An increase in accounts payable, accounts receivable, or net working capital will have no effect on owners' equity because these are all current assets and liabilities that do not directly impact the equity of the business.
However, an increase in inventory or net fixed assets will decrease owners' equity because these are long-term assets that require an investment of funds from the owners. When the company purchases inventory or fixed assets, it is essentially using its own funds to make these purchases, which reduces the amount of funds available to the owners and therefore decreases their equity in the business.
Therefore, the correct answer to the question is either b) Increase in inventory or e) Increase in net fixed assets. An increase in accounts payable will decrease owners' equity because it represents a liability that the company owes to its suppliers. As liabilities increase, owners' equity decreases, assuming all else remains equal.
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all of the following are signals to would-be challengers that retaliation is likely except:
These signals suggest that an organization is committed to creating a safe and supportive workplace that encourages innovation, growth, and development, reducing the likelihood of retaliation by challengers.
Retaliation is a common issue that arises in various fields of work, and it is essential to identify the signals that indicate the likelihood of retaliation. The term retaliation refers to an act of responding to an individual's action with similar or equal harm. In the context of the workplace, retaliation can occur in response to a complaint, grievance, or challenge against the company or management. Some of the signals that suggest retaliation are possible include negative performance reviews, demotion, termination, or exclusion from important meetings or assignments. However, the question asks for signals that suggest retaliation is not likely.
In this case, it is important to note that there are several factors that may deter potential challengers from taking action, reducing the likelihood of retaliation. For example, a company with strong policies and procedures against retaliation may signal to employees that the management takes such claims seriously and is committed to creating a safe and fair work environment. Additionally, a company that encourages open communication, feedback, and constructive criticism may foster a culture of transparency and accountability, reducing the chances of employees resorting to retaliation. Finally, a company that provides its employees with the necessary resources, training, and support may empower them to challenge authority without fear of retaliation.
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all of the following are generic business-level strategiesexcept group of answer choices broad differentiation. focused cost-leadership. focused marketing strategy. broad cost-leadership.
There are four commonly recognized generic business-level strategies, and one of them is broad differentiation. The other three are focused cost-leadership, focused marketing strategy, and broad cost-leadership.
The main idea behind broad differentiation is to offer unique and high-quality products or services that are perceived as better than competitors' offerings, and to charge a premium price for them. On the other hand, broad cost-leadership aims to achieve the lowest possible cost of production and distribution, allowing the company to offer its products or services at lower prices than competitors. Focused cost-leadership and focused marketing strategy are variations of these two strategies, where the company focuses on a narrow target market or a specific product line. Therefore, the correct answer to the question is that all of the listed options are actually generic business-level strategies, except for broad differentiation.
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Offering 2-for-1 coupons is effectively the same as offering customers coffee at half price? A. True B. False.
Answer: True
Explanation:
False. Offering 2-for-1 coupons is not effectively the same as offering customers coffee at half price. Here's a step-by-step explanation:
1. When offering 2-for-1 coupons, a customer must purchase two coffees to receive the discount. The customer pays the full price for one coffee, and the second coffee is free. This means that the customer is incentivized to buy more than one coffee to benefit from the promotion.
2. In contrast, offering coffee at half price means that each coffee is sold at 50% of its original price. In this case, a customer does not need to purchase more than one coffee to enjoy the discount.
3. The primary difference between these two promotional strategies is the quantity of coffees the customer needs to purchase to take advantage of the discount. With a 2-for-1 coupon, the customer must buy two coffees, whereas with half-price coffee, the customer can buy any quantity and still enjoy the discount.
Therefore, offering 2-for-1 coupons is not effectively the same as offering customers coffee at half price.
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patrick conrad is buying a mutual fund that is investing in stocks all over the world including the united states. what type of mutual fund has he purchased?
Patrick conrad is buying a mutual fund that is investing in stocks all over the world including the united states in a mutual fund that invests in stocks all around the world, including those in the US, Joseph Carter is purchasing shares.
Global funds are this kind of mutual fund.A global fund is one that makes investments in companies everywhere on the planet, including the investor's very private U.S.A.
An international fund aims to gain access to favourable investments from a global universe of assets. Passively controlling the worldwide price range is another option. A mutual fund is a business that collects money from numerous investors and invests it in securities such as shares, bonds, and short-term debt. The portfolio of the mutual fund refers to all of its holdings.
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Which of the following types of labor costs will never flow through the balance sheet?
A. Plant supervision
B. Sales commissions
C. Material handling
D. Assembly labor
Sales commissions are the type of labor costs that will never flow through the balance sheet. Sales commissions are typically considered a selling expense and are included in the company's income statement.
They are paid to sales employees based on their performance, such as the number of sales they make or the amount of revenue they generate. These costs are not directly related to the production of goods or services and therefore are not included in the cost of goods sold or inventory accounts on the balance sheet.
On the other hand, plant supervision, material handling, and assembly labor costs are considered part of the manufacturing overhead and are included in the cost of goods sold or inventory accounts on the balance sheet. Plant supervision includes the cost of managers or supervisors overseeing the production process.
Material handling includes the cost of moving materials or products within the manufacturing process. Assembly labor includes the cost of employees directly involved in the production of goods or services. These types of labor costs are necessary for the production process and are included in the cost of goods sold or inventory accounts on the balance sheet.
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To determine if a sample is truly representative of the population, an auditor would be required to:
conduct multiple samples of the same population.
use systematic sample selection.
audit the entire population.
never use sampling because of the expense involved.
The auditor would need to audit the entire population in order to truly determine if a sample is representative. This is because even with multiple samples and systematic sample selection, there is still the possibility of sampling error and bias.
Auditing the entire population may be time-consuming and expensive, but it is the only way to ensure that every unit in the population is included in the analysis. This allows for the most accurate representation of the population as a whole. Conducting multiple samples can help to reduce the chance of sampling error, but it still may not provide a completely accurate picture.
While auditing the entire population may not always be practical, it is the most reliable method for determining if a sample is truly representative of the population.
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Which of the following factors would not shift the cost curves of an automobile company upward? a regulation requiring all automobiles be equipped with improved safety equipment b. an increase in the price of steel used to make automobiles automobile company d. An employee develops a new method of installing doors on the cars that requires half as many workers as before.
The factor that would not shift the cost curves of an automobile company upward is option d: An employee develops a new method of installing doors on the cars that requires half as many workers as before.
This factor would actually shift the cost curves downward, as the company would be able to produce cars with less labor cost. On the other hand, options a and b would increase the cost of production for the automobile company, as they would have to spend more on safety equipment and steel.
These increases in costs would shift the cost curves upward. It is important for automobile companies to constantly analyze and evaluate these cost factors in order to maintain their profitability and competitiveness in the market.
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If you look at long-term costs, _____ is usually the better deal. answer choices. Maintaining. Leasing. Renting. Homeownership.
If you look at long-term costs, homeownership is usually the better deal instead of lease .
While it may require a higher initial investment, owning a home can save you money over time as you build equity and potentially see an increase in property value. When you rent or lease, you are essentially paying for someone else's investment without any potential return for yourself. Additionally, rental and lease rates can increase over time, making it difficult to budget and plan for the future. When you own a home, your monthly mortgage payment stays relatively consistent, and you have the added benefit of potentially deducting mortgage interest on your taxes.
Maintaining a home can also be less expensive than constantly renting or leasing, as you have control over repairs and renovations, and can choose to make upgrades that increase the value of your property. Ultimately, while homeownership may not be the best option for everyone, it can be a wise investment for those looking for long-term financial stability.
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In a typical acute-care setting, patient registration is located in which revenue cycle area?a) Pre-claims submissionb) Claims processingc) Accounts receivabled) Claims reconciliation/ collections
In a typical acute-care setting, patient registration is located in the a) pre-claims submission revenue cycle area.
1. Pre-claims submission: This is the initial step in the revenue cycle, where patient registration occurs. During this phase, patient information is collected and verified, insurance eligibility is checked, and any required pre-authorizations are obtained.
2. Claims processing (b): This step involves submitting the patient's medical claim to the insurance company for payment. The claim includes details about the services provided, diagnoses, and charges.
3. Accounts receivable (c): In this step, the healthcare provider waits for payment from the insurance company. Any denied or underpaid claims may be reviewed and appealed, if necessary.
4. Claims reconciliation/collections (d): Finally, any remaining patient balances are collected, either directly from the patient or through a collections process if the patient is unable to pay.
In summary, patient registration falls under the Pre-claims submission area of the revenue cycle in a typical acute-care setting.Thus correct option is a.
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bushra co. replaced a $1,000 account payable balance to elin co. with a 120-day, $1,000 note bearing 8% annual interest. bushra's entry to record this transaction would include a credit to which account?multiple choice question.accounts payablenotes receivablecashnotes payableaccounts receivable
Bushra Co.'s entry to record the transaction of replacing a $1,000 account payable balance to Elin Co. with a 120-day, $1,000 note bearing 8% annual interest would include a credit to "Accounts Payable." Option A
This is because the initial transaction involved an account payable to Elin Co., which is essentially a liability owed by Bushra Co. Once this liability was replaced with a note payable, the amount owed to Elin Co. was transferred to a new liability account, i.e., the notes payable account.
However, the initial liability account, i.e., accounts payable, needs to be reduced by the same amount, and hence, a credit entry is made to this account.
In essence, the credit entry to accounts payable signifies that the liability owed to Elin Co. has been settled by issuing a note payable, and the accounts payable account has been reduced accordingly.
The corresponding debit entry would be made to the notes payable account, which would signify the issuance of a note payable for the same amount.
To summarize, when Bushra Co. replaces a $1,000 account payable balance to Elin Co. with a 120-day, $1,000 note bearing 8% annual interest, the entry would include a credit to accounts payable and a debit to notes payable. So Option A is correct.
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revenues, costs, and profits for avocado producers iii. the market for avocados is perfectly competitive. if the market price of a bushel of avocados is $12, in the short run, this farm will:
In the short run, a perfectly competitive market for avocados involves numerous producers that are unable to influence the market price, which is $12 per bushel in this scenario. Producers must accept this price when selling their avocados.
Revenues refer to the income generated from selling avocados at the given market price. In a perfectly competitive market, a producer's revenue is calculated by multiplying the market price ($12 per bushel) by the number of bushels sold.
Costs encompass all the expenses incurred in producing avocados, including labor, raw materials, and other factors. Profits are determined by subtracting the total costs from the total revenues. In the short run, avocado producers will respond to the market price by adjusting their production levels. If the price of $12 per bushel allows the producers to cover their costs and earn a profit, they will continue to produce and sell avocados. If the market price is too low, resulting in losses or negative profits, producers may reduce their production levels or temporarily exit the market.
Overall, in a perfectly competitive market for avocados, the short-run response of an avocado farm to a market price of $12 per bushel will depend on its ability to generate profits at that price point, considering both revenues and costs.
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Which of the following is not a current demographic trend in the workforce?labor force isn't keeping up with the job growthmore multi-ethnicolderlargest ethnic group is black
The statement "largest ethnic group is black" is not a current demographic trend in the workforce.
The current demographic trends in the workforce are the labor force not keeping up with job growth, an aging workforce, and increasing diversity with more multi-ethnic workers. While black Americans make up a significant portion of the U.S. population, they are not the largest ethnic group in the workforce. According to the U.S. Bureau of Labor Statistics, as of 2020, white Americans made up the largest share of the labor force at 77.6%, followed by Hispanic/Latino Americans at 17.5%, Black or African American Americans at 12.7%, and Asian Americans at 6%. These demographic trends have important implications for employers and policymakers in terms of workforce planning and ensuring equal employment opportunities for all groups.
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.The interest credited to the cash values of personally-owned non-qualified annuities is considered
a. a tax credit
b. tax-deferred
c. tax-deductible
d. tax-exempt
The interest credited to the cash values of personally-owned non-qualified annuities is considered b. tax-deferred. This means that the interest earned on the annuity is not taxed until it is withdrawn.
The interest credited to the cash values of personally-owned non-qualified annuities is considered tax-deferred. This means that the interest earned on the annuity's cash value is not subject to taxes until the funds are withdrawn or distributions are taken. The tax-deferral feature allows the annuity to grow and compound at a faster rate, as no taxes are being paid on the interest during the accumulation phase. This tax treatment is different from a tax credit, which directly reduces the tax liability, and tax-deductible or tax-exempt, which exclude certain income from taxation altogether.
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The sale price of a steak dinner is $22.95 and the cost is $5.45, the contribution margin is:
A. 13.72
B. 28.40
C. 24%
D. 17.50
The correct answer is D. $17.50. This means that for every steak dinner sold, there is a contribution margin of $17.50 which can be used to cover fixed costs and contribute to the company's profit.
The contribution margin is the amount left over after subtracting the variable costs from the sales price. To calculate it, we subtract the cost of the steak dinner from the sale price:
Contribution margin = $22.95 - $5.45 = $17.50
Therefore, the answer is D. The contribution margin for this steak dinner is $17.50. This means that for every steak dinner sold, $17.50 contributes towards covering fixed costs and generating profits for the business. It is important for businesses to know their contribution margin as it helps in determining their pricing strategy and understanding their profitability.
Hi! I'd be happy to help you with this question. The contribution margin is calculated by subtracting the cost from the sale price. In this case, we have:
Sale price of a steak dinner: $22.95
Cost of a steak dinner: $5.45
To find the contribution margin, subtract the cost from the sale price:
Contribution margin = Sale price - Cost
Contribution margin = $22.95 - $5.45
Contribution margin = $17.50
Thus, the correct answer is D. $17.50. This means that for every steak dinner sold, there is a contribution margin of $17.50 which can be used to cover fixed costs and contribute to the company's profit.
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A precursor of the stock market crash occurred in the speculative mania of the mid-1920s in a) Hollywood. b) Teapot Dome,Wyoming. c) Florida.
The precursor of the stock market crash occurred in the speculative mania of the mid-1920s in Florida. During the 1920s.
Florida experienced a land boom due to the rapid population growth and the development of the tourism industry. Many investors, including wealthy individuals and small-time speculators, invested in Florida land, expecting to make a quick profit. As the demand for land increased, the prices skyrocketed, and some people started to buy land without any intention of developing it. This speculation led to the creation of many land companies, which sold land to investors without any real value. By the end of 1925, the Florida land boom had peaked, and land prices began to fall. This decline in land prices triggered a wave of panic selling, which contributed to the stock market crash of 1929.
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Which of the following would be a red flag in a financial statement analysis? A. High debt ratio B. High inventory turnover ratio C. High price-earnings ratio D. High earnings per share ratio
The answer is A. High debt ratio would be a red flag in a financial statement analysis.
A high debt ratio means that a company has a large amount of debt in relation to its assets. This can be a cause for concern, as it may indicate that the company is taking on too much debt and may not be able to make its debt payments in the future. In contrast, a high inventory turnover ratio (B) would generally be seen as a positive sign, as it indicates that a company is selling its inventory quickly. Similarly, a high price-earnings ratio (C) can indicate that a company is seen as a good investment by the market. A high earnings per share ratio (D) would also generally be seen as a positive sign, as it indicates that a company is generating a high level of profit on a per-share basis.
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The financial feasibility analysis takes these aspects into consideration:
A) capital requirements, human resources, and return on investment.
B) capital requirements, estimated earnings, and return on investment.
C) capital requirements, estimated earnings, and return on sales.
D) capital requirements, estimated earnings, and return on owner's equity.
The financial feasibility analysis takes into consideration capital requirements, estimated earnings, and return on investment. The correct option is B.
The financial feasibility analysis is a critical step in determining if a business idea is viable and financially sustainable. It requires a careful examination of all the financial aspects of the business and a thorough understanding of the market and industry.
The financial feasibility analysis assesses the viability of a project by considering its capital requirements (initial and ongoing funding), estimated earnings (projected revenues and profits), and return on investment (ROI) to determine if the project can generate sufficient returns for the investors. This allows businesses and individuals to evaluate the potential financial success of a project before committing resources.
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.Which of the following led to the collapse of the Central American Common Market in 1969?
A. Devaluation of the Brazilian currency by 40 percent
B. A coup in Nicaragua that led to the overthrow of the incumbent regime
C. War between Honduras and El Salvador after a riot at a soccer match between teams from the two countries
D. Withdrawal from the trade arrangement by Costa Rica
E. Collapse of monetary policy between Costa Rica and El Salvador
The correct answer is C. War between Honduras and El Salvador after a riot at a soccer match between teams from the two countries led to the collapse of the Central American Common Market in 1969.
The tensions between Honduras and El Salvador were already high due to a land dispute, and the soccer match incident was the spark that ignited the conflict. The war had a significant impact on the economies of both countries, and it became clear that the Central American Common Market was not strong enough to withstand such internal conflicts. As a result, other countries such as Costa Rica and Guatemala also withdrew from the trade arrangement. The collapse of the Central American Common Market was a significant setback for the economic integration of the region, and it took several decades before new efforts towards regional integration were made.
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To derive GDP using the expenditure approach, which of the following components are added together? a. Consumption, investment, government spending, and net exports b. Consumption, savings, government spending, and imports c. Consumption, investment, government debt, and net exports d. None of the above
The correct answer to the question of which components are added together to derive GDP using the expenditure approach is option A, which includes consumption, investment, government spending, and net exports.
The expenditure approach is one of the three ways to calculate GDP, and it involves adding up the total expenditures made in an economy by households, businesses, government, and foreigners. Consumption refers to the total spending made by households on goods and services, including durable goods like cars and appliances, non-durable goods like food and clothing, and services like healthcare and education. Investment includes spending by businesses on capital goods like machinery, equipment, and buildings, as well as changes in inventories. Government spending includes all expenditures made by the government on goods and services, including defense, healthcare, and infrastructure. Net exports refer to the difference between exports and imports, which represents the amount of spending on domestic goods by foreigners minus the amount of spending on foreign goods by domestic consumers. By adding up all these components, we arrive at the total amount of expenditures made in an economy over a given period, which represents the total value of goods and services produced in that economy, or GDP. The expenditure approach provides a useful tool for understanding the overall health and performance of an economy and can help policymakers identify areas of strength and weakness in the economy.
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unions' bargaining power is: group of answer choices largely derived from their ability to control corporate managers. rooted in their government backing. rooted in their financial resources. largely derived from their ability to threaten to disrupt production.
The correct answer is "largely derived from their ability to threaten to disrupt production." Option 4 is Correct.
Unions have a bargaining power because they are able to threaten to strike or take other actions that could disrupt production. This power comes from the fact that companies rely on the labor of their workers to produce goods and services, and any disruption to production can have significant economic consequences.
While unions may also have other sources of power, such as government backing or financial resources, their ability to disrupt production is often seen as their most important source of leverage in negotiations with management. By threatening to shut down production or engage in other forms of collective action, unions can force companies to the bargaining table and negotiate better wages, benefits, and working conditions for their members. Option 4 is Correct.
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Correct Question:
Unions' bargaining power is: group of answer choices
1. largely derived from their ability to control corporate managers.
2. rooted in their government backing.
3. rooted in their financial resources.
4. largely derived from their ability to threaten to disrupt production.
a basic rule is that there can be no satisfaction unless there is first an accord.
true or false
True.a basic rule is that there can be no satisfaction unless there is first an accord.
The statement "a basic rule is that there can be no satisfaction unless there is first an accord" is generally true. An accord, or agreement, is necessary for satisfaction to be achieved because it establishes a shared understanding between parties involved in a given situation. Without an accord, expectations may be unclear or in conflict, leading to dissatisfaction and potentially damaging relationships.
This principle applies to a wide range of situations, from personal relationships to business negotiations. In order to achieve satisfaction and success, all parties involved must have a clear understanding of the terms and goals of the situation, and a shared commitment to achieving those goals. This requires open communication, mutual respect, and a willingness to compromise and work towards a common goal.
While there may be some exceptions to this rule, in general, an accord is a necessary foundation for achieving satisfaction and success in any situation.
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If no reasons have been given for a claim's acceptance, the claim should always be rejected.true False
False. If no reasons have been given for a claim's acceptance, it doesn't necessarily mean that the claim should always be rejected.
It is possible that the reasons for acceptance were communicated through a different channel or the decision was based on a previous agreement or understanding. It is important to seek clarification and ask for reasons before making a decision to reject a claim. A thorough investigation and communication with all parties involved is necessary to ensure fair and accurate claims handling. Ultimately, each claim should be evaluated on its own merits and based on the evidence presented.
False. The acceptance or rejection of a claim should be based on evidence and logical reasoning, not solely on whether reasons have been provided. While it is important for claims to be supported by reasons, the absence of reasons does not automatically mean the claim is false. It is crucial to evaluate the claim independently and examine available evidence before making a decision. In some cases, further investigation may be necessary to uncover reasons that support or refute the claim. Therefore, it is essential to approach claims with an open mind and critical thinking skills.
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what information would be important to a manager who wanted to foster an adhocracy culture?
An adhocracy culture is a type of organizational culture that emphasizes creativity, innovation, and flexibility. To foster an adhocracy culture, a manager would need to focus on creating an environment that supports these values.
Here are some pieces of information that would be important for a manager who wants to foster an adhocracy culture:
Encouraging experimentation: Adhocracies require risk-taking and experimentation to generate new ideas and solve problems. A manager should encourage their employees to try new approaches and not be afraid of failure.
Providing autonomy: Adhocracies work best when employees are given a high degree of autonomy and freedom to make decisions. A manager should provide clear goals and objectives, but allow employees to determine how they will achieve those goals.
Hiring for creativity and innovation: To build an adhocracy culture, a manager should hire employees who are creative, innovative, and adaptable. Look for individuals who have a track record of thinking outside the box and challenging the status quo.
Building a collaborative environment: Adhocracies rely on collaboration and teamwork to generate new ideas and execute on them. A manager should encourage cross-functional collaboration, build teams that can work together seamlessly, and create an environment that values teamwork and collaboration.
Providing resources and support: Adhocracies require resources to support innovation and experimentation. A manager should ensure that their employees have the resources they need to explore new ideas, such as training, time, and budget.
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Refer to the table below What is the marginal cost of producing the 200th pizza? Quantity Marginal Product of Labor 200 450 550 600 625 640 Total Cost of Pizzas $800 1,450 2,100 2,750 3 400 100 50 25 O A. $3 25 OB-S000 O c. $260 O D. $650.00
Marginal cost of producing the 200th pizza is $650.00
Based on the information provided in the table, we can see that the total cost of producing the 200th pizza is $2,100 and the total cost of producing the 199th pizza is $1,450. Therefore, the marginal cost of producing the 200th pizza is:
Marginal Cost = (Total Cost of Producing 200th Pizza - Total Cost of Producing 199th Pizza) / (Quantity of 200th Pizza Quantity of 199th Pizza) Marginal Cost = ($2,100 - $1,450) / (200 - 199) Marginal Cost = $650.00 Therefore, the answer is D. $650.00. Marginal cost is the additional cost incurred by a company or producer for producing one additional unit of a good or service. It is calculated by dividing the change in total cost by the change in quantity produced. In other words, it is the cost of producing one more unit of a good or service
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In project management, the people who help execute the project are also referenced as what?
a. Budget
b. Materials
c. Resources
d. Tools
The people who help execute a project in project management are referred to as resources. The answer is c.
Resources can refer to human resources, such as project team members, as well as non-human resources, such as equipment and materials. Proper resource management is critical to ensuring the success of a project, as resources are necessary to complete project tasks on time and within budget.
Project managers must plan and allocate resources carefully, taking into account factors such as availability, skill sets, and cost. In addition, effective communication with and among resources is essential for coordinating work efforts, avoiding conflicts, and maintaining morale.
Proper resource management can help ensure project success by ensuring that the necessary resources are available at the right time and in the right quantity. Hence, c is the correct option.
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According to the classical theory of formal organizations, workers are motivated almost entirely by:A. economic rewards.B. fear of their superiors.
According to the classical theory of formal organizations, workers are motivated almost entirely by economic rewards.
The classical theory of formal organizations, developed by theorists such as Max Weber and Frederick Taylor, emphasizes the importance of hierarchical structures and strict rules and procedures in achieving organizational efficiency and productivity. According to this theory, workers are primarily motivated by economic incentives such as wages and bonuses. They are assumed to be rational actors who are primarily concerned with maximizing their own economic interests, and who will work harder and more efficiently if they are rewarded for doing so.
While the classical theory of formal organizations has been criticized for its limited view of human motivation and behavior, it has had a significant influence on management and organizational theory, particularly in the areas of bureaucracy and organizational structure.
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The provision that defines to whom the insurer will pay benefits to is called
Entire Contract
Proof of Loss
Claim Forms
Payment of Claims
Payment of Claims is the provision that defines to whom the insurer will pay benefits to.
The provision specifies the conditions under which the insurance company will make payments to the policyholder or their beneficiaries in case of a covered loss. It outlines the criteria for determining the validity of a claim and the method of payment, such as lump-sum or installment payments. The provision also states the time frame within which the insurer must make the payment after receiving a valid claim. Payment of claims is a crucial aspect of insurance contracts as it ensures that policyholders or their beneficiaries receive the benefits they are entitled to in a timely and efficient manner.
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The 'Payment of Claims' provision in an insurance policy determines to whom the insurer will pay benefits. This can be the policyholder, a healthcare provider, or a designated beneficiary, depending on the specific terms of the policy.
Explanation:The provision in an insurance policy that determines to whom the insurer will pay benefits is referred to as the Payment of Claims provision. In many cases, benefits are paid to the policyholder, but in certain circumstances, they may be paid directly to a healthcare provider or a designated beneficiary. The language in this provision is crucial because it outlines the conditions under which a claim will be paid and to whom the payment will be made.
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Stiller Company, an 80% owned subsidiary of Leo Company, purchased land from Leo on March 1, 2020, for $75,000. The land originally cost Leo $60,000. Stiller reported net income of $125,000 and $140,000 for 2020 and 2021, respectively. Leo uses the equity method to account for its investment.
Compute the gain or loss on the intra-entity transfer of land that should be reported on the books of Leo prior to consolidation.
a. $15,000 gain.
b. $65,000 gain.
c. $15,000 loss.
d. $50,000 gain.
e. $50,000 loss.
(a) $15,000 gain. The gain on the intra-entity transfer of land should be reported on the books of Leo prior to consolidation is calculated as the difference between the sale price ($75,000) and the original cost of the land ($60,000). Thus, the gain is $15,000.
When an intra-entity transfer of assets occurs, such as in this case where Stiller purchased land from Leo, the gain or loss on the transfer should be eliminated in consolidation. However, prior to consolidation, Leo needs to recognize its portion of the gain or loss on the transfer.
To calculate the gain or loss, we need to determine the fair value of the land at the time of the transfer. Since the problem does not provide this information, we will assume that the fair value of the land is equal to the purchase price of $75,000.
Leo's basis in the land was $48,000 (80% of the original cost of $60,000). When Stiller purchased the land for $75,000, Leo recognized a gain of $27,000 ($75,000 - $48,000).
Leo's portion of the gain on the transfer is equal to 80% of the total gain, or $21,600 ($27,000 x 80%). However, since Leo is reporting the investment in Stiller using the equity method, it has already recognized its share of Stiller's net income. Therefore, Leo needs to reduce its portion of the gain by the amount of its share of Stiller's net income.
Leo's share of Stiller's net income for 2020 and 2021 was $100,000 ($125,000 x 80%) and $112,000 ($140,000 x 80%), respectively. Therefore, Leo needs to reduce its portion of the gain by $100,000 in 2020 and $112,000 in 2021.
After adjusting for Leo's share of Stiller's net income, the gain on the transfer that should be reported on Leo's books prior to consolidation is $15,000 ($21,600 - $6,600 in 2020 and $9,600 in 2021). Therefore, the correct answer is (a) $15,000 gain.
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need satisfaction can be achieved through ________, or reminding.
Need satisfaction can be achieved through recalling or remembering.
Reminding oneself of past experiences in which one's needs were satisfied can help to satisfy current needs. This can be seen in the context of memory, as past experiences of need satisfaction can be stored in memory and later retrieved to satisfy current needs. For example, if someone is feeling hungry and has a memory of a delicious meal they ate in the past, recalling that memory may help to satisfy their current need for food. Similarly, if someone is feeling lonely and has a memory of a comforting social interaction, recalling that memory may help to satisfy their current need for social connection.
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maddox corp., a smartphone manufacturer, in the initial years of its entry into the market, adopted a deliberate strategy of quickly capturing a sizeable portion of the market share by lowering the selling price of its smartphones. which business strategy has the company adopted in the given example?
Maddox Corp., a smartphone manufacturer, adopted a penetration pricing strategy in the given example. This business strategy involves lowering the selling price of a product to quickly capture a sizeable portion of the market share.
By offering smartphones at lower prices than competitors, Maddox Corp. aimed to attract a large number of customers and build brand recognition in the initial years of its entry into the market. Penetration pricing is a useful tactic when a company wants to gain a competitive advantage and establish a presence in a highly saturated market, such as the smartphone industry. By offering high-quality products at lower prices, Maddox Corp. was able to entice customers who may have otherwise chosen a competing brand. This allowed the company to grow its customer base rapidly and create a strong foothold in the market. As the company becomes more established, it may gradually increase the prices of its products, benefiting from the customer loyalty and brand recognition it gained through the penetration pricing strategy.
However, Maddox Corp. needs to continue offering value to customers in terms of quality, features, and innovation to maintain its market position and stay competitive.
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