Real wealth is the value of the productive capacity of the assets of an economy. Real wealth can be measured by the goods and services.
In economics concept, Real wealth can be described as an accumulation of valuable economic resources that can be measured in terms of either real goods or money value. To calculate real wealth, we can use net worth, determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts. Real wealth concept generally be used in the scarce economic goods.
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classical economists defended the economic concept of group of answer choices government intervention in the marketplace. prolonged recession and high rates of unemployment. market clearing. keynesian economists.
Classical economists defended the economic concept of prolonged recession and high rates of unemployment.
Classical economics or known as classical political economy, or Smithian economics can be described as a school of thought in political economy that flourished, primarily in Britain, in the late 18th and early-to-mid 19th century. The principle of the classical economics theory is that the economy is self‐regulating. The most famous classical economists are David Ricardo, Adam Smith, and John Stuart Mill. Other notable contributors to classical economics include David Ricardo, Thomas Malthus, Jean-Baptiste Say, Anne Robert Jacques Turgot, John Stuart Mill, and Eugen Böhm von Bawerk.
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we are sorry, but we could not complete this payment, because it has been denied. please retry with a another funding option to continue with the payment.
Answer:
tell me the other funding options?
Explanation:
Companies go through different phases to reach product/market fit. These phases are the
A: idea stage, the prototype stage, the launch stage, the traction stage, the monetization stage, and the growth stage.
B: idea stage, the prototype stage, the launch stage, the traction stage, and the growth stage.
C: the prototype stage, the launch stage, the traction stage, the monetization stage, and the growth stage.
D: idea stage, the traction stage, the monetization stage, and the growth stage.
These phases are the idea stage, the prototype stage, the launch stage, the traction stage, the monetization stage, and the growth stage. Thus, option A is correct.
What is a Company?An organization that produces goods or services and markets them to consumers in order to make money is referred to as a company.
The connection between such a company's Unit Economies as well as Net Profitability can be used as an example of the developmental process of a company looking for Product Attributes. Whenever a company finds a solution to an issue that aligns with the demands of the existing markets and for which customers are prepared to pay for a good or commodity.
Therefore, option A is the correct option.
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calculate bond price if the coupon payment is 8%, yield for the bond is 10%, bond's face value is 1,000 and matures in 6, if paid semi-annually (enter the answer in dollar format without $ sign or thousands comma -> 3519.23 and not $3,519.23 or 3,519.23)
The answer of the bond price is $911.37
What is bond price?
Daily monitoring of bond prices is valuable for determining the direction of interest rates as well as, more broadly, the future of the economy. Not surprisingly, they play a significant role in a properly managed as well as diversified investment portfolio. Bond yields and prices are always subject to price fluctuations, particularly during times of rising as well as falling interest rates. Let's talk about the connection between bond yields and prices. If you purchase a bond right away, its face value will be its price, and its yield will be equal to its coupon rate. That is, you will receive exactly that if you purchase a bond with a three-year interest rate of 1%. You will receive the bond's face value back once it matures.
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4.if the change in gdp in south korea from 2016 quarter 3 to 2016 quarter 4 was 1.6%, then we may conclude that the s.a.a.r for gdp in the same period was a.1.6%, because s.a.a.r. measures quarter-to-quarter growth b.3.2%, because s.a.a.r. measures the upper limit of current gdp growth c.one-fourth of 1.6%, or 0.4%, because s.a.a.r. removes all annualized data d.four times 1.6%, or 6.4%, because s.a.a.r. annualizes quarterly data
Because s.a.a.r. annualizes quarterly statistics, if the change in South Korea's GDP from 2016 Quarter 3 to 2016 Quarter 4 was 1.6%, we can infer that the s.a.a.r. for the same period was 4.6%.
A rate adjustment known as a seasonally adjusted annual rate (SAAR) is used to try to eliminate seasonal changes in economic or commercial statistics, such as sales figures or employment figures. In the past, coal and coke were abundant in the Saar and Ruhr districts. This attracted the steel industry, which is crucial for making weapons. The market worth of all the finished goods and services that nations produce and sell in a certain time period is measured in dollars by their gross domestic product (GDP). This measurement is frequently reviewed before being regarded as a valid indicator due to its subjective and complicated character. The USA is by far the largest economy in our ranking for 2021, with a GDP of $23.0 trillion USD. With a GDP of 17.7 trillion USD, China comes in second position.
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questions 1. what information does paul have to support his belief that something is wrong? 2. knowing that you are not an attorney, does it appear from a project management perspective that sufficient information exists for a possible lawsuit to recover all or part of the incentive bonus for early delivery? 3. how do you think this case study ended? (it is a factual case and the author was the consultant.)
The management section of the proposal obtained by Paul provides supporting evidence that Welton knowingly manipulated the contract in their favor.
Welton stressed their ongoing connection with the Navy and mentioned that they had previously completed nearly comparable tasks for them using a team of individuals who had worked on previous contracts. If such were the case, then why did it take them six months to construct their manufacturing and procurement strategies, especially since similar plans for other contracts were created in less time? Furthermore, one should undoubtedly question Welton's motivation for requesting an incentive-based contract. The case study stated that while the Navy was interested in their contractor's choice, Welton was adamant on changing the contract type. In order to fulfill the contract one quarter earlier than expected, Welton took advantage of the incentive-based contract by investing an additional $5 million in labor. According to the 90%-10% share agreement, Welton received a $6 million incentive for the early delivery but the labor cost overrun of $5 million only resulted in a $500,000 fine.Although it appears exceedingly doubtful, there may be sufficient evidence for the Navy to recover some of the incentive bonus. It is ultimately the Navy's fault for agreeing to a fixed-price-incentive-fee contract and anticipating that Welton would not abuse the terms of the agreement. They may have questioned Welton's motivations at various stages throughout the project and changed direction if needed. For example, towards the end of the first quarter, when Welton was meant to be creating their production plans, they were spending more than twice as much on labor as planned. The cost overruns would have been an alert if the Navy had been keeping an eye on their purchase orders and expense reports. The proposal's management section lends credence to the Navy's concerns that Welton deliberately finished the task in less time to get the incentive. Both parties must have been truthful in their assessments and contract talks, according to the contract's Truth of Negotiations provision. In court, Welton would have to provide evidence as to why they anticipated this job would take so much longer than the other, comparable projects they had already finished. In a potentially drawn-out legal battle, the Navy must demonstrate that Welton utilized improper pricing tactics to boost company profits. The argument that Welton intended to con the Navy from the beginning should be supported by the fact that Welton began billing labor charges at a rate that was around 62% higher each month.The Navy for signing an incentive contract and failing to check on the project's condition while it was ongoing, as well as the Welton Company for failing to provide accurate estimates during negotiations, make it difficult to make a judgment because both parties share responsibility. It is the responsibility of the Navy to prove that Welton purposefully supplied estimations that were not supported by the available historical evidence and instead promoted their own individual objectives. It would be challenging for the top management at Welton, who signed the "Truth of Negotiations" paper, to deny on evidence that they had not intended from the start to finish on time and get the reward.Lean more about Navy, here
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if the spot rate of the euro is $1.10 per euro and the 30-day forward rate is $1.00 per euro and you believe that the spot rate in 30 days will be $1.05 per euro, you can maximize speculative gains by:
You can try to maximize speculative gains by: signing a forward foreign exchange contract to sell dollars in 30 days.
How do we calculate forward and spot exchange rates?To calculate the forward rate, simply multiply the spot rate by the ratio of interest rates and manage for the time until expiration.
So, the forward rate equals to the spot rate x (1 + domestic interest rate) / (1 + foreign interest rate).
What is spot rate and forward rate?In common , a spot rate means to the current price or bond yield, while a forward rate means to the price for the same product or instrument at some points in the future. In commodities futures markets, a spot rate is the price for a commodity that is being traded immediately on the spot.
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siskiyou, inc. has total current assets of $1,200,000; total current liabilities of $500,000; long-term assets of $800,000; and long-term debt of $600,000. how much is the firm's total equity?
The total equity of Siskiyou, inc. is $900,000.
What is total equity?Entire assets minus total liabilities equals equity. A company's balance sheet will contain all of these numbers.
The sum that investors put in a firm in return for stock, plus all future profits realized by the company, less all future dividends paid out, is referred to as total equity.
Total equity =( current assets + long term assets) - (long term debt + current liabilities)
= 2,000,000-(500,000+600,000)
= $900,000
Hence, The total equity of Siskiyou, inc. is $900,000.
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economic efficiency in a free market occurs when group of answer choices consumer surplus is maximized. price is as low as possible. producer surplus is maximized. the sum of consumer surplus and producer surplus is maximized.
Economic efficiency in a free market occurs when the sum of consumer surplus and producer surplus is maximized.
In order to serve each person or entity in the best possible manner while minimizing waste and inefficiency, economic efficiency implies an economic state. Any adjustments made to benefit one entity would hurt another in an economically effective economy. The cost of production is kept as low as feasible for both the fixed and variable inputs of production.
Allocative, productive, distributive, and Pareto efficiency are a few words that refer to different stages of economic efficiency. Economic efficiency is essentially an idealized limit that can only ever be approached.
Instead, to determine how effectively an economy operates, economists examine the amount of loss, sometimes known as waste, between pure efficiency and reality.
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Nominal gdp measures base-year production using base-year prices, whereas real gdp measures current production using current prices. True or false?.
Nominal GDP measures base-year production using base-year prices, whereas real GDP measures current production using current prices.
The statement is false.
Nominal GDP is GDP evaluated at contemporary marketplace expenses. therefore, nominal GDP will include all of the changes in marketplace fees which have taken place all through the modern 12 months due to inflation or deflation.
Nominal GDP is the Gross home Product without any impact of inflation. real GDP is the inflation-adjusted GDP of a rustic. The Nominal GDP of a rustic is expressed in terms of current year costs of goods and offerings.
Nominal GDP assesses monetary manufacturing in an economy but includes the modern charges of goods and offerings in its calculation.
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The ceo of c & j construction is considering moving to a virtual network structure. What would be the best reason to make such a move?.
The strongest reason for such a move would be to concentrate on the organization's core strengths while outsourcing less important mission-critical jobs.
What exactly is a virtual network?
C&J Construction's CEO is thinking about switching to a virtual network topology. A loose connection of businesses that is managed by a small, centralized organization is referred to as a virtual network structure. This team is in charge of assigning tasks to the suitable businesses in the network. For instance, if C & J Building's primary business was construction, it could establish connections with engineering and sales firms to outsource such tasks and concentrate on construction.
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state regulations regarding the sale of alcohol over the internet can negatively impact the business of fine wine distributors, making it all the more critical for their marketers to adjust their marketing strategies based on these factors.
State regulations regarding the sale of alcohol over the internet can negatively impact the business of fine wine distributors, making it all the more critical for their marketers to adjust their marketing strategies based on these technological factors.
In the field of business, the ways in which a company manages the production and the sales of its product including e-commerce are referred to as technological factors.
Effective marketing strategies need to be applied by keeping into consideration all the technological factors. The operation of an organization is based on its technological factors.
The imposition of state regulations over the sale of alcohol is a technological factor that needs to be focused on and requires adjusting the marketing strategies.
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If my revenue is 1,000,000 and my expenses are 1,386,000 whats my profit in percentage
The answer is -27.85%
1,000,000-1,386,000 = -386,000
-386,000/1,000,000*100 = -27.85%
What does the Government do with collected tax money ? (4 sentences)
Some of the use of the collected tax money (tax revenue) by a state or federal government includes:
payment of salaries of public workersbuying of security weapons for safetyprovision of basic or social amenities such as roads, powerprovision of quality education etcWhat are source of tax revenue?Basically, a tax revenue refers to the income that is collected by governments through taxation. A taxation is the primary source of government revenue and these revenue may be extracted from sources such as individuals, public enterprises, trade, royalties on natural resources, foreign aid etc.
However, an inefficient tax collection is greater in countries that is characterized by poverty, large agricultural sector and large amounts of foreign aid.
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barnes company reports the following for its product for its first year of operations. direct materials $ 35 per unit direct labor $ 25 per unit variable overhead $ 10 per unit fixed overhead $ 48,000 per year variable selling and administrative expenses $ 3 per unit fixed selling and administrative expenses $ 20,000 per year compute total product cost per unit using absorption costing for the following production levels: (a) 2,000 units, (b) 2,400 units, and (c) 3,000 units.
The total product cost per unit using absorption costing for the following production levels are:
a) 2,000 units $94b) 2,400 units $90c) 3,000 units $86.What is the total product cost per unit under absorption costing?The total product cost per unit under absorption costing is the sum of direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead per unit.
Direct materials per unit = $35
Direct labor per unit = $25
Variable overhead per unit =$10
Total variable manufacturing cost per unit = $70
Fixed manufacturing overhead per year = $ 48,000
Variable selling and administrative expenses per unit = $3
Fixed selling and administrative expenses = $20,000
2,000 units 2,400 units 3,000 units
Fixed costs per unit $24 $20 $16
Variable manufacturing cost 70 70 70
Total product cost per unit $94 $90 $86
Thus, the total product cost per unit reduces as the production level increases but includes the fixed manufacturing cost under absorption costing.
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what is the npv of a project that would cost $80000 today and be expected to produce annual cash flows of $7300 forever with the first annual cash flow expected in 1 year, if the cost of capital of the project is 9.34 percent?(round the value to nearest dollar)
$4,468 Is the npv of a project that would cost $80000 today and be expected to produce annual cash flows of $7300 forever with the first annual cash flow expected in 1 year, cost of capital is 9.34 percent.
Step-1:Calculation of present value of annual cash inflows Present Value=Annual Cash inflow/Cost of Capital = $ 7,100/9.40% = $ 75,532 Step-2:Calculation of NPV of the project Present value of cash inflow $ 75,532 Less Investment $ 80,000 NPV $ (4,468)
Capital budgeting places a greater emphasis on cash flows than profits, in contrast to several other methods of investment analysis. Instead of accounting the income and expenses resulting from the investment, capital budgeting focuses on identifying the cash inflows and outflows. Since they are cash flow activities, non-expense items like debt principal payments are, for instance, accounted for in capital budgeting. Contrarily, because they are not cash transactions, non-cash expenses like depreciation are not taken into account when planning capital expenditures (save to the extent that they have an impact on tax calculations for "after tax" cash flows). The amount of money that enters and leaves a business over the course of a fiscal year is referred to as annual cash flow.
Divide the cash flow for the period by the number of times it happens in a year.
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what are the characteristics of a high-performance work system approach to hrm? (choose every correct answer.)
The characteristics of a high-performance work system approach to HRM are A, C and D:
Focuses on collective levels of human and social capitalEnhances the performance of all employees systematicallyImproves employee motivation and opportunitiesHigh work performance system: what is it?A high-performance work system is a collection of HRM techniques intended to advance employees' abilities, motivation, and engagement in order to give a company a long-term competitive advantage.
Note that Increased employee commitment leads to improved organizational performance because high performance work systems have an impact on and align employees' attitudes and behaviors with the organization's strategic goals (Schuler and Jackson, 1987).
An example of High Performance Work System Practices (HPWS) are:
Ensuring Employee Security, Strict Selection, Decentralized Decision-Making, High Results-Based Compensation, Training by Commitment, Abolishing Status Barriers, Sharing Key Information.Learn more about high-performance work from
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See options below
Focuses on collective levels of human and social capital
Be good to all
Enhances the performance of all employees systematically
Improves employee motivation and opportunities
ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for coding associates for one year for $5,000 per month, starting at the beginning of next month. to be enforceable, a writing is required for
Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for coding associates for one year for $5,000 per month, starting at the beginning of next month. to be enforceable, a writing is required for the employment agreement.
A collateral settlement is one wherein one person (the guarantor) has the same opinion to pay the debt or duty that a 2nd person (the most important debtor) owes to a 3rd person (the obligee) if the most important debtor fails to perform.
Statutes that exist in each kingdom which require that sure styles of contracts are enforceable simplest if the settlement is in writing or evidenced with the aid of using a written memorandum or digital report this is signed.
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In the transactional model of communication, who fulfills the role of the sender?.
In the Transactional Model of Communication, the person (agent) who fulfills the role of the Sender is a: B. marketer.
What is communication?Communication can be defined as a strategic process that involves the transfer of information (message) from one person (sender) to another (recipient), especially through the use of semiotics, symbols, signs, and network devices.
In Economics, the Transactional Model of Communication comprises of four (4) main components and these include the following;
Sender (S)Channel (C)Message (M)Recipient (R)In the context of business transaction, the marketer is saddled with the responsibility of fulfilling the role of a sender because he or she sends out the goods.
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Complete Question:
In the Transactional Model of Communication, who fulfills the role of the Sender?
Market forecast
Marketer
Retailers
Consumer
What type of analytics recommends one or more courses of action, identifies the likely outcome of each decision, and quantifies the effect of future decisions in order to advise on possible outcomes before the decisions are actually made?.
Prescriptive analytics make decision one or more courses of action, identifies the likely outcome of each decision, before the decisions are actually taken.
What is Prescriptive analytics?
Prescriptive analytics makes an effort to quantify the impact of future actions. It is a subset of data analysis that seeks to provide a solution to Through the examination of raw data, technology is used to assist organizations in making better decisions. Prescriptive analytics makes recommendations for a course of action or strategy based on knowledge about potential situations or scenarios, available resources, historical performance, and present performance. It may be applied to decision-making on any time scale, from the short term to the long haul. Descriptive analytics, on the other hand, assess choices and results after the event.
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if the price index in the first year is 125, in the second year is 150, and in the third year is 200. what is the inflation rate between the first and second year and between the second and third year?
The inflation rate between the first and second year is 20%.
The inflation rate between the second and third year is 33.33%
The Price Index is a crucial economic metric. It calculates the average change in prices paid by consumers over a time interval for a basket of goods and services. The annual rate of inflation is actually the price of the total basket in a month compared with its price in the same month one year previously. Inflation is the percent changes in the price index from one year to the next.Calculating the rate of inflation:Between the first and second-year inflation was :
( 150 - 125 ) ÷ 125
= 25 ÷ 125
= 20%
Inflation during the second and third year is
(200 -150) ÷ 150
= 50 ÷ 150
= 33.33%.
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What decision support strategy uses a technique based on identifing a similar problem with a known effective solution, and apply the approach to this problem?.
Using a technique based on locating a similar problem with a well-known efficient solution and applying the approach to current situation, brainstorming and collaborative problem-solving strategies are used.
Using the brainstorming technique, a group of people can work together to generate ideas on the spot for a specific problem by compiling a list of potential solutions. The class is given the opportunity to use their prior knowledge and find connections between the issue at hand and what they have previously studied through brainstorming.
When problem-solving jointly, the likelihood of achieving the best result or solution rises. When people work together, they can share, assess, and then choose the idea that best solves the problem. All of the issue often involves more than one answer.
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if you have a dental emergency and your dentist pulls your severely infected tooth without prior negotiation about payment, or even any mention of payment, you have a(n) contract for the payment of his services.
You have an implied contract for the payment of his services if you have a dental emergency and your dentist extracts your very infected tooth without first discussing payment or even mentioning it.
What is an implied contract?An implied contract is a legally-binding duty that arises from the actions, conduct, or circumstances of one or more parties to an agreement. It has the same legal impact as a voluntary agreement established by two or more parties and communicated verbally or in writing, which is known as an explicit contract. The implicit contract, on the other hand, is assumed to exist and doesn't need to be confirmed orally or in writing.
According to the ideas underpinning an implied contract, no one should receive unjust gains at the expense of another, and fair play can be achieved without a written or verbal agreement.
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kristin is examining a measure of the financial return the human resources department received for its investment in a new performance appraisal system. the new system cost $3,500 and saved more than $5,000 in payroll expenses. kristin is examining the . a. strategy b. economic value added c. gain from investment d. return on investment e. balanced scorecard
Kristin is looking into a measure of how much money the HR department made from investing in a new performance evaluation system. While saving over $5,000 in payroll costs, the new system cost $3,500. Kristin is looking into investment return.
An indicator of an investment's profitability is the return on investment (ROI).ROI measures an investment's effectiveness by comparing the amount you paid for it to the amount you made.
How is the return on investments calculated?
An approximate indicator of an investment's profitability is its return on investment (ROI).ROI is calculated by dividing the new number by the investment's cost, then multiplying it by 100, then subtracting the investment's initial cost from its final value.
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the income statement answers which of the following questions? a. how profitable was the business? b. how much money did the owners invest? c. how much cash did the firm generate? d. how much money does the company owe?
Answer: How Profitable was the business?
Explanation:
the income statement indicates how much money the business accumulated
on october 31, your company's records say that the company has $18,282.83 in its checking account. a review of the bank statement shows you have three outstanding checks totaling $7,151.89, and the bank has paid you interest of $19.09 and charged you $15.00 in service charges. the bank statement dated october 31, would report a balance of: (round your answer to 2 decimal places.)
According to the bank statement from October 31st, there is a balance of $11,135.03.
Describe a bank statement.The transactions for a bank account over a specific time period, typically monthly, are listed in a bank statement. The statement provides the beginning and ending balances for the period along with deposits, charges, and withdrawals.
A bank statement, also known as an account statement, is a record that summarizes all of an account's transactions for a given month and is normally issued by the bank to the account holder each month.
The calculation of the bank statement's amount as of October 31, is:
Ending balance $18,282.83
Less: Outstanding cheques -$7,151.89
Add: Interest received $19.09
Less: Service charged -$15
Reported balance $11,135.03
To get the stated total, we simply added the remaining goods to the ending balance after subtracting the outstanding cheques and service fees.
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a company upgraded production machinery to transmit data to the data warehouse about the fit tolerance for assembled parts of each unit produced as the measures are taken. before the upgrade, data was transmitted at the end of a production run. the upgrade represents an increase in group of answer choices data variety. data velocity. data veracity. data volume.
An increase in data volume is caused by the upgrading of production equipment to record information about the fit tolerance for assembled pieces of each unit produced.
Big data is a term used to describe vast quantities of data that are generally challenging for users to process, analyze, and manage using traditional data technologies.Big data essentially consists of the five (5) “Vs” of velocity, veracity, value, variety, and volume.Data volume describes the quantity of data that a company stores in a database for processing and analysis. Data volume so signifies the amount of data within an organization.
In this case, an increase in data volume is caused by an upgrade to the production equipment that records information about the fit tolerance for assembled pieces of each unit produced.The upgrade reflects an increase in Data diversity when the organization merely collected the fit tolerance data for it.The term “Data Variety” describes the range of data that were accessible during data collecting.The numerous types of data, which are obtained from various sources, may either be structured, unstructured, or semistructured.Here, only the fit tolerance data from the production gear was gathered and used to determine whether to improve the machine.
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you just won the $92.5 million ultimate lotto jackpot. your winnings will be paid as $3,700,000 per year for the next 25 years. if the appropriate interest rate is 7 percent, what is the value of your windfall?
The total amount windfall tax will be $317,405, given the amount of $3,700,000 will be paid for next 25 years.
Amount that will be paid (a) = $3,700,000
Time period (n) = 25 years
interest rate (i) = 7% = 0.07
Present value of windfall tax = a [{1-1/(1+i)} ^25]/i
= 3,700,000 [1-1/(1.07) ^25]/0.07
= $317,405
A windfall tax is an increased tax percentage on earnings that arrive from a company or industry having received an unexpected capital gain. This seems to be frequently the consequence of a global political turmoil, war, or natural catastrophe that creates unexpectedly high requirement and/or supply shortages.
Governments worldwide have initiated windfall taxes for a range of reasons, which include funding social assistance programs, wealth distribution of unpredicted benefits when inflated costs benefit manufacturers at the cost of consumers and as an extra source of revenue for the federal government.
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suppose price per unit is $6, variable cost per unit is $2, fixed costs are $400 and the depreciation allowance per year is $500. the relationship between operating cash flow (ocf) and sales volume (q) can be expressed as: multiple choice question.
If fixed costs are $400 and the depreciation allowance per year is $500. the relationship between operating cash flow (ocf) and sales volume (q) can be expressed as: OCF = -400 + 4Q
What is operating cash flow?Operating cash flow (OCF) can be defined as the cash amount a company or an organization incurred from their business operation.
The relationship between operating cash flow (ocf) and sales volume (q) an be expressed as: OCF = -400 + 4Q
Where:
OCF = Operating cash flow
Q = Sales volume
Therefore the expression is OCF = -400 + 4Q
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The complete question is:
suppose price per unit is $6, variable cost per unit is $2, fixed costs are $400 and the depreciation allowance per year is $500. the relationship between operating cash flow (ocf) and sales volume (q) can be expressed as: multiple choice question.
OCF = -400 + 4Q
OCF = 400*Q - 4
OCF = 4/Q + 500
OCF = 400 - 4*Q
A factory in germany produces millions of auto parts a year, and has been able to reduce its costs per unit as it increased its production. This demonstrates the concept of.
A German business that makes millions of vehicle parts annually was able to lower its cost per unit as it boosted production. This serves as an example of the idea of economies of scale.
Cost advantages that businesses enjoy when production becomes efficient are known as economies of scale. By increasing production and reducing expenses, businesses can attain economies of scale. Costs are divided among more products, which causes this. Costs come in fixed and variable forms.
When it comes to economies of scale, the size of the business typically matters. Cost savings increase with business size. Both internal business and external economies of scale are possible. While external economies of scale are influenced by outside causes, internal ones are based on management choices.
Economies of scale result in cheaper per-unit costs for a variety of reasons. Production volumes are first increased through worker specialization and better technological integration. Additionally, decreased per-unit prices may result from larger advertising purchases, bulk orders from suppliers, or lower startup costs. Third, cost reduction is aided by dividing internal function costs among a greater number of manufactured and sold units.
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