the law of markets (ricardo, mill, et al) argues that business activity can be increased by stimulating .

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Answer 1

According to the law of markets (Ricardo, Mill, et al.), stimulating supply can increase business activity. That's because supply will increase operating activities, investment activities and financing activities for business.

Say's law, often known as the law of markets, is a theory of classical economics that holds that by offering something of value that can be exchanged for another good, the production of one good increases demand for the other. So, the source of demand is production.

In economics, supply is referred to as the total quantity of a particular good or service that a supplier makes available to customers at a particular time and price.

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Related Questions

what structure allows for each division to have full responsibility for its own value creation activities but the headquarters maintains responsibility for overall strategy and financial control? multiple choice question. global matrix flexible matrix worldwide product division international functional division

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C) Although the headquarters still retains oversight of overarching strategy and financial control, the worldwide product division enables each division to be fully responsible for its own value-generation activities.

What is a worldwide product division structure?

The functions required for the particular goods or services a product/service division generates are contained in the global product division structure. The parent company has headquarters divisions for each of the main product categories with the corresponding personnel, financial, and other resources.

The headquarters division in charge of that product or class of products must receive reports from overseas subsidiaries producing that product or class of products. In order to improve response to competitive possibilities, efficiency, quality, or innovation, global product division structures locate production and value creation activities in suitable worldwide locations.

Global product divisions, which function in divisional, cluster, or holding company formats, are in charge of global product design. The global product divisions are not very similar. They are really different from one another.

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a construct that has been related to employee turnover, organizational citizenship, and job performance is .

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Job involvement their work, or how much importance  that has been related to employee turnover, organizational citizenship, and job performance is job involvement,

which in our study is a form of attitude toward work. There should be a distinction between involvement at work and employment involvement. A person's voluntary engagement inside an organization or business that includes job performance, organizational citizenship behavior (see below), and creativity is known as organizational citizenship behavior (OCB), or organizational psychology. Workplace conduct reflects the actions that employees take while. Behaviors of Employees That Need To Be Recognized Humility. Everyone enjoys receiving praise, but few people are willing to own up to their faults. Adaptability, teamwork, the capacity to solve problems, assurance, and dependability.

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as a hotel salesperson, you earn a commission of 3% on all sales. you are averaging sales of $150,000 per month. what are your expected commissions for the year?

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Expected commissions for the yr is $54,000.

The required details for commissions in given paragraph

A fee is a carrier charge assessed through a dealer or funding consultant for presenting funding recommendation or coping with purchases and income of securities for a client. There are essential variations among commissions and fees, at the least within side the manner those phrases are used to explain expert advisors within side the monetary offerings industry. A fee-primarily based totally consultant or dealer makes cash through promoting funding merchandise together with mutual price range and annuities and accomplishing transactions with the client's cash.

A fee-primarily based totally consultant expenses a flat price for coping with a client's cash. This can be both a greenback quantity or a percent of property below management (AUM). Sales among own circle of relatives contributors are often presents of equity, which aren't fee-primarily based totally.

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if an economist was arguing that it would be fairer for everyone in society to pay the same percentage of their income in taxes rather than pay taxes at different percentages based on income levels, the economist would be making the case for which kind of tax?

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The economist would be making the case about paying a flat amount in taxes on income is an example of regressive tax.

What Is a Regressive Tax?

A tax is said to be regressive if it is levied in a way that the tax rate drops as the amount subject to taxation rises. When describing a distributional impact on income or spending, the term "regressive" refers to the rate's progression from high to low, causing the average tax rate to be higher than the marginal tax rate.

Sales taxes, sin taxes, and property taxes are examples of regressive taxes because they are paid regardless of income. Regressive taxes thus have a decreasing average tax burden as income increases. The tax burdens are then unfairly disproportionately heavy on low-income taxpayers while disproportionately light on middle- and high-income taxpayers.

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suppose a project with a negative net present value would provide intangible benefits. to estimate the annual value of intangible benefits needed to accept the project, blank the negative net present value excluding intangible benefits by the blank . multiple choice question. divide, present value of $1 factor multiply, present value of $1 factor divide, present value factor for an annuity multiply, present value factor for an annuity

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The idea that investors and company managers should only invest in projects or transactions that have a positive net present value (NPV) is known as the net present value rule.

They should steer clear of projects with a negative net present value when investing. It is a logical extension of the theory of net present values.

A company's earnings should logically rise when it invests in something with a net present value greater than zero, according to the net present value theory. The shareholder's wealth should rise as a result of the investment in the case of an investor. Companies may also participate in projects with a neutral net present value (NPV) if they are associated with benefits that are currently unquantifiable and intangible in the future or if they facilitate ongoing investments.

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which of the following indicators will most likely increase as a result of the increase in the u.s. poverty rate? wealth mobility life expectancy income polarization employment rate

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Indicators will most likely increase as a result of the increase in the u.s. poverty rate is an income polarization.

What is income polarization?Income polarization, on the other hand, evaluates how far apart those tails are, i.e., what is the income disparity between the low- and high-income groups. Income polarization measures the shift from the middle of the income distribution out into the tails.The rise of income polarization—also known as the "hollowing out" of the income distribution—in the United States since the 1970s is examined in this research using a variety of micro-level datasets.When middle-class positions, such as those held by autoworkers, which need a moderate level of abilities, seem to disappear in comparison to lower-skilled occupations at the bottom and higher-skilled jobs at the top, this phenomenon is referred to as polarization of the labor force by economists.

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Tim is retired and has recently separated from his wife. He receives benefits from a qualified retirement plan through his former employer. The plan's trustee has decided to split these benefit payments between Tim and his estranged wife. This decision is likely in violation of which IRS rule?
a. reasonable expectations
b. alienation of benefits
c. minimum coverage
d. indemnity of benefits

Answers

The decision that is likely in violation with IRS rule is option b. alienation of benefits.

The assignment of a pension or retirement plan participant's benefits to a different person is known as alienation of benefits. According to IRS regulations, it is only allowed in exceptional situations like specific participant loans and specific domestic relations orders. This trustee likely violates this rule because there is no domestic relations order.

A retirement plan that has been approved by the IRS and allows investment income to grow tax-deferred is known as a qualified retirement plan. Individual retirement accounts (IRAs), pension plans, and Keogh plans are typical examples. The majority of retirement plans provided by your employer are qualified plans.

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suppose that a financial crisis decreases planned investment spending by $100 billion, and the marginal propensity to consume is 0.8. assuming no taxes and no trade, real gdp will by .

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The real GDP will decrease by $500 billion.

What is GDP?

A country's gross domestic product (GDP) is the sum of the market values of all the finished goods and services produced within its borders during a specific time period. As a general measure of all domestic production, it provides a comprehensive evaluation of the economic health of a specific nation. GDP is frequently calculated on an annual basis, although it is also occasionally approximated on a quarterly basis. For example, the US government generates an annualised GDP estimate for the entire year as well as each fiscal quarter. Each item of data in this report is supplied in actual terms, which allows for the calculation of the data to account for price changes. The result is data that is net of inflation.

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Oliver industries is evaluating the manufacturing process for one of their products. Oliver has determined that the process has yearly maintenance costs of $29,000, yearly operating costs of $22,000, and yearly revenues of $97,000. Two years ago, the firm spent $6,000 upgrading the equipment used to make this product, and it expects to spend $5,000 on additional upgrades three years from now. In this scenario, oliver.

Answers

According to the given information, Oliver's manufacturing industries has sunk cost of $6,000.

Given:

Maintenance cost = $29,000

Operating costs = $22,000

Yearly revenues = $97,000

The firm spent for upgrading the equipment used to make this product =

                              $6,000

Sunk costs are expenses that have already been incurred and cannot be recovered, so they have no bearing on the financial decision.

Hence, The sunk cost of Oliver's manufacturing industries = $6,000

In this case, maintenance costs are recurring outlays that must be made, not costs that have already been incurred. The same is true for operating costs.In order to upgrade the equipment that had already been purchased, the company spent $6,000 two years ago. This cost cannot be recovered, and it will have no bearing on any financial management decisions.It is not a sunk cost because there is still a further $5,000 to spend and the decision to spend that amount could be made without incurring any additional costs.

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Complete question:

Oliver Industries is evaluating the manufacturing process for one of their products. Oliver has determined that the process has yearly maintenance costs of $29,000, yearly operating costs of $22,000, and yearly revenues of $97,000. Two years ago, the firm spent $6,000 upgrading the equipment used to make this product, and it expects to spend $5,000 on additional upgrades three years from now. In this scenario, Oliver

A. has sunk costs of $5,000.

B. has sunk costs of $6,000.

C. has sunk costs of $51,000.

D. does not have any sunk costs.

multiple choice question plant assets are recorded at cost, which includes all expenditures necessary to get the asset in place and ready for use. all of the following would be included as part of the cost of a plant asset except: multiple choice question. costs to customize the new plant asset damage done when unpacking the plant asset costs to modify the new plant asset cost to purchase the new plant asset

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Plant assets are recorded at cost, which includes all expenditures necessary to get the asset in place and ready for use. all of the following would be included as part of the cost of a plant asset except: the new plant asset cost to purchase the new plant asset.

What is the cost of  Plant assets ?

The cost of the new plant can be described as the bcost that is required to get the plant to the place that is designed to be as it is been stated by the company.

It should be noted that the cost emcompass the listed option except the cost of the purchase of the new plant asset.

Therefore, the last option is correct.

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Answer:Damage done when unpacking the plant asset

Explanation:

Damage done when unpacking the plant asset

when the consumer price index rises, the typical familya. finds that its standard of living is not affected.b. has to spend more dollars to maintain the same standard of living.c. can spend fewer dollars to maintain the same standard of living.

Answers

The typical family option b. has to spend more money to maintain the same level of living as the consumer price index increases.

A market basket of products and services that households have purchased at a weighted average price is measured by a consumer price index. The measured CPI changes over time to reflect variations in price.

The Consumer Price Index (CPI) monitors changes in the cost of items for consumers. It is a method for determining whether there is overall inflation or deflation in the economy. Your choice of how much money to spend or save could be influenced by the CPI.

The average pace of price change over time has accelerated, as seen by an increase in the CPI. This causes changes in the cost of living and income over time.

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the fixed cost to run a shoe manufacturing unit is $40,000 per month and the average selling price for a shoe is $100. if the all-inclusive variable cost to manufacture a shoe is $50, how many shoes should be sold per month to breakeven?

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According to the given information, 800 shoes must be manufactured for meeting break even point for a month.

Given:

Shoe price = $100

Variable cost for one shoe = $50

Total fixed cost for one month = $40,000

[At break even point cost = Price and that point never get profit]

Therefore, Allocatable fixed cost to each shoe = 40000/50 = 800

800 shoes must be manufactured for meeting break even point for a month.

By comparing the market price of an asset to its initial cost, the break-even point (break-even price) for a trade or investment can be identified. The break-even point is reached when the two prices are equal.In corporate accounting, the break-even point is calculated by dividing the total fixed production costs by the revenue per unit less the variable production costs per unit. Fixed costs in this context refer to expenses that are constant regardless of the quantity of units sold. The production level at which total sales for a product equal total expenses is known as the break-even point.

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a firm has a fixed cost of $700 in its first year of operation. when the firm produces 99 units of output, its total costs are $4,000. the marginal cost of producing the 100th unit of output is $200. what is the total cost of producing 100 units?

Answers

The marginal cost of producing the 100th unit of output is $200.

What is marginal cost ?

A firm has a fixed cost of $700 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000.

The term "marginal cost" describes the rise in manufacturing costs brought on by the creation of more product units. A different name for it is the marginal cost of production. Businesses may evaluate how volume produced affects cost and eventually profits by calculating the marginal cost.

Marginal cost = (Change in cost) / (Change in quantity)

The volume of output either increases or decreases, which affects quantity. With an increase or decrease in production, there will be a variation in cost. The page on the marginal cost formula, which is significant in production, is now complete.

The marginal cost of producing the 100th unit of output is $200.

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when a company retires bonds early, the gain or loss on the retirement is the difference between the cash paid and the

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when a company retires bonds early, the gain or loss on retirement is the difference between the cash paid and the: carrying value of the bonds.

Compare the call price to the bond's carrying value to determine if there was a gain or loss on the bond's early retirement.

What are retirement bonds?

Repurchasing previously issued bonds from buyers is known as retiring bonds. on the time of the units' scheduled adulthood, the issuer retires the bonds. any other approach of retirement is for the company to repurchase the bonds faster if the bonds are callable. while bonds are retired, the company deletes the liability for bonds payable from its information.

relying at the funding scenario of the issuer, it is able to be important to difficulty new bonds which will acquire the coins needed to retire the old bonds. In this example, the company’s overall liabilities will be approximately the equal before and after the bond retirement.

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explain why Microsoft's growth over time would affect how it was organized and how it would
manage employees.

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It is important to manage employees as employees are the basic source for the growth of the organization and Microsoft is one of the organization that provides services and products around the world.

What is management?

Management is the upper level employees that manages the employees hired by the company, employees are the core area for any organization and it plays a vital role in the growth of the organization it is therefore important to manage the employees so that they are motivated and work hard and smart.

For a company like Microsoft it is important to manage the employees and keep them motivated so that they work with commitment and the company can reach the goal of their growth. Employees can be motivated with increased remuneration and appreciations.

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__ is an emerging retailing strategy that employs market data to best serve customers as they prepare to make a purchase. it focuses on understanding how a brand's target customers behave as shoppers.

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Shopper marketing is a growing retailing strategy that employs market data to best serve consumers as they prepare to make a purchase. It emphasizes understanding how the target customers of a brand behave as shoppers.

Shopper marketing is an emerging cross-functional strategy primarily designed to improve performance of businesses by using actionable insights in order to connect with shoppers and influence behavior patterns anywhere along the path to purchase.

Shopper marketing focuses on improving the shopping experience for customers in order to drive sales both online and in-store at the point of purchase.

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you have signed a two-year lease on a building in which you are planning to open a day care center. you have no choice about how much money you spend on rent for the next two years, because you are already committed to this agreement. this is an example of:

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A scenario in which we no longer care about the rent for the next two years because of having signed a two-year lease on a building is an example of fixed-input.

In the field of business, a fixed input can be described as a factor that cannot be changed as any cost in relation to a particular business.

In the scenario above, we have created a fixed input by signing a two-year lease. This means that we will have to pay the rent for two years due to the commitment of the fixed input. The fixed input cannot be changed according to the business principles. Hence, the commitment or agreement mentioned in the above question is an example of a fixed input.

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nico's net take-home pay per month is $1,600. what is the maximum dollar amount of debt payments, excluding a home mortgage, he should have? multiple choice $480 $800 $160 $320 $0

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The recommended maximum debt payments-to-income ratio is 20 percent. Thus, the maximum monthly debt payment amount is $320

Maximum monthly debt payment = 0.20 × Monthly income

= 0.20 × $1,600

= $320

Debt is an obligation that requires one party, the debtor, to pay another party, the creditor, money or another agreed-upon value. Debt differs from an immediate purchase in that it requires a deferred payment or series of payments. The sum that the borrower owes to the lender is the simplest definition of debt. A debt is an amount of money that is borrowed for a specific amount of time and must be paid back along with interest payment. The borrower's creditworthiness affects both the size and the approval of the debt. Debt can be caused by a number of things. Expense-inducing life events like having children or moving to a new home could be the root of some causes.

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It costs a publishing company $0. 55 to print one copy of a certain novel. This company paid $725,000 for the rights to the novel. If they can sell a copy of the novel for $6. 75, how many copies of the novel must they sell to break even, to the nearest hundred?.

Answers

116,900 copies of the novel must they sell to break even, to the nearest hundred.

What is cost?

In manufacturing, research, retail, and accounting, an expense is the value of money that was used  to produce a product or provide a service and  is therefore no longer available. In business, the cost may be the purchase price, in which case the cost is the amount of money used for the purchase.

The two main types of costs in businesses are

fixed costvariable cost

Fixed costs do not change depending on output, while variable costs. Fixed costs are sometimes called overheads.

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mark has been reviewing disaster recovery planning, and after receiving direction from his company's board of directors, it has been determined that they can only withstand a maximum of 36 hours of downtime. mark is updating his dr plan with this new metric. what part of the plan should he modify?

Answers

Mark should modify RTO part of the plan while updating his DR plan with this new metric.

What does RTO mean in DR?

The length of time that must pass after a disaster for a business process to be restored in order to avoid the unacceptably negative effects of a disruption in business continuity is the traditional definition of RTO. The recovery time objective (RTO) is the maximum amount of time that an application or service can be unavailable following a disaster without seriously harming the company's operations.

The recovery time objective (RTO) is the maximum amount of time from the last data restoration point, whereas the recovery point objective (RPO) is the goal amount of downtime in the event of an IT outage. An RTO's main objective is to estimate how long something will take.

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the carrying amount of bonds is calculated by adding the balance of the discount on bonds payable account to the balance in the bonds payable account. true or false

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The carrying price of bonds is calculated by way of including the stability of the Discount on Bonds Payable account to the stability in the Bonds Payable account.

The loss on bond redemption is the difference between the money paid and the carrying cost of the bonds.

Is bonds payable the carrying amount?

The carrying cost of a bond is not equal to the bond payable quantity except the bond was issued at par. When a bond is issued at a premium, the carrying value is higher than the face fee of the bond. When a bond is issued at a discount, the carrying cost is less than the face cost of the bond.

The carrying cost of a bond issued at a discount is calculated by using subtracting the unamortized cut price from the par value.

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a retired teacher had participated in a tax-sheltered annuity. contributions made on her behalf into the plan totaled $100,000. this year she received a lump-sum payment from the annuity of $160,000. how is the distribution taxed and what is her cost basis?

Answers

$6,000 is taxed as ordinary income and $10,000 is returned to her tax-free as it is her cost basis: will be treated as ordinary income. (84766)

What is distribution tax?Tax Distribution is the result of (a) the total amount of taxable income or gain assigned to the Partners under Section 5.04(a) for such period and (b) the applicable tax rate for such period for any fiscal quarter, fiscal year, or other period of the Partnership during the term of the Partnership.Nonqualified variable annuities accept after-tax money as contributions. The cost basis of an individual in the plan is the amount of a contribution made after taxes. The cost basis in this case is the retired teacher's $10,000 payments. In this case, the additional $6,000 provided to her will be regarded as ordinary income. (84766)

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effects of pursuing a harvest strategy include lowered employee morale, rapidly defecting customers and a faster decreasing market share than a company might initially expect. true false

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False, effects of pursuing a harvest strategy include lowered employee morale, rapidly defecting customers and a faster decreasing market share than a company might initially expect.

What does the term "harvest strategy" mean in business?

A harvest strategy entails cutting back on purchases of a well-known product in order to increase revenues. As profits are spent in more recent models or technological advancements, harvest tactics are typically used on outmoded products.

What other harvesting tactics are there?

Outright sales and cost-cutting to boost earnings are the two main categories of harvest strategy. Which one is best in a particular circumstance depends on a number of variables, including the owner's goals and other uses for the potential profit.

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a stock sells for $12.36 a share and has a required return of 9 percent. dividends are paid annually and increase at a constant 3 percent per year. what is the amount of the last dividend paid? $0.50 $0.63 $0.46 $0.72 $0.59

Answers

Option d. $0.72 is the correct answer. The last dividend paid is $0.72

The dividend growth model can be used to derive the intrinsic value of a stock given the dividend, the growth rate of dividends and the required return. The core concept relates to finding the present value of all future dividends.

Stock Price = $12.36

Required Return (K) = 9% = 0.09

Dividend Growth (G) = 3% = 0.03

The formula for calculating the stock price using the dividend growth model is as follows -

Stock Price = Do * ( 1 + G ) / ( K - G )

With other values available, we can find the last dividend paid (Do). The formula can also be written as -

Last Dividend (Do) = Current Price * { ( K - G ) / ( 1 + G ) }

Last Dividend (Do) = 12.36 * { ( 0.09 - 0.03 ) / ( 1 + 0.03 ) }

Last Dividend (Do) = 12.36 * 0.0583

Last Dividend (Do) = $0.72

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rstn company produces its product in two sequential processing departments. during october, the first process finished and transferred 150,000 units of its product to the second process. of these units, 30,000 were in process at the beginning of the month and 120,000 were started and completed during the month. at month-end, 20,000 units were in process. compute the number of equivalent units of production for direct materials for the first process for october under each of the following three separate assumptions using the fifo method. 1. all direct materials are added to products when processing begins. 2. beginning work in process inventory is 30% complete for direct materials cost. ending inventory is 80% complete for direct materials cost. 3. beginning work in process inventory is 60% complete for direct materials cost. ending inventory is 20% complete for direct materials cost.

Answers

Rstn company produces its product in two sequential processing departments.

Total equivalent  units  157,000

Item                            Units      Workings                EU              Notes

Opening inventory   30,000   70%×30,000       2,100               1

Fully worked 7        120,000  100%×120,000      120,000         2

Closing WIP             20,000.   80%×20, 000        16,000            3

Total equivalent units                                          157,000

                                   

Notes

1. The degree of completion for opening inventory is 70% i. e 100%-30%. Remember that 30% work has been done in the previous period, so the balance is to be done in this current period

2. Fully work represent the units of inventory introduced in the current period and completed in the same period. Meaning 100% work was achieved in the period.

3. Closing work is only 80% completed. This represent work started this period but not yet completed.

Equivalent units for the month of October is 157,000 units i.e (2,100+120,000+16,000)

A product is any object or carrier you sell to serve a customer's need or need. They may be bodily or digital. physical merchandise consist of durable goods (like cars, furniture, and computer systems) and nondurable goods (like meals and liquids).

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The standard cost for blank______ manufacturing overhead is computed the same way as the standard cost for direct labor.

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The standard cost for variable manufacturing overhead is computed the same way as the standard cost for direct labor.

The direct labor hours are the variety of direct labor hours had to produce one unit of a product.

The figure is received by dividing the full range of completed products with the aid of the entire quantity of direct labor hours had to produce them.

Standard costing is a tool used in managerial accounting to price range and song costs.

Variance analysis is a technique used to compare real effects towards budgeted quantities, usually intending to perceive regions where prices may be decreased. Trendy fee variances may be either favorable or destructive.

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the usp concept captures two things. one is how does your market offering dominate these other providers. what is the other? what is the product category what is the target segment where is the product positioned none of these

Answers

The USP concept captures two things. One is how does your market offering dominate these other providers. The other is what is the product category?

Define product category.

A group of linked products with similar features is referred to as a product category. Product category marketing is concerned with promoting particular categories to satisfy consumer demands. The four product categories are convenience items, shopping items, specialty items, and unsought items. Each category is thus based on consumer preferences, pricing, and product characteristics.

The arrangement and classification of your product categories should be determined by your unique products and customer personas. The reason the products are grouped is because your search engine can retrieve products more quickly.

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Nelson is documenting all the steps it takes to recruit, hire, and onboard a new employee. what would be the best way to describe these steps?

Answers

In a case whereby Nelson is documenting all the steps it takes to recruit, hire, and onboard a new employee the option that would best  describe these steps is C) hiring hierarchy.

What is  hiring hierarchy?

The hiring hierarchy can be described as the term that is been used to describe the process that is been followed to recruit new workers into the organization.

It should be noted that this process involves many sub steps that is needed to followed, and these can range from opening the requisition, screening the applicants as well as interviewing the candidates, selecting the best and after these process has been taken then the company can proceed to the process of making the offer.

Theefore, option C is correct because all these process that s been ,mentioned in the question that Nelson took to recruit the employee can be described as the hiring heirachy.

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Check the complete question:

Nelson is documenting all the steps it takes to recruit, hire, and onboard a new employee. What would be the BEST way to describe these steps?

A) hiring workflow

B) hiring dynamics

C) hiring hierarchy

D) hiring org chart

Answer:

Actually its highering workflow (A)

Explanation:

If the world price for a good exceeds the before-trade domestic price for a good, then that country must have.

Answers

If the world price for a good exceeds the before-trade domestic price for a good, then that country must have;  A comparative advantage in the production of the good.

What is domestic trade?

Domestic trade can be defined as the  exchange of goods or services within an individual country or territory. The market is usually constrained by the borders of that country, so that all products are bought and sold by people living within the domestic market. The benefits of domestic trade includes transaction costs which are associated with making sales tend to be much lower for domestic markets due to a lack of tariffs and customs duties.

While the disadvantage includes that the countries that do not have supplies of certain resources will not be able to enjoy those resources.

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Garden variety flower shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 per order. The manager has been using an order size of 1,500 flower pots.

Answers

if monthly clay pot usage at Garden Variety Flower Shop is 750. The pots cost $2 each to buy. The cost of ordering is $20 each order, with annual carrying costs per plant expected to be 30% of cost. The supervisor has been placing orders for 1,500 flower pots:

a. By maintaining this order size, the shop will suffer an additional annual cost of: $105.24

What advantage would utilizing the ideal order quantity yield, which is 51.63%, provide?

a. An additional yearly expense

Demand annually (D) = 750 $ x 12 = $9,000

$20 is the cost of each order.

Annual carrying costs ($H) = $0.30 x ($2.00) = $0.60

1,500 is the order quantity (Q).

Locate TC for Q

Q2H + DQ + S = TC

TC=1,500÷2 × $0.60 + $9,000÷1,500×$20

TC=$450+$120

TC=$570............. (1)

now locate Qo

Qo=√2DS÷H

Qo=√2×$9,000×$20÷0.60

Qo=√600,000

Qo=$774.596

Find TC for Q.

now locate Qo

Qo=√2DS÷H

Qo=√2×$9,000×$20÷0.60

Qo=√600,000

Qo=$774.596

Qo=$774.60 (Approximately) (Approximately)

Locate TC for Qo

TC = Q2H + DQ

TC=774.60÷2 × $0.60 + $9,000÷774.60×$20

TC=$232.38+$232.38

TC=$464.76................(2)

Let's now calculate the additional annual cost.

Additional yearly cost = 570-464.56 dollars

Additional yearly expense = $105.24

Benefits of adopting the recommended order quantity (relative to the order size of 1,500)

Benefit=Qo÷Q

Benefit=$774.60÷1,500×100

Benefit=51.63%

As a result, just roughly 51.63 percent of the storage space would be required.

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