cost centers can be a drain on an organization. could internal charge backs be implemented? present specific ideas.

Answers

Answer 1

Yes, internal charge backs can be implemented to help mitigate the impact of cost centers on an organization.

Internal charge backs are a mechanism that allocates the costs of a cost center back to the departments or business units that are responsible for generating those costs.

Here are some specific ideas for implementing internal charge backs in an organization:

1) Develop a clear understanding of the costs associated with each cost center. This includes not only direct costs but also indirect costs such as overhead.

2) Establish a clear allocation method for each cost center. This should be based on a fair and reasonable method of allocating costs, such as the use of activity-based costing or cost driver analysis.

3) Implement a system for tracking and reporting the costs of each cost center. This may include using a software system, such as an enterprise resource planning (ERP) system, or a manual system using spreadsheets.

4) Communicate the internal charge back system to all business units and departments. This should include how the costs are calculated and how the charges are to be paid.

5) Regularly review and adjust the internal charge back system as necessary. This may be necessary due to changes in the organization's structure, changes in the cost centers, or changes in the methods used to allocate costs.

By implementing internal charge backs, an organization can better control the impact of its cost centers on its financial performance, and ensure that each business unit is held accountable for its own expenses.

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Related Questions

What are the 4 main types of businesses?

Answers

Business can be classified into 4 categories, there are sole proprietorship, partnership, corporation, and also S corporation. That type of business is being classified by Legal and tax considerations .

In the term of economic, Business also known as  the efforts and activities of a person who generally can be defined as a producing goods or offering services with the intent to sell them for profit. In the other side, Business also can be described as an enterprising entity or organization that carries out professional activities.

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list three ways the credit card industry makes money off of customers?

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These are the extraordinary charges thru which credit score card corporations make and earn money. These might also include money processing fees, reward redemption costs and money increase fees.

For example, you have to pay an extra amount whenever you make any savings card payment in cash.

What are three ways the credit score card industry makes cash off of clients Dave Ramsey?

Credit card agencies make their cash in three ways: 1) expenses paid with the aid of cardholders, 2) transaction fees paid with the aid of businesses, and 3) hobby paid via cardholders.

Credit cards are convenient and secure, they help build credit, they make budgeting easier, and they earn rewards. And no, you do not have to go into debt, and you don't have to pay interest.

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best discount store uses the perpetual system and had a sale on account to julie smith of $5,000 with terms 3/10, n/30. ms. smith did not pay within the discount period. the journal entry to record receiving payment from the sale on account would be:

Answers

Cash is received in the amount of $4,850(debit), which needs to be deducted from Accounts Receivable of $4,850 (credit).  

What are Accounts Receivable?

The term "accounts receivable" describes the unpaid bills or cash that customers owe a business. The term 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 few days to a fiscal or calendar year are usually included. Due to the customer's legal duty to pay the debt, businesses include accounts receivable as an asset on their balance sheets. They are regarded as liquid assets since they can be pledged as security against a loan to cover immediate expenses.

At the time the income was recorded, a discount of $150 (.03 * 5,000) had already been deducted from Accounts Receivable and Service Revenue. The balance due from Ms. Smith is $4,850 ($5,000 - $150), which must be paid.

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which advertising objective is best suited to maintaining customer relationships and for more mature products?

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Reminder advertising objective is best suited to maintaining customer relationships and for more mature products.

For products that are in the mature stage of the product life cycle, reminder advertising are very successful. The product life cycle's maturity stage is simply referred to as a phase that shows how revenues must reach a peak before declining. Sales growth typically slows down at this point, and the product is said to have gained widespread market acceptability.

In conclusion, a product can only reach its maturity stage when sales have risen to their peak level and the rate of volume sales growth tends to remain constant. Reminder can help at this point by reminding them about the product.

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Marketing typically impacts which of the following groups in society? - Customers - Owners - Suppliers.

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Marketing typically impacts all three groups in society: customers, owners, and suppliers.

Customers: Marketing is primarily aimed at customers and is designed to influence their buying behavior. By understanding the needs and preferences of customers, companies can create marketing strategies that effectively communicate the benefits of their products or services and encourage customers to make a purchase.

Owners: Marketing also impacts the owners of a company. By creating demand for their products and services, successful marketing can increase sales and profits, helping to grow the business and increase the value of the owner's investment. Suppliers: Marketing can also impact suppliers by creating demand for the products and services they supply. A strong marketing effort can help to increase sales, leading to increased demand for the products and services supplied by suppliers. This can benefit suppliers by creating new business opportunities and helping to grow their own businesses.

Overall, marketing plays an important role in shaping the behavior of customers, owners, and suppliers, and has a significant impact on the economy as a whole.

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Determine whether each of the following costs should be classified as direct materials

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All manufacturing expenses that may be directly linked to a product are categorized as either direct labor or direct materials.

What is manufacturing?

Manufacturing is the process of transforming raw materials or component components into completed things using equipment, labor, tools, and chemical reactions. By charging more for finished goods, manufacturing enables businesses to recoup their original investment in raw materials. By using assembly-line techniques and cutting-edge technologies, large-scale manufacturing makes it possible to produce items in large quantities. By utilizing economies of scale to produce more products for less money, manufacturers can profit from efficient production processes. It entails processing raw materials like ore, wood, and food into finished items like furniture, metal goods, and processed foods. Manufacturing is a particularly lucrative component in the supply chain since this added value drives up the cost of finished goods.

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if average inventory is $5 million and annual sales is $55 million, what is the inventory turnover rate?

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$0.5 million  is the inventory turnover rate. Cost of goods sold divided by two divided by (Beginning inventory plus Final inventory) is the inventory turnover ratio.

The inventory turnover ratio calculates how frequently your average inventory is "turned" or sold over a predetermined time period.  A low inventory turnover ratio could indicate sluggish sales or overstocking (also known as surplus inventory). The percentage of clients lost over time for a product or marketing team is referred to as turnover rate. The turnover rate for a SaaS provider will take into account both customers who proactively cancel their subscriptions and those who merely choose not to renew them.

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Suppose that S&P500 price/earnings ratio is 17.5, and its dividend payout ratio is 50%. Estimating a future growth of dividends of 7%, what is E(rm)? Assume this index proxies the market.

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E(rM) = Dividend Payout ratio x (1+growth rate)/ Price Earning ratio + Growth rate

Enterprise risk management  E(rm)  = 10.06%

E(rM) = Dividend Payout ratio x (1+growth rate)/ Price Earning ratio + Growth rate

E(rM) = 50%*(1+7%)/17.50 + 7%

E(rM) = 10.06%

A dividend is a payment made to shareholders by publicly traded companies that is funded by the company's net profit. Such rewards can take the form of cash, cash equivalents, shares, and so on. A dividend is cash distributed to shareholders from profits. They are usually paid once a quarter. AT&T, for example, has made similar distributions for several years, with its 2021 third-quarter issue priced at $2.08 per share.

Dividend investing can be a very profitable investment strategy. Dividend stocks have historically outperformed the S&P 500 while experiencing less volatility. This is because dividend stocks offer two types of returns: regular income from dividend payments and capital appreciation from stock price appreciation. Over time, this total return can add up.

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the munsters are remodeling their bedroom. the contractor wants $22 per square foot, and the room measures 15 feet by 10 feet. what will be the cost of remodeling?

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$2,640 will be the cost of remodeling as the the contractor wants $22 per square foot, and the room measures 15 feet by 10 feet.

What is cost?

A cost is the worth of money that has been expended to produce something or provide a service and is therefore no longer available for use in production, research, retail, and accounting.

In the case of an acquisition cost, the money spent on the acquisition is considered the cost. In this instance, money is the input used to obtain the item.

This acquisition cost may include both additional transaction expenses incurred by the acquirer over and beyond the price given to the producer, as well as the cost of production as borne by the original producer. Typically, there is a profit margin added to the price over the cost of production.

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the ______________________ prohibits creditors from issuing credit cards you have not requested

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The Equal Credit Opportunity Act prohibits creditors from issuing credit cards you have not requested.

Credit is the capacity to obtain funds on credit, as well as goods or services, with the expectation that payment will be made later. A bank or other financial organization will lend you money on credit. You are in debt up to that amount. You will be required to repay your loan, frequently with additional fees and interest. A credit is an entry that demonstrates the receipt of money in personal banking or financial accounting. A bank account register typically has credits (deposits) on the right side and debits (amounts spent) on the left. A contract between a lender and a borrower is the standard definition of credit. In addition, the term "credit" can refer to someone's or a company's creditworthiness or credit history.

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suppose you expect to receive $80 at the end of year 1, $90 at the end of year 2, $100 at the end of year 3, and $110 at the end of year 4. what is the present value of these cash flows if the interest rate is 7 percent compounded annually?

Answers

Future cash flow is worth $338.90 at present.

The present value of a future cash flow is calculated by using the following formula:

Present Value = Future Value / (1 + r)ⁿ

Where r is the interest rate and n is the number of periods.

To calculate the present value of the cash flow, we need to solve for the present value of each cash flow separately:

Present Value of Year 1 = $80 / (1+0.07)¹ = $74.68

Present Value of Year 2 = $90 / (1+0.07)² = $81.11

Present Value of Year 3 = $100 / (1+0.07)³ = $87.94

Present Value of Year 4 = $110 / (1+0.07)⁴ = $95.17

The total of all the current values represents the present value of these cash flows.

Present Value = $74.68 + $81.11 + $87.94 + $95.17 = $338.90.

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which of the following best defines systemic risk? the idea that due to the high amounts of business transactions between financial institutions, financial instabilities that occur in just a few financial institutions can very easily spread to others. the idea that the failure of one institution is an isolated event and will not affect other institutions and markets in the financial system the idea that in a financial transaction, one party has more information than the other party the degree to which securities can easily be sold without a loss of value

Answers

The idea that due to the high amounts of business transactions between financial institutions, financial instabilities that occur in just a few financial institutions can very easily spread to others.

The danger of the entire financial system or market collapsing is referred to as systemic risk in finance. This is different from the risk associated with any one specific entity, group, or component of a system, which can be contained inside it without causing harm to the entire system.

According to a popular understanding of systemic risk, the primary cause is an external event, such as a natural or man-made catastrophe like a storm or the start of war.

The SRC holds that endogenous risk, which is produced by and within the financial system and is subsequently magnified by the system, is the primary source of systemic risk.

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exercise 2.3 (algo) preparing a balance sheet (lo2-4) the balance sheet items of kiner company as of december 31, current year, follow in random order. land $ 100,000 office equipment $ 11,000 accounts payable 50,000 building 250,000 accounts receivable 50,000 capital stock 75,000 cash 40,000 notes payable 210,000 retained earnings ? a. compute the amount for retained earnings. b. prepare a balance sheet for the company.

Answers

The amount for retained earnings of the Kiner company as of December 31 is $25,000.

What are retained earnings?

Retained earnings are the total sum of a company's profits that are held aside for reinvestment as opposed to being distributed as dividends to shareholders (RE). The majority of the time, these funds are used to pay off debt or to buy working capital and fixed assets (capital expenditures). Retained Earnings are reported in the shareholder's equity column of the balance sheet at the end of each accounting period. The beginning RE balance is added to net income (or deducted from net loss, depending on the case) after dividend payments are deducted to arrive at RE. Retained earnings statements are also kept, which provide an overview of how RE changed over time.

Amount of retained earnings= 75000-50000= $25,000

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in the last decade, the , fill in the blank, strategy has been significantly impacted by the ability for customers to order products via mobile apps, the internet, and free-standing kiosks. these activities are most closely associated with which element of the marketing mix?

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The dispersion or place component of the marketing process is most closely related to these activities.

How would you define marketing?

The process of developing, communicating, delivering, as well as exchanging offerings that are valuable to customers, clients, partners, as well as society at large collectively is known as marketing.

What does marketing encompass?

Giving customers post-purchase assistance is part of marketing management's remit in order to keep their business, foster brand loyalty, and improve the company's reputation. Additionally, it entails getting customer feedback to determine how satisfied customers are. Philip Kotler is widely regarded as the founder of contemporary marketing, and with 57 publications to his credit, it's easy to see why.

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Mean value of x And y, when the regreion line of y on x and y are 4x-7y15=0 and 7x-3y-20=0 are

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The mean values of x and y can be found using the formula for the equations of the regression lines. The mean value of x is given by:

x_mean = (15/10) = 1.5

The mean value of y is given by:

y_mean = (-20/10) = -2.

So, the mean values of x and y are 1.5 and -2 respectively.

What is a mean value?

A mean value is the average of a set of numbers, computed by summing the numbers and dividing by the number of items in the set.

A regression line is a line of best fit that represents the relationship between two continuous variables. It helps to predict the value of one variable based on the value of another variable.

The regression line is created by fitting a mathematical equation to the data points. The equation takes the form of y = mx + b, where y is the dependent variable, x is the independent variable, m is the slope of the line, and b is the y-intercept. The slope and y-intercept are determined through statistical analysis of the data, using methods such as linear regression.

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in this country, running for congress involves mostly an individual decision and effort, whereas in most european nations the decision and effort are primarily organizational. group of answer choices true false

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True; In this country, running for Congress involves mostly an individual decision and effort, whereas in most European nations the decision and effort are primarily organizational.

The legislative of the U.S. federal government is known as the United States Congress. It is bicameral, with the House of Representatives as its lower body and the Senate as its upper body. It convenes in Washington, D.C., at the Capitol building. Direct elections are used to choose senators and representatives, though the governor may nominate someone to fill a vacancy in the Senate. There are 435 congressmen and 100 senators in the 535-member Congress. Only when there is a tie in the Senate does the vice president of the United States have a vote. Six members of the House of Representatives are non-voting.

Currently, Congress sessions last for a two-year term and start every other January. Every even-numbered year on Election Day, elections are held.

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calvin, a project manager, has scheduled a meeting for his team to discuss problems that have developed over the course of the project. lou, a team member responsible for assisting with updating the project schedule, expresses his concern about the time constraints over the next month. he is concerned there will not be enough time to attend the upcoming training seminar on how to use a new software program. this program is designed to help him with his tasks for maintaining the project schedule. lou maintains that it is of the utmost importance to be able to attend the training. jane, who is part of the project management team, needs lou to be available to work on some key tasks. jane reminds lou and calvin that the training seminar will be presented three months from today's date and lou can attend it when there is more flexibility in the project schedule. which action should calvin take? answers a. agree with lou and let him attend the upcoming training seminar b. take into account lou and jane's points and let the team members come to a consensus c. consider all aspects of the situation and check with key project stakeholders d. let lou decide when to take the training seminar

Answers

Calvin is backing away from the problem by allowing Jane and Lou come up with a solution.

A possible or actual conflict between members of the project team is avoided by the project manager as a means of conflict resolution.

When exactly does the project manager evaluate the effect a change has on the project?

The process of determining the impact of the modification on the project is called the impact assessment stage. It should be possible to capture the necessary information in a systematic manner by using a change request template. The goal is to make it possible for the sponsor and other interested parties to make an educated choice.

The benefits are listed in the benefit management plan, which is a tool for determining whether the system's trial results met the required advantages.

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At Creighton Company, the following errors were discovered after the transactions had been journalized and posted.


(1) A collection on account from a customer for $870 was recorded as a debit to Cash $870 and a credit to Service Revenue $870.

(2) The purchase of store supplies on account for $1,570 was recorded as a debit to Supplies $1,750 and a credit to Accounts Payable $1,750.


Prepare the correcting entries

Answers

The correction entries shall be as follows, . Service Revenue Dr.$ 870  client Account Cr.$ 870  2. Store Purchases Dr.$,570  Accounts Payable Dr.$ 180  inventories Account Cr.$,750.    

1. The service profit account was exaggerated and  client account understated.  thus by charging service  profit and by crediting  client account, both have been paraphrased at their  factual position.  

2. The account was exaggerated by$ 180(,750-,570). it is amended by charging with$ 180. Whereas the  inventories  regard was  incorrectly charged  thus that impact of$,750 switched and  factual store purchases charged with the  factual  quantum of$,570.

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your grandfather invested $1,000 in a stock 36 years ago. currently, the value of his account is $318,000. what is his geometric return over this period? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

Answers

17.36% is his geometric return over this period.

($318,000 / $1,000)1/36 − 1 = .1736, or 17.36%

What is the geometric return?

One of three approaches to estimating return over a range of time periods is a geometric return. It takes compounding into account and is frequently applied in retrospective performance appraisals. Both the "total geometric return" and the "average geometric return" exist. Because this is time-certain, the sequence of returns does matter. Discrete and continuous data are frequently distinguished in math and statistics. The more theoretical continuous version is log return. However, in the real world, most individuals consider returns divided into distinct time periods.

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collections of related projects are normally coordinated by which of these?

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Portfolio Managers. While the project manager is managing multiple tasks within a project, the program manager is coordinating between related projects within a program, in order to determine which projects are working towards the same or similar goals, and which may be dependent upon others.

A portfolio manager is a person or group of people responsible for investing a fund's assets, implementing the fund's investment strategies, and managing day-to-day portfolio management.

Portfolio managers can take an active or passive management role.

The ability to originate ideas and to employ excellent research skills are just two factors that influence a portfolio manager's success.

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When labeling food that is packaged ON SITE for RETAIL, the label must include:

Answers

In order to properly label food that has been packaged on-site for retail sale, it must either include the food's common name or a statement distinctly distinguishing it food's overall quantity.

For properly labeling on site for retail: List the ingredients in decreasing weight order if the item has two or more. Manufacturer, packer, or distributor contact information must be listed on the label. The common name of the dish or a statement distinctly and correctly identifying it should appear on food labels. Food that is obviously not going to be confused with another foodstuff doesn't need to be labelled.

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Sergei had to decide among watching a two-hour movie with a cost of $20, buying a book to read for $10 that would take about four hours to read, and going to a three-hour concert for $30. If he considers the benefit of each situation to be proportional to the amount of time, with a value of about $50 per hour, what is the opportunity cost of the best decision?.

Answers

The opportunity cost of the best decision would be $20. By watching the two-hour movie, Sergei would get the most bang for his buck, as it would cost $20 and provide two hours of entertainment, amounting to $50 per hour.

The other two options provide less value for the cost, as the book would cost $10 and take four hours to read, coming to $25 per hour, and the concert would cost $30 and take three hours, equating to $10 per hour. Therefore, the best decision for Sergei to make would be to watch the movie, and the opportunity cost of this decision would be $20. This cost is the amount of money Sergei would have to forgo in order to make the best decision.

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FILL IN THE BLANK. Direct materials, direct labor, and manufacturing overhead are all ______ costs.

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Direct materials, direct labor, and manufacturing overhead are all product costs.

The direct costs actively engaged with the manufacturing of a product are referred to as product costs. A retailer's product expenses would include goods purchased from a supplier in addition to any other costs related with bringing their products to market. In summary, product costs encompass any costs incurred during the purchase or production of a product.

Product costs are typically categorized as inventories and referenced to as "inventoriable costs" since these are used to calculate the inventory's worth. When a product is sold, the expenditures associated with it are added to the cost of goods sold, which is represented on the income statement.

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one of the first steps to take when using cvp analysis to help make decisions is ________.

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One of the first steps to take when using CVP analysis to help make decisions is to determine the relevant costs and revenues associated with different options or scenarios.

What is CVP Analysis?

Organizations can use the Cost-Volume-Profit (CVP) analysis as a management tool to assess how changes in costs, volumes, and selling prices will affect their overall profit. It sheds light on how fixed expenses, variable costs, sales volume, and profitability are related. Making decisions about pricing, product mix, and cost management require the use of this information.

The fundamental elements of CVP analysis are as follows:

1. Cost Organization: Identifying and classifying all expenditures into fixed costs and variable costs is the first stage in doing a CVP analysis. Rent and salary are examples of fixed expenses that do not fluctuate as a result of changes in output volume, whereas raw materials and direct labor are examples of variable costs that do.

2. Break-Even Point (BEP): The BEP is the point at which a corporation no longer experiences a profit or loss and its income equals its costs. This is a critical requirement that must be fulfilled before a business can start to turn a profit.

3. Contribution Margin: The contribution margin is the portion of each dollar of sales that can be used to pay for fixed expenses and turn a profit. The variable cost per unit is subtracted from the selling price per unit to arrive at this number.

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what would tire city external financing if inventory is not reduced

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The effect of not reducing inventory on tire city's external financing would depend on several factors, such as the size of the inventory, the cost of holding the inventory, and the company's cash flow.

If tire city has a large inventory and is holding onto it for an extended period, the cost of holding the inventory may increase, which could negatively impact the company's cash flow and financial performance. This could make it more difficult for tire city to secure external financing in the future, as lenders or investors may view the company as a high-risk investment.

However, if tire city is able to manage its inventory effectively and sell it quickly, the company may not face any issues with external financing. In this case, the size of the inventory may not have a significant impact on the company's ability to secure financing.

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Marketing research involves all of the following regarding information EXCEPT:
identification.
collection.
analysis.
manipulation.
dissemination.

Answers

Market research involves identification, collection, analysis, and dissemination. Hence, all options are correct EXCEPT manipulation.

Market research is a means of gathering information about certain markets and target customers. Market research firms and trade associations give statistics and statistical reports on current and projected market trends.

Typical steps in doing market research includes:

Identify and define the problem or research questionsMake the planCollect data and informationAnalyze data and the findingsDisseminate the results in a report, paper, or other publications.

It's sometimes necessary to put up a summary of the study, including the process you used, the results, the conclusions, and the next steps you recommend based on those results.

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question 2 which of the following is an asset? (check all that apply) 1 point prepaid rent common stock cash notes payable retained earnings

Answers

Cash is an asset .Current assets include: Cash and cash equivalents, such as treasury bills and certificates of deposits.

The retained earnings is not a asset because it is considered a liability to the institution. Accounts payable is considered a current liability, not an asset, on the balance sheet. Accounts receivable is listed as a current asset in the balance sheet, since it is usually convertible into cash in less than a year. Common stock is considered an asset.

cash is a current asset and is the first line-item on a company's balance sheet. Cash is the most liquid type of asset and can be used to easily purchase other assets. Liquidity is the ease with which an asset can be converted into cash.

3 types of assets are:-

long-term assets.Current Assets. Current assets are assets that can be easily converted into cash and cash equivalents (typically within a year).Fixed or Non-Current Assets. Non-current assets are assets that cannot be easily and readily converted into cash and cash equivalents.

Personal assets can include a home, land, financial securities, jewelry, artwork, gold and silver, or your checking account. Business assets can include such things as motor vehicles, buildings, machinery, equipment, cash, and accounts receivable.

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what is an accurate characterization of the role of international business investments in latin america today?

Answers

International business investments in Latin America today are seen as an important way to promote economic growth and development.

Foreign direct investments (FDI) in the region have increased significantly over the past decade, driven by a combination of factors such as improved macroeconomic policies, increased access to international financial markets, and a growing middle-class population.

Foreign investors are attracted by the region’s large domestic markets and increasing consumer spending power, as well as the availability of natural resources and labor. Investments in infrastructure, manufacturing, and services are helping to drive economic growth and reduce poverty levels in Latin America.

FDI is also helping to improve access to modern technology, foster innovation, and create new jobs. However, governments must ensure that these investments benefit all citizens by promoting inclusive economic growth and reducing inequality.

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Which term best completes the diagram?
Household
?
O A. Capital
OB. Natural resources
O C. Goods
D. Wages

Answers

Answer:

b natural resources that is the answer

Natural Resources is the term that best completes the diagram. Hence, option B is appropriate.

What is the meaning of Natural Resources?

Natural resources are substances obtained from the planet that is used to sustain life and provide for human needs. A natural resource is something that comes from nature that humans use. Natural resources include things like stone, sand, metals, oil, coal, and natural gas. Air, sunlight, soil, and water are examples of other natural resources.

Natural resources are those that are derived from nature and used largely unaltered. This covers the origins of highly valued traits, such as their utility for commerce and industry, aesthetic worth, scientific interest, and cultural significance.

They are necessary for the economic, social, and environmental health of the entire planet. Natural resources provide us with food, water, fuel, and many other things. But in addition to being useful daily, natural resources are crucial for maintaining a sustainable and healthy ecosystem.

Hence, option B is correct.

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What causes a production possibilities frontier to shift outward?

Answers

Changes in the overall number of manufacturing elements that are now available or technical improvements may result in an outward or inward shift in the PPF.

What is the production possibilities frontier?

The graph known as the Production Possibilities Frontier (PPF) illustrates all the possible output combinations of two items that can be created with the resources and technologies currently in use.

The PPF articulates the concepts of choice, tradeoffs, and scarcity well.

An outward or inward shift in the PPF could be caused by changes in the total amount of manufacturing factors that are now available or technological advancements.

If the total amount of production inputs, like labor or capital, rises, the economy can produce more goods at any point along the frontier.

The trade-off between manufacturing one good vs another is gauged by the production possibilities curve.

Therefore, changes in the overall number of manufacturing elements that are now available or technical improvements may result in an outward or inward shift in the PPF.

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