1. Standard hours allowed for the year's production: 9,100 hours.
2. Budgeted fixed overhead cost: $62,800.
3. Fixed overhead budget variance: -$2,100 (Unfavorable).
4. Denominator activity DLHS: 9,100 hours.
1. The standard hours allowed for the year's production can be calculated by multiplying the standard hours per unit (0.7 hours) by the number of units manufactured (13,000):
Standard hours allowed = 0.7 hours per unit × 13,000 units = 9,100 hours.
2. The amount of budgeted fixed overhead cost for the year is given as $62,800The budgeted fixed overhead cost for the year is $62,800.
3. The fixed overhead budget variance can be calculated by subtracting the actual fixed overhead cost ($62,800) from the fixed overhead applied to work in process ($60,700):
Fixed overhead budget variance = Fixed overhead applied - Actual fixed overhead cost
= $60,700 - $62,800
= -$2,100 (Unfavorable).
4. The denominator activity level used to set the predetermined overhead rate for the year is the standard direct labor-hours (DLHS) allowed for the year's production, which is 9,100 hours.
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which is not a type of utilization management? gatekeepers prescription drug review case management pre-admission certification mandatory second surgical opinion
Gatekeepers, prescription drug review, case management, and pre-admission certification are types of utilization management, while mandatory second surgical opinion is not.
Utilization management is a process used by healthcare organizations to ensure the appropriate and efficient use of medical services. It involves various strategies and techniques aimed at controlling healthcare costs while maintaining quality care.
Among the options listed, gatekeepers, prescription drug review, case management, and pre-admission certification are all types of utilization management.
1. Gatekeepers: Gatekeepers are healthcare professionals, typically primary care physicians, who serve as the first point of contact for patients. They play a role in managing and coordinating access to specialty care and other medical services.
Their involvement helps ensure that patients receive necessary and appropriate care while avoiding unnecessary or duplicative services.
2. Prescription drug review: Prescription drug review is a utilization management strategy that involves assessing and managing the use of medications. It includes activities such as formulary management, prior authorization, step therapy, and medication therapy management.
The goal is to optimize medication utilization, promote cost-effective alternatives, and prevent misuse or overuse of drugs.
3. Case management: Case management is a comprehensive approach to coordinating and managing healthcare services for individuals with complex medical conditions.
It involves assessing patients' needs, developing care plans, coordinating services across different providers, and monitoring outcomes. Case management aims to improve patient outcomes, reduce costs, and enhance the overall quality of care.
4. Pre-admission certification: Pre-admission certification, also known as prior authorization, is a utilization management process that requires obtaining approval from a healthcare insurer before a planned medical service or procedure.
It ensures that the proposed treatment is medically necessary and cost-effective, preventing unnecessary procedures and controlling healthcare expenses.
On the other hand, a mandatory second surgical opinion is not a type of utilization management. While it may be a requirement in certain healthcare systems or for specific procedures, it does not fall under the umbrella of utilization management techniques.
Mandatory second surgical opinion is a policy or practice where patients are required to seek an additional opinion from another surgeon before undergoing certain surgeries.
It aims to provide patients with more information and reduce the potential risks associated with surgical interventions, but it is not directly related to the utilization management process.
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What are some reasons that a bank statement might not match a cash balance of a business's records? Choose all answers that are correct.
Question 1 options:
posted payments on credit cards
bank errors
outstanding deposits
service charges
recorded checks
outstanding checks
Answer:
outstanding deposits, outstanding checks, posted payments on credit cards
Explanation:
Bank errors, Outstanding Deposits, Service Charges, and Outstanding checks are some reasons that a bank statement might not match the cash balance of a business's records. The correct options are B, C, D, and F.
What information does a bank statement provide?Name, address, account number, and bank branch information are all listed on bank statements for account holders. Additionally, a summary table that displays the statement's time frame, opening and closing bank balances, deposits made to the account, refunds, and cash withdrawals is included. In addition, fines levied by your bank as well as declined or canceled payments will appear on your statements.
Differences between the two records could be the result of Deposits in transit: The firm may have received cash or cheques, but the bank may not have yet recorded them. Outstanding checks are ones that have been issued but have not yet been processed. Bank service fees: Banks frequently deduct service fees.
Thus, the ideal options are B, C, D, and F.
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The first thing that the customer needs to do to take a loan is
A group of investors is planning to open a new theme park. What supporting documents should be included?
An investment group wants to launch a brand-new theme park. The supporting papers that need to be submitted are the business plans.
This is further explained below.
What is a business plan?Generally, A number of business people are making preparations to launch a brand-new amusement park. It is important to include all of the relevant supporting papers in a business strategy.
In conclusion, A company's aims and the methods by which it intends to attain those goals are laid out in great detail in the document known as the business plan.
A written road map for the company, including its marketing, financial, and operational strategies, is presented in the form of a business plan. Business plans are useful for both newly founded businesses and more established ones.
An executive summary, sections on the goods and services, marketing strategy and analysis, financial planning, and a budget should all be included in a good business plan.
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Jesse got a job at a fitness center. He thought his first paycheck would be $200 for working 20 hours at $10 an hour. Instead, the paycheck was for $180. Which was most likely taken from his check?
A.) taxes
B.) interest
C.) profit
D.) dividends
Answer:
Taxes
Explanation:
The answer to the question is taxes.
Answer:
Hey there! It sounds like Jesse got a job at a fitness center and was expecting his first paycheck to be for $200, but it ended up being for $180 instead. That's a bummer!
Paychecks often have various deductions taken out, like taxes, insurance premiums, and retirement contributions. It's possible that some or all of these deductions were taken out of Jesse's paycheck, which is why it was for less than he expected.
Taxes are a common deduction from paychecks, so it's likely that some taxes were taken out. But don't worry, this is just part of the process of getting paid and is completely normal.
It's probably not interest, profit, or dividends, since those things are usually associated with investments or financial products, not employment.
What are some factors that would influence supply? Explain
Answer:
6 Factors Affecting the Supply of a Commodity (Individual Supply) |
Price of the given Commodity: ADVERTISEMENTS: ...
Prices of Other Goods: ...
Prices of Factors of Production (inputs): ...
State of Technology: ...
Government Policy (Taxation Policy): ...
Goals / Objectives of the firm:
Explanation:
Please mark as brain list
How do I record on windows computer
Explanation:
Navigate to the screen you wish to record and press Win+G to open Game Bar. Several Game Bar widgets appear on the screen with controls for capturing screenshots, recording video and audio, and broadcasting your screen activity. Click the Start Recording button to capture your screen activity.
Answer:
you'd need to download software for recording. as far as i know windows doesnt have built in recording capabilities. are you looking at screen recording or just sound?
Explanation:
The Elasticity of Demand is the same at every point on the demand curve. True False Question 17 1 pts The elasticity of demand is the % change in Quantity demanded divided by the % change in price. True False
Elasticity of demand measures the responsiveness of quantity demanded to changes in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. The elasticity of demand varies along the demand curve due to different factors influencing consumer behavior.
Therefore, statement 1 is false.
In general, the elasticity of demand is higher (more elastic) at higher prices and lower (less elastic) at lower prices. At higher prices, consumers tend to be more sensitive to price changes and have more flexibility in their purchasing decisions. As prices decrease, the demand becomes less elastic as consumers may already be purchasing near their maximum willingness to pay.
Elasticity of demand is a measure of how responsive the quantity demanded of a good or service is to changes in its price. It quantifies the relationship between price and quantity demanded. The formula for elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price.
Therefore, statement 2 is true.
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Which of the following affected aggregate demand during the recession of 2008-2009? a. a decline in residential construction and a decrease in lending
b. a decline in residential construction but not a decrease in lending c. a decrease in lending but not a decline in residential construction
d. neither a decrease in residential construction nor a decrease in lending
The correct answer is (a) a decline in residential construction and a decrease in lending.
During the recession of 2008-2009, both a decline in residential construction and a decrease in lending affected aggregate demand. The decline in residential construction was mainly due to the burst of the housing bubble, which led to a drop in home prices and reduced investment in this sector. This decrease in residential construction investment negatively impacted aggregate demand as it lowered overall spending in the economy. Additionally, the decrease in lending was a result of the financial crisis that originated from subprime mortgage lending and the collapse of major financial institutions. This led to a credit crunch, making it difficult for businesses and consumers to obtain loans. As a result, spending decreased across the board, contributing to the decline in aggregate demand.
Both factors played a significant role in reducing aggregate demand during the recession of 2008-2009, leading to a prolonged period of economic downturn.
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Tamora has just graduated from college. when she entered college four years ago, she took out a $9,100 subsidized stafford loan, which has a duration of ten years. the loan has an interest rate of 5.4%, compounded monthly. if tamora makes monthly payments, how much interest will she have paid in total by the time the loan is paid off? round all dollar values to the nearest cent. a. $2,697.20 b. $1,574.00 c. $5,534.00 d. $3,888.08
For her subsidized stafford loan, Tamora has $2,697 of total interest paid for the last 10 years.
Total interest paid can be find from the remaining amount of the total payment made and the principal loan. To calculate the total interest paid of a loan, we have to find the total payment made within the period first.
To find the total payment, we need to know the monthly payment Tamora made or PMT. PMT can be find using the formula of:
PV = PMT ([1 - (1+r)^-n]/r)
PMT = PV / ([1 - (1+r)^-n]/r)
From the case, we know that:
PV = $9,100
r = 5.4% pa = 0.45% monthly
n = 12 x 10 years = 120 months
Tamora PMT should be:
PMT = PV / ([1 - (1+r)^-n]/r)
PMT = $9,100 / ([1 - (1+0,45%)^(-120)]/0.45%)
PMT = $98.31
Since Tamora has made 120 times payment, the total payment she made is:
Total payment = PMT x n
Total payment = $98,31 x 120
Total payment = $$11,797.03
Then, the total interest paid by Tamora is:
Total interest paid = Total payment - Principal loan
Total interest paid = $11,797.03 - $9,100
Total interest paid = 2,697.03
Total interest paid ≈ 2,697
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Answer:
A $2,697.20
Explanation:
^^
the elements of a brand that cannot be spoken are called the ______.
The elements of a brand that cannot be spoken are called the brand mark.
Every band has its properties and elements such as the brand name and
brand equity which can be spoken to describe what the brand is all about.
These elements are usually unique and helps to describe the brand and its
operations.
However , the brand mark is like a logo and contains pictorial properties
which can be seen.
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arkansas escrow agent norman received the earnest money deposit from his clients bud and barbara on friday, january 6, the day the contract was signed by both parties. he must deposit the earnest money by the end of what day?
The timeline for depositing earnest money can vary depending on state laws and contractual agreements.
In most cases, an escrow agent like Norman is required to deposit the earnest money within a reasonable period of time. The specific time frame may be outlined in the contract or governed by state laws. It is crucial to consult the contract or seek legal advice to ensure compliance with the applicable regulations.
In the absence of specific contractual or legal requirements, it is generally considered good practice for the escrow agent to deposit the earnest money as soon as possible after receiving it. This helps maintain transparency and demonstrates good faith between the parties involved in the transaction.
In the given scenario, if the contract was signed and the earnest money was received by Norman on Friday, January 6, the deposit should ideally be made within the next business day or within a reasonable time frame thereafter.
Typically, this means that the earnest money should be deposited by Monday, January 9, or the next business day following the receipt of the funds.
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Anyone know how to work powerpoint?
Check which of the following reasons might make you think it's time to look at buying rather than renting.
Answer:
Explanation:
There are several factors to consider when deciding whether to buy or rent a property. Some factors that may make it advantageous to look at buying rather than renting include:
1) Financial stability: If you have a stable income and can afford the upfront costs of purchasing a home (such as a down payment and closing costs), buying a property may be a better long-term investment than renting.
2) Long-term plans: If you plan to live in the same area for a long time, buying a home can provide more stability and security than renting.
3) Building equity: When you buy a home, you build equity over time, which can be used as a financial resource in the future. In contrast, renting does not provide the opportunity to build equity.
4) Rental market conditions: If rental prices in your area are high, it may be more cost-effective to buy a home instead of renting.
5) Tax benefits: Homeowners may be eligible for tax benefits, such as deducting mortgage interest and property taxes from their taxable income.
However, there are also potential drawbacks to buying a home, such as the responsibility for maintenance and repairs, the possibility of losing value in a declining housing market, and the upfront costs of purchasing a home. Therefore, it's important to carefully consider your personal circumstances and financial situation before deciding whether to buy or rent a property.
Help me with this please.
Answer:
its customer service and desion making
Explanation:
hope it help btw i search it up and it said that so its right
What does Beshara say is important about the book
Answer:
what book there'S A LOT
RESEND IT THX
How does the availability of economic resources in conjunction with the law of diminishing returns affect an entrepreneur's decisions?
Answer: A
Explanation:
According to the law of diminishing returns, the increase in output that results from adding a production factor is smaller. The law of diminishing returns aids the business in determining the ideal amount of output in production. This is so that the producer can determine whether or not the output has reached its maximum potential.
Why is the law of diminishing returns important?Because economists anticipate that a firm's short-run marginal cost curves would slope upward as the number of output units rises, the law of diminishing returns is significant because it forms part of the theoretical framework.
According to the economic theory known as the law of diminishing returns, as an investment in a certain area rises, the rate of profit from that investment can no longer rise if other factors remain constant after a certain point.
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Apple store at New York must place an order for the Air Pods and the Air Pods Pro with an annual demand of 1000 nos. and 1200 nos. respectively. The holding cost for both types of Air pods is $10. The ordering cost is as given below. Air Pods - $100 Air Pods Pro - $75 If this store follows the EOQ model to place orders, determine for both the types a) Economic order quantity b) Time interval between orders (in days) c) Number of orders made in a year Assume that the store is operating throughout the year.
a) The (EOQ) for Air Pods is 141.42 units, and for Air Pods Pro is 134.16 units. b) The time interval between orders for Air Pods is 51.21 days, and for Air Pods Pro is 40.69 days. c) The number of orders made in a year for Air Pods is 7.07, and for Air Pods Pro is 8.95.
To determine the economic order quantity (EOQ), time interval between orders, and the number of orders made in a year, we can use the following formulas:
a) Economic Order Quantity (EOQ):
EOQ = √((2 * Annual Demand * Ordering Cost) / Holding Cost)
b) Time interval between orders (in days):
Time Interval = (EOQ / Annual Demand) * 365
c) Number of orders made in a year:
Number of Orders = Annual Demand / EOQ
Let's calculate these values for both Air Pods and Air Pods Pro:
For Air Pods:
Annual Demand = 1000
Ordering Cost = $100
Holding Cost = $10
a) EOQ for Air Pods:
EOQ = √((2 * 1000 * 100) / 10) = √(20000) = 141.42 (approx.)
b) Time interval between orders for Air Pods:
Time Interval = (141.42 / 1000) * 365 = 51.21 days (approx.)
c) Number of orders made in a year for Air Pods:
Number of Orders = 1000 / 141.42 = 7.07 (approx.)
For Air Pods Pro:
Annual Demand = 1200
Ordering Cost = $75
Holding Cost = $10
a) EOQ for Air Pods Pro:
EOQ = √((2 * 1200 * 75) / 10) = √(18000) = 134.16 (approx.)
b) Time interval between orders for Air Pods Pro:
Time Interval = (134.16 / 1200) * 365 = 40.69 days (approx.)
c) Number of orders made in a year for Air Pods Pro:
Number of Orders = 1200 / 134.16 = 8.95 (approx.)
Therefore, for the Apple store at New York:
a) The economic order quantity (EOQ) for Air Pods is approximately 141.42 units, and for Air Pods Pro is approximately 134.16 units.
b) The time interval between orders for Air Pods is approximately 51.21 days, and for Air Pods Pro is approximately 40.69 days.
c) The number of orders made in a year for Air Pods is approximately 7.07, and for Air Pods Pro is approximately 8.95.
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Conclusions and recommendations are the most widely read sections of any report. Conclusions summarize and explain your findings and are the heart of your report. The ability to draw sound conclusions and make clear recommendations from your research is crucial to business success. Companies value employees who can analyze data and use it to help answer questions and solve problems.
1. When drawing conclusions, make sure you (use consistent evaluation criteria / are open to sensationalization or exaggeration / avoid relating them to the initial report problem).
Consider the scenario, and then answer the question.
You are making recommendations after researching and writing a report on sports club discounts and employee health.
Consistency in evaluation criteria, avoiding sensationalism, and relating recommendations to the initial problem is crucial when drawing conclusions and making recommendations in a report on sports club discounts and employee health.
When drawing conclusions in a report on sports club discounts and employee health, it is important to use consistent evaluation criteria. This means using the same standards for assessing different aspects of the research. For example, if the research looked at the effectiveness of the discounts on employee health, the criteria used to evaluate the impact of the discounts should be the same for all employees.
It is also important to avoid sensationalization or exaggeration when drawing conclusions. The conclusions should be based on the data and facts collected during the research process. Any claims made should be supported by evidence from the research.
When making recommendations, it is important to relate them to the initial report problem. The recommendations should address the issues identified in the report and provide solutions or suggestions for improvement. The recommendations should be actionable and feasible for the company to implement.
To draw sound conclusions and make clear recommendations in a report on sports club discounts and employee health, consistency in evaluation criteria, avoiding sensationalism, and relating recommendations to the initial report problem are key factors to consider. These skills are highly valued in the workplace, as they demonstrate the ability to analyze data and solve problems.
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please help, this is very simppleee!! ^^
Thomas is a broker who works at a large investment firm. His job is to research different stocks and make recommendations to his customers on which ones they should invest in. Which career cluster would Thomas’s job fall under?
A) Finance
B) Business management
D) STEM
*Pls don't scam me for points!!
Finance, career cluster, would Thomas’s job fall under. Thus, option (a) is correct.
What is job?
A “job” is a designation for working for a specific business. An opportunity for career advancement arises from the job. One could increase their income and gain experience by working. The job was the source of the income. They are the based on the earnings are the career cluster.
According to the Thomas’s job fall under are the based on the finance. It was the largest investment in the firm are the research are the stocks on the recommendations of the customer. It was the investing company are the related to the finance.
As a result, the finance, career cluster, would Thomas’s job fall under. Therefore, option (a) is correct.
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It involves developing new products or
improving existing technologies, processes,
designs and marketing to solve problems,
increase efficiency, reach new customers,
and ultimately increase profits.
a. business opportunity
b. entrepreneurship
c. social change
d. socioeconomic
e. livelihood
f. business venture
g. relevance
h. business innovation
i. entrepreneur
j. economy
Answer:
h. business innovation
Explanation:
Business innovation is a term that describes a situation whereby a firm initiates the latest techniques or methods in the production of goods and, or delivery of services.
The purpose is to create a beneficial transition and change in the operation of business activities to gain more profits.
In other words, business innovation involves enhancing existing strategies or exercises, or in some cases beginning afresh.
Hence, going by the definition in the question. The correct answer is BUSINESS INNOVATION: It involves developing new products or improving existing technologies, processes, designs, and marketing to solve problems, increase efficiency, reach new customers, and ultimately increase profits.
Business innovation is the answer.
Business innovation refers to activity company undertakes by implementing new business processes, ideas, products or services with the main aim of increasing efficiency and profit
The bringing up of ideas for creation of new and improved products or services into market is known as Business InnovationThe initiation of Business Innovation activity is possible through intense brainstorming.Business innovation generally increase a company's efficiency and improve its profitability level.Learn more about Business Innovation here
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The United Stated Supreme court is:
*
O Elected to six-year terms
O The supreme law of the land
O Restricted by state laws
O Restricted to decisions regarding federal law
The United Stated Supreme court is Restricted to decisions regarding federal law.
The federal law are bills that have passed both houses of Congress, been signed by the president, passed over the president's veto, or allowed to become law without the president's signature.
The Supreme court of the United State is the highest court in the American judicial system and has the power to decide appeals on all cases brought in federal court or those brought in state court dealing with federal law.
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How many acres are in a description reading, "The NW¼ of the SE¼ and the S½ of the SW¼ of the NE¼ of Section 4"?
The main answer is that the description "The NW¼ of the SE¼ and the S½ of the SW¼ of the NE¼ of Section 4" does not provide enough information to determine the exact number of acres.
The description only specifies the fractional parts of various quarters within Section 4, but it does not specify the size of the section or the size of each quarter.
To determine the number of acres, we need to know the total area of Section 4 in acres. A section of land typically consists of 640 acres, but the exact size can vary depending on the jurisdiction or survey system being used. Once we know the total area of Section 4, we can calculate the number of acres based on the given fractional parts.
For example, if Section 4 is 640 acres, the NW¼ of the SE¼ would be (1/4) * (1/4) * 640 = 40 acres. The S½ of the SW¼ of the NE¼ would be (1/2) * (1/4) * (1/4) * 640 = 20 acres. However, without the information on the size of Section 4, we cannot accurately determine the total number of acres based on the given description.
In summary, the provided description only specifies fractional parts of various quarters within Section 4, and without the total area of Section 4, it is not possible to determine the exact number of acres.
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HURRY I NEED HELP!!!
Does globalization (or global trade) provide an opportunity to the world (positive), or does it take advantage of local individuals and cultures (negative)? Explain in a CREW format.
Interviewer: I am here on a very crowded Wall Street with protesters chanting all around me…
Group of Protesters: People before profits! People before profits! People before profits!
Interviewer: Many of these folks are against the growth of global free trade. They believe free trade is to blame for increases in poverty, income inequality (lots of rich and lots of poor), and environmental damage in recent decades. They claim that the elimination of tariffs and other barriers to trade have simply allowed large, multinational corporations to move into and exploit (take advantage of) developing nations, while hurting many U.S. workers and families, too.
Protester 1 (wearing a “No More Sweatshops” T-shirt): The extreme expansion of capitalism and free trade has allowed large, multinational companies to exploit developing countries, and especially their poorest citizens who are often forced to work for less than $1.00 day. Many of the factories set up by these big companies are sweatshops– dirty, dangerous, and the pay is awful. We are here protesting for a ‘living wage’ for all foreign employees of U.S. corporations.
Union representative: I’m tired of these large, unfeeling corporations sending our good paying manufacturing jobs overseas to some factory where workers make $1.50 an hour, instead of letting Americans have those jobs…That’s what’s happening in the textile industry, the steel industry, and the auto industry, too. These are industries that built America and now our jobs are going to China or Mexico...
Interviewer: The other side of this global debate–you might call them free-trade advocates– argues that opening up markets and international borders to free trade has had all kinds of benefits for developing nations, as well as the United States and other industrialized nations. They cite data showing increased life expectancy, increased literacy (ability to read and write), more political freedom, and a reduction in the proportion of people living on less than $1.00 per day in the developing nations.
Manager: Evidence shows that the number of people living on $1.00 per day or less has decreased by 50% in the last 20 years, which was a period of rapid world economic growth, largely because of international trade. And the percentage of people who are malnourished (Starving) has dropped from 56% in the 1960s to only 10% today. Again, during a period of global economic growth, fueled by trade. Look, our corporation has a factory in Vietnam. Last year our factory there paid 2 times the local wage. That was a big step up for those workers, and it made sense for us, too, because it meant we could get the most productive local workers.
Shopper: Let’s also look at all of the different product choices we have. I can go into the grocery store and find different types of food from all over the world. We are limited in what we can produce and grow here in America, so having global trade gives us so many more options.
C- Claim (Globalization provides an opportunity to people throughout the world [or] Globalization takes advantage of local individuals and cultures around the world.)
R- Reason (It provides the opportunity because… [Or] It takes advantage of others because…)
E- Evidence (insert a quote from the reading to prove your positive or negative side)
W- Warrant (This quote shows how globalization is positive/negative because… We should/shouldn’t continue to trade with other countries of the world because...)
Answer:
In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers. Globalization is not new.
What will be the nature of balance of trade if imports are of manufactured goods?
A)Neutral
b)Positive
c)Negative
Answer:
b). Positive
Explanation:
The nature of the balance of trade if imports are of manufactured goods is POSITIVE
Considering that Balance of trade is a term that is used to describe the difference between the imports and exports value of a country over a given period.
Hence, when a country manufactured goods instead of importing them, the balance of trade is believed to be Positive.
On the other hand, when a country imports goods instead of manufacturing them, the balance of trade is believed to be negative.
The variable overhead efficiency variance is computed ________ and interpreted ________ the direct-cost efficiency variance.
A) the same as; the same as
B) the same as; differently than
C) differently than; the same as
D) differently than; differently than
The correct answer is C) differently than; the same as.
The variable overhead efficiency variance is computed differently than the direct-cost efficiency variance and is interpreted the same as the direct-cost efficiency variance.
The variable overhead efficiency variance measures the difference between the actual hours of activity used to produce a product and the standard hours allowed for the actual level of output achieved. It calculates the impact of using more or fewer hours than expected to produce the output. The formula for calculating the variable overhead efficiency variance is:
Variable Overhead Efficiency Variance = (Actual Hours - Standard Hours) × Standard Variable Overhead Rate
On the other hand, the direct-cost efficiency variance measures the difference between the actual quantity of inputs used and the standard quantity of inputs allowed for the actual level of output achieved. It assesses the impact of using more or fewer inputs than expected to produce the output.
Both variances indicate whether the actual performance is better or worse than the expected performance. However, they are computed differently because they focus on different cost elements (variable overhead costs vs. direct costs) and quantities (hours of activity vs. quantity of inputs). Despite the difference in calculation, the interpretation of these variances remains the same, as they both provide insight into the efficiency of resource utilization in the production process.
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Wyalusing Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers’ lots. Wyalusing expanded into the precut housing market when it acquired Fairmont Company, one of its suppliers. In this market, various types of lumber are precut into the appropriate lengths, banded into packages, and shipped to customers’ lots for assembly. Wyalusing designated the Fairmont Division as an investment center. Wyalusing uses return on investment (ROI) as a performance measure with investment defined as average productive assets. Management bonuses are based in part on ROI. All investments are expected to earn a minimum return of 16 percent before income taxes. Fairmont’s ROI has ranged from 29. 2 to 32. 4 percent since it was acquired. Fairmont had an investment opportunity in 20x1 that had an estimated ROI of 28 percent. Fairmont’s management decided against the investment because it believed the investment would decrease the division’s overall ROI. The 20x1 income statement for Fairmont Division follows. The division’s productive assets were $23,100,000 at the end of 20x1, a 5 percent increase over the balance at the beginning of the year.
Fairmont Division Income Statement For the Year Ended December 31, 20x1 (in thousands) Sales revenue 22,500 Cost of goods sold 13,900 Gross margin 8,600 Operating Expenses: Administrative 1,800 Selling 4,300 6,100 Income from operations before income taxes 2,500.
Required:
1. Calculate the following perofrmance measures for 20x1 for the Fairmont Division.
a. Return on Investment (ROI)
b. Residual Income
2. Would the management of Fairmont Division have been more likely to accept the investment opportunity it had in 20X1 if residual income were used as a performance measure instead of ROI? Explain your answer
1. The performance measures for 20x1 for the Fairmont Division are as follows:
a. Return on Investent (ROI) is 11.09%.
b. Residual Income is ($1,108,000).
What is a performance measure?A performance measure is a technique that measures outcomes or results, enabling management, lenders, and investors to gauge the effectiveness and efficiency of their investments.
A performance measure may be applied to the following resources:
Human resourcesEmployee timeFundingInvestments.Data and Calculations:Required minimum return = 16% before taxes
Ending productive assets = $23,100,000
Beginning productive assets = $22,000,000 ($23,100,000/1.05)
Average productive assets = $22,550,000 ($23,100,000 + $22,000,000)/2
Return on Investment = Income from operations before income taxes/Average productive assets x 100
= $2,500/$22,550 x 100
= 11.09%
Residual Income = Income before taxes - Cost of Capital or (Average productive assets x Minimum Required Returns)
= $2,500,000- ($22,550,000 x 16%)
= $2,500,000 - $3,608,000
= ($1,108,000)
Thus, while the Return on Investment (ROI) is 11.09%, the Residual Income is ($1,108,000).
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In the short run, monopolistically competitive industries ________, while in the long run they ________.
In the short run, monopolistically competitive industries can earn economic profits or losses due to product differentiation and limited competition. In the long run, entry and exit of firms result in normal profits, leading to a state of equilibrium where firms earn zero economic profits.
Monopolies can break even, profit, or lose in the short term. Firms can't enter or leave the market in the short term. If a corporation can effectively differentiate its product and establish a perceived uniqueness, it can generate demand and charge a price above its average cost, resulting in economic profits. If a company doesn't have enough consumers or confronts greater costs, it may lose money.
Monopolies tend to make regular profits over time. Competition can increase or decrease as new or existing enterprises enter or leave the market. This process continues until firms make only normal profits, when average total cost equals average revenue. In the long run, firms in monopolistically competitive industries attain equilibrium by adjusting product differentiation, pricing, and production levels to market conditions.
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During a meeting, a senior manager became upset over an issue and used profanity when responding to lower-level managers. The behavior disrupted the whole company. Which organizational element of ethics did this manager violate?
The manager broke the organizational culture's code of ethics.
What is an organizational ethics?According to Reference for Business, organizational ethics are the principles and standards by which businesses conduct themselves. Acts of fairness, compassion, honesty, honor, and responsibility are the finest ways to show these qualities.
Every organization has a set of ethical principles that direct its actions and decision-making in order to maximize production and uphold its good name. By following rules and standards, ethical behavior makes sure that staff members accomplish their task with honesty and integrity and that the organization's goals are met. The twelve basic ethical principles are: honesty, fairness, leadership, integrity, compassion, respect, responsibility, loyalty, observance of the law, openness, and consideration of the environment.
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Imagine you are an economic adviser to the Commonwealth Government. The Prime Minister wants to increase spending on public transport in major cities, but does not want to raise taxes. Identify alternative sources of revenue for the government to fund its new initiatives.
Answer: A combination of 1) Increased public transportation fees, 2) raise the gasoline tax, 3) increase or institute highway tolls, or 4) reduce the road construction budget and use that money for public transportation.
Explanation:
Actions 2-4 would provide incentives to use public transportation.