Answer:
It is more convenient to buy the component.
Explanation:
Giving the following information:
Production= 42,000 units
Variable costs are $6.25 per unit, fixed costs related to making this component are $87,000 per year
The company is considering buying this component from a supplier for $3.70 per unit.
We will take into account only the incremental costs.
Make in-house:
Total cost= 87,000 + 6.25*42,000
Total cost= $349,500
Buy:
Total cost= 3.7*42,000= $155,400
It is more convenient to buy the component.
The combination of firm-specific and valuable _______________ and firm-specific ______________ allows a company to possess a core competency.
Answer:
Resources; productivity.
Explanation:
Core competency can be defined as the set of skills, experience and technical know-how, which an organization possesses and distinguishes them from their competitors (rivals) in the same industry. Basically, measuring the core competence of an organization is beyond its financial assets or physical value. Core competency of an organization is rather the defining capabilities and resources which gives it a competitive advantage over its rivals in the same industry.
Hence, the combination of firm-specific and valuable resources and firm-specific productivity allows a company to possess a core competency. A company that possesses core competence are characterized by;
1. They are not so easy to imitate or not imitable by their rivals in the industry.
2. They have a very large market capital share and as such are able to diversify.
3. A core competent company should be able to provide significant satisfaction or benefits to the consumers of its products.
An individual purchased a taxable corporate bond at a premium. The bond has a remaining ten year maturity period. For federal income tax purposes, amortization of the premium:________
Available Options Are:
A. Increases investment interest expense
B. Is required
C. Reduces interest income
D. Increases interest income
E. Increases the basis of the bond
Answer:
Option C. Reduces Interest Income
Explanation:
The reason is that when we amortize the premium the carrying value of the bond decreases which decreases the principal amount and thus the interest calculated will also be decreased. The decrease in principal amount is because of the difference between the coupon rate of the bond and the firm's required rate of return.
Hence the amortization of the premium reduces the interest income.
Describe how to use project documents to help a team progress through the stages of development.
Answer with Explanation:
The objectives of the project at each stage are defined and well documented. Project documents are very useful in understanding of the issues with the project and how to resolve and when to act. All this is possible if we use the project documents in effective manner which will help in running of project very smoothly.
Furthermore, the project documents also helps the project team to understand what they are expected to perform and what are their next responsibility associated with project. The documentation also helps them to understand what are the set objectives of the project which both as an individual and as a team they have to accomplish.
May Bakery, Inc. reported a prior-period adjustment in 2016.An accounting error caused net income of prior years to be overstated by $6,000.Retained Earnings at December 31, 2015, as previously reported, was $39,000.Net income for 2016 was $72,000, and dividends declared were $23,000.Prepare the company's statement of retained earnings for the year ended December 31, 2016.
Answer:
Particulars Amount
Retained earnings January 1,2016 $39,000
as originally posted
Prior period adjustment $6,000
Retained earnings as adjusted $33,000
Net Income for the year $72,000
$105,000
Dividends declared $23,000
Retained earnings December 31, 2016 $82,000
Why are daily scrums likely to reduce the time that is normally required for new team members to become productive
Answer:
Daily scrums provide the opportunity for the team members to think, reflect on, and adjust the work done on a project. This opportunity helps new team members to learn fast because of the interaction they share with experienced team members. This means that the experience of other team members rob off on the new team members during timeboxed scrums, making them to become more productive.
Explanation:
Scrum is an agile project framework or approach that requires team members to meet regularly to solve emerging problems, reflect on their work through a process of iteration, and map out ways to accomplish tasks quickly. Tasks are also prioritize based on the value that they contribution to the project development.
White House officials often exude more confidence than they actually feel about future prospects for the economy. Why might this be a good strategy? Are there any dangers inherent in it?
Answer:
Following are the answer to this question:
Explanation:
It is a great approach since it encourages and guarantees enhanced investment in infrastructure. Even so, a reduction in the possible future investment funds caused by government confidence will also result in business mistakes or failures throughout the investment process, and that's why the officials of the White House frequently exude a greater level of pride in prospects for the economic system than they feel.
If a life insurance applicant's answers on the application indicate that he/she is in good health, when in fact the applicant has a disease that he/she is not aware of, the statement on the application is considered:
Answer: d. A representation
Explanation:
A Representation refers to a statement that a person seeking insurance makes on their insurance application that to the best of their knowledge represents the truth in the questions asked.
This is what the applicant in the question did because they did not know that they had a disease that should be disclosed. Representations can be legal grounds to void a statement by an insurance company if information provided is eventually proven wrong.
Under monopolistic competition, a firm's ability to influence the price of the product it sells arises because:
Answer:
The answer is because of product differentiation
Explanation:
Under monopolistic competition, the sellers' product are differentiated from one another and this gives the sellers the power to influence prices.
Like perfect competition, the market has many buyers and sellers, free entry and exit but the major difference between the two is the product differentiation.
For example in the mobile phone market, we have Samsung, Infinix, Iphones, Oppo etc. They are all mobile phones but they are different from from one another in the aspect of specifications. iPhones usually charge highest. There is customers' loyalty in this market.
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10; direct labor, $14, variable overhead $3 and fixed overhead, $8. An outside supplier has offered to sell the product to Paxton for $32. Compute the net incremental cost or savings of buying the component.
A. $5.00 savings per unit. eBook
B. $3.00 cost per unit.
C. $0 cost or savings per unit.
D. $5.00 cost per unit.
E. $3.00 savings per unit.
Answer:
D. $5.00 cost per unit.
Explanation:
The computation of the incremental cost or saving of purchasing the component is shown below;
Selling price = $32
And, the making cost is
= Direct material + direct labor + variable overhead
= $10 + $14 + $3
= $27
So, the net incremental cost is
= Selling price - making cost
= $32 - $27
= $5 cost per unit
Hence, the correct option is d.
If a bushel of wheat costs $3.20 in the US and costs 40 pesos in Mexico and the nominal exchange rate is 10 pesos per dollar, then the real exchange from the US perspective is 0.80. The US will…
Answer:
If a bushel of wheat costs $3.20 in the US and costs 40 pesos in Mexico and the nominal exchange rate is 10 pesos per dollar, then the real exchange from the US perspective is 0.80. The US will…
increase exports of wheat to Mexico.
Explanation:
As the US increases exports of wheat to Mexico, it will receive more income per bushel since a bushel of wheat costs more in Mexico than in the US. While a bushel of wheat costs $3.20 in the US, it costs $4.00 per bushel in Mexico. Exports of wheat to Mexico will yield income in excess of $0.80 per bushel.
The $0.80 excess is computed from the difference between the dollar cost in Mexico and the dollar cost in US. With the exchange rate of 10 pesos per dollar, 40 pesos will be equal to $4.00. So, if it costs $3.20 in US and $4.00 in Mexico, the best option would be to export more to Mexico and reap in the extra $0.80 ($4.00 - $3.20) per bushel.
One of the big weaknesses of organization structures that do not have cross-business collaboration is A. making it hard to effectively empower and motivate employees. B. making it difficult to have closely related activities report to a single executive. C. that pieces of strategically relevant activities and capabilities often end up scattered across many departments thus impeding cross-business strategic fits. D. that it impedes the use of outsourcing to parts of the world with lower wages. E. that it makes the firm vulnerable to shareholder lawsuits for not maximizing value creation.
Answer:
Option C, that pieces of strategically relevant activities and capabilities often end up scattered across many departments thus impeding cross-business strategic fits, is the right answer.
Explanation:
Option C is correct because the cross-business collaboration exhibits the process in which the expertise of different departments comes together and then work for the common goal. Generally, the capabilities and relevant activities are scattered in the different departments of the company. Therefore the cross-business team up those scattered abilities. In most of the cases, the team formed includes the people who are efficient and expert in their field. Therefore, option C is right.
Blazer Sports Store is preparing to pay its quarterly dividend of $7.75 a share this quarter. The stock closed at $105.64 a share today. What will the ex-dividend stock price be if the relevant tax rate is 19 percent and all else is held constant
Answer:
$99.3625
Explanation:
The computation of ex-dividend stock price is shown below:-
Ex-dividend stock price = Stock closing price - Stock dividend × (1 - tax rate)
= $105.64 - $7.75 × (1 - 19%)
= $105.64 - $7.75 × 0.81
= $105.64 - 6.2775
= $99.3625
Therefore for computing the ex-dividend stock price we simply applied the above formula.
The following data are available for the Northwestern Division of Dempsey, Inc. and the single product it makes. Average operating assets $3,000,000
Annual fixed costs 560,000
Unit selling price 40
Variable cost per unit 24
How many units must the division sell each year to achieve an ROI of 16%?
Answer:
65,000 units
Explanation:
Let the number of units be sold = x
Operating Income= Sales- Variable cost – Fixed Cost
Operating Income = 40x - 24x - 560,000
Operating Income = 16x - 560,000
Return on Investment = Operating Income / Net Operating Assets
16% = (16x - 560,000 )/ 3,000,000
480,000 = 16x - 560,000
16x = 480,000 + 560,000
16x = 1,040,000
x = 65,000 units
Chester's balance sheet has $105,038,000 in equity. Further, the company is expecting net income of 3,000,000 next year, and also expecting to issue $4,000,000 in new stock. If there are no dividends paid what will beChester's book value?
Answer:
The answer is $112,038,000
Explanation:
The total equity will be equity brought forward, the net income(retained earnings) and the newly issued shares.
Book value equals asset minus liability which this formula is the same as equity. So in order words book value is also the same as total equity.
Therefore, the book value is:
$105,038,000 + 3,000,000 + $4,000,000
= $112,038,000
International trade currently involves about ______________ worth of goods and services thundering around the globe. Group of answer choices
Answer: $20 trillion
Explanation:
International trade is a trade that occurs between different countries. Die to international trade, several countries can buy the goods and services that are not being produced in their countries.
It should also be noted that International trade currently involves about $20 trillion worth of goods and services thundering around the globe.
You decided to buy apples at a grocery store somewhere in the mountains. You buy 5 pounds of apples, which are sold for $1.99/lb. (One pound is the unit of force equal to 0.454 kgx9.80 m/s where g = 9.80 m/s2 is the standard value of the acceleration due to the gravity). You overpaid for the apples, since the value of the acceleration due to the gravity at this mountain location is only gmountain 9.79 mis.
Determine how much you overpaid for your 5 pounds of apples.
Answer:
Amount overpaid = $0.0104 (Approx)
Explanation:
Given:
Quantity of apple = 5 lb
Amount paid = $ 1.99 / lb
Gravity on mountain = 9.79 m/s²
Find:
Amount overpaid
Computation:
Actual mass of apple = 5 (9.79/9.80)
Actual mass of apple = 4.9948
Actual amount = 4.9948 × 1.99
Actual amount = $9.9396
Amount overpaid = Amount paid -Actual amount
Amount overpaid = [5 x 1.99] - $9.9396
Amount overpaid = $0.0104 (Approx)
Polk Products is considering an investment project with the following cash flows:
Year Cash Flow
0 $100,000
1 40,000
2 90,000
3 30,000
4 60,000
The company has a 10 percent cost of capital. What is the project's discounted payback? Show your calculations?
a. 1.67 years
b. 1.86 years
c. 2.11 years
d. 2.49 years
e. 2.67 years
Answer:
b. 1.86 years
Explanation:
The computation of the project's discounted payback is shown below:-
Year Cash Flows Discounted CFs (at 10%) Cumulative
Discounted CFs
0 -$100,000 -$100,000 -$100,000
1 $40,000 $36,363.64 -$63,636.36
2 $90,000 $74,380.17 $10,743.80
3 $30,000 $22,539.44 $33,283.25
4 $60,000 $40,980.81 $74,264.05
Discounted Payback Period = Years before full recovery +
(Uncovered Cost at start of the year ÷ Cash Flow during the year)
Now we will put the values into the formula
= 1 + ($63,636.36 ÷ $74,380.17)
= 1 + 0.86
= 1.86 years
A method of allocating merchandise cost that assumes the first merchandise bought was the first merchandise sold is called the
Answer:
First - in - First - Out (FIFO) method
Explanation:
The First - in - First - Out (FIFO) method, assumes that the first goods received by the business will be the first ones to be delivered to the final customer.
It assumes that goods have been used in the order in which they are purchased.
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,110 in assets to launch the business. On October 31, the company’s records show the following items and amounts. Cash $ 13,470 Cash dividends $ 2,200 Accounts receivable 12,940 Consulting fees earned 12,940 Office supplies 2,400 Rent expense 2,640 Land 45,860 Salaries expense 5,920 Office equipment 17,020 Telephone expense 800 Accounts payable 7,820 Miscellaneous expenses 620 Common stock 83,110
Using the above information prepare an october income statement for the business.
Answer:
Ebony Ernst
Income statement for the month ended October 31
Consulting fees earned $12,940
Less Expenses :
Rent expense ($2,640)
Salaries expense ($5,920)
Telephone expense ($800)
Miscellaneous expenses ($620)
Profit or (Loss) $2,960
Explanation:
Income Statement shows the profit or loss resulting from the companies operations.
The Income statement comprises of revenues or income items and expenses items only.
So be careful to consider only these in solving this problem.
The Profit or loss is the final result and is determined by deducting expenses from revenue or income.
What is LVN Corporation's direct labor efficiency variance? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)
Complete Question:
LVN Corporation's direct labor costs and related information for the month of June were as follows:
500 Actual total direct labor-hours
1000 Standard total direct labor-hours
Total direct labor cost $16,500
Unfavorable direct labor rate (rate) variance $600
What is LVN Corporation's direct labor efficiency variance?
A. $16,500 unfavorable
B. $7950 unfavorable
C. $7950 favorable
D. $16,500 favorable
Answer:
$7,950 Unfavorable
Explanation:
As we know that:
"Labor Efficiency Variance = (Actual Labor Hours Worked for Actual Production − Standard Hours for Actual Production) * Standard Rate"
If we consider the parenthesis elements in the formula, we can decide whether the variance is favorable or adverse. If the actual labor hours worked are more than the budget (standard hours for actual production) then the variance (difference) is adverse because greater the hours worked for same level of activity (Production Units) the greater is the labor cost. Hence the variance would be adverse and vice versa.
Here
Actual Hours Worked for actual production are 1,000 Hours
Actual total labor cost is $16,500
Standard Hours Worked for actual production are 500 Hours
Standard rate per hour is $15.9 per Hour (Step 1)
By putting values, we have:
Direct Labor Efficiency Variance = (1000 Hrs - 500 Hrs) * $15.9 per hour
= (1000 - 500) * $15.9 per share
= $7,950 Unfavorable
Step1: Find Standard Labor RateWe can find the standard labor rate using the following labor rate variance formula:
Labor Rate Variance = (Standard Rate per Hour * Actual Hours Worked) − (Actual Rate per Hour * Actual Hours Worked)
Here
(Actual Rate per Hour * Actual Hours Worked) is total labor cost which is $16,500
Actual Hours Worked is 1000 Hours
Labor Rate Variance is ($600)
By putting values, we have:
($600) = (1000 Hours * Standard Labor Rate) - $16,500
($600) + $16,500 = 1000 Hours * Standard Labor Rate
$15,900 = 1000 Hours * Standard Labor Rate
Standard Labor Rate = $15,900 / 1000 Hours = $15.9 per hour
< Back to Assignment Attempts: Average: / 1 3. Rules versus discretion This question addresses the issue of whether monetary policy should be made by discretionary policy or be implemented according to a set of rules. Which of the following statements reflect arguments in favor of policy by rule rather than discretion? Check all that apply. The time inconsistency of policy problem can be eliminated by having the central bank commit to a particular policy rule. Monetary rules may lead to a lower sacrifice ratio because the public is more confident that the Federal Reserve will keep inflation low. It is impossible for a policy rule to consider all the possible scenarios and specify, in advance, the right policy response. It is better to appoint qualified individuals who will respond to any situation as best they can. Monetary rules reduce the flexibility of the Federal Reserve. Grade It Now Save & Continue Continue without saving
Answer:
Monetary rules may lead to a lower sacrifice ratio because the public is more confident that the Federal Reserve will keep inflation low.The time inconsistency of policy problem can be eliminated by having the central bank commit to a particular policy rule.Explanation:
Monetary Policy by a central bank is what decides how much money will be in an Economy and so can have influence on interest and inflation rates.
There have been some arguments as to whether Central banks like the Fed should use a Rule based approach where monetary policy is in line with set rules vs Discretionary where the Fed can implement monetary policy based on their perception of Economic events.
Some of the arguments presented by proponents for the Rule based approach are;
If certain rules in place to govern monetary policy in terms of inflation keep the inflation rate stable and low, the sacrifice ratio will be lower. The sacrifice ratio refers to the costs of a fluctuating inflation rate on the economy with producers producing less when inflation falls as they wait for it to rise again. If the rate is kept low, the producers would have to produce regardless. If the Fed were to commit to certain rules, policy will be implemented on a consistent basis such as the increase in money supply every period. This would remove the time inconsistency of policy problem.Roberto Corporation was organized on January 1, 2021. The firm was authorized to issue 88,000 shares of $5 par common stock. During 2021, Roberto had the following transactions relating to shareholders' equity: Issued 10,800 shares of common stock at $5.70 per share. Issued 19,300 shares of common stock at $9.70 per share. Reported a net income of $98,000. Paid dividends of $41,000. Purchased 3,500 shares of treasury stock at $11.70 (part of the 19,300 shares issued at $9.70). What is total shareholders' equity at the end of 2021
Answer:Shareholder's equity =$264,820
Explanation:
Purcahse of treasury stock =Shares purchased×price purchased
=3,500 shares×$11.70 per share
=$40,950
Shareholder's equity =Equity capital+Net income− Dividend−Treasury stock
Given
Net income = $98,000
Dividends =$41,000
but Equity capital =Shares issued× the Issued price + Shares issued× the Issued price +....
= 10,800 x $5.70 + 19,300 x 9.70=61,560 + 187,210=$248,770
Shareholder's equity = $248,770 + $98,000 - $41,000 -$40,950= $264,820.
A 12-year capital lease specifies equal minimum annual lease payments. Part of this payment represents interest and part represents a reduction in the net lease liability. The portion of the minimum lease payment applicable to interest expense should:
Answer: Less than in year 8
Explanation:
Here is the complete question:
A 12-year capital lease specifies equal minimum annual lease payments. Part of this payment represents interest and part represents a reduction in the net lease liability. The portion of the minimum lease payment in Year 10 applicable to interest expense should be:
a. Less than in Year 8
b. More than in Year 8
c. The same as in Year 12
d. Less than in Year 12
A capital lease is a type of lease whereby the leader asset are financed by the lessor while the lessee gets all other ownership rights.
Based on the scenario explained in the question, the portion of the minimum lease payment in Year 10 applicable to interest expense should be less than in Year 8.
bank pays interest quarterly with an EAR of 9%. What is the periodic interest rate applicable per quarter
Answer:
2.18%
Explanation:
Effective interest rate = (1+i/m)^n - 1
i is stated as interest rate
m is the compounding frequency
Here, the compounding is quarterly and the effective interest rate is 8%
Since one year is equal to 4 quarter, the value of m is equals to 4
Effective interest rate = (1 + i/4)^4 - 1
9% = (1 + i/4)^4 - 1
0.09 + 1 = (1 + i/4)^4
(1.09)^1/4 = 1 + i/4
1 + i/4 = 1.02178
i/4 = 1.02178 - 1
i/4 = 0.2178
i/4 = 2.18%
The management of Green Energy Manufacturing is analyzing variable overhead variances for the fiscal period just ended. The flexible budget called for $176,000 in variable overhead but actual variable overhead was $100,000. In computing the overhead variances, Green’s management discovered that it had used 40,000 pounds of direct material, rather than the budgeted amount of 44,000 pounds. (Pounds of direct material is the single overhead driver of variable overhead). The standard variable overhead rate per pound of direct material is $2.00.
What is Green's variable overhead efficiency variance?
A. $ 8,000 (U)
B. $16,000 (F)
C. $24,000 (U)
D. $ 8,000 (F)
On January 9, a company pays $5,910 for salaries and wages of which $2,870 was reported as Salaries and Wages Payable on December 31. Give the entry to record the payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer: Please find answer in explanation column
Explanation:
Journal entry to record payment of Salaries and wages
Dates Account title Debit Credit
Jan 9 Salaries and Wages Payable $2,870
Salaries and Wages Expenses $3,040
Cash $5,910
Calculation
Salaries and wages Expense = Cash -Salaries and Wages Payable
= $5,910- $2,870=$3,040
Should companies hire only people who represent the company image based on how they look?
The following data relates to Spurrier Company's estimated amounts for next year. Estimated: Department 1 Department 2 Manufacturing overhead costs $1,360,000 $3,560,000 Direct labor hours 553,000 DLH 803,000 DLH Machine hours 103,000 MH 37,000 MH What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round to two decimal places)
Answer:
$3,628 per direct labour hour.
Explanation:
Total manufacturing overhead cost and total direct labour hours
Particulars Dep 1 Dep 2 Total
Manufacturing overhead cost 1,360,000 3,560,000 4,920,000
Direct labour hours 553,000 803,000 1,356,000
Plant-wide overhead rate = Total manufacturing overhead / Total direct labour rate
Plant-wide overhead rate = $4,920,000 / 1,356,000
Plant-wide overhead rate = $3,628
Therefore, the Plant-wide overhead rate is $3,628 per direct labour hour.
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,090,000, and it would cost another $22,500 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $627,000. The machine would require an increase in net working capital (inventory) of $16,500. The sprayer would not change revenues, but it is expected to save the firm $430,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 30%. Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar.
a. What is the Year-0 net cash flow?
$
b. What are the net operating cash flows in Years 1, 2, and 3?
Year 1: $
Year 2: $
Year 3: $
c. What is the additional Year 3 cash flow (i.e, the after-tax salvage and the return of working capital)?
$
d. If the project's cost of capital is 13 %, what is the NPV of the project?
$
Should the machine be purchased?
a. Yes
b. No
Answer:
a) -$1,129,000
b) net operating cash flows:
year 1 = $412,239
year 2 = $448,152
year 3 = $350,428
c) total year 3 cash flow (including after tax salvage value and working capital) = $831,759
after tax salvage value = $464,831
working capital = $16,500
d) NPV = $179,733
e) the machine should be purchased
Explanation:
initial investment year 0 = $1,090,000 + $22,500 + $16,500 (net working capital) $1,129,000
depreciation per year:
year 1 = 33.33% x $1,112,500 = $370,796
year 2 = 44.45% x $1,112,500 = $490,506
year 3 = 14.81%% x $1,112,500 = $164,761, carrying value after depreciation = $86,437
if sold at $627,000 at the end of year 3, the after tax net cash flow = $627,000 - [($627,000 - $86,437) x 30%] = $464,831
cash flow year 1 = [($430,000 - $370,796) x (1 - 30%)] + $370,796 = $412,239
cash flow year 2 = [($430,000 - $490,506) x (1 - 30%)] + $490,506 = $448,152
operating cash flow year 3 = [($430,000 - $164,761) x (1 - 30%)] + $164,761 = $350,428
total cash flow year 3 = [($430,000 - $164,761) x (1 - 30%)] + $164,761 + $16,500 + $464,831 = $831,759
NPV = $179,733
In the late the unemployment rate dropped below the natural rate of employment. Firms with cavancies wer having to pay:______.
Complete Question:
In the late 1990's, the unemployment rate dropped below the natural rate of unemployment. Firms with vacancies were having to pay higher wages to try and fill job openings. If inflation were to begin, it would most likely be described as:
A. Deficit pull inflation
B. Demand pull inflation
C. Cross deficit inflation
D. Cost push inflation
Answer:
Option D. Cost push inflation
Explanation:
The inflation that is all because of increase in the prices of input labor, Material, Overhead, etc. Thus increase in the price of end product is an impact of increase in input cost and also because of decreased supply of product. The decrease in product supply is because only those firms produce products that have a competitive cost advantage.
In the current case, when the unemployment rate falls below the natural rate of employment then this means that the demand of the labor has increased and thus the salaries and wages of the employee will also increase. The new job opening will have to be filled by putting forward an attractive offer to recruit employees. This is cost push inflation, because the cost of the input has increased which will increase the cost of production and thus increasing the price of the end product.