entails dividing the weight of each asset in the portfolio by its expected return, then adding up all of those numbers.
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Fogelberg company purchased equipment for $12,000. Sales tax on the purchase was $600. Other costs incurred were freight charges of $240, repairs of $420 for damage during installation, and installation costs of $270. What is the cost of the equipment?.
The total capitalization cost of the equipment = $13110
Fogelberg Company purchased equipment for $12,000.
The sales tax on the purchase was $600.
Other costs incurred were freight charges of $240, repairs of $420 for damage during installation, and installation costs of $270.
We know that,
Capitalization cost of the equipment = Purchase cost of equipment + Sales tax on purchase + Freight charges + Installation costs.
Capitalization cost of the equipment = $12,000 + $600 + $240 + $270
Capitalization cost of the equipment = $13110
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