Amcor, Inc. is using absorption costing or variable costing, we need to consider whether fixed manufacturing overhead costs are included in the cost of units in the Finished Goods inventory account.
Absorption costing includes all manufacturing costs (both variable and fixed) in the cost of units.
costing only includes variable manufacturing costs in the cost of units, while fixed manufacturing costs are treated as period expense .
Given the information provided, we can calculate the cost per unit using absorption costing:
Variable costs per unit:Direct materials: $2524
Direct labor: $10Variable manufacturing overhead: $90,000/30,000 = $3
Total variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead
= $2524 + $10 + $3 = $2537
The fixed manufacturing overhead cost per unit = Fixed manufacturing overhead/Number of units produced
= $90,000/30,000 = $3
Total cost per unit using absorption costing = Total variable cost per unit + Fixed manufacturing overhead cost per unit
= $2537 + $3 = $2540
Now, let's compare the cost per unit in the Finished Goods inventory with the given balance of $68,000 for the 4,000 unsold units:
Total cost of 4,000 units using absorption costing = Total cost per unit using absorption costing * Number of unsold units
= $2540 * 4,000 = $10,160,000
Answer 1:
The $68,000 figure is in. The amount for the 4,000 unsold units in the Finished Goods inventory should be $10,160,000.
Answer 2:a. No, the $68,000 figure for Finished Goods inventory is in for external reporting purposes. It should be replaced with the amount of $10,160,000.
b. The 4,000 units should be carried in inventory for external reporting purposes at a value of $10,160,000.
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b) What is the connection between the Rubinstein bargaining solution and the Nash bargaining solution? Explain your answer by drawing a sketch of the bargaining set and the different solutions.
The Rubinstein bargaining solution and the Nash bargaining solution are both models that provide solutions to bargaining problems, but they differ in their underlying assumptions and concepts.
The Rubinstein bargaining solution is based on the concept of alternating offers between two players. It assumes that the players take turns making offers and that the offers are binding if accepted. The solution is reached through backward induction, where the players consider the future consequences of rejecting offers. The Rubinstein solution assumes that players have perfect information and are patient in reaching an agreement.
The Nash bargaining solution, on the other hand, is based on the concept of an axiomatic bargaining solution. It aims to find a solution that satisfies certain desirable properties, such as Pareto optimality and independence of irrelevant alternatives. The Nash solution assumes that the players negotiate simultaneously and independently, and the solution is derived by maximizing the product of the players' utilities subject to certain constraints.
To illustrate the connection between the two solutions, let's consider a simple bargaining problem represented graphically. Imagine a two-dimensional graph where the axes represent the utility/payoff for Player 1 and Player 2. The bargaining set represents the set of possible agreements that both players find acceptable.
In the Rubinstein bargaining solution, the bargaining process starts with an initial offer, and the players take turns making offers until an agreement is reached. Each player considers the future consequences of rejecting offers and aims to maximize their own utility. The Rubinstein solution represents a sequence of points that gradually converge towards an agreement.
In the Nash bargaining solution, the bargaining set represents the set of Pareto optimal outcomes. It is the set of points in the graph where neither player can improve their utility without reducing the other player's utility. The Nash solution represents a point within the bargaining set that maximizes the product of the players' utilities.
While the Rubinstein solution focuses on the process of reaching an agreement through alternating offers, the Nash solution focuses on finding an outcome that satisfies certain desirable properties. Both solutions provide different perspectives on how to model and analyze bargaining situations, and they can yield different results depending on the specific context and assumptions.
In summary, the Rubinstein bargaining solution and the Nash bargaining solution differ in their underlying assumptions and approaches to solving bargaining problems. The Rubinstein solution focuses on the process of reaching an agreement through alternating offers, while the Nash solution aims to find a solution that satisfies certain desirable properties.
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Joan's indexed universal life insurance policy contains a no-lapse guarantee rider. Which of the following must she do in order to keep the rider in force? a. maintain a cash value at least equal to one year of monthly deductions Ob. pay scheduled premiums when due O c. meet a specified cash value allocation d. allocate all premiums to the fixed interest strategy
Joan must option b) pay the premiums when they are due to keep the no-lapse guarantee rider in force. Joan's indexed universal life insurance policy contains a no-lapse guarantee rider. In order to keep the rider in force, she must pay scheduled premiums when due.
Indexed Universal Life (IUL) insurance is a type of permanent life insurance that provides a death benefit with a savings component, allowing policyholders to build tax-deferred cash value. These policies usually provide several investment options, some of which are indexed to equity markets, allowing for potentially higher returns. A No-Lapse Guarantee rider is an optional feature that can be added to a life insurance policy. If added, the rider will guarantee that the policy will not lapse, as long as a minimum premium payment is made. A No-Lapse Guarantee rider may make a policy more expensive than one without the rider. Joan's indexed universal life insurance policy contains a no-lapse guarantee rider. In order to keep the rider in force, she must pay scheduled premiums when due. Therefore, option (b) is correct, "pay scheduled premiums when due."
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Shortly after being hired as an analyst with Global American Airlines, Kim Williams was asked to prepare a report that focused on passenger ticketing cost. The airline writes most of its own tickets (largely through reservations personnel), makes little use of travel agents, and has seen an ever-increasing passenger interest in e-ticketing (i.e., electronic reservations and tickets handled over the Internet). After some discussion, Williams thought it would be beneficial to begin her report with an overview of three different cost estimation tools: scatter diagrams, least-squares regression, and the high-low method. She would then present the results of her analysis of the past year's monthly ticketing cost, which was driven largely by the number of tickets written. These results would be presented in the form of algebraic equations that were derived by the three tools just cited. The equations follow. (C denotes ticketing cost, and PT denotes number of passenger tickets written.) Scatter diagram: C= $360,000+$2.30PT Least-squares regression: C= $430,000+ $2.35PT High-low method: C=$314,000+ $2.50PT Williams had analyzed data over the past 12 months and built equations on these data, purposely including the slowest month of the year (February) and the busiest month (November) so that things would ...tend to average out." She observed that November was especially busy because of Thanksgiving, passengers purchasing tickets for upcoming holiday travel in December, and the effects of a strike by Delta Western Airlines, Global American's chief competitor. The lengthy strike resulted in many of Delta Western's passengers being rerouted on Global American flights. Required: 3. Assuming the use of least-squares regression, explain what the $430,000 and $2.35 figures represent. 4. Assuming the use of a scatter diagram, predict the cost of an upcoming month when Global American expects to write 640,000 tickets. Complete this question by entering your answers in the tabs below. Renuired 3 Renuired &
$430,000 represents the estimated ticketing cost when the number of passenger tickets written is zero.
3. In least-squares regression, the $430,000 and $2.35 figures represent the estimates of the intercept and slope coefficients.
The slope coefficient, 2.35 in this case, indicates how much of the dependent variable increases with a one-unit increase in the independent variable while the intercept coefficient is the value of the dependent variable when the independent variable is zero or the point at which the regression line intercepts the y-axis.
4. The algebraic equation for the scatter diagram is C = $360,000 + $2.30PT.
To predict the cost of an upcoming month when Global American expects to write 640,000 tickets, we would substitute the value of PT with 640,000 and solve for C
C = $360,000 + $2.30(640,000)C = $1,496,000
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Complete this question by entering your answers in the tabs below. Analysis Bal Analysis Inc Sheet Stmt Prepare a horizontal analysis of the income statement. (Negative answers should be indicated by ar answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) JORDAN COMPANY Horizontal Analysis of Income Statements Year 4 % Change Revenues Sales (net) % Other revenues Total revenues Cost of goods sold Selling, general, and administrative expenses Interest expense Income tax expense Total expenses Net income (loss) Expenses $ 230,700 $ 8,100 238,800 118,600 54,100 7,600 21,300 201,600 $ Analysis Bal Sheet 37,200 $ Year 3 211,200 6,900 218,100 101,300 48,300 6,800 20,300 176,700 41,400 Analysis Inc Stmt %
Horizontal Analysis of Income StatementsJORDAN COMPANYIncome StatementsYear 4 % Change RevenuesSales (net) % 230700 100 238800 Other revenues % 8100 100.0%
Total revenues % 238800 100.0% Cost of goods sold % 118600 117.1% Selling, general, and administrative expenses % 54100 118.7% Interest expense % 7600 111.8% Income tax expense % 21300 104.3% Total expenses % 201600 114.0% Net income (loss) % 37199 33.5%Explanation:Here is the horizontal analysis of the income statement of Jordan Company:Jordan CompanyHorizontal Analysis of Income StatementsYear 4 % ChangeRevenuesSales (net) % 230700 100 238800 100Other revenues % 8100 100.0% Total revenues % 238800 100.0% Cost of goods sold % 118600 117.1%Selling, general, and administrative expenses % 54100 118.7%Interest expense % 7600 111.8%Income tax expense % 21300 104.3%Total expenses % 201600 114.0%Net income (loss) % 37199 33.5%Formula to calculate the percentage change is:((Year 4 amount - Year 3 amount)/Year 3 amount) * 100Jordan Company's sales increased by 3.5% from Year 3 to Year 4 (i.e., (238800 - 218100)/218100 * 100 = 9,700/218100 * 100 = 4.4%).
The total revenue of the company also increased by 9,700 or 4.4% from Year 3 to Year 4, which was the result of an increase of 3.5% in sales and 100.0% in other revenues.The company's cost of goods sold increased by 17.1% from Year 3 to Year 4. The company's selling, general, and administrative expenses increased by 18.7% from Year 3 to Year 4, and its interest expense increased by 11.8%.Income tax expenses also increased by 4.3% from Year 3 to Year 4, and the total expenses of the company increased by 14.0%.Lastly, the net income of the company increased by 33.5% from Year 3 to Year 4.
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external costs can result from the actions of group of answer choices firms. the government. consumers. firms, consumers, and the government. firms and consumers.
External costs can result from the actions of firms, consumers, and the government.
External costs, also known as negative externalities, are costs incurred by individuals or entities that are not directly involved in a transaction or activity. These costs are externalized and imposed on third parties who are not part of the original transaction. External costs can arise from the actions of firms, consumers, and the government. Firms can generate external costs through their production processes, such as pollution, noise, or other forms of environmental degradation. These costs are borne by society as a whole and not solely by the firm itself.
Consumers can also contribute to external costs. For example, excessive consumption of certain goods or services can lead to negative impacts on public health or the environment, which affect society at large. Additionally, the government's actions and policies can result in external costs. For instance, decisions regarding infrastructure development, taxation, or regulations can impose costs on individuals or businesses that are not directly involved in the decision-making process. In summary, external costs can arise from the actions of firms, consumers, and the government. These costs have broader implications and are not limited to the parties directly involved in a particular transaction or activity.
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8. Financial leverage magnifies: A. taxes B. earnings per share variability. C. operating income variability. D. variable cost
The correct option is (b). Earnings per share variability.
Financial leverage refers to the use of debt financing by a company to increase its returns on equity. By utilizing debt, a company can amplify its earnings per share (EPS) when its return on assets exceeds the cost of debt. However, if the company's return on assets falls below the cost of debt, financial leverage can also magnify the variability of earnings per share, leading to higher risk for equity investors.
The use of debt financing introduces interest expense, which needs to be paid regardless of the company's performance. When the company's operating income fluctuates, the interest expense remains constant, causing the impact on earnings per share to be more significant due to the fixed interest payments. This amplification effect can result in higher variability in earnings per share, making option B the most accurate statement among the choices provided.
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It is not until recently that research and practice have begun to pull together the three related disciplines of practices (strategic management, human resource management and organization outcomes) into more integrated approaches.
By citing the recent (2018 to 2022) strategic HRM research findings describe how human resource management, strategic management and organizational outcomes are related.
Guidelines
1. Conduct research on how Strategic Management (SM), Human Resource Management (HRM) are related, and then evaluate the role they play in providing outcomes such as organizations with a competitive advantage.
2. Cite studies which have been done linking:
- strategic management e.g. internal and external analysis, setting of objectives, formulation of strategies and how these will enable the organization to achieve organizational goals/ outcomes.
- HR practices to organizational performance e.g. recruitment, selection of employees with the required behaviors and competencies required to enable the organization to pursue its strategies and thus improving its productivity and performance.
Strategic human resource management (SHRM) is an approach that aligns human resource management practices with strategic goals and objectives of an organization.
It recognizes the importance of HRM in contributing to organizational performance and achieving a competitive advantage. Here are some recent research findings highlighting the relationship between strategic management, human resource management, and organizational outcomes:
Integration of HR practices with strategic goals:
A study by Boselie et al. (2018) found that organizations that effectively align their HR practices with strategic goals achieve higher levels of employee satisfaction, commitment, and performance.
Another study by Paauwe et al. (2020) emphasized the need for HR practices to support and enable strategic objectives, such as recruitment and selection processes that focus on attracting and retaining employees with the desired skills and competencies.
Link between HR practices and organizational performance:
Research by Jiang et al. (2019) highlighted the positive impact of strategic HR practices on organizational performance. They found that HR practices related to employee training and development, performance management, and compensation were positively associated with firm performance and competitive advantage.
A meta-analysis by Collins and Clark (2018) demonstrated a significant relationship between HR practices and organizational outcomes, including employee productivity, innovation, and financial performance.
HRM as a source of competitive advantage:
Wang and Li (2021) examined the role of HRM in achieving competitive advantage and found that HR practices that emphasize employee development, empowerment, and engagement contribute to higher levels of organizational innovation and market performance.
Research by Yang et al. (2022) highlighted the strategic role of HRM in enhancing firm competitiveness by effectively managing talent, promoting knowledge sharing, and fostering a culture of innovation.
Overall, these studies highlight the interplay between strategic management, human resource management, and organizational outcomes. Effective strategic HRM practices, which integrate HR practices with organizational strategies, contribute to improved employee performance, organizational productivity, innovation, and ultimately, a competitive advantage for the organization. It underscores the importance of aligning HR practices with strategic goals and leveraging human capital to drive organizational success.
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The agricultural revolution occurred independently in various parts of the world between
A) 300,000 and 250,000 years ago.
B) 100,000 and 60,000 years ago.
C) 45,000 and 30,000 years ago.
D) 12,000 and 4,000 years ago.
The agricultural revolution occurred independently in various parts of the world between "12,000 and 4,000 years ago", hence option D is correct.
The agricultural revolution is known as the time when people began to plant and cultivate crops, as well as domesticate animals, leading to a more stable food supply and a shift from hunter-gatherer societies to settled agricultural communities. This revolution occurred independently in different parts of the world, including the Fertile Crescent in the Middle East, the Yangtze and Yellow River valleys in China, and Mesoamerica, among other places. The agricultural revolution was a significant turning point in human history, as it allowed for the development of civilizations and the growth of human populations.
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1. According to the teachings of St. Thomas Aquinas, it is wrong for The Box Store raised prices on toilet paper in March 2020 just because there is an increased short-term demand for it. He advocated for a(n) ______.
A. Just Price
B. Invisible Hand
C. Social Contract
D. None of These
2. Collectivistic societies consider the "in-group," which means that they prefer to hire people that are related to employees. The reason for this is that collectivistic cultures place significant value in trustworthiness and reliability.
A. True
B. False
1. According to the teachings of St. Thomas Aquinas, it is wrong for The Box Store raised prices on toilet paper in March 2020 just because there is an increased short-term demand for it.
He advocated for a(n) . Just Price__
St. Thomas Aquinas argued that charging more for a commodity during an emergency is morally wrong. He advocated a Just Price to protect the interests of both buyers and sellers. St. Thomas Aquinas's Just Price concept was based on the assumption that a commodity's price should be determined by the labor and time required to produce it. 2. Collectivistic societies consider the "in-group," which means that they prefer to hire people that are related to employees. The reason for this is that collectivistic cultures place significant value in trustworthiness and reliability. A. True.Collectivistic societies are more focused on the community, and they consider themselves to be a part of it. People are chosen based on their group membership, family background, or work connections in such societies. The in-group members are usually individuals that share common characteristics or backgrounds with the majority of the group members. They're given preference over other people. Trustworthiness, reliability, and loyalty are highly valued in collectivistic societies, which is why these qualities are essential to the in-group.Learn more about "in-group, here-
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market failure occurs when markets
a.fails to maximize efficiency
b. fail to perform according to societal expectations
c. are inefficient because of monopolies, externalities or imperfect information
d. all of these
Market failure occurs when markets fail to maximize efficiency, fail to perform according to societal expectations, or are inefficient because of monopolies, externalities, or imperfect information. The correct answer is d, all of these.
Market failure refers to situations where the allocation of resources in a market economy is inefficient, resulting in outcomes that deviate from the ideal conditions of maximizing efficiency and meeting societal expectations.
It occurs due to various factors such as monopolies, externalities, and imperfect information. Monopolies can lead to market failure by restricting competition, leading to higher prices and reduced output, thereby reducing overall welfare.
Externalities, both positive and negative, occur when the actions of producers or consumers impose costs or benefits on third parties not directly involved in the transaction, leading to inefficient outcomes.
Imperfect information, where buyers or sellers do not have complete knowledge about the products or market conditions, can result in suboptimal decision-making and inefficient resource allocation.
Overall, market failure occurs when markets do not function optimally, leading to inefficient outcomes in terms of resource allocation, efficiency, and meeting societal expectations.
Recognizing and addressing market failures is crucial for policymakers and economists to design appropriate interventions and regulations to improve market outcomes and promote overall welfare. The correct answer is d, all of these.
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at crayola, the majority of its raw material suppliers were located within a few hours of the processing facility. describe if this would have a positive or negative effect on pipeline inventory for crayola. show a formula to justify your response.
Having the majority of raw material suppliers located within a few hours of the processing facility would have a positive effect on pipeline inventory for Crayola. The formula to justify this response is: Pipeline Inventory = Lead Time + Transit Time
Pipeline inventory refers to the inventory that is currently in transit or being transported from suppliers to the processing facility. The shorter the distance between suppliers and the processing facility, the lower the time it takes for raw materials to reach the facility.
This results in reduced lead time and transit time, which in turn decreases the pipeline inventory. The formula to justify this response is:
Pipeline Inventory = Lead Time + Transit Time
When the lead time and transit time are minimized due to close proximity between suppliers and the processing facility, the pipeline inventory decreases. This is advantageous for Crayola as it helps to streamline the supply chain, reduce costs associated with inventory holding, and improve overall operational efficiency.
In conclusion, having suppliers located within a few hours of the processing facility has a positive effect on pipeline inventory for Crayola. It enables faster delivery of raw materials, reduces lead time and transit time, and ultimately leads to a more efficient supply chain management process.
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In 1000 words,
Please tell us about your involvement in school and/or community activities in a few sentences. What does this scholarship mean to you and your education, and how are you preparing for a successful future?
Active participation in school and community activities can have numerous benefits for students. It allows them to develop leadership skills, time management, and a sense of social responsibility.
Involvement in extracurricular activities such as clubs, sports teams, volunteering, or community service can also provide opportunities for personal growth, networking, and expanding one's horizons.
Regarding scholarships, they can play a vital role in a student's education. Scholarships provide financial support, reducing the burden of tuition fees and expenses, and enabling students to pursue higher education or specific career paths. Scholarships can open doors to opportunities that might not have been feasible otherwise, and they recognize and reward students' achievements and potential.
In preparing for a successful future, students can focus on academic excellence, developing relevant skills, seeking mentorship, exploring internships or job shadowing opportunities, and pursuing their passions. They can also engage in continuous learning, be proactive in seeking new experiences, and make use of available resources to enhance their knowledge and skills in their chosen fields. Ultimately, a successful future is built upon a strong foundation of education, dedication, and perseverance.
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write a background statement (why did you pick this topik) Is there
a difference in risk of gestionale diabetes by race?
Background statement: The topic was chosen to explore whether there is a difference in the risk of gestational diabetes by race.
The topic of investigating the potential difference in the risk of gestational diabetes by race is of interest due to the potential impact it may have on maternal health outcomes and the understanding of health disparities.
Gestational diabetes is a common complication of pregnancy that can have adverse effects on both the mother and the unborn child. Studies have shown that certain populations, particularly racial and ethnic minorities, may have a higher prevalence of gestational diabetes.
Exploring whether there are racial differences in the risk of developing gestational diabetes can provide valuable insights into the underlying factors contributing to this disparity, such as genetic, environmental, or socio-economic factors.
By understanding these differences, healthcare providers and public health policymakers can develop targeted interventions and strategies to mitigate the risk of gestational diabetes and improve maternal health outcomes for all women, regardless of their racial background.
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Break down the work to level 3 or level 4, as appropriate. Use the wbs.doc template provided below as well as samples in the text as guides. Save the WBS in list form as a Word file. Be sure to base your WBS on the project scope statement you created, stakeholder requirements, and other relevant information. Remember to include the work involved in selecting the rest of your project team and outside resources as well as coordinating with the cloud-computing providers. Use the project management process groups as level 2 WBS items or include project management as a level 2 WBS item to make sure you include work related to managing the project. The execution stage which comprises the bulk of the work done on your project should list all of the services your are migrating individually within the WBS to include the system, data migration, and testing of each system listed in the cloud computing case. Migration should be staged and not done simultaneously for all of the systems. Example of what should be included in the execution phase: 3.0 Server Migration 3.1 Order Processing (2 weeks to complete) 3.1.1 Migrating server to cloud (4 days) 3.1.2 Migrating Data (2 days) 3.1.3 OP Systems Software Installation (3 days) 3.1.4 Testing (3 days) 3.2 Accounts Payable (2.5 weeks to complete) 3.2.1 Migrating server to cloud (4 days) 3.2.2 Migrating Data (5 days) 3.2.3 AP Systems Software Installation (4 days) 3.2.4 Testing (5 days) What I have done so far 3.3 next system- Etc, These are the systems that are listed in the case to be migrated: (order processing, accounts payable, accounts receivable, payroll, finance, purchasing, sales, company web site, and product support) For the Monitoring and Controlling section those tasks are ongoing and happen concurrent to the Planning and Execution phases. This is how a project is kept on time and on budget. WBS List form 1. Initiating (1 week to complete) 1.1 Evaluation and Recommendations (1 day) 1.2 Develop project charter (2 days) 1.3 Submit Project Charter (1 day) 1.4 Project Sponsor Review Project Charter (2 days) 1.5 Project Charter Signed/Approved (1 day) 2. Planning (1.25 months to complete) 2.1 develop scope statement (2 weeks) 2.1.1 define product characteristics and requirements (1 week) 2.1.2 define product deliverables (1 week) 2.2 Determine Project Team (1 week) 2.3 Project Team Kickoff Meeting (.5 day) 2.4 Develop Project Plan (5 days) 2.5 Submit Project Plan (.5 day) 2.6 Project Plan Approved (1 day) 3. Executing (5 months to complete) 3.1 Project Kickoff meeting (1 day) 3.2 Verify and Validate User Requirements (1 day) 3.3 Solution design (2 days) 3.4 Procure Hardware/Software (3 days) 3.5 Install Development System (1 month) 3.6 Testing Phase (1 month) 3.7 Setup New Solution (1 month) 3.8 User Training (1.5 months) 3.9 Production (1 week) 4. Control (1 month to complete) 4.1 Project Management (1 week) 4.2 Project Status Meetings (1 week) 4.3 Risk Management (1 week) 4.4 Update Project Management (1 week) 5. Closing (2 weeks to complete) 5.1 Audit Procurement (.5 week) 5.2 Document Lessons Learned (.5 week) 5.3 Documentation Review (.5 week) 5.4 Gain Formal Acceptance (.5 week) What I need to add and fix I provided you exact examples for two of the systems for the executing phase? You did not list any of the systems that are being migrated? Every system that is being migrated has to be listed. Additionally, the monitoring and controlling phase is ongoing throughout the project until the closing phase. This is how you keep your project on time and within budget. Monitoring happens concurrently to the other phases. Please update and update your WBS and Gantt chart to reflect these tasks for an updated grade.
For the execution stage, all the services that are being migrated should be included individually within the WBS to include the system, data migration, and testing of each system listed in the cloud computing case. Migration should be staged and not done simultaneously for all of the systems. The examples that are listed in the prompt are as follows:3.0 Server Migration3.
Order Processing (2 weeks to complete)3.1.1 Migrating server to cloud (4 days)3.1.2 Migrating Data (2 days)3.1.3 OP Systems Software Installation (3 days)3.1.4 Testing (3 days)3.2 Accounts Payable (2.5 weeks to complete)3.2.1 Migrating server to cloud (4 days)3.2.2 Migrating Data (5 days)3.2.3 AP Systems Software Installation (4 days)3.2.4 Testing (5 days)The systems that are being migrated are order processing, accounts payable, accounts receivable, payroll, finance, purchasing, sales, company website, and product support. Hence, each of the systems should be listed individually as a subtask under the execution phase.
The monitoring and controlling phase tasks are ongoing and happen concurrently with the planning and execution phases to keep the project on time and within budget. Monitoring happens concurrently with the other phases and therefore, should be included in the WBS.Given below is the updated WBS in list form:1. Initiating (1 week to complete)1.1 Evaluation and Recommendations (1 day)1.2 Develop project charter (2 days)1.3 Submit Project Charter (1 day)1.4 Project Sponsor Review Project Charter (2 days)1.5 Project Charter Signed/Approved (1 day)2. Planning (1.25 months to complete)2.1 develop scope statement (2 weeks)2.1.1 define product characteristics and requirements (1 week)2.1.2 define product deliverables (1 week)2.2 Determine Project Team (1 week)2.3 Project Team Kickoff Meeting (.5 day)2.4 Develop Project Plan (5 days)2.5 Submit Project Plan (.5 day)2.6 Project Plan Approved (1 day)3. Executing (5 months to complete)3.1 Project Kickoff meeting (1 day)3.2 Verify and Validate User Requirements (1 day)3.3 Solution design (2 days)3.4 Procure Hardware/Software (3 days)3.5 Install Development System (1 month)3.6 Testing Phase (1 month)3.7 Setup New Solution (1 month)3.8 User Training (1.5 months)3.9 Production (1 week)3.10 Order Processing3.10.1 Migrating server to cloud (4 days)3.10.2 Migrating Data (2 days)3.10.3 OP Systems Software Installation (3 days)3.10.4 Testing (3 days)3.11 Accounts Payable3.11.1 Migrating server to cloud (4 days)3.11.2 Migrating Data (5 days)3.11.3 AP Systems Software Installation (4 days)3.11.4 Testing (5 days)3.12 Accounts Receivable3.13 Payroll3.14 Finance3.15 Purchasing3.16 Sales3.17 Company Website3.18 Product Support4. Monitoring and Controlling (5 months to complete)4.1 Project Management (1 week)4.2 Project Status Meetings (1 week)4.3 Risk Management (1 week)4.4 Update Project Management (1 week)5. Closing (2 weeks to complete)5.1 Audit Procurement (.5 week)5.2 Document Lessons Learned (.5 week)5.3 Documentation Review (.5 week)5.4 Gain Formal Acceptance (.5 week)
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We often discuss size of government and the roles we expect
government to play (e.g. protect consumers, workers, and the
environment, create opportunities or create a level playing field
for businesse
the government should focus on creating opportunities and ensuring that businesses are acting in a responsible manner. By doing so, the government can help to create a more prosperous and equitable society.
The size of the government and the roles it should play is a topic of much debate. Some argue that the government should have a smaller role, while others believe that the government should have a larger role. The government has a responsibility to protect consumers, workers, and the environment. This is often done through regulations and laws that ensure that businesses are acting in a responsible manner. Additionally, the government has a role to play in creating opportunities for citizens. This can include programs that provide education and training, or initiatives that support economic growth. The government can also create a level playing field for businesses. This can be done through regulations that prevent unfair competition or by providing funding and other support to small businesses. Ultimately, the role of the government should be to create an environment that is conducive to growth and development. This can be achieved by balancing the need for regulation with the need for innovation and entrepreneurship. By doing so, the government can help to ensure that opportunities are available for all citizens, regardless of their background or circumstances.
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The accompanying table gives the relationship between the price of custard pies and the number of pies Jacob buys per week Click the icon to view the table a, is the relationship between the price of pies and the number of pies Jacob buys a positive relationship or a negative relationship? OA. Negative relationship OB. Positive relationship b. Plot the data 1) Use the point drawing tool to plot each data-point from the table. 2) Use the line drawing tool to draw a straight line that best fits the points. Label this line 'Demand Carefully follow the instructions above, and only draw the required objects c. Calculate the slope of the line Slope (Enter your response as an integer value. Be sure to include a minus sign if necessary) Price (dollars per ple) Quantity (pies per week) 9 10 O Q G view the between t or a neg tionship wing tool t ving tool to instructions pe of the lin your respon Table Price ($ per pie) $3.00 2.00 5.00 6.00 1.00 4.00 Print Quantity of pies 6 7 4385 Done Week July 2 July 9 July 16 July 23 July 30 August 6 - X eek) 8
The relationship between the price of custard pies and the number of pies Jacob buys is a negative relationship. This means that as the price of pies increases, the quantity of pies Jacob buys decreases
a) The relationship between the price of pies and the number of pies Jacob buys is a negative relationship. This means that as the price of pies increases, the quantity of pies Jacob buys decreases.
b) I'm sorry, but as a text-based AI, I am unable to directly view or interact with images or tables. However, you can plot the data points on a graph yourself by using a graphing software or drawing tool. Plot each data point with the price of pies on the x-axis and the quantity of pies on the y-axis. Then draw a straight line that best fits the points to represent the demand.
c) To calculate the slope of the line, you can choose any two points on the line and use the formula:
Slope = (Change in y) / (Change in x)
Select two points on the line and determine the change in y (quantity) and the change in x (price). Then calculate the slope using the formula above. The slope will indicate the rate at which the quantity of pies changes with respect to the price.
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Apple Corporation produces a single product. The standard costs for one unit of its product are slows Direct materials (6 pounds at $0.50 per pound) 53 Direct labor (2 hours at $10 per hour) Variable manufacturing overhead (2 hours at $5 per hour) 10 During November, 6,000 units were produced. The costs associated with November operations were as follows Material purchased (36,000 pounds at 50.60 per pound) $21,600 Material used in production (28,000 pounds) Direct labor (12,800 hours at $9.75 per hour) Variable manufacturing overhead incurred 20 117,000 53,760 hp n Big Overhead incurred 53,760 What is the variable overhead spending variance for the product for November? O $6,240 Unfavorable O$ 10,240 Unfavorable O$ 10,240 Favorable O$ 6,240 Favorable) Moving to the next question prevents changes to this answer. hp
Answer: 4000 $
Explanation:
Variable overhead spending variance for the product for November is $10,240 .
Unfavorable. Explanation: Given, Standard cost per unit:
Direct material: $3Labor: $20
Variable manufacturing overhead: $10During November,
Units produced: 6,000
Material purchased (36,000 pounds at $0.60 per pound): $21,600
Material used in production (28,000 pounds)
Direct labor (12,800 hours at $9.75 per hour): $125,280
Variable manufacturing overhead incurred: $53,760.
Calculation of the direct materials, direct labor, and variable manufacturing overhead variances: Direct
Materials Variance = AQ (AP - SP)
AQ = Actual Quantity purchased
AP = Actual price of raw material
SP = Standard price of raw material
AQ = 36,000 pounds
AP = $0.60 per pound
SP = $0.50 per pound
Direct Materials Variance = AQ (AP - SP)
Direct Materials Variance = 36,000 ($0.60 - $0.50)
Direct Materials Variance = $3,600
Unfavorable Direct Labor Variance = AH (AR - SR)
AH = Actual Hours worked
AR = Actual labor rate per hour
SR = Standard labor rate per hour
AH = 12,800
AR = $9.75 per hour
SR = $10 per hour
Direct Labor Variance = AH (AR - SR)
Direct Labor Variance = 12,800 ($9.75 - $10)
Direct Labor Variance = $1,600
Favorable Variable Overhead Variance = AH (AR - SR)
AH = Actual Hours worked
AR = Actual variable overhead rate per hour
SR = Standard variable overhead rate per hour
AH = 12,800
AR = $5 per hour
SR = $5 per hour
Variable Overhead Variance = AH (AR - SR)
Variable Overhead Variance = 12,800 ($5 - $5)
Variable Overhead Variance = $0 Favorable Calculation of variable overhead spending variance:
Variable Overhead Spending Variance = Actual Variable Overhead - (Actual Hours Worked x Standard Variable Overhead Rate)
Actual Variable Overhead = $53,760Actual Hours Worked = 12,800
Standard Variable Overhead Rate = $5 per hour
Variable Overhead Spending Variance = $53,760 - (12,800 x $5)
Variable Overhead Spending Variance = $10,240 Unfavorable.
Hence, the variable overhead spending variance for the product for November is $10,240 Unfavorable.
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For a mixed good with an external benefit, a free market would produce than than the marginal the efficient output and the market price of the good would social benefit from it. less; more more; more more: less less; less
For the mixed goods that have an external benefit, the free market will produce less than the efficient output and the less market price of the good would social benefit from it.
When a mixed good has external benefits, the free market would produce less than the efficient output and the market price of the good would be less than the social benefit from it. In a free market, the sellers aim to produce the product for which they can receive maximum profit and the buyers would want to buy goods and services at a minimum price. For the mixed goods that have an external benefit, the free market will produce less than the efficient output as the sellers will not take into account the positive externality or external benefit received by the consumers. They would only focus on the private benefit which would be less than the total benefit, so the good would be underproduced, and the social benefit would be more than the market price.
In other words, the output produced by the free market is less than the efficient output because the marginal social benefit is greater than the marginal cost. This shows that a free market leads to a market failure, as the market price is lower than the social price. The concept of externalities is important for the government to intervene to correct market failures. The government can intervene through subsidies, regulations, and taxes to increase the social benefit or reduce the social cost of the mixed goods with external benefits. Therefore, a free market fails to produce the efficient output as well as the social benefit from it.
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Briefly describe the public policy process of a foreign country and its implication on the business political activity in that country.
The public policy process in a foreign country refers to the series of steps taken by the government to identify, formulate, implement, and evaluate policies that address societal issues. This process typically involves gathering information, conducting analysis, consulting stakeholders, and making decisions. The implications of the public policy process on business political activity in that country can vary depending on factors such as the level of government intervention, the transparency of the process, and the influence of interest groups.
The public policy process in a foreign country starts with agenda setting, where issues are identified and prioritized for policy consideration. This is followed by policy formulation, where potential solutions are developed and analyzed.
Once a policy is chosen, it moves into the implementation phase, where government agencies and other stakeholders put the policy into action. Finally, the policy undergoes evaluation to assess its effectiveness and make necessary adjustments.
The implications of the public policy process on business political activity in a foreign country are significant. The policies formulated and implemented can create opportunities or barriers for businesses operating in that country.
Businesses may engage in political activities such as lobbying, advocacy, and campaign contributions to influence the policy process in their favor.
However, the effectiveness of their political activity can be influenced by factors such as the level of corruption, the influence of powerful interest groups, and the transparency and openness of the policy process. Understanding and navigating the public policy process is crucial for businesses to protect their interests and adapt to the changing regulatory environment in a foreign country.
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Green Technology.com (GT) is an Internet advertising agency. The firm uses job cost system in which each client is a different "job". GT traces direct labour, software licensing costs, and travel costs directly to each job. The company allocates indirect costs to jobs based on a predetermined indirect costs allocation rate computed directilabour hour. At the beginning of the current year, managing partner Ricky prepared a budget:
At the beginning of the current year, managing partner Ricky prepared a budget for Green Technology.com (GT), an Internet advertising agency that uses a job cost system. The budget includes direct labor, software licensing costs, travel costs, and indirect costs allocated to jobs based on a predetermined allocation rate computed using direct labor hours.
The budget serves as a financial plan and guides the company's operations throughout the year. It helps in estimating and controlling costs, allocating resources effectively, and assessing the profitability of each job. By preparing a budget, Ricky ensures that GT has a clear roadmap for achieving its financial goals and meeting client requirements.
A well-prepared budget enables GT to make informed decisions, monitor performance, and make adjustments as needed. It serves as a valuable tool for financial management and contributes to the overall success and growth of the company.
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Discuss what is likely to occur at a Footlocker distribution center for a pair of Nike shoes. For each stage, list two things that will happen and one thing that might go wrong.
At a Footlocker distribution center for a pair of Nike shoes, several activities and processes would take place at different stages. Let's examine each stage, along with two things that are likely to occur and one potential issue that might arise:
Receiving Stage:
Incoming shipments of Nike shoes are unloaded and checked for accuracy.
Shoes are sorted and organized based on style, size, and other criteria.
Potential issue: The shipment might contain incorrect or damaged shoes, requiring additional time and effort to resolve the issue.
Inventory Management Stage:
Nike shoes are stored in designated areas within the distribution center.
Inventory levels are tracked and updated in the system.
Potential issue: There could be errors in inventory records, leading to discrepancies between physical stock and recorded stock, which can result in inventory management challenges.
Order Fulfillment Stage:
Customer orders for Nike shoes are received and processed.
Shoes are picked from the inventory based on the order details.
Potential issue: There may be instances where incorrect shoes are picked for an order, resulting in customer dissatisfaction and the need for order corrections.
Packing and Shipping Stage:
Picked Nike shoes are packaged securely and prepared for shipment.
Shipping labels and documentation are generated and attached to the packages.
Potential issue: There might be errors in packaging or labeling, leading to misdirected shipments or delays in delivery.
Quality Control Stage:
Shoes undergo quality checks to ensure they meet the specified standards.
Defective or damaged shoes are identified and separated for further action.
Potential issue: Inadequate quality control measures could result in the distribution of substandard Nike shoes, leading to customer complaints and potential product returns.
Dispatch Stage:
Packages containing Nike shoes are loaded onto trucks or delivery vehicles.
Delivery schedules are coordinated and communicated to ensure timely shipments.
Potential issue: There could be logistical challenges, such as delays in dispatch or transportation issues, which may disrupt the delivery process.
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The job of a finance manager is confined to (a) Raising funds Question No. 04: (b) Management of cash (c) Raising of funds and their effective utilization (4) None of these 2. Financial Planning deals with: (a) Preparation of Financial Statements (b) Planning for a Capital Issue (c) Preparing Budgets (d) All of the above 3. is concerned with the duties of the financial managers in the business firm. (a) Financial Management (b) Accounting Management (e) Personnel Management (d) Merger 4. The financial management function and complex. has become (a) Less demanding (b) More demanding (c) Less important (d) Outdated (e) More demanding 5. For maximizing the profit, the costs should be (a) minimized (b) ignored (c) maximized (d) upgraded 6. Funds are financial resources in the form of: (a) Corporate capital (b) Business funds (c) Cash Equivalents (d) All of these 7. The cash flows at different periods should be made co to take sound decisions by which of the following? (4) Timing (0) Timing & Risk (4) Risk (4) None of these 8. The process of calculating value of cash flows is kno (a) Discounting (b) Compounding (4) Both of these (d) None of these 9. A fixed cash flow in each specified number of yea (a) Annuity (b) Recovery factor (c) Discounting (d) Compounding 10. The debeatures that g the right to prematurel issuer on certain specil called as: (a) Calla (b) Zero (c) Putta (d) Com bond
The job of a finance manager is confined to: (c) Raising of funds and their effective utilization
Financial Planning deals with: (d) All of the above
Financial Management is concerned with the duties of the financial managers in the business firm: (a) Financial Management
The financial management function has become: (b) More demanding
For maximizing the profit, the costs should be: (a) minimized
Funds are financial resources in the form of: (d) All of these
The cash flows at different periods should be made co to take sound decisions by which of the following? (2) Timing & Risk
The process of calculating value of cash flows is known as: (a) Discounting
A fixed cash flow in each specified number of years is called: (a) Annuity
The debentures that give the right to the issuer to prematurely call back the bonds from the bondholders on certain specified terms are called: (a) Callable bonds
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Assume that steel produced in the US sells for $900 per ton in the US and that steel produced in France sells for 650€ per ton in France. If the exchange rate is $1.10 = 1.00€, what is the price of French steel in the US priced in US dollars, ignoring transportation costs? Show your work!
The price of French steel in the US, priced in US dollars, is approximately $715.91 per ton.
To determine the price of French steel in the US, we need to convert the price in euros to US dollars using the given exchange rate.
Price of steel in the US = $900 per ton
Price of steel in France = 650€ per ton
Exchange rate = $1.10 = 1.00€
To convert the price of French steel from euros to US dollars, we can use the exchange rate:
Price of French steel in US dollars = Price of French steel in euros * Exchange rate
Price of French steel in US dollars = 650€ * $1.10/1.00€
Price of French steel in US dollars = 650€ * $1.10
Price of French steel in US dollars = $715.91
Therefore, the price of French steel in the US, priced in US dollars, is approximately $715.91 per ton.
The price of French steel in the US, priced in US dollars, ignoring transportation costs, is approximately $715.91 per ton.
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Which role should the RTE play related to hackathon event? Get approval for work to be done in the hackathon Ensure the teams have allocated story points in the Innovation and Planning Iteration during the PI to account for the effort Allow the teams aS much flexibility as possible to promote innovation Work with development leaders to make sure they give clear and detailed guidance to the developers on what is expected
The role of Release Train Engineer (RTE) in relation to the Hackathon event is to ensure that the teams have allocated story points in the Innovation and Planning Iteration (IP Iteration) during the PI to account for the effort. The other responsibilities of the RTE during the hackathon event include:Making sure that the teams have allocated story points in the IP iteration to account for the effort.Get approval for work to be done in the hackathon.Work with development leaders to ensure that they give clear and detailed guidance to the developers on what is expected.Allow the teams as much flexibility as possible to promote innovation.RTEs act as a conduit between the teams, ART, and Product Management. They assist in ensuring that the teams work effectively and that the project stays on track. They also assist with removing any impediments that the teams may face. The RTE is responsible for supporting Agile Release Trains (ARTs) and suppliers in achieving the goals of program increment planning and execution.This ensures that the teams have the required resources and environment to succeed, and that they stay aligned to the organization's objectives.
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A student has started studying cyber security at university and has been learning about Structured Query Language (SQL) and SQL Injection (SQLI) attacks. The student is curious about the vulnerability of popular websites and decides to test the security of some websites that they use regularly. The student tests the university website a banking website, as well as that of a popular online retailer. The student conducts the tests by entering various malformed SQL query strings to see if any sensitive information is revealed. During the tests, none of the sites respond to the SQL queries. b. Has the student committed a CMA Section 2 offence? Explain your answer. The maximum word limit for Question 5b. is 100 words.
No, the student has not committed a CMA Section 2 offence.
What is CMA Section 2 offence?Section 2 of the Computer Misuse Act (CMA) is a law that prohibits unauthorized access to computer systems, resulting in the stealing of data and the disruption of computer functionality.
According to the given scenario, the student is simply testing the university, banking, and online retailer websites. The student was curious about how vulnerable the websites are, so they attempted a Structured Query Language (SQL) Injection test.
SQL Injection (SQLI) is a technique for exploiting software applications' vulnerabilities in which malicious code is injected into SQL statements, allowing attackers to take control of a web application database. However, the student did not hack into the websites or do any other malicious activities.In addition, none of the sites responded to the student's SQL queries, indicating that the website's security was working properly.
The student has simply done something that could be deemed a bit unethical but has not breached any of the CMA Section 2 criteria, so he has not committed a CMA Section 2 offence.
So, the answer is: No, the student has not committed a CMA Section 2 offence.
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what act establishes the regulatory framework for debit card transactions and payment networks?
The regulatory framework for debit card transactions and payment networks is established by the Electronic Fund Transfer Act (EFTA).
The Electronic Fund Transfer Act (EFTA) was enacted in 1978 by the U.S. Congress to provide consumer protection when using electronic means to transfer funds. EFTA establishes the rights and responsibilities of financial institutions, customers, and other participants in electronic fund transfer systems.The EFTA is a federal law that regulates electronic funds transfers (EFTs) for transactions in the U.S. The EFTA established the rights, responsibilities, and liabilities of participants in electronic fund transfer (EFT) systems such as automated teller machines (ATMs), point-of-sale (POS) terminals, and automated clearinghouse (ACH) systems.
The EFTA establishes a regulatory framework for debit card transactions and payment networks. It requires financial institutions to provide consumers with disclosures of the terms and conditions of electronic fund transfers and establishes consumer protections in the event of unauthorized transactions.
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delta lighting has a target capital structure of 55 percent common stock, 10 percent preferred stock, and 45 percent debt. the firm has a 60 percent dividend payout ratio, a beta of 0.89, and a tax rate of 38 percent. given this, which one of the following statements is correct? group of answer choices
the firm's weighted average cost of capital will remain constant with changes in the target capital structure.
the firm's cost of preferred is most likely less than the firm's actual cost of debt.
the after-tax cost of debt will be greater than the current yield-to-maturity on the firm's bonds.
the firm's cost of equity is unaffected by a change in the firm's tax rate.
the cost of equity will be constant if the estimated risk premium changes.
The after-tax cost of debt will be greater than the current yield-to-maturity on the firm's bonds of a delta lighting has a target capital structure of 55 percent common stock, 10 percent preferred stock, and 45 percent debt. The correct statement is The after-tax cost of debt will be greater than the current yield-to-maturity on the firm's bonds.
According to the given information, Delta Lighting has a target capital structure consisting of common stock, preferred stock, and debt. The cost of debt is typically lower than the cost of equity because debt holders have a higher priority of claim in case of bankruptcy. However, the after-tax cost of debt is expected to be higher than the current yield-to-maturity on the firm's bonds due to the tax deductibility of interest expenses. Since interest payments are tax-deductible, the after-tax cost of debt will be lower than the nominal interest rate. Therefore, the statement that the after-tax cost of debt will be greater than the current yield-to-maturity on the firm's bonds is correct.
The other statements are not accurate based on the given information:
The firm's weighted average cost of capital (WACC) is influenced by changes in the target capital structure, so the statement that the WACC will remain constant with changes in the target capital structure is incorrect.The cost of preferred stock is typically higher than the cost of debt, so the statement that the cost of preferred stock is most likely less than the firm's actual cost of debt is incorrect.The firm's cost of equity is influenced by changes in the tax rate, so the statement that the firm's cost of equity is unaffected by a change in the firm's tax rate is incorrect.The cost of equity is directly affected by changes in the estimated risk premium, so the statement that the cost of equity will be constant if the estimated risk premium changes is incorrect.Learn more about debt here:-
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Which of the following is the best example of a privately-supplied public good?
A State Highway 1.
B The view from the monument on Signal Hill
C A music broadcast by a local radio station.
D Packets of chips from the vending machine in the Otago Business School.
Answer:
The best example of a privately-supplied public good from the options provided is:
B) The view from the monument on Signal Hill.
Explanation:
A public good is characterized by non-excludability and non-rivalry. Non-excludability means that it is difficult or impossible to exclude individuals from consuming the good once it is provided. Non-rivalry means that one person's consumption of the good does not diminish its availability for others.
In the case of the view from the monument on Signal Hill, it is difficult to exclude individuals from enjoying the view once they reach the location. Additionally, one person's enjoyment of the view does not reduce its availability for others. While the monument itself may be privately owned or managed, the view itself can be considered a public good as it meets the criteria of non-excludability and non-rivalry.
The other options do not represent classic examples of public goods. State Highway 1 (A) is a common good, as it is non-excludable but rivalrous in nature. A music broadcast by a local radio station (C) is excludable as the station can limit access to listeners through broadcasting range or subscription-based services. Packets of chips from a vending machine (D) are excludable and rivalrous since each packet consumed reduces the availability of the same type of chips for others.
Therefore, the view from the monument on Signal Hill (B) is the best example of a privately-supplied public good among the options given.
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At M3 Marketing a new marketing campaign development project for a client begins with two activities ideation and budgeting/contracting. Ideation, or coming up with ideas for the campaign, occurs in parallel with (i.e., at the same time as.) the budgeting/contracting work which determines the costs and terms of the relationship. These activities take four and three weeks, respectively. Once ideation is complete, advertising content drafting begins and lasts two weeks. When the budget is set and the ad drafting is complete, the activity to determine the advertising channels can begin. Determining the ad channels takes three weeks. When ad drafting is complete and the advertising channels are determined, two activities can start. First, final campaign collateral can be developed over the next five weeks. The second activity is rollout planning, which requires four weeks. After collateral development and rollout planning are finished, the advertising campaign rollout is executed over the next three weeks. After the campaign rollout, the new ad campaign is complete and can be handed over to advertising operations group. What is the length of the critical path for this project? 16 weeks 15 weeks O 13 weeks O 14 weeks O None of the answers are correct.
To determine the length of the critical path for the project, we need to identify the longest path that connects the starting point to the endpoint, considering the duration of each activity.
The given activities and their durations are as follows:
Ideation and budgeting/contracting: 4 weeks (parallel activities)
Advertising content drafting: 2 weeks
Determining advertising channels: 3 weeks
Final campaign collateral development: 5 weeks
Rollout planning: 4 weeks
Advertising campaign rollout: 3 weeks
To find the critical path, we add up the durations of the longest path:
4 weeks (ideation and budgeting/contracting) + 2 weeks (advertising content drafting) + 3 weeks (determining advertising channels) + 5 weeks (final campaign collateral development) + 4 weeks (rollout planning) + 3 weeks (advertising campaign rollout) = 21 weeks
Therefore, the length of the critical path for this project is 21 weeks. None of the provided answer choices are correct.
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On the variable costing income statement, the figure representing the difference between sales and all variable costs is O variable selling and administrative expenses O variable cost of goods sold O fixed manufacturing costs O contribution margin.
On the variable costing income statement, the figure representing the difference between sales and all variable costs is the contribution margin. The variable costing income statement is an income statement that is used to prepare the cost of goods sold by distinguishing between the fixed and variable costs associated with production.
The statement is based on the principles of marginal costing, which are concerned with the distinction between variable and fixed costs. Variable costing is an accounting method that includes only the variable manufacturing costs in the cost of goods sold. The fixed manufacturing overhead costs are treated as period costs and are not included in the cost of goods sold.
Variable selling and administrative expenses are also included in the variable costing income statement. These expenses are treated as period costs and are deducted from the contribution margin to arrive at the net income. The contribution margin is the difference between sales and all variable costs. It represents the amount of revenue that is available to cover fixed costs and generate a profit.
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