When customization occurs early in the supply chain:
1. Flexibility in response to unique customer needs will be greater.
2. Lead times to the customer will tend to be longer.
3. Products will tend to be more costly.

Answers

Answer 1

When customization occurs early in the supply chain flexibility in response to unique customer needs will be greater.

What benefits do manufacturing lines have over other methods?

Benefits of Production on Assembly Lines - Production or assembly lines allow enterprises to produce huge numbers of goods quickly and effectively.

In which parts of the supply chain does customization take place?

Where the customizing is taking place has the biggest impact. The supply chains should be divided at manufacturing in the case of the garment industry if customization takes place there. The supply chain should be kept distinct from the supplier end if fabrics are tailored, though.

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Related Questions

Why do the four financial statements have to be prepared in this order?

Answers

Financial statements are put together in a precise order because data from one statement is used in the next.

Which one comes first among the four financial statements?

The following is the order of the four financial statements:

A. Balance sheets

B. Income statements are first.

C. Cash flow projections

D.Statements of shareholders' equity

What should be done first when creating a financial statement, and why?

First comes the income statement, often known as the statement of earnings or statement of operations. The net income or loss of the business is determined for a specific time period after listing revenues and expenses.

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In what ways are the formats of emails and memos similar? Choose all that apply.
A. Giving subject and date
B. Verifying identity
C. The type of information

Answers

The type of information are the formats of emails and memos similar. Email formats are based on memo formats, which means that they are set up to convey.

The four essential opening pieces of information that a memo says in the heading: to, from, subject, and date. The to, from, subject, and date heading formats are the same for memos and emails. Email formats are based on memo formats, which means that they are set up to convey the four essential opening pieces of information that a memo says in the heading: to, from, subject, and date. The to, from, subject, and date heading formats are the same for memos and emails.

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bill is leading a project team in the development and building of a new hotel. he has assembled his project team members for the project's kick-off meeting. the team members are highly experienced in developing and building hotels. bill introduces the team members to various key stakeholders. after the introductions, bill summarizes each of the team member's roles and responsibilities. he then mentions that their project will incorporate a war room. which option represents the main function of a war room?

Answers

Expert strength, Bill has authority in his field, and he would probably let everyone know during the project. A person's technical knowledge, skill, and credibility are the foundations of their expert power.

We are aware from Bill's past in the building sector that he has contributed to numerous construction projects, that he mentors aspiring project managers, and that he has project management expertise. The first stage in launching a new project is project initiation.

You determine the project's purpose and the business value it will provide at the project start phase. Then, you use that knowledge to win support from important stakeholders. Project managers and project engineers are other names for construction managers. The project's completion on schedule and within budget is guaranteed by the construction manager.

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Correct Question:

Bill is leading a project team in the development and building of a new hotel. He has assembled his project team members for the project's kick-off meeting. The team members are highly experienced in developing and building hotels.

Bill provides the team members with his background. Bill explains that he started out as a construction worker helping to build houses, malls, hotels, and business offices. He decided to go back to college to get a degree in business administration. He worked his way through various management levels and eventually became a project manager for a multi-national company. He also mentors other employees of the company who are training for project management positions, and regularly attends project management seminars. Which form of power will Bill MOST likely express during this project?

from schedule se, ondine determines she owes $2,000 in self-employment tax for the year. even though she will need to pay that money when it is due during the year, she will be able to deduct what amount on her schedule 1 (form 1040) when she files her income tax return?

Answers

Because the taxpayer is liable for both employee and the employer components of the tax in the case of self-employment, only half of the amount received will indeed be taken into account. The amount is $1,000.

Who are taxpayers?

A taxpayer is any individual or organization that owes taxes towards the federal, state, or municipal governments. Governments mostly rely on taxes as a source of income, both on citizens and corporations. Individual taxpayers in the US are typically required to submit and pay their federal and local tax returns on a yearly basis. Even though they usually plan for something and pay their income taxes on schedule throughout the year, businesses must nonetheless submit annual returns. Illustrative steps of localized taxes are sales taxes and property taxes.

Deduction amount: $2,000 x 50% = $1,000

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The debits and credits for each journal entry are posted to the accounts in?

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The debits and credits for each journal entry are posted to the accounts in in the order in which they occur in the journal.

A debit is an accounting entry that affects a company's balance sheet by increasing assets or decreasing liabilities. In simple accounting, credits and debits balance each other out by working in the opposite manner. Credit can represent many different things in the realm of finance, but it is typically understood as a contract where a borrower receives money or something valuable and accepts to repay the lender in the future, typically with interest. You can also refer to something or someone by their creditworthiness or credit history. According to accountants, it typically refers to an accounting item that changes the balance sheet of a corporation by reducing assets or increasing liabilities and equity.

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lenin argued that capitalism was able to delay its crisis through national economic expansion.

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Lenin argued that capitalism was able to delay its inevitable crisis by expanding their reach to the national level. This allowed them to create a larger market for their products, and to increase their profits.

As profits increased, the capitalists were able to invest in new technology, new factories, and new businesses. This allowed them to increase production and further expand their reach. The increased production allowed for increased consumption and kept the demand for their products high.

Ultimately, this enabled capitalism to delay its inevitable crisis. However, Lenin argued that this was only a temporary solution, and that the inevitable crisis would eventually occur. He believed that the only way to prevent the crisis was through the implementation of a socialist system.

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a monopoly is a market with one a. buyer, and that buyer is a price taker. b. seller, and that seller sets the price. c. buyer, and that buyer sets the price. d. seller, and that seller is a price taker.

Answers

A monopoly is a market with one seller and that seller sets the price. So option b is correct.

A monopoly is characterized by a single firm that is the sole producer and seller of a product or service, with no close substitutes. This means that the monopolist has complete control over the market supply.

As a result, has the ability to set the price. In a monopoly market, the monopolist is not a price taker, as they do not face any competition and therefore are not forced to accept the market price.

On the other hand, in a perfectly competitive market, there are many buyers and sellers, and each one of them is a price taker as they do not have any significant influence on the market price.

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commercial filmmaking typically strives for _______ .

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Commercial filmmaking is an industry that creates movies for the purpose of making a profit.

It is driven by a variety of factors that influence the creative and business decisions made by filmmakers, including audience preferences, technological advancements, and competition within the industry.The primary goal of commercial filmmaking is to create films that will generate revenue and provide a return on investment for the filmmakers and investors. To achieve this, filmmakers must produce movies that will appeal to a wide audience and generate ticket sales, as well as other sources of revenue, such as merchandise sales, digital downloads, and broadcast rights.In order to appeal to audiences, commercial films must have high production value, meaning that they must be visually and aesthetically pleasing, with well-designed sets, special effects, and costumes. They must also have compelling stories, interesting characters, and engaging dialogue, all of which contribute to the overall viewing experience. Additionally, films must be well-promoted through advertising, public relations, and other marketing efforts to generate buzz and attract audiences.In order to maximize profitability, commercial filmmakers must carefully manage costs, including production budgets, marketing expenses, and distribution costs. They must also consider factors such as the target audience, release date, and competition within the industry when making decisions about production, marketing, and distribution.Overall, the goal of commercial filmmaking is to create films that are both entertaining and profitable, and that will appeal to a wide audience while delivering a return on investment for the filmmakers and investors. To achieve this, filmmakers must balance the creative and technical aspects of filmmaking with business and financial considerations.

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maintaining the organization's financial records is a central purpose of which main business function?

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The business finance and accounting department's responsibility is to keep all necessary financial records for monitoring the firm's operations.

Why do you need to keep financial records?

These are made up of income (profit and loss) statements and balance sheets. These documents could help you manage your company and communicate with your bank or creditors.

Who at a company is in charge of creating financial statements?

Directors draft financial statements, and audit committees ensure the accuracy of the data. The annual report is subjected to several procedures in addition to the financial statements audit by auditors. The audit committee receives numerous reports from auditors.

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rebecca, a human resource executive, received a letter from her manager, advising her to organize an interactive program for some of the employees of the organization. rebecca needs to call her manager to find out the objective of the program, when it needs to be organized, and which employees need to attend the program. in this scenario, the manager's letter does not represent good business and administrative communication because

Answers

In this scenario, the manager's letter does not represent good business and administrative communication because the message is not complete.

What is administrative communication?

Administrative procedures are planned, managed, upheld, and justified through the use of administrative communication. This generally refers to all communication services that fall under the purview of the public administration. To be productive and effective in your role, administrative communications include drafting business correspondence such as memos, notices, reports, and letters, speaking in meetings and presentations, and listening to all levels of employees, coworkers, and superiors. Unquestionably, all citizens have a fundamental need for communication. Humans are capable of creating and disseminating ideas, or communicating knowledge.

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Martha can produce 70 quilts or 140 batches of chocolate chip cookies in a month. Jane can produce 8 quilts or 24 batches of chocolate chip cookies in a month.
_______has an absolute advantage in both goods.
​______ has a comparative advantage in quilts.
​______ has a comparative advantage in chocolate chip cookies.

Answers

Martha has an absolute advantage in both goods. Martha can produce more of both goods than Jane can in a month.

Jane has a comparative advantage in quilts. She can produce 8 quilts in a month, which is more than a third of Martha's 70 quilts.

Martha has a comparative advantage in chocolate chip cookies. She can produce 140 batches in a month, which is nearly six times more than Jane's 24 batches.

Comparative advantage occurs when an individual or group is able to produce a good or service at a lower opportunity cost than another individual or group.

The individual or group that has a comparative advantage in a product has the advantage of being able to produce more of it with the same amount of resources.

In this case, Martha has an absolute advantage in both goods, but Jane has a comparative advantage in quilts and Martha has a comparative advantage in chocolate chip cookies.

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What is serial position effect?

Answers

The serial position effect is a phenomenon in psychology where a person's recall of items in a list is influenced by the item's position within the list. This means that the order in which items are presented can affect how well a person is able to remember them.

How it is determined?

According to a phenomenon known as the "serial position effect," an item's placement on a list might affect how well a person remembers it. This phrase alludes to the idea that how information is delivered and retained by a person can vary. Memory tests that challenge participants to recall as many things as they can from a list after being given a list of objects help researchers understand the serial position effect. The primacy effect and the recent effect were discovered thanks to this experimental setup, which allows researchers to examine how the item's location affects recollection. This influence may affect how memories are stored and processed, and it may also have an impact on how marketing and teaching are carried out.

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What is the fda requirement for an offsite caterer?

Answers

Hot meals can be held except temperature manipulate for up to four hours if: It used to be held at 135˚F (57˚C) or greater earlier than removing it from temperature control. It has a label specifying when the item must be thrown out. It is sold, served, or thrown out inside four hours.

What is the FDA requirement for serving food besides temp control?

It is permissible to hold hot meals except temperature controls for up to four hours if the following prerequisites are met: Food ought to be held at one hundred thirty five levels Fahrenheit or greater earlier than the meals is eliminated from the temperature control. Label the meals upon receipt with the time it should be discarded.

What are the FDA cooling requirements?

The FDA Model Food Code requires that food be cooled from 57.2°C to 21.1°C (135°F to 70°F) inside two hours and from 57.2°C to 5°C (135°F to 41°F) inside a total of six hours.

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which of the following appear on the statement of stockholders' equity? common stock, paid-in capital, retained earnings, and treasury stock.

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The following appear on the statement of stockholders' equity common stock.

Which of the following is included in the stockholders equity statement?

D. Common stock and retained earnings is the right response. Explanation: The total amount of common stock held by shareholders and retained earnings makes up stockholder equity, often referred to as shareholder equity.

The statement of retained profit includes shareholders equity, right?

The balance sheet's shareholders' equity column includes the value of the company's common and preference shares. The statement of retained earnings does not include shares.

What is included on both the balance sheet and the statement of shareholders equity?

Both the balance sheet and the statement of owner's equity provide information about the Capital Account's final balance.

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of the following countries, which is the most dependent on imported oil?BrazilIndonesiaGermanyAustralia

Answers

Out of the following countries, Brazil is the most dependent on imported oil. This is because Brazil is the largest oil importer in South America and the sixth largest in the world.

According to the U.S. Energy Information Administration, Brazil imported an average of 1.7 million barrels per day (b/d) of crude oil and petroleum products in 2018. This accounted for nearly 75% of the country’s total oil consumption that year. In comparison, Indonesia imported an average of 1.1 million b/d in 2018, accounting for around half of the country’s total consumption.

Germany imported an average of 560,000 b/d in 2018, accounting for less than 25% of the country’s total consumption. Lastly, Australia imported an average of 376,000 b/d in 2018, accounting for around 10% of the country’s total consumption. Therefore, Brazil is the most dependent on imported oil out of the four countries listed.

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what is aunt edna's plantwide overhead rate? determine the formula for calculating the plantwide overhead rate, then calculate the rate

Answers

To determine Aunt Edna's plantwide overhead rate, you first need to gather the necessary information. This includes the total overhead costs for the business and the total units produced in a given time period. Once you have this information, you can use the formula to calculate the rate.

The formula for calculating the plantwide overhead rate is:

Plantwide overhead rate = Total overhead costs / Total units produced

Plantwide overhead rate is a method used to allocate the overhead costs of a business to each unit produced. The formula for calculating the plantwide overhead rate is by dividing the total overhead costs by the total amount of units produced in a given time period.

By using this formula, you can determine the plantwide overhead rate for Aunt Edna's business and allocate the overhead costs to each unit produced. This information can then be used to make informed decisions about the business and its operations.

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the inductive approach to writing a business argument

Answers

The inductive approach to writing a business argument: allows one to provide the supporting reasons first before the primary message.

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Which one of the following is the best reason real GDP is an important measurement for an economy?A. It measures all economic activity, both market and non-market transactions.B. It is a monetary measure that allows for comparison of a nation's output across time.C. It measures the quality of products over time.D. It is a measure of changes in the level of prices in a country over time.

Answers

Real GDP is an important measurement for an economy because it measures all economic activity, both market and non-market transaction.

The growth rate of real GDP is used as an indicator of the general health of the economy. An increase in real GDP is used as a sign that the economy is doing well. When real GDP is growing strongly, employment is likely to be increasing as companies hire more workers of their factories and people have money in their pockets. When GDP is shrinking, employment often declines. GDP may be growing but not fast enough to create a sufficient number of jobs. Economies are sometimes in period of boom and sometimes in periods of  recession. In US, there were six recessions between 1950 and 2011.

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You are a senior consultant for McKinsey & Company and you are based out of the Chicago office. You have several clients in Los Angeles that demand regular on-site visits. You have a significant amount of family in the LA area, so you often host diners for your family while working on-site and charge the diners to your corporate account as an entertainment expense. What type of conflict of interest is most illustrated within this scenario?A. Moonlighting.B. Misusing employer's property.C. Post-employment.D. Misuse of inside information.

Answers

The correct answer to this question here is option a. Moonlighting is the type of conflict of interest most illustrated within this scenario.

Employer worries about side jobs typically fall into the following groups: Conflict of interest. Your company might be worried if you hold another position in the same industry since you might be disclosing trade secrets to a rival or bidding for the same clients.

A conflict of interest can exist if your second employment is in the same field as your primary one. Before starting a second job, it's a good idea to speak with HR and get the company's official position on the matter if your employment contract is vague on moonlighting or you can't see a non-compete clause.

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Which three of the following points about the daily Scrum are TRUE? (Choose three.)A. It is time-boxedB. It is held at the same place and time every dayC. The Product Owner provides an updateD. The Scrum Master enforces the rule that only Development Team members participate

Answers

Option D is correct. The Scrum Master enforces the rule that only members of the development team participate.

As explained in the Scrum Guide, the purpose of the Daily Scrum is to review progress towards the Sprint's goals, adjust the planned work, and adjust the Sprint Backlog as needed .

Daily Scrum is his 15 minute event for developers on scrum teams. To reduce complexity, it happens at the same time and place on all business days of the sprint. When a product owner or scrum master is actively working on items in his backlog in a sprint, they participate as developers. Developers can choose the structure and methodology they prefer, as long as the Daily Scrum focuses on progress towards the sprint goal and creates an actionable plan for the next business day. This will help you focus and improve your self-management.

The Daily Scrum improves communication, identifies bottlenecks, and facilitates rapid decision-making, thus eliminating the need for other meetings.

The Daily Scrum isn't the only way developers can adjust their plans. They often meet throughout the day to have more detailed discussions about coordinating or rescheduling the rest of the work in the sprint.

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if the economy were operating at point e, a. 20 additional units of eggs can be produced with no impact on bacon production. b. the opportunity cost of 20 additional units of eggs is 10 units of bacon. c. the opportunity cost of 20 additional units of eggs is 20 units of bacon.

Answers

The production possibility frontier (PPF) of the economy determines the answer to this query. A point on the PPF where the economy is functioning well and produces a mixture of eggs and bacon is represented by Point E.

What is the opportunity cost of the economy through PPF?

a. If 20 more units of eggs can be produced without affecting the production of bacon, point E is on the growing section of the PPF for eggs, and the economy has unused resources that may be employed to manufacture eggs.

b. If the economy must forgo producing 10 units of bacon in order to generate 20 more units of eggs, the opportunity cost of the additional 20 eggs is 10 units of bacon. According to this, the economy must forgo producing 0.5 units more of bacon for every additional unit of eggs produced.

c. If the economy must forgo 20 units of bacon in order to create 20 more eggs, the opportunity cost of producing those extra 20 eggs is 20 units of bacon. This indicates that the economy must forgo producing 1 unit of bacon for every additional unit of eggs produced.
It is crucial to keep in mind that the opportunity cost of production is not always constant and that it might alter as the economy progresses along the PPF.


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if the economy were operating at point e, a. 20 additional units of eggs can be produced with no impact on bacon production. b. the opportunity cost of 20 additional units of eggs is 10 units of bacon. c. the opportunity cost of 20 additional units of eggs is 20 units of bacon.

based on past​ experience, a bank believes that​ 8% of the people who receive loans will not make payments on time. the bank has recently approved 600 loans. describe the sampling distribution model of the proportion of clients in this group who may not make timely payments. round the standard deviation to one decimal place.
Find the mean/standard error of the sampling distribution of the proportion.

Answers

The mean proportion of the sampling distribution is equal to the proportion of the client population that may not make payments on time, which is 8%.

The standard deviation of the sampling distribution can be calculated using the formula:

$\sqrt{\frac{p(1-p)}{n}}$

where p is the proportion of the client population that may not make payments on time (0.08) and n is the sample size (600).

$\sqrt{\frac{0.08(1-0.08)}{600}} = 0.012$

So, the standard deviation of the sampling distribution is 0.012.

The standard error of the sampling distribution is the standard deviation divided by the square root of the sample size:

$\frac{0.012}{\sqrt{600}} = 0.002$

So, the standard error of the sampling distribution is 0.002.

The sampling distribution is the probability distribution of a statistic obtained from a large number of random samples drawn from a population. It describes how the statistical mean of a sample will vary if repeated samples are drawn from the same population. This forms the basis for inferences about population parameters and makes it possible to understand the variability of estimates. The shape of the sampling distribution is determined by the population distribution, sample size, and the type of statistic being estimated.

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Management is needed in all types and sizes of organizations, at all organizational levels and in all organizational work areas, and in all organizations, no matter where they are located. This principle is known as the ________
.
A) impartiality of management
B) neutrality of management
C) universality of management
D) reality of management

Answers

Management is needed in all types and sizes of organizations, at all organizational levels and in all organizational work areas. This principle is known as the universality of management

It doesn't matter where an organisation is located; management is required at all organisational levels, in all organisational work areas, and in all types and sizes of organisations. The universality of management refers to this. In order to accomplish their objectives effectively and efficiently, corporations, governmental organisations, non-profits, and other types of organizations must practise effective management.

It indicates that while a variety of organisations might benefit from the same fundamental ideas and practises, the specific methods may differ according to the situation and the particular problems that each organisation faces. For example: a retail store's management may be different from that of a major multinational organization, yet both need to be effective at planning, organizing, directing, and managing in order to succeed. 

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• analyse the knowledge and skills in leadership and strategic management which are required to support the creation and achievement of organisational vision and strategy

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The knowledge and skills in leadership and strategic management are essential for the creation and achievement of an organizational vision and strategy. These skills include effective communication, decision-making, and the ability to evaluate and measure success, as well as a deep understanding of the organization and its environment.

Leadership and strategic management play a crucial role in the success of any organization. A strong and effective leader with a well-developed understanding of strategic management is essential for the creation and achievement of an organizational vision and strategy.

In this context, it is important to analyze the knowledge and skills that are required to support these efforts.

Leadership skills are critical in this regard as they help a leader to effectively guide and motivate their team towards the achievement of the organization's goals.

This includes the ability to communicate effectively, build relationships with team members, and make informed decisions. Additionally, a strong leader should have a clear vision and the ability to inspire and engage their team to work towards this vision.

In terms of strategic management, it is important to have a thorough understanding of the organization's strengths and weaknesses, as well as its environment and competition.

A leader who is skilled in strategic management should be able to develop a strategy that leverages the organization's strengths and addresses its weaknesses, and should have the ability to adjust this strategy as needed to respond to changes in the environment.

Finally, it is important for a leader to have the ability to evaluate and measure the success of their strategy. This requires an understanding of various metrics and the ability to use data to make informed decisions.

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Productivity in the service sector is difficult to measure because new technology adds to x, but not necessarily the x of the service produced.

Answers

Productivity in the service sector can be difficult to measure due to the intangible nature of many services. Unlike the goods-producing sector, where the output can be easily quantified and measured, services often involve intangible outputs that are harder to measure.

For example, the value of a service such as education or healthcare may not be fully captured by traditional measures of output, such as the number of students taught or patients treated.

Additionally, new technology can add value to the service sector, but it can be difficult to determine the extent to which this technology contributes to the output of the service itself.

For example, the use of technology in the finance sector can increase efficiency and reduce costs, but it may not necessarily increase the overall productivity of the service being provided.

Therefore, measuring productivity in the service sector requires the use of more nuanced and sophisticated methods that take into account the intangible nature of many services and the impact of technological change.

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orchid corporation, has a sales price of $16, variable costs of $10 per unit, and fixed costs of $30,000. if orchid sells 11,000 units, contribution margin will equal: multiple choice $66,000. $36,000. $162,000. $172,000.

Answers

The contribution margin will be $66000

Contribution margin=Sales price-Variable cost

=(16-10)=$6 per unit

Hence Total Contribution margin=(6*11,000)

=$66,000

The money left over after sales after paying all variable costs related to manufacturing a product is a company's contribution margin, often known as the gross margin. Your net income, or profit, is obtained by deducting fixed costs like rent, equipment leases, and wages from your contribution margin.

Contribution margin: By deducting the product's variable production costs from its selling price, the contribution margin calculates the profitability of a specific product or product line. 6. Net profit margin: The ratio of net profit to total sales stated as a percentage is known as the net profit margin.

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which one of the following risks does not apply to preferred stock?

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Unlike other investment kinds, like bonds, preferred stock does not have the same risks. Due to the absence of interest payments and expiration dates, preferred stock does not have the same default risk as bonds.

Preferred stock, also known as preferred shares, preference shares, or simply preferreds, is a part of share capital that may include any combination of attributes not found in ordinary stock, such as traits of both an equity and a debt instrument. In general, preferred stock is thought of as a hybrid instrument. Preferred stocks are subordinate to bonds but senior to common stock in terms of claim (or rights to their part of the company's assets, providing that these assets are receivable to the returnee stock bond). Furthermore, when it comes to dividend payments and liquidation, preferred stocks may be given preference over common stock (also known as ordinary shares). The terms of the preferred stock are set forth in the articles of association or articles of incorporation of the issuing company.

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What is bottom-up approach in management?

Answers

Bottom-up approach in management refers to a management style where decisions are made from the lower levels of an organization, rather than being dictated from the top.

The idea is to involve employees at all levels in the decision-making process, promoting a sense of ownership and responsibility.

In the bottom-up approach, ideas and suggestions are gathered from employees on the front lines, who have a close understanding of day-to-day operations and can provide valuable insights. These suggestions are then brought up to higher levels of management, where they are considered and evaluated for implementation.

This approach empowers employees and encourages a more participatory management style.

The bottom-up approach contrasts with the traditional top-down approach, where decisions are made by higher level management and imposed on lower level employees. The bottom-up approach is often more effective in promoting innovation, as it allows for a diverse range of ideas to be heard and considered.

Additionally, it can lead to higher employee satisfaction and motivation, as employees feel their opinions are valued and taken into account.

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if money grows according to simple discount at an annual rate of 5%, what is the value at time 4 of $3, 170.00 to be paid at time 9?

Answers

At the moment the loan is made, banks frequently deduct the basic interest from the loan amount. In such a case, the loan is referred to as discounted.

What is discounting at simple interest rate?

The actual amount that is paid to the borrower is known as the proceeds, while the interest that is subtracted is referred to as the discount.

The maturity value designates the sum that must be repaid by the borrower.

Reduced price and earnings

When a sum M is borrowed for a period of time t at a discounted rate of r per year, the discount D is

D=M⋅r⋅t(8.1.3)

The borrower receives the proceeds P, which are represented by

P=M−D=M−Mrt

or

Where r represents the interest rate in decimals, the equation is P=M(1rt).

Examples:

At a simple interest rate of 15% annually, Francisco takes out a $1200 loan for a term of 10 months. Analyze the revenues and discount.

Solution

The interest on the loan is subtracted by the bank from the loan amount and is represented by the discount D.

D=MrtD=$1200(0.15)(1012)=$150

As a result, the bank deducts $150 off the $1200 maturity value and provides Francisco $1050. The $1200 owed to the bank by Francisco must be paid.

Given that D = $150 in this instance, the proceeds

P=$1200−$150=$1050.

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_____ Accounts are the transfer of money/wealth that occur between countries but hope to create future revenue.

Answers

Financial accounts, the study of monetary exchanges between two or more nations is referred to as international finance.

What Is a Financial Account?

A financial account, specifically one that contains financial asset claims or liabilities to nonresidents, is a part of a country's balance of payments in macroeconomics. Direct investment, portfolio investment, and reserve assets broken down by sector are all parts of the financial account. Liabilities are claims made by nonresidents against the financial assets of residents that are documented in a nation's balance of payments, whereas assets are claims made by residents against nonresidents.

What Is International Finance?

Instead of exclusively concentrating on individual markets, international finance deals with the economic relationships between various nations. Large organizations like the National Bureau of Economic Research and the International Finance Corp. (IFC) perform research on international finance (NBER). In addition, the U.S. Federal Reserve maintains a section that studies policies related to capital movement, foreign commerce, and the growth of international markets.

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