If a shortage exists in the computer market, then the current price must be less than the equilibrium price. For equilibrium to be reached in the market, you would expect prices to rise.
What is a shortage?A shortage occurs when the price of a good is below the equilibrium price. Equilibrium price is the price at which the quantity demanded is equal to the quantity supplied.
When price is below equilibrium price, consumers would demand more than the quantity supplied. This would lead to a shortage. When there is a shortage, to restore equilibrium, price would increase until the equilibrium price is reached.
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If buyers seek a mortgage on a single-family house, they would be LEAST likely to obtain the mortgage from a____
If buyers seek a mortgage on a single-family house, they would be LEAST likely to obtain the mortgage from an Investment banker.
Investment bankers provide a variety of services related to investments such as issuing stocks and bonds and providing advice on mergers and acquisitions. Investment bankers do not provide mortgages.
Buyers seeking a mortgage on a single-family house would be more likely to obtain the mortgage from a credit union, commercial bank, or mortgage broker.
Credit unions, commercial banks, and mortgage brokers specialize in providing mortgages and are more likely to have the expertise and resources necessary to provide the mortgage.
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f structural unemployment is 2%, frictional unemployment is 3%, and cyclical unemployment is 4%, the actual unemployment rate is _____%. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices 3 4 5 9
If structural unemployment is 2%, frictional unemployment is 3%, and cyclical unemployment is 4%, the actual unemployment rate is 3%. Hence, option A is correct.
What is structural unemployment?Examples of structural unemployment include labor markets in manufacturing and the fruit-picking industry. The economy becoming inefficient is one of structural unemployment's key drawbacks.
A type of unemployment known as structural unemployment can endure for a long time and be brought on by demographic or technological developments. Economic downturns or modifications in business conditions that have an impact on the need for labor are the main causes of cyclical unemployment.
Thus, option A is correct.
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you should always consider the strengths and weaknesses of the primary and secondary sources you encounter in the course of your historical study. primary sources ______ automatically be considered more reliable than secondary sources because they were produced in the historical time period you are studying. although primary sources give you firsthand insight into historical events, they usually provide only partial snapshots of events in the historical record.
Primary sources would automatically be considered more reliable than secondary sources because they were produced in the historical time period you are studying.
What are primary sources?It is important to consider both the strengths and weaknesses of both primary and secondary sources in historical study. While primary sources can be valuable for providing direct insight into historical events, they are not always more reliable than secondary sources. Primary sources can be biased or incomplete, and may only provide a limited perspective on historical events.
Similarly, while secondary sources are often based on a wide range of primary sources, they can also be influenced by the biases and perspectives of their authors. It is important to evaluate both primary and secondary sources critically, taking into account their context, authorship, and intended audience, in order to develop a nuanced understanding of historical events.
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which of the following was a way internal social and economic divisions shaped colonial responses to british policies?
A manner inner social and monetary divisions formed colonial responses to British policies changed into rich colonists joined the attempt to repudiate the stamp act; this changed into now not a class conflict, many rich colonist made common cause with the farmers, artisans and the terrible.
A rich colonist in the 16th century was a wealthy individual who had the means to settle and establish a new colony in a foreign land. These individuals often held positions of power and influence in their home countries and saw colonization as an opportunity to expand their wealth and influence. They invested large sums of money in establishing settlements, which included acquiring land, building infrastructure, and providing supplies for the settlers.
Rich colonists typically brought with them a retinue of servants and laborers, and often had a large family and social network. They played a critical role in the colonization process, as they provided the financial resources necessary to establish a colony and sustain its growth. While many of these wealthy colonists were successful in establishing profitable settlements, others encountered significant challenges and setbacks, including disease, famine, and conflict with local populations.
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which of the following may reduce continuance commitment in foreign-born employees relative to other workers?
Experiencing a weaker fit with their new geographic area may reduce continuance commitment in foreign-born employees relative to other workers. Employees who feel compelled to remain with their company because leaving would result in lower pay and benefits are a good example of continuance commitment.
According to our findings, continuance commitment is positively correlated with emotional exhaustion, which in turn causes more silent behaviour, particularly in older employees; the indirect effect is more important. A person who feels they will lose more by leaving than they will gain is said to have a continuation commitment.
The que is incomplete complete que is given below:
a. Experiencing a weaker fit with their new geographic area.
b. Having fewer links to their community.
c. Feeling less embedded in their current jobs.
d. Not being aligned with the organizational goals
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Which of the following can affect the natural rate of unemployment in an economy over time? A. labor force characteristics such as age and work experience B. the existence of labor unions C. advances in technologies that help workers find jobs D. government job-training programs E. all of the above
The option that can affect the natural rate of unemployment in an economy over time is option E. all of the above
What is the unemployment?The natural rate of unemployment is the rate of unemployment that exists when an economy is operating at full employment, with no cyclical unemployment. This rate is influenced by various factors that can change over time.
Labor force characteristics, such as age and work experience, can affect the natural rate of unemployment as different demographic groups may have varying levels of employment opportunities and job skills.
Therefore, the existence of labor unions can also impact the natural rate of unemployment, as they can negotiate for higher wages and better working conditions for their members, which may lead to increased job security but also potentially higher unemployment rates for non-union workers.
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You are considering investing in Property B in question 5. The listing price of the property is $11 million. You know that the historical annual returns on this type of property has been 10%, and the historical risk premium on this type of property has been 5.5%. In alternative investments tools, the prices of zero coupon treasury bonds are as follows: Prices of zero coupon treasury bonds (denomination = $1,000)
Maturity(yr) 1 2 3 4 5 6 7 8 9 10
Price $971 $934 $889 $839 $784 $725 $665 $604 $544 $485
How much is the property worth? Is this a good investment opportunity?4
The property is worth approximately $7.5 million which is significantly lower than the listing price of $11 million and it may not be a good investment opportunity.
To calculate the worth of the property, we can use the discounted cash flow (DCF) method. First, we need to estimate the future cash flows of the property, which will be the rental income minus any expenses associated with the property, such as taxes, maintenance, and insurance.
Let's assume that the expected cash flows for the next 10 years are $1.1 million annually, and we will sell the property at the end of 10 years for $15 million.
Next, we need to calculate the present value of the cash flows by discounting them to the present using a discount rate. Since the historical annual return on this type of property has been 10%, and the historical risk premium has been 5.5%, we can use a discount rate of 15.5% to account for the risk of the investment.
Using a financial calculator or spreadsheet, we can discount the cash flows and the sale price to get their present values. Then, we can sum up the present values to get the net present value (NPV) of the investment. If the NPV is positive, then the investment is worth considering.
Based on the given assumptions, the property is worth approximately $7.5 million. However, this is significantly lower than the listing price of $11 million.
Therefore, it may not be a good investment opportunity unless there is potential for the property to generate higher cash flows or appreciate in value. Additionally, it is important to consider other factors such as the location, condition of the property, and market trends before making a final decision.
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True or False: Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements.
The statement given in the question is True.
Accounting rule-making that relies on a body of concepts, such as generally accepted accounting principles (GAAP), can result in useful and consistent pronouncements.
A conceptual framework provides a consistent set of underlying principles and concepts that help standard setters develop and refine accounting standards.
This, in turn, can help ensure that financial information is reported consistently and reliably, making it more useful for decision-making purposes.
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Which of the following statements is false with regard to the schedule of cost of goods manufactured?
The schedule of cost of goods manufactured contains three elements of product costs-direct materials, direct labor and manufacturing overhead.
The schedule of cost of goods manufactured summarizes the portions of costs that remain in ending Work in Process inventory and that are transferred out of Work in Process to Finished Goods.
The schedule of cost of goods manufactured summarizes the portions of costs that remain in ending Finished Goods inventory and that are transferred out of finished goods to Cost of Goods Sold.
The schedule of cost of goods manufactured includes a calculation for raw materials used in production which is embedded in the schedule.
The false statement with regard to the schedule of cost of goods manufactured is option (a) The schedule of cost of goods manufactured contains three elements of product costs-direct materials, direct labor and manufacturing overhead.
Manufacturing is the process of converting raw materials into finished goods. To keep track of the costs involved in this process, companies create a schedule of cost of goods manufactured.
Out of the given statements, three are true, but one is false. The false statement is that "the schedule of cost of goods manufactured includes a calculation for raw materials used in production, which is embedded in the schedule."
The other three statements are true. The schedule of cost of goods manufactured summarizes the three elements of product costs, namely, direct materials, direct labor, and manufacturing overhead.
In conclusion, manufacturing companies need to keep track of the costs involved in the production process to determine the total cost of producing the finished goods.
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loretta is the advertising director for a large meal-kit company. she's setting up a display campaign to identify and engage with large audiences in order to extend their market reach.
In to reach more people & increase their reach, Loretta, the head for ads for one big meal-kit firm, put up a Display Plan. She has ability to talk of over 90% of users through dozens of apps.
What does a firm do in a business?Describe a firm. A company that offers professional services is referred to as a firm. This can be a corporation, limited company (LLC), or partnership. Most businesses have a single location.
An organization is owned by who?Shareholders, usually referred to as stockholders, are those who purchase shares of stock to acquire ownership stake in a corporation. A directors, who are in charge of running the company, is chosen by the shareholders.
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What is the purpose of a company's data strategy?
Answer: A data strategy helps identify the best tools that meet business needs and support both IT teams and business users. You can also verify that the tools meet all data governance policies, ensuring compliance with regulations.
Explanation:
Based only on the following information for Thrice Corp., did cash go up or down? By how much? Classify each event as a source or use of cash.
Decrease in inventory $580
Decrease in accounts payable 140
Increase in notes payable 580
Increase in accounts receivable 230
Multiple Choice
Cash decreased by $790
Cash increased by $790
Cash increased by $1,250
Cash decreased by $1,530
Cash increased by $1,070
Based only on the following information for Thrice Corp. there will be an Cash increased by $790. The cash will go up.
Option B is correct .
Classification of events as source or cash :Decrease in inventory------- source of cash
Decrease in accounts payable------use of cash
Increase in notes payable ------- source of cash
Increase in accounts receivable------- use of cash
Evaluating :Increase in Cash = Decrease in inventory -Decrease in accounts payable + Increase in notes payable -Increase in accounts receivables
=580-140+580-230
=790
Hence, cash increased by $790
Decrease in inventory :
When a company's inventory is decreasing, it frequently indicates that it is not converting inventory into cash as quickly as it once did. The company ends up paying more for storage, insurance, and maintenance when this happens. A company may produce less product in some instances, resulting in a decrease in inventory.
Is it beneficial to reduce inventory?
There will be less inventory costs. It takes less space in the warehouse. As the risk of loss is reduced, insurance costs are reduced. fewer losses from spoilage, out-of-date or expired products
Incomplete question :
Based only on the following information for Thrice Corp., did cash go up or down? By how much? Classify each event as a source or use of cash.
Decrease in inventory $580
Decrease in accounts payable 140
Increase in notes payable 580
Increase in accounts receivable 230
Multiple Choice
A.Cash decreased by $790
B.Cash increased by $790
C.Cash increased by $1,250
D.Cash decreased by $1,530
E.Cash increased by $1,070
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true/false. under the concept of work made for hire, documents written on the job by an employee being paid by the organization are the property of the organization.
It is false that under the concept of hired labor, documents written by an employee paid by an organization while on the job are owned by the organization.
"Rented Works" is a doctrine created by United States copyright law. Generally, the person who creates a work is considered its "author" and automatically owns the copyright in that organization. However, according to the commissioned work principle, your employer or the company that commissioned your work, not you, is considered the author and automatic copyright holder of your work.
Under old copyright law (before 1976), it was relatively easy to commission a freelancer's work. Many contracts still use the original contract language. However, the standards for hiring agency workers are now very strict.
Under current law, there are only two ways in which the principle of commissioned works can be applied to graphic artists.
First, if you are a full-time employee, your employer automatically owns all work you do as part of your employment as contracted work.
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Indicate how you think each of the following would shift demand in the indicated market a. The incomes of buyers in the market for used Ford Fusions decreases. The demand curve would shift to the left b. Buyers in the market for pizza read a study linking pepperoni consumption to weight gain. The demand curve woud The demand curve would shift to the leftf c. Buyers in the market for gas-powered cars learn of a decrease in the price of electric cars (a sut The demand curve would shift to the left d. Buyers in the market for electric cars learn of a decrease in the price of electric cars The demand curve would remain unchanged
The relationship between the cost of an item or service and the quantity demanded over a specific time period is represented graphically by the demand curve.
a. The income of buyers in the market for Adirondack vacations increases.
The demand curve shifts to the right.
b. Buyers in the market for pizza read a study linking pepperoni consumption to heart disease.
The demand curve shifts to the left.
c. Buyers in the market for CDs learn of an increase in the price of downloadable MP3s (a substitute for CDs).
The demand curve shifts to the right.
d. Buyers in the market for CDs learn of an increase in the price of CDs.
The demand curve remains unchanged.
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t/f one of the prominent business uses of blogs is to provide up-to-date company information to the press and the public.
True - One of the prominent business uses of blogs is to provide up-to-date company information to the press and the public.
One of the prominent business uses of blogs is to provide up-to-date company information to the press and the public.
Companies can use blogs to share news, announcements, product updates, press releases, and other important information.
This helps to keep customers, investors, partners, and other stakeholders informed about what’s going on in the company. It also helps to build trust and transparency, which can help to attract and retain customers.
Blogs also provide a way for companies to communicate quickly and effectively with their target audience, allowing them to respond to questions, concerns, and feedback quickly.
Blogs are a great way for businesses to stay connected with their customers, and keep them informed about their latest news and updates.
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Suppose a garment manufacturer named Vogue Inc. buys materials from another country that is well known for its cotton and silk exports. Recently, the currency of this country fell, which enabled Vogue Inc. to purchase more raw materials. Vogue Inc. achieved cost advantage through _____.
A. labor rates
B. wage rates
C. exchange rates
D. transportation rates
The recent decline in this nation's currency allowed Vogue Inc. to buy additional raw materials. Exchange rates allowed Vogue Inc. to reduce costs.
What does it mean to divide a complex procedure into simpler parts?A huge, complex process is broken down into a variety of smaller, simpler units or tasks through the process of functional decomposition, which improves understanding of the whole process.
Which of the following is not a major factor in the development of economies of scale?growth in output Economies of scale are not the outcome of simply increasing output.
What about a learning curve, according to Vladimir, CEO of Autumn Inc.The CEO of Autumn Inc., Vladimir, argues that a learning curve is a more accurate way to measure business success. According to his assistant Mark, growth may be evaluated more accurately if a scale curve is employed because it provides trustworthy and validated findings and furthermore, it displays results for a certain time period.
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the number of frogs in a particular lake has been decreasing by 4 % each year. in 2015, the number of frogs was po . write an equation for the number of frogs as a function of time t, the number of years since 2015. p(t)
An equation for the number of frogs as a function of time t, the number of years since 2015 is [tex]p(t) = po * (0.96)^t[/tex]
Typically, a rate is a change per unit of time. A "rate of decrease" would be a drop in sales of 10% annually. Although percentage changes are frequently reported on an annual basis, a percentage decline isn't always a "rate."
Assuming that the rate of decrease remains constant over time, the equation for the number of frogs in the lake as a function of time t, the number of years since 2015, is:
[tex]p(t) = po * (0.96)^t[/tex]
Where po is the initial number of frogs in 2015 and[tex](0.96)^t[/tex] represents the rate of decrease over time.
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If the supplies account is not adjusted, which of the following would occur?a. Assets and expenses would be overstated.b. Assets and expenses would be understated.c. Assets would be understated, and expenses would be overstated.d. Net income and stockholders' equity would be overstated.
Assets and expenses would be overstated is not adjusted. By including fictitious asset costs or manufactured revenues, overstating assets and revenues presents a company as being financially stronger than it actually is.
Excluding expenses or debt obligations reveals understated liabilities and costs. Both strategies boost the company's revenues and net worth. You'll overpay income tax if you overstate sales or understate expenses. You need to be familiar with how an income statement functions in order to comprehend why. Financial misstatements can occasionally be a result of mistakes or inaccurate data. Due to inaccurate valuations or appraisals at the end of the year, assets may be overstated.
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A company purchased assets worth 72,000. It issued fully paid-up
equity shares of 100 each at 20% premium. Pass Journal Entries in
the books of company.
The journal entries are based on the three golden rules of accounting which recorded the income and expenses of the business.
What is a journal entry?A journal entry is the date-based recording of a business transaction in a journal book, which is then used to create the company's financial statements. To create a ledger report, data will be retrieved from the journal.
In the given case, the journal entry will be recorded as
Shares A/c Dr. 72000 * 100 7200000
To Equity share capital A/c 7200000
The asset is purchased in business which is debited as according to the rule debit what comes in credit is what goes out.
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You should attempt to have a sufficient amount of funds in liquid assets to draw on when your cash outflows exceed your cash inflows. True or False
It is true that you should try to keep a healthy amount of money in liquid assets on hand for when your cash outflows exceed your cash inflows.
A liquid asset is defined as what?Cash on hand, money deposited in a bank, and assets that may be rapidly and easily turned into cash are all considered liquid assets. Stocks, bonds, certificates of deposit, or shares make up the majority of liquid assets.
Why Is It Important to Have Liquid Assets?Due to the constant requirement for cash to pay short-term obligations, a corporation must have liquid assets. A business can't operate without cash to pay its bills to suppliers or employees' wages. Although a business may not always have a lot of cash on hand, it must make sure that it has adequate levels of liquid assets.
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assume the following information concerning two stocks that make up an index. what is the price-weighted return for the index? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) price per share shares outstanding beginning of year end of yearkirk, inc. 36,000 $43 $47 picard co. 26,500 74 83
We must first determine the index's starting and ending values before we can calculate the price-weighted return. Price-weighted return for the index = 7.75%.
What is price-weighted return?A price-weighted index is a stock index in which the proportion of each firm's share price in the overall index is based on the share price per business.
The value of the index may be calculated simply by summing the prices of all the stocks that make up the index and dividing the result by the total number of firms.
The performance of the index will be more impacted by a stock with a higher price since it will be given more weight than a stock with a lower price.
In terms of their contribution to the index value and fluctuations in the index, stocks with higher prices are given more weight in price-weighted indices.
A price-weighted index can be used to monitor a market's average stock price.
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the availability of consumer goods and the means to buy them most led to which of the following in the 1950s? the counterculture the sitcom culture the consumer culture
The availability of consumer goods and the ability to buy them were the main forces behind the Consumer Culture in the 1950s. The advertising industry, which encouraged people to buy products, significantly helped to promote this culture.
The advertising industry, which encouraged people to buy products, significantly helped to promote this culture. It increased customer retention and promoted the different product features. A type of material culture made possible by the market is consumer culture.
As a result, a particular relationship between the consumer and the goods or services they use or consume culture was established. Consumption has historically been seen by social science as a minor byproduct of production.
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Capital Budgeting Analysis: ASSUME a 4 year project's after-tax operating cash flow during years 1-4 = $8,000 and there is an after tax salvage value = $7,000 in year 4. The project also had an initial net working capital (NWC) investment of $1,000. Under conventional assumptions, what is the TOTAL cash flow expected from this project in the terminal year (year 4)?
7,000
8,000
15,000
16,000
none of the other options are accurate
Net margin before depreciation less taxes, after accounting for variations in working capital, is the computation.
Which city has the capital?The term "capital" refers to anything a corporation holds that helps create wealth in the business world. Liquid instruments that can be withdrawn as cash, marketable securities, and marketable securities are examples of sources of capital. assets that can be touched, such the equipment and facilities utilised to produce a good.
What is money?An account type known as a demand deposit allows money to be taken at any moment without informing the institution. Checking and savings accounts are two instances of demand deposit accounts. Operating income before degradation less taxes, after accounting for variations in working capital, is the computation. Silver and gold
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A business owner is aware that the Department of Labor has created rules
that require overtime pay for employees. When he works his employees more
than 40 hours in one week, he makes sure that he works them less than 40
hours the following week. The business owner feels that it is fair to average
the number of hours worked over the two weeks covered by the pay period
and use that number for calculating overtime pay. A representative of the
Department of Labor informs him that their regulations do not permit this.
Which of the following is true in this situation?
A. The business owner is only obligated to follow the regulations of
the Department of Labor if one of his employees files a formal
request.
B. Because the Department of Labor is merely a government agency,
their regulations do not have the force of law and can be viewed
as guidelines rather than requirements.
C. The regulations of the Department of Labor have no authority over
private businesses, only over public corporations.
• D. The regulations of the Department of Labor are administrative law
and must be followed by the business owner.
Business refers to an enterprising entity or organization that carries out professional activities.
What is the meaning of Business?An innovative company or group that engages in professional activities is referred to as a business. They could be industrial, commercial, or something else. For-profit businesses operate to make a profit, whereas those that are nonprofit do so to further a philanthropic cause.
An economic institution known as a business produces and/or distributes goods and services to make money and accumulate wealth. Whatever the type of business entity, such as a sole proprietorship, a Hindu undivided family, or a partnership firm.
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2. If you used money from your emergency fund, which is an appropriate next response?
If you used money from your emergency fund, the appropriate next response is: "Reduce casual spending and increase savings until your emergency fund has been paid back." (Option C)
What is an emergency fund and why is it important?An emergency fund is a pool of money set aside specifically for unexpected expenses or events. It provides financial security and stability during times of crisis, such as a job loss, medical emergency, or unexpected car repair.
The general rule of thumb is to save at least three to six months' worth of living expenses in an emergency fund. Having an emergency fund can prevent individuals from going into debt, which can have long-lasting financial repercussions. It is an essential part of personal finance and can help individuals weather financial storms with greater ease.
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Which one of the following statements is true with regard to the various forms of ownership of property-casualty insurers?Select one:A. Stock insurance companies and mutual insurance companies are owned by the policyholders.B. The main reason that cooperative insurers are formed is to earn a profit for their owners.C. State and federal governments provide insurance for exposures that are significant but not commercially insurable.D. Most pools that are required by law are underwritten by state governments
Option (c), Regarding the various ways that property-casualty insurers are owned, it is true that state and federal governments offer insurance for risks that are considerable but not economically insurable.
How do property and casualty insurers make money?Investments, underwriting, or both are options for them to generate income from. Financial holdings, typically in the shape of publicly traded shares, corporate bonds, government bonds, and commercial real estate, make up the majority of an insurer's assets.
Property insurance differs from casualty insurance in what ways?Property insurance is available to everyone who wants to safeguard their home or place of business, whereas casualty insurance is particularly made to assist business owners in safeguarding their working capital. The two types of insurance have another important difference in this regard.
It is impossible for a property and casualty insurance company to be profitable if its combined ratio is higher than 1, or 100%.Since investment income is excluded, a company's combined ratio can be higher than 100% while still being profitable. The combined ratio can be calculated by adding up all losses and expenses, dividing that total by the sum of premiums paid, and finally.
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Along with a purpose statement, a preparation outline should include _____ to keep the speech focused andeffective.a central ideaan unanswered questiona delivery cuea bibliography
Along with a purpose statement, a preparation outline should include a central idea to keep the speech focused and effective.
What is a central idea?The central idea is a concise statement that summarizes the main point or message of the speech. It should be a single sentence that expresses the main theme or thesis of the speech, and it should be specific, clear, and memorable.
Including a central idea in the preparation outline helps to ensure that the speech stays on topic and that the speaker is able to convey the main message to the audience effectively. It also helps the speaker to organize their thoughts and ideas and to develop a coherent and logical structure for the speech.
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Indirect costs can be assigned to products or services using ______. multiple select question. the activity rate methodthe activity proportion method
Products or services can be given indirect costs by employing direct costs.
What is meant by Indirect Cost ?Costs that are indirect are those that are not accounted for by a cost object directly (such as a particular project, facility, function or product). Both fixed and variable indirect costs are possible, just as direct costs.
Personnel, administration, and security expenditures are examples of indirect costs. These are the expenses that aren't directly associated with manufacturing.
While certain overhead expenses may be considered indirect, other overhead costs can be directly linked to a project and are therefore considered direct costs.
Indirect costs come in two varieties. One is the fixed indirect expenses, which are constant for a certain project or business, such as the cost of transporting workers to the site of the work, constructing makeshift roadways, etc.
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true/false. decision trees are a visual representation of the sequential choices that financial decision makers face when making capital budgeting and investment
The following is how decision trees are arranged: A significant choice is made by an individual, such as when deciding between two competing businesses or starting a capital project.
These choices, which are frequently represented by decision nodes, are based on the results that can be anticipated from executing various actions. Decision businesses Trees are a Net Present Value (NPV) computation used in financial analysis that combines several future scenarios depending on their propensity to occur.
The total of all alternative alternatives' cash flows, businesses according to their assigned probabilities, makes up the cash flows for a particular decision. The decision-tree displays the size, likelihood, and interdependence of every potential outcome of an investment proposal.
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if the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate? 0.751.001.251.33100
The capacity utilization rate is 1.25. Therefore option C is correct.
How do you calculate ability utilization?Capacity utilization is calculated using a formula: the price of capability utilization is equal to the ratio of the genuine degree of output over the most degree of output accelerated by using a hundred percent. That is, capacity utilization rate = true output/optimal output.
The greater the capability utilisation, the lower the constant fees per unit, which offers a increase to earnings margins.
Capacity utilization of equipment can be defined as the extent to which the equipment is being operated or generates output.
Capacity Utilization Rate = Actual Output / Potential Output
= 500/400
= 1.25
Thus, The capacity utilization rate is 1.25. therefore option C is correct.
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