Management should focus its sales and production efforts on the product or products that will provide the maximum contribution margin. So option c. is correct.
The contribution margin represents the portion of a product's sales revenue that isn't used up by variable costs, and so contributes to covering the company's fixed costs. The concept of contribution margin is one of the fundamental keys in break-even analysis. Low contributions margin is present in labor-intensive companies with few fixed expenses, while capital-intensive, industrial companies have higher fixed costs and thus, higher contribution margins.
The best contribution margin is 100%, so the closer the contribution margin is to 100%, the better.
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the second step in the perception process is: question 2 options: observe information via the senses. organize the selected data into patterns for interpretation and response. screen the information and select what to process. identify mistakes in information. assign meaning to the data we perceive.
Screen the information and select what to process is the second step in perception process.
What is perception process?Information selection, organization, and interpretation are all parts of perception.Select stimuli that pass through our perceptual filters, are arranged into our preexisting structures and patterns, and are subsequently interpreted based on prior experiences are all included in this process.Even though how we view the world is mostly a cognitive and psychological process, it affects how we communicate with others.When we find something or someone to be favorable, we react differently than when we find them to be unpleasant.
The second step in the perceptual process is organizing, in which we classify and organize the information we perceive using ingrained and learned cognitive patterns. We categorize things into patterns using proximity, similarity, and difference as three different criteria.
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Which statement a false? O A monopoly is both a firm and an industry. O A monopoly is an imperfect competitor. O There are monopolies in the United States at the regional and local levels. O None of these statements are false.
Option d is correct. None of these statements are false. A scenario known as monopoly occurs when there is only one seller in the market.
A monopoly is a market arrangement where one producer or seller holds a disproportionate amount of power within a certain market. Monopolies are forbidden in free-market economies as they limit customer alternatives and impede competition.
Antitrust laws are in existence in the US to prevent monopolies, guaranteeing that one company cannot dominate a market and take advantage of its dominance to take advantage of its customers.
A market arrangement known as a monopoly has just one seller or producer.
A monopoly restricts the number of product alternatives accessible and makes it difficult for rivals to enter the market.
Monopolies may result in dishonest business practices.
Government regulations apply to certain monopolies, such as those in the utility industry.
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Which of the following statements regarding accounting profits, opportunity costs, and economic profits is true?
The truth about accounting profits are- If accounting profits are less than opportunity costs, there will be economic losses.
Accounting profit can be defined as the financial profit or accounting profit, is the difference between total revenue and explicit costs for a business. It is a tool which is used to evaluate a company's performance and examine how it stacks up against rivals' financial positions.Major profits and economic profits. The complete earnings of a corporation are represented by accounting profit, which also takes explicit costs into account.To know more about Accounting profits here
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major department stores in a shopping center; important because they draw in many customers who may shop at the smaller stores
The shopping complexes provide customers with comfort, safety, the ideal tenant balance, and a welcoming environment.
Why is it enjoyable to shop?Our brains release dopamine and endorphins when we make purchases. Some people may become compulsively shop because the quick gratification and need to feel the "high" again begins to outweigh ego and sensible financial considerations.
What happens when you shop?The series of actions a customer will take before decide what to buy is known as a buying process. Recognizing requirements and goals, gathering information, weighing options, making a purchase, and evaluating the experience afterward are all parts of a typical model of consumer decision-making.
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the journal entry to issue 4,000,000 shares of $10 par common stock for $14 per share on july 2 would be a. date account debit credit july 2 cash 56,000,000 common stock 56,000,000 b. date account debit credit july 2 cash 40,000,000 common stock 40,000,000 c. date account debit credit july 2 cash 56,000,000 common stock 40,000,000 paid-in capital in excess of par-c/s 16,000,000 d. date account debit credit july 2 cash 40,000,000 paid-in capital in excess of par-c/s 16,000,000 common stock 56,000,000
journal entry- (a) date account debit credit july 2 cash 56,000,000 common stock 56,000,000.
What is stock market?A stock market, also known as an equity market or share market, is the collection of individuals who buy and sell stocks, also known as "shares", which represent ownership stakes in corporations. These securities may be listed on a public stock exchange or only traded privately, such as shares of private corporations that are offered to investors through equity crowdfunding platforms. An investing strategy is typically present when making an investment. By the end of 2020, the total market value of all publicly traded securities globally increased from US$2.5 trillion to US$93.7 trillion. There are 60 stock exchanges in the world as of 2016. 16 of these exchanges have a market capitalisation of at least $1 trillion.
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the retail environment in developing countries presents challenges for marketing nonperishable items. in mexico, proctor
The retail environment in developing countries presents challenges for marketing nonperishable items. In Mexico, Proctor, and Gamble, Unilever, Colgate-Palmolive, and other global consumer product companies use mom-and-pop stores for their products.
Mom and pop is a colloquial term used to describe a small family-owned or independent business. Mom-and-pop stores are often operations that struggle to compete with more substantial establishments, such as big box retailers, who generally boast more buying power than smaller players. The popularity of mom-and-pop stores is on the rise. Traditional mom-and-pop businesses like bookstores and pharmacies have found it financially difficult to compete with large chain stores.
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Country X's economy is in an inflationary gap. Which of the following combinations of fiscal and monetary policy actions would restore full employment in the short run?
answer choices
A decrease in income taxes and a decrease in the required reserve ratio
A decrease in government spending and an open-market purchase of government bonds by the country’s central bank
A decrease in government spending and an open-market purchase of government bonds by the country’s central bank
A decrease in government spending and an open-market purchase of government bonds by the country’s central bank
The way to move forward would be a decrease in government spending and an open-market purchase of government bonds by the country’s central bank.
What is an open-market purchase?
The Federal Reserve's purchases and sales of securities on the open market are referred to as "open market operations" (OMO) (Fed). The Fed runs open market operations to control the amount of money held in reserve by American banks. Treasury securities are bought by the Fed to boost the money supply and sold to decrease it. The federal funds rate, which affects other short-term, long-term, and foreign exchange rates, can be changed by the Fed using OMO. This may alter the quantity of money and credit accessible to the economy and have an impact on a number of economic variables, including output, unemployment, and the price of goods and services.
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the basic principle for recording nonmonetary transactions at fair value. modifications of the basic principle for recording nonmonetary transactions when fair value is not determinable or the exchange lacks commercial substance. the concept of commercial substance. the required disclosures for nonmonetary transactions.
The basic principle for recording non-monetary transactions at fair value - ASC 845-10-30-1.
A principle is a proposition or value that is a guide for behavior or evaluation. In law, it is a rule that has to be or usually is to be followed. It can be desirably followed, or it can be an inevitable consequence of something, such as the laws observed in nature or the way that a system is constructed. The principles of such a system are understood by its users as the essential characteristics of the system, or reflecting system's designed purpose, and the effective operation or use of which would be impossible if any one of the principles was to be ignored.[2] A system may be explicitly based on and implemented from a document of principles as was done in IBM's 360/370 Principles of Operation.
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James, a network engineer, has been contracted by a company to monitor network performance. In order to know and analyze any problem in a network, James will need to understand how the network functions in a normal state. Analyze which of the following will be of use to James in this scenario.
1. Checking the network's performance baseline
2. Checking the interface statistics
3. Checking if the network is operating at maximum capacity.
4. Checking if the connection has jitter.
The network performance can be monitored by checking the network's performance baseline. Checking the performance of the network enables James to know and analyze any problem in a network.
The correct answer is option 1. Checking the network's performance baseline.
Checking of the network's performance means to monitor the performance by analyzing any problems in the network. It will help James to understand how the network functions in its normal state. A baseline is a description of how a network or resource functions under typical circumstances. A set of measurements known as a network performance baseline is used in network performance monitoring to specify the typical operational conditions of an enterprise network infrastructure. To detect changes in traffic that might be signs of a problem, engineers compare network performance baselines.
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If expected inflation drops in Europe, so that interest rates fall there, what will happen to the exchange rate on the U.S. dollar?
The US dollar will depreciate and therefore the value of rate of exchange falls. the autumn in expected inflation in Europe ends up in a fall within the charge per unit and which create a decline within the relative expected return on dollar assets. The expected euro appreciates and it'll be greater than the decline within the foreign rate. thanks to the decline within the relative expected return on dollar assets make a leftward shift of the demand curve, and therefore the equilibrium U.S. dollar charge per unit falls.
The exchange rate for the US dollar if anticipated inflation in Europe declines and interest rates decrease.
What will happen to the US dollar's exchange rate?As the value of the US dollar declines, so does the exchange rate. The fall in predicted inflation in Europe results in a decrease in the unit cost, which lowers the relative expected return on dollar assets. The predicted increase in the euro's value will be bigger than the decrease in the exchange rate. Due to the leftward shift of the demand curve caused by the loss in the relative expected return on dollar assets, the equilibrium U.S. dollar charge per unit decreases.
What do you mean by inflation?Inflation is a decrease in the purchasing power of money, reflected in a general increase in the prices of goods and services in an economy.
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which of the following statements describing individual tax deductions is false? multiple choice individuals elect to itemize deductions in a tax year in which total itemized deductions exceed the standard deduction. the majority of individual taxpayers itemize rather than taking the standard deduction. individuals who pay self-employment tax can deduct one half of the tax as an above-the-line deduction. in a year in which an individual takes the standard deduction, any itemized deductions yield no tax benefit.
The false statement is: "the majority of individual taxpayers itemize rather than taking the standard deduction."
In fact, the majority of individual taxpayers take the standard deduction rather than itemizing deductions. According to the IRS, in 2018, 70% of taxpayers took the standard deduction rather than itemizing deductions.
It's beneficial to contribute the maximum amount permitted to a traditional (i.e., non-Roth) retirement account like an IRA or 401(k) whether you itemise deductions or take the standard deduction (k). In this manner, an individual can lower your annual taxes while increasing your retirement savings.
Hence, the above given statement is false.
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Which of the following is the largest segment of the agriculture industry in the United States?grainlivestockpetscotton
The largest segment of the agriculture industry in the United States is Livestock.
Livestock is the tamed animals raised in an agrarian setting to supply labor and produce diversified products for consumption similar as meat, eggs, milk, fur, leather, and hair. The agriculture assiduity is made up of companies and pots that are involved in the production of food or crops for consumption purposes.
The meat and flesh assiduity is the largest member of U.S. agriculture. The U.S. agriculture sector extends beyond the ranch business to include a range of ranch-related diligence. The largest of these are food service and food manufacturing.
Agriculture in the United States is largely mechanized, with a normal of only one planter or ranch laborer warranted per forecourt kilometer of cropland for an agrarian product. Although agrarian exertion occurs in every U.S. state, it's particularly concentrated in the Great Plains, a vast breadth of flat pastoralist land in the center of the nation, in the region west of the Great Lakes and east of the Rocky Mountains.
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Harrison, Inc. issued 4,000 shares of common stock at $12 per share. If the stock has a par value of $0.50 per share, which of the following will be part of the journal entry to record the issuance? a. Credit to Paid-in Capital in Excess of Par Value for $48,000 b. Debit to Cash for $4,000 c. Debit to Retained Earnings for $46,000 d. Credit to Common Stock for $2,000
The journals entry to record the issuance will be Credit to Common Stock for $2,000
Debit to cash= 4,000 x 12= 48,000
Credit to Common stock = 4,000 × $0.50 = $2,000
Credit to Paid-in capital in excess of par value = 4,000 × ($12 - $0.50) = $46,000
In the financial markets, a share issue is the sale of new stock or shares by a company to investors. Issuance of shares may involve a private sale in which the transaction between investors and the firm takes place directly or publicly, in which case the firm must register the securities with the authorities and the sale takes place in an organized market open to all registered investors, a process more similar to an auction. Two common types of public stocks are initial public offerings (IPOs) and secondary issues of stock (SEO or FO). It is one of the ways that companies finance themselves, that is, they get funds from investors in order to do business.
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The _____ specifies all of the terms of the agreement between the bondholders and the issuing organization.
indenture
The indenture specifies all of the terms of the agreement between the bondholders and the issuing organization.
A legal and enforceable contract, agreement, or instrument between two or more persons is referred to as an indenture. These manuscripts typically have perforated edges or indented sides. In the past, especially among European immigrants, the term "indenture" has also been used to describe a contract obliging one person to serve another for a predetermined amount of time (indentured servant). The term "indenture" is most frequently used in bond agreements, real estate transactions, and some parts of bankruptcy in contemporary finance.
An indenture is a formal, legally enforceable arrangement that is frequently related to real estate, bankruptcy, or bond transactions.
Detailed information on conditions, provisions, and covenants is included in an indenture.
There are numerous distinct sorts of indenture clauses as well as a few different forms of indentures.
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johnel, of abc escrow, is beginning to work on the escrow procedures of the van horn - simpson file. she prepares the instructions; orders the title search and report; requests new loan instructions and documents; negotiates the fee due abc escrow from the parties involved; and accepts the pest control report and other reports. which of these procedures is prohibited?
As part of the escrow process, Johnel shouldn't be negotiating the payment owed to ABC Escrow. The payment of the escrow holder's fee is a topic of discussion between the buyer and seller.
As a condition of buying their new house, the Van Horns must deposit money with ABC Escrow. The Van Horns are the grantees, and ABC Escrow is the third party. Escrow is established by this transaction. The instructions are regarded as unilateral and only apply to the Van Horns; as a result, only the Van Horns, their agent, and ABC Escrow may be aware of them as Johnel prepares the instructions; orders the title search and report; requests new loan instructions and documents; negotiates the fee due ABC Escrow from the parties involved.
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Consider the market for rides at an amusement park. All consumers have roughly the same demand as depicted in the following graph, which also shows the marginal revenue (MR) curve and marginal cost (MC) curve for rides at this amusement park. In particular, the marginal cost to the amusement park of an additional ride is constant at exist0.80. The park uses a linear pricing strategy by selling rides to all entrants for the same price. Place the red point (cross symbol) at the profit-maximizing price and quantity. Dashed drop lines will automatically extend to both axes. Then, use the purple rectangle (diamond symbols) to shade the area representing profit at the profit-maximizing price and quantity. Now suppose the park decides to switch to a two-part pricing scheme by charging an admission fee but also lowering the cost of an individual ride. In this case, the profit-maximizing per-ride charge would be ____. Use the green triangle to shade the region representing consumer surplus given this pricing plan. To maximize profits, the admission fee should be set equal to ____.
To maximize profits, the admission fee should be set equal to profit- maximizing per ride charge.
Profit: What Is It?Profit is the term used to describe the monetary gain experienced when the revenue from a commercial activity outpaces the costs, costs, and taxes incurred to support the activity in question.
Why is it vital to make a profit?Revenues less costs = profit for a business. Profitability affects a company's capacity to obtain bank funding, draw in investors to fund its operations, and expand its business, hence making a profit is crucial to a company's success. Without making a profit, companies cannot continue to operate.
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definition sharpe ratio is used to measure the return of an investment to its risk. it is a mathematical expression that is a measure of the excess return (above the risk-free rate) earned in excess of what would have been earned on a risk vs reward investing investment during the same period. when employed for evaluating a portfolio, the ratio can be computed for any number of time periods. for example, the ratio may be computed from daily price data to evaluate performance over one year, or from monthly returns to monitor results over three years.
The Sharpe ratio is used to compare an investment's return to its risk. Instead of demonstrating the amount of expertise of an investor, it is a quantitative expression of the notion.
The reward-to-variability ratio, sometimes referred to as the Sharpe ratio, was created by economist William F. Sharpe in 1966 as a consequence of his work on the capital asset pricing model (CAPM). In 1990, Sharpe won the Nobel Prize in economics for his work on the CAPM.
The numerator of the Sharpe ratio is the difference over time between realized or anticipated returns and a benchmark, such as the performance of a particular investment category or the risk-free rate of return.
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____ 12. If a firm acquires the stock of a competing firm that causes a substantial lessening of competition, it would be in violation of the:
a.
Clayton Act.
b.
Robinson-Patman Act.
c.
Sherman Antitrust Act.
d.
Federal Trade Commission Act.
e.
Interstate Commerce Act.
If a firm acquires the stock of a competing firm that causes a substantial lessening of competition, it would be in violation of the: a. Clayton Act.
In finance, stock consists of all of the stocks by using which possession of a corporation or company is split. A unmarried percentage of the inventory method fractional possession of the agency in proportion to the whole number of stocks. A inventory, additionally known as fairness, is a safety that represents the possession of a fragment of the issuing organisation. devices of inventory are known as "shares" which entitles the owner to a percentage of the agency's belongings and income identical to how lots stock they very own.
shares constitute possession in a publicly traded organization. while you buy a employer's stock, you end up part-owner of that company. as an example, if a organization has one hundred,000 stocks, and also you purchase 1,000 of them, you own 1% of the business enterprise.
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You asked for it, you got it. During your first week on the job as the new president of a plastic container manufacturing company, you asked each department head and manager to describe his or her biggest challenges. You got quite an earful, everything from the need for better computer systems to poor internal communication to low morale and high employee turnover. And every single one of them insisted that his or her problem was the most pressing! According to the contingency framework for choosing the best decision model, which model should you use?
According to the contingency framework for choosing the best decision model, the Carnegie model is because problem consensus is not certain and solution knowledge is certain.
What is the Carnegie model?The Carnegie model refers to decisions made at the organizational level, which includes many managers, and the final decision will be made by all the managers collectively regarding the organization's problems and goals.
As the new president of a plastic container manufacturing company, I have asked each department head and manager to describe his or her biggest challenges. All of them have shared their problems like the need for better computer systems poor internal communication to low morale and high employee turnover. Also, every single one of them insisted that his or her problem was the most pressing. So, I decided to choose the Carnegie model for making decisions.
Therefore, the Carnegie model as per the contingency framework is chosen as the best decision model.
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Both accounts receivable and notes receivable represent claims that are expected to be collected in cash. a. True b. False
Both accounts receivable and notes receivable represent claims that are expected to be collected in cash. True
The term accounts receivable describes accounts that a company is entitled to get since it has provided a good or service. Receivables, also known as accounts receivable, are a company's line of credit that typically include terms that call for payments to be made within a somewhat short time frame.
A note receivable is an asset account linked to an underlying promissory note that specifies in writing the terms of payment for a purchase between the "maker" of the note and the "payee," who is normally a business and is occasionally referred to as a creditor (usually a customer or employee, and sometimes called a debtor).
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suppose the capacity of each machine in station 1 in the littlefield technologies game is 12 contracts per day. suppose there are 4 machines in this station. the utilization of this station is 77%. on average, there are 22 contracts in this station (either in the waiting line or on the machines). compute the flow time in this station in hours (assume a day is 24 hours). enter your answer in terms of hours with one decimal point.
Total Flow Time in Station 1 is 57.1 Hours.
Flow time, also known as total processing time, is the amount of time a flow unit invests in a business process from start to finish. The flow time is equal to the length of the longest path if there are many paths through the process.
It is given that-
station 1's Capacity = 12
No. of machines in station 1 = 4
Utilization =77%
Average number of loads in this station =22
Flow rate = Capacity x Utilization
= 12 x 77%
= 9.24 orders/day
Flow time = Average number of loads/ Flow rate
= 22/9.24
=2.38x 24(hours)
Flow time = 57.1 hours
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Bubba is a shrimp fisherman who catches 4,000 pounds of shrimp per year. He can sell the shrimp for $5 per pound. His average total cost of catching shrimp is $3 per pound. Bubba's annual Total Revenue is..
$8,000
Bubba makes $8,000 in total revenue each year.
Profit is the amount that remains after capital, labor, and land have been paid for. Profit is viewed in two ways: bookkeeping and financial benefit.
The difference between total revenue (return) and explicit costs in accounting is called accounting profit, while the difference between total revenue and both implicit and explicit costs in economics is called economic profit. Because of this, accounting profit is greater than economic profit.
The answer is correct: a. $8,000.
Considering that:
Q = $4, 000 P = $5 A T C = $3 Profit is the difference between total cost and total revenue = T R T C = ($ 5 4 000) + ($ 3 4 000) = $ 8 000 Bubba makes $8,000 in total profits each year.
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Full Question = Bubba is a shrimp fisherman who catches 4,000 pounds of shrimp per year. He can sell the shrimp for $5 per pound. His average total cost of catching shrimp is $3 per pound. Bubba's annual total profit is:
a. $8,000.
b. $12,000.
c. $20,000.
d. $32,000.
for financial accounting purposes, which one of the following is not a type of hedge carried out using derivatives? a. fair value. b. cash flow. c. speculative. d. foreign currency.
The type of hedge not carried out using derivatives is speculative
Hedging is a risk management strategy that is used to protect against potential losses. It involves taking offsetting positions in financial instruments or markets to reduce the risk of loss from price movements. One type of hedging that is not carried out using derivatives is called speculative hedging.
This type of hedging involves taking a position in a financial instrument or market with the intention of benefiting from price movements, rather than protecting against potential losses. In this case, the intention is not to hedge an existing position when derivatives are utilized for speculation because there is no existing position to hedge. Instead, the goal when employed for speculation is to earn a profit.
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a major benefit of social media marketing is the ability to reach new target markets, such as millennials. a firm wishing to target millennials would be advised to use___
a major benefit of social media marketing is the ability to reach new target markets, such as millennials. a firm wishing to target millennials would be advised to use: to attract and establish a consumer base.
To sell products and generate revenue, marketers employ online technologies including websites, social media profiles, emailing, and content branding.
A business employs search engine optimization (SEO) to make their website show up prominently on search engine results pages when consumers look for a product or service they provide. Money simplifies the process since you can just go someplace, like a store, to buy something rather than having to exchange for it. It would be challenging to shop since you would have to negotiate with someone in order to get the thing you wanted.
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Assuming that the average duration of its assets is five years, while the average duration of its liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of First National to decline by __________ of the total original asset value.
A) 5 percent
B) 10 percent
C) 15 percent
D) 25 percent
Assuming that the average duration of its assets is five years, while the average duration of its liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of First National to decline by 25 percent of the total original asset value.
The duration gap is a phrase used in finance and accounting that is frequently used by banks, benefits reserves, and other financial institutions to evaluate their risk associated with fluctuations in interest rates. This is one of the confounds known as resource risk jumbles that might occur.
The difference between the value responsiveness of interest-yielding assets and the value responsiveness of liabilities (of the association) to a change of market interest rates is another way to describe duration gap (yields).The duration gap calculates how closely the time of money inflows (from assets) and outflows are matched (from liabilities).
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a company may set up a lockbox service with its bank for receiving customers' payments. the company's customers send their payments to the po box. then the bank collects and processes these payments directly and deposits them to the company's account. a lockbox plan is therefore most beneficial to firms which
The correct answer to the question is option A) when a company's clients are spread out geographically, a lockbox arrangement is most advantageous.
Banks offer the service of "lockbox banking" to businesses so they can accept payments from clients. Instead of going to the business, client payments received through the service are sent to a designated post office box. The bank goes to the box, gets the payments out of it, processes them, and puts the money right into the business's account. A lockbox system can speed up collections and payment processing for companies that get a lot of payments or large-denomination checks with remittance papers. Banks have created a number of communication hubs for companies to use to collect payments and deposits using cutting-edge lockbox technology.
A company creates a post office box to accept payments from clients.
Question:
a company may set up a lockbox service with its bank for receiving customers' payments. the company's customers send their payments to the po box. then the bank collects and processes these payments directly and deposits them to the company's account. a lockbox plan is therefore most beneficial to firms which:
a. Send payables over a wide geographic area.
b. Have widely disbursed manufacturing facilities.
c. Have a large marketable securities account to protect.
d. Hold inventories at many different sites.
e. Make collections over a wide geographic area.
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Fiscal policy is...
a. the selling of government bonds by the treasury
b. the deliberate manipulation of the money supply designed to affect the interest rate
c. the deliberate manipulation of taxation and spending designed to affect the economy
d. the selling of foreign exchange reserves designed to change the exchange rate
e. all of the above
Fiscal policy is (c) the deliberate manipulation of taxation and spending designed to affect the economy
A federal government's fiscal policy affects the amount of taxes levied and other expenditures that have an impact on the economy. The Federal Reserve's monetary policy is always supported by the fiscal policy, which includes manipulating taxes and spending in order to have an impact on the economy.
They will be attempting to manipulate taxation and spending intended to have an impact on the economy since fiscal policy will reflect both the total amount of money the federal government collects in taxes and the total amount it spends on various types of public welfare projects.
All of the other claims are untrue since monetary policy has a connection to the manipulation of the money supply.
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What is meant by functional finance?
Answer:
Functional finance is an economic theory proposed by Abba P. Lerner, based on effective demand principles and chartalism. It states that government should finance itself to meet explicit goals, such as taming the business cycle, achieving full employment, ensuring growth, and low Inflation
Buren Company manufactures two products, Regular and Supreme. Buren's overhead costs consist of machining, $2,000,000; and assembling, $1,000,000. Information on the two products is: Regular Supreme
Direct labor hours 10,000 15,000
Machine hours 10,000 30,000
Number of parts 90,000 160,000
Overhead applied to Regular using traditional costing using direct labor hours is
A) $860,000.
B) $1,200,000.
C) $1,800,000.
D) $2,140,000.
Overhead applied to Regular using traditional costing using direct labor hours is $2,140,000. So option d is the correct option of the given statement.
Why is it called overhead costs?These expenses are classified as overheads since they have no direct connection to any specific organizational function and don't immediately generate any revenue. Instead, these expenses simply serve as the foundation for all other operations of the company.
How are operating expenses determined?Divide the indirect costs by the direct costs, then multiply by 100 to get the overhead rate. If your overhead rate is 20%, then means that 20% of your company's income is spent on the creation of products or the provision of services. An efficient business will generate more revenue with a lower overhead rate.
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TRUE/FALSE. in porter's terminology, the umpqua bank follows a strategy. operational excellence focus overall cost leadership differentiation middle-of-the-road
False. The Umpqua Bank follows a "Middle-of-the-Road" strategy, which combines elements from all of the other strategies.
This strategy focuses on providing a balance of cost leadership and differentiation, while also striving for operational excellence. Michael Porter is a leading business strategist and author who is well known for his Five Forces framework.
This framework is used to analyze the competitive landscape of an industry. Porter's Five Forces include the threat of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and the competitive rivalry among existing firms.
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