Unplanned costs incurred when steps are taken to speed up a project's completion are known as expedited costs. These costs can arise due to the need for additional resources, overtime pay, or the use of expedited shipping methods to ensure that critical components are delivered on time. So the answer is expedited costs.
The decision to expedite a project may be taken due to a variety of reasons such as the need to meet a critical deadline, respond to changes in the market, or deal with unforeseen challenges. Expedited costs can be a significant burden on a project's budget and can have an impact on the overall profitability of the project.
Effective project management and planning can help to minimize the occurrence of expedited costs by identifying potential risks and developing contingency plans to deal with them. By doing so, the project can be completed on time and within budget, while still meeting the required quality standards.
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The rationale behind ________________________ is the view that brand equity is what remains of consumer preferences and choices after subtracting physical product effects.
The rationale behind measuring brand equity is the view that brand equity is what remains of consumer preferences and choices after subtracting physical product effects.
In other words, brand equity measures the intangible effects that a brand has on a consumer's perception and decision-making process, beyond the tangible features and benefits of the product.
These effects may include emotional connections, brand loyalty, perceived quality, and overall brand reputation. By understanding and measuring these effects, companies can better understand the true value of their brand and make informed decisions about marketing and product development.
The rationale behind "consumer-based brand equity" is the view that brand equity is what remains of consumer preferences and choices after subtracting physical product effects. This approach focuses on the psychological aspects of brand equity, such as consumer perceptions, attitudes, and emotional connections, which influence their decisions and preferences beyond the tangible features of a product.
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Red Bull runs a low level of ads throughout the year, but ups their advertising periodically during alternative and extreme sporting events. Red Bull likely uses a _____ strategy to schedule its ads.
Red Bull runs a low level of ads throughout the year but ups their advertising periodically during alternative and extreme sporting events. Red Bull likely uses a pulsing strategy to schedule its ads.
Pulsing is a type of advertising schedule where a company alternates periods of high advertising intensity with periods of low advertising intensity.
During the high-intensity periods, the company spends more on advertising to build brand awareness and increase sales, while during the low-intensity periods, the company reduces its advertising spending to maintain brand presence without overspending on advertising.
In the case of Red Bull, the company is known for sponsoring and promoting alternative and extreme sporting events. By increasing its advertising during these events, Red Bull can reach a targeted audience that is likely to be interested in its product.
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A true MNC, with operations in dozens of different countries Group of answer choices can ignore foreign exchange risk since it is diversified. none of the above will pay taxes in only its home county. must effectively manage foreign exchange risk.
The answer to the question is that a true MNC with operations in dozens of different countries must effectively manage foreign exchange risk. This is because they are exposed to fluctuations in exchange rates between the various currencies they deal with, which can affect their profitability and financial performance.
While it may be true that a diversified MNC is less susceptible to foreign exchange risk than a company with limited international exposure, it is still important for them to actively manage this risk in order to minimize its impact.
It is also not true that an MNC with operations in multiple countries will not pay taxes in only its home country. In fact, MNCs are often subject to tax obligations in the countries where they do business, and must comply with various tax laws and regulations in each jurisdiction.
In summary, while an MNC with diversified operations may be better positioned to handle foreign exchange risk, it is still important for them to effectively manage this risk in order to ensure their financial stability and success in the global marketplace.
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for caterpillar, a tractor and farm equipment manufacturer, spark plugs to be installed in the tractors it builds would be classified on the balance sheet as
Spark plugs to be installed in the tractors built by Caterpillar would be classified as inventory on the balance sheet.
Spark plugs to be installed in the tractors built by Caterpillar would be classified on the balance sheet as inventory. Inventory is an asset that a company holds in order to sell or use in the production process. Caterpillar, being a manufacturer of tractors and farm equipment, would need to hold inventory of various components and parts required in the production process. Spark plugs, being a component required in the production of tractors, would be classified as inventory.
On the balance sheet, inventory is typically reported as a current asset, which means that it is expected to be sold or used within the next 12 months. The value of inventory on the balance sheet is calculated by taking the cost of the items and subtracting any write-downs or obsolescence. The value of inventory can have an impact on a company's financial performance, as a large amount of inventory can tie up cash and increase storage costs, while too little inventory can lead to lost sales and missed opportunities.
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As a financial analyst, you are tasked with evaluating a capital-budgeting project. You were instructed to use the IRR method, and you need to determine an appropriate hurdle rate. The risk-free rate is 4%, and the expected market rate of return is 11%. Your company has a beta of 1.0, and the project that you are evaluating is considered to have risk equal to the average project that the company has accepted in the past. According to CAPM, the appropriate hurdle rate would be Group of answer choices 7%. 1%. 4%. 11%. 15%.
As a financial analyst tasked with evaluating a capital-budgeting project, you are required to use the Internal Rate of Return (IRR) method to determine the appropriate hurdle rate. In order to do this, you will need to consider a number of factors that are relevant to the project and to your company as a whole.
Firstly, you will need to look at the risk-free rate, which is currently set at 4%. This is the rate at which your company can borrow money without taking on any additional risk. You will also need to consider the expected market rate of return, which is currently set at 11%. This is the rate at which investors expect to earn on their investments in the stock market.
Your company has a beta of 1.0, which means that it is considered to have average risk. This means that the project you are evaluating should have risk equal to the average project that your company has accepted in the past. According to the Capital Asset Pricing Model (CAPM), the appropriate hurdle rate for your project would be 7%.
The CAPM is a widely-used financial model that is used to calculate the expected return on an investment. It takes into account a number of factors, including the risk-free rate, the expected market rate of return, and the beta of the company in question. By using this model, you can determine the appropriate hurdle rate for your project, which will help you to evaluate its potential profitability and risk.
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Consider a CD paying a ​% APR compounded monthly. ​(a) Find the periodic interest rate. ​(b) Find the future value of the CD if you invest ​$ for a term of years.
(a.)Periodic interest rate = 4%/12 = 0.3333...% (b)the future value of the CD would be $1,168.10 after 5 years.
(a) To find the periodic interest rate of a CD paying a % APR compounded monthly, we need to divide the annual percentage rate by the number of compounding periods in a year. Since there are 12 months in a year, we have:
Periodic interest rate = APR/12
For example, if the APR is 4%, then the periodic interest rate would be:
Periodic interest rate = 4%/12 = 0.3333...%
(b) To find the future value of the CD if you invest $P for a term of years, we can use the formula:
[tex]FV = P(1 + r/n) ^(nt)[/tex]
where FV is the future value, P is the initial investment, r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years.
Using the periodic interest rate found in part (a), we can substitute the values into the formula:
FV =[tex]P(1 + r/n)^(nt)[/tex]
= [tex]P(1 + 0.003333...)^(12)(years)[/tex]
= [tex]P(1.003333...)^(12)(years)[/tex]
For example, if we invest $1,000 for 5 years with a periodic interest rate of 0.3333...%, then the future value would be:
FV = [tex]$1,000(1.003333...)^(12)(5)[/tex]
= $1,168.10
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Effective ___ is critical In order to manage projects in parts of the world where security is an environment factor affecting project success
Effective security management is critical in order to manage projects in parts of the world where security is an environmental factor affecting project success.
This includes implementing appropriate security measures and protocols to ensure the safety and protection of personnel, assets, and data involved in the project. In such environments, security risks can arise from various sources, such as political instability, civil unrest, crime, terrorism, or natural disasters. These risks can disrupt project operations, delay timelines, and compromise the safety and well-being of project staff and stakeholders.
Therefore, it is important to assess the security risks and vulnerabilities of the project environment, develop a comprehensive security plan, and train project staff on security procedures and emergency response protocols. Effective security management can help mitigate security risks, enhance project resilience, and ensure successful project outcomes.
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The ending Retained Earnings balance of Lambert Inc. increased by $2.0 million from the beginning of the year. The company's net income earned during the year is $6.0 million. What is the amount of dividends Lambert Inc. declared and paid
Lambert Inc. declared and paid $4.0 million in dividends during the year.
Based on the given information, we can use the formula for retained earnings: Beginning retained earnings + net income - dividends = ending retained earnings. We know that the ending retained earnings balance increased by $2.0 million, and the net income earned during the year is $6.0 million. Thus, we can plug these numbers into the formula and solve for dividends:
Beginning retained earnings + net income - dividends = ending retained earnings
Beginning retained earnings + $6.0 million - dividends = Beginning retained earnings + $2.0 million
$6.0 million - dividends = $2.0 million
Dividends = $4.0 million
Therefore, Lambert Inc. declared and paid $4.0 million in dividends during the year.
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Participants in activities are considered passive unless their involvement in the activity is (Check all that apply.) Multiple select question. Managerial Continuous Substantial Regular
Participants in activities are considered passive unless their involvement in the activity is continuous, substantial, and regular. The content loaded into the activity can also affect their level of involvement.
It is important for managers to ensure that participants are actively engaged in the activity to maximize the benefits and outcomes.Participants in activities are considered passive unless their involvement in the activity is managerial, continuous, substantial, and regular. In this context, active involvement would require individuals to take part in management, engage continuously, contribute substantially, and maintain a regular presence in the activity.
The act of doing anything is called an activity. Being involved in a situation in life is being a participant. Activity restrictions are challenges someone could have when performing certain activities. Issues with participation might prevent someone from being fully involved in certain aspects of life.
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The largest category of employment for both county and municipal (city/town) governments in Texas is __________
The largest category of employment for both county and municipal governments in Texas is education.
The largest category of employment for both county and municipal governments in Texas is education. . Other major categories of employment for local governments in Texas include law enforcement, healthcare, and public administration. This includes public school teachers and staff, as well as employees of community colleges and universities that are owned and operated by local governments. Other major categories of employment for local governments in Texas include law enforcement, healthcare, and public administration.
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The largest category of employment for both county and municipal governments in Texas is education.
This includes public school teachers, administrators, and support staff, as well as employees of community colleges and universities that are supported by local governments.
Education is a significant part of local government expenditures in Texas and is a major priority for state and local policymakers.
Other important categories of employment for local governments in Texas include public safety (such as police and fire services), public works (including transportation and infrastructure), and healthcare. However, education remains the largest employer for both county and municipal governments in the state.
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Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $14,400. What is the amount of sales discount allowable
Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $14,400. The amount of discount allowable is $288.
The terms 2/10, n/30 and FOB shipping point mean that the customer can take a 2% discount if they pay within 10 days, otherwise the full amount is due within 30 days. Since the merchandise is FOB shipping point, the buyer is responsible for the shipping costs and takes ownership of the goods once they leave the seller's location.
To calculate the amount of sales discount allowable, we need to first determine if the customer qualifies for the discount.
If the customer pays within 10 days, calculate the net amount payable by the customer if they take the discount:
$14,400 x (1 - 2%) = $14,112
This means that if the customer pays within 10 days, they can take a discount of:
$14,400 - $14,112 = $288.
Therefore, the amount of sales discount allowable is $288 if the customer pays within 10 days.
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When deciding whether to add or delete a department, managers should keep the department as 4) __ _ long as ___ from the department exceeds ___ .
When deciding whether to add or delete a department, managers should keep the department as long as the value it adds to the organization exceeds its costs.
This means considering factors such as revenue generation, customer satisfaction, employee productivity, and overall strategic fit. If the department is consistently meeting or exceeding its performance metrics and contributing to the organization's goals, then it should be retained. However, if the costs of maintaining the department outweigh its benefits, or if it no longer aligns with the organization's strategic direction, then it may be necessary to consider deleting it. Ultimately, the decision should be based on a thorough analysis of the department's contribution to the organization's success.
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If an employment test has a disparate impact on a minority group the employer must show that the test is ________ to the job for which the test is required.
The answer to the question is that the employer must show that the employment test is job-related and consistent with business necessity if it has a disparate impact on a minority group.
However,ana answer would explain that this requirement is a legal standard set forth by the Equal Employment Opportunity Commission (EEOC) and enforced under Title VII of the Civil Rights Act of 1964. This means that employers cannot use hiring practices that discriminate against protected groups, such as minorities, based on race, color, religion, se-x, or national origin. If an employment test has an adverse impact on a protected group, the employer must demonstrate that the test is necessary for the job and that there are no alternative selection methods that would be equally effective and have less of a disparate impact. This involves a careful analysis of the job requirements and the specific qualities that the test measures.
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Which approach to product design begins with the design team preparing the product design and then providing it to manufacturing engineers, who determine production-related issues
The approach to product design that begins with the design team preparing the product design and then providing it to manufacturing engineers, who determine production-related issues is called the traditional or sequential approach.
This approach involves a linear process where each stage of design and development is completed before moving on to the next stage. It typically involves a strict hand-off of information from one team to another, with little collaboration or feedback between teams until the final product is completed.
This approach can be time-consuming and may result in costly design changes or production issues that could have been addressed earlier in the process with more collaboration between design and manufacturing teams.
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The production possibilities frontier bows outward because opportunity costs are decreasing as the production of a good increases. opportunity costs are increasing as the production of a good increases. opportunity costs are fixed as the production of a good increases. resources are of uniform quality.
The production possibilities frontier bows outward from the origin because: of opportunity costs increase as the production of a good increases, option A.
The production possibility frontier (PPF) is a curve on a graph that depicts the potential output of two goods whose production is dependent on the same limited resource. Another name for the PPF is the production possibility curve.
A corporation can use variables depending on amounts of available resources to indicate the number of items produced using points on a graph when determining how much of each product to create. Given the restricted supply of resources, if one product is to be produced more, resources from the other must be depleted.
Another point can be drawn on the curve when resources are transferred from one product and put towards the other. A curve that represents the maximum quantity of each product that can be produced when resources are reallocated is created when the locations where more of X will be produced by taking resources from Y or vice versa are plotted.
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Complete question:
The production possibilities frontier bows outward from the origin because: of
a. opportunity costs increase as the production of a good increases.
b. opportunity costs decrease as the production of a good increases.
c. more production of one good results in more production of the other good.
d. resources are of uniform quality.
An oligopolist operating with a kinked demand curve would expect rivals to match its price: a. increases. b. decreases. c. both a and b. d. neither a nor b.
The oligopolist operating with a kinked demand curve would expect rivals to match its price if it decides to either increase or decrease it. The correct answer is c. both a and b.
This is because the kinked demand curve theory suggests that competitors are likely to follow any price change made by the dominant firm, which creates a more stable market.
An oligopolist is a market structure where a few large firms dominate the market. In this type of market, firms have a significant influence on the price of goods and services. A kinked demand curve is a model used to explain the behavior of firms in oligopolistic markets.
Therefore, the correct answer is c. both a and b.
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Interest groups in the United States tend to over-represent __________. Group of answer choices non-profit organizations business interests social welfare causes specialized labor groups
Interest groups in the United States tend to over-represent business interests. Although various interest groups exist, business interests are often more influential due to their financial resources and organizational structures.
The cost of interest on a business loan used to fund operations or cover expenses is known as a business interest expense. If the loan was used for a tax-deductible purpose, business interest costs might also be deductible. While interest groups can represent a wide range of issues and causes, they often prioritize the interests of their most powerful and well-funded members. In the case of the United States, this means that business interests, such as large corporations and industry associations, tend to have an outsized influence on the political process compared to other groups.
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An automated assembly robot that cost $370,000 has a depreciable life of 5 years with a $120,000 salvage value. The MACRS (Modified Accelerated Cost Recovery System) depreciation rates for years 1, 2, 3, and 6 are 20.00%, 32.00%, 19.20%, and 5.76%, respectively. What is the book value at the end of year 3
The book value of the automated assembly robot at the end of year 3 is $192,000, calculated using the MACRS depreciation method based on the robot's depreciable life, salvage value, and depreciation rates for each year.
To calculate the book value of an automated assembly robot at the end of year 3, we need to follow the MACRS depreciation method. This method takes into account the depreciable life of an asset, its salvage value, and depreciation rates for each year.
In this case, the cost of the robot is $370,000, and it has a salvage value of $120,000. Therefore, the depreciable value of the robot is $250,000 ($370,000 - $120,000). The MACRS depreciation rates for years 1, 2, 3, and 6 are 20.00%, 32.00%, 19.20%, and 5.76%, respectively.
Using these rates, we can calculate the depreciation expense for each year. In year 1, the depreciation expense is $50,000 ($250,000 x 20.00%), in year 2 it is $80,000 ($250,000 x 32.00%), and in year 3 it is $48,000 ($250,000 x 19.20%).
To find the book value at the end of year 3, we need to subtract the total depreciation expense for years 1-3 ($178,000) from the original cost of the robot ($370,000). The book value at the end of year 3 is therefore $192,000 ($370,000 - $178,000).
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If inflation is expected to increase in the future, the term structure of interest rates will most likely be: Group of answer choices upward-sloping. flat. humped. downward-sloping. double-humped.
If inflation is expected to increase in the future, the term structure of interest rates will most likely be upward-sloping.
This is because investors will demand a higher return on their investments to compensate for the expected decrease in purchasing power due to inflation.
As a result, long-term interest rates will increase more than short-term interest rates, leading to an upward-sloping yield curve.
This upward slope reflects the fact that investors expect higher inflation and higher interest rates in the future.
However, it is important to note that other factors can also influence the term structure of interest rates, such as monetary policy and global economic conditions.
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Proponents of the top-down approach contend that _______ are the only persons in the firm with the collective experience, acumen, and fiduciary responsibility to make key strategy decisions.
Proponents of the top-down approach contend that top-level executives are the only persons in the firm with the collective experience, acumen, and fiduciary responsibility to make key strategy decisions.
The top-down approach to decision-making is a management style where decisions are made by the top-level executives and then implemented downwards through the organization.
Proponents of this approach argue that top-level executives have the necessary knowledge and experience to make key strategy decisions, as well as the fiduciary responsibility to act in the best interests of the organization.
Summary: In summary, proponents of the top-down approach believe that top-level executives are the only ones in the firm with the collective experience, acumen, and fiduciary responsibility to make key strategy decisions.
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Suppose a firm lowers its price to $10, raising the quantity sold from 4 to 5 units. If the marginal revenue of the fifth unit is $2, the firm must have lowered its price by:
The firm must have lowered its price by $0.50 to increase the quantity sold from 4 to 5 units and generate a marginal revenue of $2 on the fifth unit.
To calculate the change in price that the firm must have made, we need to use the formula for marginal revenue (MR). MR is the change in revenue resulting from a one-unit change in quantity sold. We know that the MR of the fifth unit is $2, which means that the firm earned an additional $2 in revenue by selling the fifth unit.
Now, to calculate the change in price, we can use the formula:
MR = ΔTR/ΔQ
Where MR is the marginal revenue, ΔTR is the change in total revenue, and ΔQ is the change in quantity sold.
We know that the change in quantity sold is 1 unit (from 4 to 5), and the marginal revenue is $2. So we can plug these values into the formula:
$2 = ΔTR/1 ΔTR = $2
This means that the firm earned an additional $2 in revenue by selling the fifth unit. To calculate the change in price, we need to divide this increase in revenue by the original quantity sold: $2 = ΔP x 4
ΔP = $0.50
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Assume a family that earns $20,000 pays $1,500 in income taxes, while a family that earns $40,000 pays $3,500 in income taxes. In this situation, the income tax system is Group of answer choices one of these but we cannot tell which one without more information. regressive. proportional. progressive.
The income tax system in the given situation is progressive tax.
This is because the amount of income tax paid by the family earning $40,000 is more than double the amount paid by the family earning $20,000, despite the fact that the latter family's income is only half of the former. This means that the tax rate increases as income increases, making it a progressive tax system. If it were a regressive tax system, the tax rate would decrease as income increases, which is not the case here.
If it were a proportional tax system, both families would pay the same percentage of their income in taxes, regardless of their income level. In summary, the income tax system is progressive because it imposes a higher tax burden on those with higher incomes, and we can come to this conclusion by looking at the specific amounts of income tax paid by the two families. This is an important concept to understand in order to analyze and evaluate tax policies and their impacts on different income groups.
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Upon graduating from Penn State, Gloria has $120,000 worth of student loans with an interest rate of 3.75%. How many years must the loan be if her annual payment budget is $7,480
To calculate the overhead cost applied to work-in-process for the month, we need to determine the predetermined overhead rate and multiply it by the actual direct labor hours worked in February.
Predetermined overhead rate = Estimated overhead costs / Estimated direct labor hours
Using the given information:
Estimated overhead costs = $191,079
Estimated direct labor hours = 73,492
Predetermined overhead rate = $191,079 / 73,492 ≈ $2.60 per direct labor hour
Now, we can calculate the overhead cost applied to work-in-process:
Overhead cost applied = Predetermined overhead rate * Actual direct labor hours
Overhead cost applied = $2.60 * 5,577
Overhead cost applied = $14,492.20
Therefore, the overhead cost applied to work-in-process for the month would be approximately $14,492.20.
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The Agricultural Adjustment Act attempted to restore the purchasing power of farmers by encouraging them to
The Agricultural Adjustment Act, which was passed in 1933, attempted to restore the purchasing power of farmers by encouraging them to reduce their crop production.
The act offered financial incentives to farmers who agreed to reduce their acreage and limit production, with the goal of reducing surplus crops and increasing the price of agricultural goods. By doing so, the act aimed to stabilize agricultural prices and increase the income of farmers, ultimately restoring their purchasing power. However, the act was controversial, as some argued that it resulted in higher food prices and reduced access to food for low-income families.
The Agricultural Adjustment Act attempted to restore the purchasing power of farmers by encouraging them to reduce production and stabilize crop prices. This was achieved through a system of subsidies and production quotas, ultimately aiming to increase farmers' income and boost the agricultural sector.
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A principal of is invested at interest, compounded annually. How many years will it take to accumulate or more in the account
It would take approximately 14.21 years for the investment to accumulate at least $2,000 when the interest is compounded annually.
We will use the formula for compound interest, which is:
A = P(1 + r/n)^(nt)
Here, A represents the final amount in the account, P is the principal investment, r is the annual interest rate (in decimal form), n is the number of times interest is compounded per year, and t is the number of years.
In your question, you want to find out how many years (t) it will take for the principal (P) to accumulate a certain amount (A) or more when the interest is compounded annually (n=1).
We can rearrange the formula to solve for t:
t = (log(A/P)) / (log(1 + r))
Now, you can plug in the values for P, A, and r to find the number of years required for the principal to accumulate the desired amount. Keep in mind that you need to convert the interest rate to decimal form by dividing it by 100.
For example, if you invest $1,000 (P) at a 5% annual interest rate (r = 0.05) and want to know how long it will take to have at least $2,000 (A) in the account:
t = (log(2000/1000)) / (log(1 + 0.05))
t ≈ 14.21 years
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On January 1, 2016, Jason Company issued $5 million of 10-year bonds at a 10% stated interest rate to be paid annually. What was the issuance price of the bonds if the market rate of interest was 8%
The issuance price of the bonds can be calculated using the present value of the bond's cash flows. The cash flows include the annual interest payments of $500,000 ($5 million x 10%), and the principal repayment of $5 million at the end of the 10-year term.
Using a financial calculator or Excel, the present value of the bond's cash flows can be calculated using the market rate of interest of 8%. The result is the issuance price of the bonds. The present value of the interest payments can be calculated using the annuity formula: Where PV is the present value, PMT is the annual interest payment, r is the market rate of interest, and n is the number of periods (in this case, 10 years).
Adding the present values of the interest payments and principal repayment, we get the issuance price of the bonds:
Issuance price = $3,795,271.41 + $1,947,112.70 Issuance price = $5,742,384.11 Therefore, the issuance price of the bonds was $5,742,384.11 if the market rate of interest was 8%.
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________ refers to customers becoming segmented into smaller and more specialized groups responding to more narrowly targeted commercial messages.
The term that refers to customers becoming segmented into smaller and more specialized groups responding to more narrowly targeted commercial messages is known as "micro-segmentation."
In the past, companies would target broad demographic groups with their advertising campaigns. However, with the rise of digital marketing, companies can now use data analytics to identify and target much smaller and more specific groups of customers. By doing so, they can deliver more personalized and relevant messages, which can improve their chances of success. Micro-segmentation enables companies to better understand their customers and tailor their marketing strategies accordingly, which can lead to higher engagement and conversions. Overall, micro-segmentation is a powerful tool for companies looking to optimize their marketing efforts and drive growth.
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What is the name of the three-phase model that Daniel Feldman proposed in order to counter the rather haphazard way some firms deal with new employees
The three-phase model proposed by Daniel Feldman is called the "Organizational Socialization" model. This model aims to provide a structured approach for integrating new employees into a company, addressing the issues that may arise from a haphazard onboarding process.
Anticipatory Socialization refers to the period before an individual joins an organization, when they gather information and form expectations about the company's culture, work environment, and job requirements.
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After managers at each level have been given a target to achieve, the next step in developing an output control system is to establish ______ that regulate how managers and workers attain their goals.
These standards or measures outline the specific expectations and requirements for achieving the targets set by management. They can include metrics such as productivity, efficiency, quality, customer satisfaction, and financial performance.
By establishing performance standards, the organization can ensure that everyone is working towards the same objectives and that progress can be tracked and evaluated effectively. I'd be happy to help you with your question. The next step in developing an output control system, after managers at each level have been given a target to achieve, is to establish performance standards that regulate how managers and workers attain their goals. These performance standards serve as benchmarks and help in measuring the progress towards achieving the set targets.
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You read in a business magazine that computer firms are reaping high profits. With the theory of perfect competition in mind, what do you expect to happen over time
The theory of perfect competition suggests that the high profits being earned by computer firms are unlikely to persist in the long run, as new entrants will compete away these profits.
According to the theory of perfect competition, if computer firms are reaping high profits, we can expect new firms to enter the market in search of these profits. This increased competition will lead to lower prices and reduced profit margins for each firm.
In the long run, the market will reach a state of equilibrium where the profits of all firms are normal, i.e., just enough to cover their costs of production. This is because, in a perfectly competitive market, there are no barriers to entry, and firms can easily enter and exit the market.
Therefore, we can expect that the high profits being earned by computer firms will attract new entrants, leading to an increase in the supply of computers and a decrease in their price. As the market reaches equilibrium, the profits of all firms will become normal, and the industry will become less profitable than it is currently.
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