When the borrower engages in activities that make it less likely that the loan will be repaid, is said to exist a c. moral hazard
A moral hazard is a form of risk that one of the parties to the agreement did not do so with good faith. Moral risks often only affect the consumer. In economics and finance, the phrase is used to describe a scenario in which a borrower takes actions that reduce the likelihood that the loan will be returned.
In such circumstances, the borrower can be less motivated to return the debt since they think the lender will be held responsible for the consequences of the default. The risk can appear in a variety of situations, such as when the borrower lacks enough stake in the outcome, when they have excessive leverage, or when they have minimal accountability.
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factories, storage, transportation, and machinery are all examples of goods. multiple choice question. capital labor entrepreneurial ability land
Capital goods include things like factories, warehouses, vehicles, and machinery.
What kinds of items fall under the category of capital goods?Capital goods are long-lasting, manufactured assets that companies use to produce goods and services. Capital goods include things like machinery, buildings, cars, computers, and tools.
What examples of products and services are there?Services are tasks completed for the benefit of the recipients, whereas goods are physical commodities offered to clients. Automobiles, appliances, and apparel are a few examples of products. Legal counsel, housecleaning, and consulting services are a few examples of services.
What else are capital commodities referred to as?Capital goods include any machinery, tools, structures, computers, or other types of equipment used in the manufacture of items for sale. The capital good's owners can be private individuals, families, businesses, or governments. Capital goods include all raw materials utilized in their production.
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What is the method used to account for investments in commonstock determined by for accounting purposes?
The method used to record investments in ordinary shares determined by the company for accounting purposes is the equity method
Stock Investment Registration MethodThe method of ownership (equity method) is a method for recording investment in shares by recording investment in shares at their cost.
At the end of each accounting period, this cost of goods is changed according to the portion of profit or loss earned by the company whose shares are owned. Dividends received from these shares are recorded as reducing the investment account balance in shares.
Listing of company shares on the stock exchange which is carried out with accurate planning and calculations as well as a good long-term strategy will improve the company's performance.
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The ___ Amendment was especially helpful to giant corporations when defending themselves against regulation by state governments.
a. Fifth
b. Fourteenth
c. Fifteenth
d. Sixteenth
e. Seventeenth
The b. Fourteenth Amendment was especially helpful to giant corporations when defending themselves against regulation by state governments. Therefore, the option b is correct.
What is the 14th Amendment?The United States' 14th Amendment, which was approved in 1868, is a new constitution under which all Americans who were born in or naturalized in the country were given citizenship. All citizens were assured of receiving "equal protection of the laws," even former slaves.
The 14th Amendment stipulated that anyone who "engaged in insurrection" against the United States was prohibited from holding civil, military, or elected office, and that the federal government could penalize states that violated or restricted their citizens' right to vote by proportionally reducing the states' representation in Congress (without the approval of two-thirds of the House and Senate).
As a result, the b. Fourteenth Amendment was especially helpful to giant corporations when defending themselves against regulation by state governments.
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corn and soybeans are alternatives that could be grown by most farmers. if government subsidies for ethanol lead to higher corn prices, this will
Farmers will probably switch their production from soybeans to corn as a result. Corn will become more expensive due to rising demand, making it more economical for farmers to raise than soybeans.
A particular kind of legume called soybeans is raised for both fodder and its edible seeds. Their high protein content makes them a valuable element in animal feed, food goods, and industrial applications. They are one of the most frequently farmed crops in the world. Soybeans are rich in important fatty acids, fibre, and vitamins in addition to protein. The crop can thrive in a variety of environments and is frequently grown in China, Brazil, and the United States. As a source of biofuel and an alternative to animal products in vegetarian and vegan diets, soybeans have seen a surge in demand in recent years.
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what is meant by selling through a channel?
Answer: In business, "selling through a channel" refers to a strategy in which a company sells its products or services through intermediaries, rather than directly to the end customers. A channel can include wholesalers, distributors, retailers, or other types of partners who help the company reach its target customers.
The goal of selling through a channel is to increase the reach and exposure of the company's products or services, and to tap into the knowledge, expertise, and customer relationships of the channel partners. The channel partners typically play an important role in promoting and selling the products or services, and may provide valuable insights into customer preferences and market trends.
Selling through a channel can be an effective way for a company to expand its business, but it also requires careful management and coordination to ensure that the channel partners are aligned with the company's goals and objectives.
The Food Co-op Club boasts that it has 5,000 members and a 200% increase in sales. The markup is 40% based on cost. What would be its percent markup if selling price were the base?
The percent markup is 67% if the selling price were the base.
What is markup called?The difference between the selling price and the cost of a good or service is known as the markup. It is frequently stated as a percentage of the cost. In order to cover the costs of doing business and generate a profit, a markup is added to the total amount charged by the producer of a good or service.
Given
Sales = 200% increase
markup =40%
required to calculate percent markup =?
Percent Markup = 40 x 100 /60 = 66.66% or 67%
The markup is the percentage difference between a product's selling price and its cost. When markups are calculated based on cost, the selling price is 100%. The actual cost can be calculated if the selling price and the percentage markup on the selling price are provided.
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Which type of unemployment is voluntary and temporary?
A Frictional type of Unemployment is voluntary and temporary. IT is a part of the business cycle. It is nature of unemployment.
What do you mean by Frictional Unemployment ?Frictional unemployment, which has nothing to do with the economic cycle and is voluntary, entails people changing occupations.
A downturn in a sector or a change in technology are only two examples of how changes in the economy can directly cause structural unemployment.
People leaving their jobs voluntarily lead to frictional unemployment. People who have quit their jobs and recent graduates looking for their first jobs require some time to locate employment, therefore they are unemployed during that time.
Therefore, a Frictional type of Unemployment is voluntary and temporary. IT is a part of the business cycle. It is nature of unemployment.
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one goal in requirements analysis is to ensure proper reliability. however, which of the following is not a responsibility of the human interface designer?
The primary responsibility of a human interface designer is to design user-centered interfaces that are easy to use and understand. They work to ensure that the interface meets the needs and expectations of the target users and is accessible, intuitive, and aesthetically pleasing. Here option A and B are the correct answer.
Actions must function correctly (A) and displayed data must reflect the database contents (B) are important responsibilities of the human interface designer. Ensuring that the interface provides accurate and reliable information to the user is critical to building trust and confidence in the system.
However, ensuring the software architecture, hardware components, and network support must ensure high availability (C), and ensuring privacy, security, and data integrity (D) are not direct responsibilities of the human interface designer.
These tasks are typically the responsibility of software engineers and system administrators, who are responsible for the overall design and implementation of the system, including its hardware and software components.
Complete question:
One goal in requirements analysis is to ensure proper reliability. However, which of the following is not the responsibility of the human interface designer?
A - Actions must function correctly.
B - Displayed data must reflect the database contents.
C - The software architecture, hardware components, and network support must ensure high availability.
D - Ensure privacy, security, and data integrity.
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Dexter Technology maintains its records using cash-basis accounting. Consider the following: During the year, the company received cash from customers, $42,000, and paid cash for salaries, $23,000. At the beginning of the year, customers owe Dexter $1,200. By the end of the year, customers owe $6,400. At the beginning of the year, Dexter owes salaries of $5,400. At the end of the year, Dexter owes salaries of $3,200. Determine cash-basis net income and accrual-basis net income for the year.
The cash-basis net income and accrual-basis net income for the year is $19,000 and $22,000 respectively.
What is cash-basis accounting?Cash basis accounting means that earnings are only recorded when they are received.
The calculation is of cash-basis net income and accrual-basis net income are as follows:-
1. Net income under cash basis:
= Received cash from customers - paid cash for salaries
= $42,000- $23,000
= $19000
2. Net income under accrual basis:
= Cash received - salary paid
where,
Cash received = Cash owed at the end of the year + cash received - cash owed at the beginning of the year
= $6,400+ $42,000- $1,200
= $47,200
And, the salary paid = salary owed at the end of the year + salary paid - salary owed at the beginning of the year
= $5,400+ $23,000- $3,200
= $25,200
Now put these values to the above formula. So, the value would as follows:-
= $47,200- $25,200
= $22,000
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When a company develops a business portfolio, when does
it identify the key businesses that make up the company?
When a company develops a business portfolio, its must identify the key businesses that make up the company immediately.
Why do company develops business portfolio?The business portfolio is a collection of the company's products, services, and accomplishments. A company portfolio's goal is to establish the company's market presence, attract more customers, and demonstrate how the company differs from its direct competitors.
Companies must identify, evaluate, and select market opportunities before developing strategies to capitalize on them. One method is to use a portfolio planning tool to identify opportunities for company growth through market penetration, market development, product development, or diversification.
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factors leading to the increased use of project management - select all that apply a) increased customer focus b) knowledge explosion c) compression of the product life cycle d) decreased customer focus
The increased use of project management was due to a number of factors. These include an increased customer focus that has led companies to view projects from the customer's perspective, and an explosion of knowledge that has increased the complexity of many projects.
In addition, compression of the product life cycle has increased the need to complete projects quickly and efficiently, while reduced customer focus has forced companies to focus on projects to remain competitive. By utilizing project management, companies are able to better understand customer needs, allocate resources more efficiently, and manage project timelines with greater precision. This has enabled them to create products and services that meet customer requirements and remain competitive in the market.
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Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart." A. This is a normative statement. B. The federal government does not face scarcity. C. This topic would be studied in microeconomics. D. Social interest must always be more important than self-interest. E. Ceteris paribus does not apply to the government.
This is a normative statement is true regarding this statement. Thus option A is correct.
What is money?Money is a good that is widely acknowledged as a measurement of business exchange. It serves as the medium for expressing qualities and pricing. It is the primary indicator of wealth since it moves from one individual to another and to a country, allowing trade.
A normative statement is one that cannot be tested or verified and is based on a value judgment.
This is the statement where the data or the information that is presented won't be able to get tested as the data was to be valued rather than the information that is then provided. The decision can not be measured as of this point in time regarding the defense.
Therefore, option A is the correct option.
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The following data set provides bitcoin transactions throughout 2016 and 2017
Caluculate the average number of transactions conducted during April 2017 and May 2017. Which of the following statements are true? Select all that apply.
The correct answer is 13 days between 300,000 and 349,000 transactions occurred in May 2017. 9 days in April 2017 had 300,000 to 349,000 transactions.
The ratio (fraction or proportion) of the number of times a data value appears in the set of all outcomes to the total number of outcomes is known as the relative frequency. The relative frequency is calculated by dividing each frequency by the total number of data values. Therefore, the frequency is calculated by multiplying the relative frequency by the total number of data values. Four times the data value 2 is present. (iii) There were 90 commercial banks in 1969. There were 150 commercial banks in 1980. As a result, the ratio of commercial banks in 1969 to those in 1980 is 90 to 150, or 3 to 5.
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If you were to watch a television commercial for a new automobile, and not notice it had dual airbags, side impact bars, and antilock brakes, but you did notice that it had a high-performance engine that could take it to high speeds as indicated in the film footage, this would be an example of _____ perception.
If you were to watch a television commercial for a new automobile you did notice that it had a high-performance engine that could take it to high speeds as indicated in the film footage, this would be an example of selective perception.
Selective perception would be demonstrated if you watched a television commercial for a new car and focused just on the high-performance engine. According to their own interests, aspirations, experiences, and prejudices, people often perceive some parts of a stimulus while ignoring others. This phenomenon is known as selective perception. In this case, the high-performance engine caught the viewer's eye while antilock brakes, side impact bars, and other safety measures went unnoticed. Selective perception is the propensity to ignore and forget more rapidly things that are upsetting emotionally or go against our preconceived notions. Because of their bias towards members of their own group, teachers, for instance, could have a favourite pupil. The instructor disregards the student's subpar performance.
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do perfectly competitive firms satisfy the condition of allocative efficiency?
Long-run equilibrium in flawlessly competitive markets meets important situations: allocative performance and efficient.
A marketplace is any location where or more activities can meet to interact in a monetary transaction—even those that don't contain prison gentleness. A marketplace transaction may additionally additionally incorporate goods, services, facts, forex, or any combination of these that bypass from one celebration to some other.
In elegant, the feature of a market is to gather products from scattered resources and channel them to scattered shops. From the thing of view of the seller, dealers channel the decision for their product; from the factor of view of the purchaser, they carry factors within his gain. A marketplace is an area in which consumers and sellers can meet to facilitate the exchange or transaction of goods and services. different examples encompass unlawful markets, public sale markets, and economic markets.
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which one of the following is abasic concepts of probability?
______ satisfaction refers to how employees feel about their employer's policies regarding changes in job titles and responsibilities.
A) Coworker
B) Pay
C) Promotion
D) Supervision
The correct answer is C) Promotion satisfaction refers to how employees feel about their employer's policies regarding changes in job titles and responsibilities.
The degree of enjoyment employees experience with their jobs is known as job satisfaction. Beyond their regular responsibilities, this includes their relationship with coworkers and bosses, their opinion of the organization's rules, and the effect their work has on their personal life. Intrinsic and extrinsic job satisfaction are the two main types of job satisfaction. Extrinsic job satisfaction includes the setting in which the job is performed, whereas intrinsic job satisfaction refers to the employee's happiness with the sort of work they are performing.
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which of the following issues would likely be of interest to an ergonomics researcher? (select all that apply.)
Research in the area of ergonomics considers the context of work more than the work itself. Design of the work space and level of lighting in the work space would likely be of interest to an ergonomics researcher.
Ergonomics (the scientific study of people at work) seeks to prevent soft tissue injuries and musculoskeletal diseases (MSDs) caused by rapid or continuous exposure to stress, vibration, repetitive motion, and uncomfortable posture.
NIOSH ergonomists and industrial hygienists propose designing jobs, work areas, controls, displays, tools, lighting, and equipment to meet employees' physical capabilities and limits in order to produce an ergonomically sound work environment.
Ergonomists ensure that product, task, and work method design is consistent with human performance.
They assess human and machine systems by observing, measuring, and rating how individuals interact with one another, as well as with their equipment and workspaces. This is done to increase safety, efficiency, and well-being.
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Correct equation:
Research in the area of ergonomics considers the context of work more than the work itself. Which of the issues would likely be of interest to an ergonomics researcher?
Which of the following is NOT a determinant of the extent of rivalry among established companies?
a) Industry competitive structure
b)Demand conditions
c)Cost conditions
d)The height of exit barriers in the industry
e)The bargaining power of buyers
The bargaining power of buyers is not a determinant of the extent of rivalry among established companies. Number of buyers compared to suppliers: If there are fewer buyers than suppliers, the buyer's position will be more powerful.
Dependence of a buyer's purchases on a specific supplier: If a buyer can obtain comparable goods or services from other vendors, they become less dependent on a specific vendor. Whether your companies is a buyer or a supplier to its own customers, suppliers have the same bargaining power. Low switching costs, product or service differentiation, few rival suppliers in the industry, and high switching costs all contribute to high supplier bargaining power.
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which of the following is the most likely effect of higher chicken prices on the price and quantity purchased of beef, a substitute product?
The relationship between chicken prices and the price and quantity purchased of beef is a complex one that is influenced by various factors, including the elasticity of demand, the responsiveness of supply, and the availability of alternative products.
The demand for beef, as a substitute product, is likely to increase when the price of chicken increases, as consumers seek more affordable options. The increase in demand for beef can drive up its price, but the extent of the price increase will depend on the elasticity of demand for beef. If the demand for beef is inelastic, a small increase in price may not significantly reduce the quantity demanded, leading to a larger price increase. On the other hand, if the demand for beef is elastic, a small increase in price may result in a larger reduction in quantity demanded, leading to a smaller price increase. The responsiveness of supply to changes in price also plays a role in determining the effect of higher chicken prices on the price and quantity purchased of beef. If the supply of beef is elastic, an increase in demand for beef will result in an increase in supply, which may offset the increase in demand and lead to a smaller price increase. On the other hand, if the supply of beef is inelastic, an increase in demand may result in a larger price increase, as suppliers are not able to quickly increase production to meet the increased demand. Finally, the availability of alternative products, such as pork and turkey, will also play a role in determining the effect of higher chicken prices on the price and quantity purchased of beef. If consumers have many alternative options, they may be less likely to switch to beef, and the increase in demand for beef may be smaller, leading to a smaller price increase.
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Which of the following statements is CORRECT?
a. 10-year, zero coupon bonds have more reinvestment risk than 10-year 10% coupon bonds.
b. A 10-year, 10% coupon bond has less reinvestment risk than a 10-year, 5% coupon bond (assuming all else equal).
c. The total (rate of) return on a bond during a given year is the sum of the coupon interest payments received during the year and the change in the value of the bond from the beginning to the end of the year, divided by the bond s price at the beginning of the year.
d. The price of a 20-year, 10% bond is less sensitive to changes in interest rates than the price of a 5-year, 10% bond.
e. A $1,000 bond with $100 annual interest payments that has 5 years to maturity and is not expected to default would sell at a discount if interest rates were below 9% and at a premium if interest rates were greater than 11%.
The correct statement is option c. The total (rate of) return on a bond during a given year is the sum of the coupon interest payments received during the year and the change in the value of the bond from the beginning to the end of the year, divided by the bond s price at the beginning of the year.
The amount of the coupon interest payments received during the year and the change in the bond's value from the beginning to the end of the year, and when it is divided by the bond's price at the beginning of the year, it is the total rate of return on a bond for that given year.
Simply divide the annual payment by the bond's market value to determine the bond's rate of return. The interest payment, often known as the "coupon," is constant despite fluctuations in the bond's price brought on by market factors.
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Select 3 goals or objectives that a leadership plan might include to achieve a solid business strategy.Buying powerAttracting new customersIncreasing salesSupply chain powerDecreasing costs
3 goals or objectives that a leadership plan might include to achieve a solid business strategy.
1. Broad differentiation
2. Broad cost leadership
3. Focused strategy
Broad differentiation is a competitive strategy i which a company differentiates its products or services from those of its competitors in multiple ways. This approach allows the company to be competitive in a wide range of markets, while also creating a unique competitive advantage.
Broad cost leadership is a business strategy in which a company seeks to become the lowest-cost producer in its industry. In order to become a cost leader, a company must reduce its costs across all areas of its business, including production, marketing, and distribution.
Focused strategy is a business strategy in which a company concentrates its resources on a limited number of products or services within a specific market. This strategy involves narrowing down the target market so that the company can focus on a select group of consumers.
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Oops! When you went in to make your deposit, the bank representative said the amount of required deposit reported in the advertisement was incorrect and should have read $67,500. This revision will (REDUCE or INCREASE) the interest rate earned on your deposited funds.The change to your required deposit will cause your earned interest rate to change to (27.60%, 26.40%, 25.20%, 24.00%).Perpetuities are also called annuities with an extended, or unlimited, life. Based on your understanding of perpetuities, answer the following questions: Which of the following are characteristics of a perpetuity? Check all that apply.- A perpetuity continues for a fixed time period. - The principal amount of a perpetuity is repaid as a lump-sum amount. - In a perpetuity, returns-in the form of a series of identical cash flows-are earned. - A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future. A local bank's advertising reads: "Give us $10,000 today, and we'll pay you $3,600 every year forever." If you plan to live forever, what annual interest rate will you earn on your deposit? a. 32.40% b. 57.60% c. 36.00% d. 43.20%
If you plan to live forever, then the annual interest rate will you earn on your deposit is 36.00%.
The interest rate is the percentage of the deposit amount that you will receive in addition to the deposit itself. Banks offer different interest rates based on the amount of deposit and the terms of the deposit.
In the scenario described, the bank representative said that the required deposit amount was incorrect and should have been $67,500. This means that the original deposit amount has changed, and as a result, the interest rate earned on the deposit will also change. The new interest rate will be 25.20%.
Perpetuities are a type of annuity that are paid forever. They are a series of regularly timed, equal cash flows that are assumed to continue indefinitely into the future.
The bank is offering to pay you $3,600 every year for as long as you live if you deposit $10,000.
To calculate the annual interest rate that you will earn on your deposit, you need to divide the payment received ($3,600) by the deposit amount ($10,000) and then multiply by 100 to convert it to a percentage.
=> (3600 / 10000) x 100
This gives you an annual interest rate of 36.00%.
Therefore, the answer to the question is c. 36.00%.
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Upon vacating the building, the tenant mailed a $1,000 check to the window company bearing on its face the following conspicuous notation: "This check is in full and final satisfaction of your $2,000 window replacement bill." Without noticing this notation, the window company cashed the check and now sues the tenant for the $1,000 difference.
If the tenant's only defense is accord and satisfaction, is the tenant likely to prevail?
A. No, because the window company failed to notice the tenant's notation on the check.
B. No, because the amount owed by the tenant to the window company was liquidated and undisputed.
C. Yes, because by cashing the check the window company impliedly agreed to accept the $1,000 as full payment of its claim.
D. Yes, because the window company failed to write a reservation-of-rights notation on the check before cashing it.
Option (B) is correct, the tenant is not likely to prevail because the amount owed by the tenant to the window company was liquidated and undisputed.
Is the tenant likely to succeed if their only defense is satisfaction?A debtor is allowed to offer to settle a dispute under the terms of accord and satisfaction by presenting a check that is clearly marked "payment in full." Cashing the check without objecting amounts to accepting the offer of an accord and satisfying the debt if the note was sufficiently clear that the creditor should have comprehended it.
The adjustment would not be supported by the simple payment of a smaller amount, though, unless the creditor's debt is not liquidated. Although the renter offered a satisfaction agreement, which the window company accepted when it cashed the check, it was unenforceable because it lacked consideration—the sum and kind of the debt for which the tenant was owed to the window company was not in dispute.
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True or False. Scope, cultural influence, and market practices are considerable operational differences of global businesses from that of domestic businesses.
Scope, cultural influence, and market practices are considerable operational differences between global businesses from that of domestic businesses are False.
The amount to which an organization can employ the same processes and products in other nations is commonly referred to as global integration.
As old markets become saturated and new ones must be established, many enterprises have lost all confidence in sales in the global market.
Global integration:
The methodology by which an organization merges many international footprints so that they run in accordance with the same rules, etc.
The procedures of quality assurance and centralizing technological advancement may be a component of international integration.
To avoid disease causing significant starvation and death, together with economic contraction disproportionately damaging the most vulnerable, global concerns demand coordinated global solutions.
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In which of the following situations would monetary policy be least effective?
a. controlling inflation
b. slowing expansion
c. controlling inflation and recession
d. controlling recession
Explanation:
the answer for this question is c
According to the net method, which of the following items should be included in the cost of inventory?Freight costsPurchase discounts not takena.YesNob.YesYesc.NoYesd.NoNo
The correct option is B.
B) Yes Yes.
Such expenses include, for instance, non-production overhead expenditures or design expenses related to a particular client. lists the charges that are specifically not included in the cost of inventories, abnormally high rates of material, labour, or other production cost waste; storage expenses, unless they are necessary to complete one step of company before moving on to the next; and standards for accounting for borrowing charges in the cost of inventories. "Unless those costs are necessary in the manufacturing process before a further production stage," storage costs are not included in the cost of stocks. As a result, the cost of finished goods does not increase when they are stored in a warehouse.
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you work for emerita's pizzeria and have been given the task of looking at company goals and deciding how the goals will be accomplished. you understand that planning is a complex process, but you are up for the challenge.
The plans must be involved are the strategic planning, the mid level, the low level, the operational planning, the top planning.
During strategic planning, stakeholders will be asked where they want their company to be in five years.
The middle level staff will decide to focus on attracting new clients and increasing productivity, as well as finding ways to give back to the company.
As a low-level employee, they must interact with customers and contribute to the company's performance.
It will be difficult in operational planning to manage customers and meet their day-to-day needs.
A meeting with top-level staff will be held, and as a result, new operational planning tools will be developed.
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What effect does unemployment have on society as a whole?
Unemployment can have a significant impact on society as a whole. It can lead to decreased economic activity, reduced consumer spending, and increased poverty. This, in turn, can result in decreased tax revenue for governments, which can result in cuts to social programs and services. Additionally, high levels of unemployment can lead to increased crime rates and decreased overall morale in the population. Moreover, long-term unemployment can cause skills to atrophy, which can lead to a reduction in workers' future earning potential.
when competitive advantage is assessed from an analysis of publicly available data, a firm measures its
When competitive advantage is assessed from an analysis of publicly available data, a firm measures its accounting profitability .
What is accounting profitability ?
A company's net income, or total revenue less explicit costs, is known as accounting profit, often referred to as financial profit or bookkeeping profit.
An organization's performance is evaluated by accounting profit, which is also used to examine competitors' financial positions. A person's accounting profit, for instance, would be $20,000 if they invested $100,000 to start a firm and made $120,000 in profit.
What justifies accounting's emphasis on profitability?
The company won't last very long without profitability. Therefore, it is crucial to assess past and present profitability as well as estimate future profitability. Income and expenses are used to gauge profitability. Money made from a business's operations is known as income.
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