An example of make-to-stock are canned soups(e.g., Campbell's soups).
What is make-to-stock?Build to stock, also known as make to stock or BTS or MTS, is a build-ahead production method where production plans may be based on sales estimates and/or past demand. BTS is typically linked to mass production methods used during the industrial revolution, in which enormous quantities of products are manufactured and stored in warehouses in advance of demand. Build to stock is typically regarded as a suitable option for goods with few product lines and lengthy changeover times between pricey products. While other businesses build all of their products to stock, some do so to order. Many manufacturers are adopting a hybrid approach, where some products are produced on a large scale and others are produced on a smaller scale, in response to the widespread proliferation of products.
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an s corporation form of ownership overcomes which disadvantage of the regular or c corporation form of ownership?
The disadvantages of the regular or c corporation form of ownership is the double taxation issue.
The practice of collecting taxes from two or more jurisdictions on the same amount of money (in the case of income taxes), property (in the case of capital taxes), or business transaction is known as double taxation.
There are many approaches to reduce double liability. For instance, a jurisdiction might:
exempt foreign-source income from taxation, exempt foreign-source income from taxation if tax had already been paid on it in another jurisdiction, or if it exceeds a certain threshold to exclude tax haven jurisdictions. Alternatively, you can fully tax the foreign-source income but give yourself a credit for taxes already paid on it in the foreign jurisdiction.
Tax treaties, which specify guidelines to prevent double taxation, are agreements that jurisdictions can make with other nations.
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What can happen if you do not pay back money you have borrowed?
A. You can be offered more credit.
B. You can ignore late payment notices.
C. You can be charged penalties and fees.
D. You can get an increase in your credit.
The answer is C.
Explanation:
So when you have a credit line and you spend money using that credit, you are borrowing money from someone else. You not paying it is the same as not paying back debt. To help keep people from just stealing money there is a system in place to make someone owe more money the longer they don't pay their debt, even going so far as to jail people, sue them, or collect collateral damage to pay the debt.
costs are allocated to cost objects in many ways and for many reasons. which one of the following is a purpose of cost allocation? a. evaluating revenue center performance. b. measuring income and assets for external reporting. c. budgeting cash and controlling expenditures. d. aiding in variable costing for internal reporting.
Measuring income and assets for external reporting. An important aspect of every company's profitability is cost allocation.
The correct answer is option [B].
What is the cost allocation ?Considering direct and indirect costs, such as manufacturing labor and tiny quantities of supplies, is a step in the cost allocation process.
Business owners use cost allocation to determine profitability for the purposes of financial reporting. To keep the business's finances on track, costs are assigned, or divided, into numerous categories based on the parts of the organization they impact.
Materials, shipping, and marketing expenses would all be included in the cost allocation for a modest clothes store. Consistently calculating these expenses would assist the store owner make sure that sales profits exceed store operating expenses. If not, the owner would've been able to decide right away where to increase prices or cut spending.
Cost allocation is the process of relieving the cost centers of shared service organizations that offer a goods or services. Internal clients' cost centers that use the goods and services are then given credit for the related charge.
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a countervailing duty is a tariff that is levied to counteract a) the dumping of goods in the domestic market by foreign firms. b) a sudden surge of imports which hurt a domestic industry. c) subsidies given to foreign firms by their own governments. d) the tariff on domestic goods that are enacted by foreign governments.
An assessment put in place to make up for government subsidies given to foreign corporations is known as a countervailing duty.
What exactly does the word "subsidy" mean?A government payment to individuals or organizations, whether direct or indirect, usually in the form of money or a specific tax cut, is known as a subsidy. Economic theory suggests that subsidies can be utilized to lessen externalities and market flaws and increase economic efficiency.
Exactly what is a subsidy?The purpose of subsidies is to support or maintain what are regarded as critical facets of the infrastructure or economy of a country. Even while subsidies may directly benefit the individual industry or firms in question, economists maintain
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one reason for the failure of purchasing power parity theory and international fisher effect in predicting short-term movements in exchange rates is due to the
strong relationship between interest rates differentials and subsequent changes in spot exchange rates, is one reason for the failure of purchasing power parity theory and international fisher effect in predicting short-term movements in exchange rates
What is Purchasing Power Parity Theory?The concept of purchasing power parity (PPP) says that if an exchange rate is taken into account, products from one country will cost the same amount in another. This idea states that a market basket of commodities is priced equally in both countries when two currencies are at parity. It is a theory which states that when, currencies' exchange rates are in equilibrium their purchasing power is equal in both of the two countries. The author of the theory of parity in purchasing power was Cassel, Gustav the Purchasing Power Parity is available in both absolute and relative forms. A PPP project can be financed in three ways: with loan, with equity, and with government funding
What kinds of PPP are there?PPPs at the local and regional levels.Information and communication technology/telecom PPPs.Transportation PPPs.Sanitation and water PPPs.What are Interest Rates?The quantity of interest due each period is denoted by an interest rate, which is a ratio of the amount lent, deposited, or borrowed to the total amount. The amount lent or borrowed, as well as the interest rate, frequency of compounding, and the period of time during which it is lent, deposited, or borrowed, all affect how much interest will be charged overall.
What are Exchange Rates?A currency exchange rate is the cost of converting one currency into another. Typically, national currencies are used as currencies.
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the price level starts at 1.00 and rises by the end of the year to 1.15. 1. what has happened to the value of the dollar over that same period of time? (calculation is required) 2. what are the consequences of that price level change? 3. will an increase or decrease in the money supply reduce the price level to the tolerable range?
The value of the dollar will fluctuate due to changes in price levels, which will also affect average interest rates by lowering reserves.
The price level is determined by averaging the current prices for all the goods and services produced in an economy. Price level, in a broader sense, refers to the cost or price of a goods, service, or security in the market.
A daily price index, often the Daily CPI, is used to estimate the general price level. During a hyperinflation, the overall price level may fluctuate more than once every day.
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when the local currency of a foreign subsidiary is the functional currency, the foreign subsidiary's inventory carried at cost would be converted to u.s. dollars by:
The foreign subsidiary's cost-based inventory would be converted to U.S. dollars by translation through the current exchange rate.
How is a foreign subsidiary accounted for?The currency that affects sales prices is the subsidiary's functional currency. The subsidiary's functional currency is that of the nation whose laws and level of competition affect sales pricing.
Because it is the local currency, the corporation decides to utilize euros as the functional currency. In a different scenario, a Mexican business with the majority of its operations in the US would utilize the US dollar as its functional currency, even while its financial statements are expressed in terms of Mexican pesos. If your company uses US GAAP for its financial reporting and has control over a foreign subsidiary, the foreign subsidiary must be included in the financial reporting of the US parent.
The financial statements must be translated to U.S. dollars if the overseas subsidiary does not keep records in that currency.
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Which new deal legislation allowed the president to regulate business in the united states in order to raise prices?.
The US constitution provides the fundamental foundation for laws to be drafted and passed in both the US National Assembly and the US Senate, which is the reason.
If the US constitution forbids the passing of laws, then the constitution must first be altered before any laws may be formulated. The first issue that arose when slavery was to be abolished in 1865 was that doing so would have violated the US constitution. As a result, the disagreement was resolved before the statute was passed by amending the constitution.In a nutshell, the US Constitution serves as the fundamental framework for all laws, regardless of the reasons they were created (such as technological, social, or cultural ones).American politician George Walker Bush presided over the country as its 43rd president from 2001 until 2009.As a Republican, President Bush previously held the office of Texas’ 46th governor from 1995 to 2000.He showed significant advancements in the American economy.
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sony has declared a dividend that is payable to shareholders of record on thursday january 2, 2020 (note: markets are closed on january 1). what is the last day that beyonce can buy the stock and still receive the dividend?
Beyonce can purchase the shares and still collect the dividend through Monday.
When can I purchase a stock and still receive the dividend?You will receive the dividend if you purchase a stock one day prior to the ex-dividend date. You won't receive the dividend if you purchase on the ex-dividend date or any subsequent day. On the other hand, you must hold onto a stock until the ex-dividend day if you wish to sell it and still get a dividend that has been declared.
A business day before the record date is commonly established as the ex-dividend date for stocks. If you purchase a stock on or after the ex-dividend date, you won't receive the ensuing dividend payment. The vendor receives the payment in its place. If you purchase before the ex-dividend date, the dividend is paid to you.
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carlos purchased an apartment building on november 16, 2017, for $3,000,000. determine the cost recovery for 2017.
The cost recovery is $13,650. In the cost recovery method of accounting, a company only records the revenue it makes from a transaction when the client has paid enough of the invoice to cover all of the transaction's costs.
Statement demonstrating calculations
Particulars Amount
Building costs were $3,000,000.00.
Deduction for cost recovery: 3,000,000 *.00455
$13,650.00 is the cost recovery for 2017.
An expense and cost recovery system (ECRS) is a focused subset of "extract, transform, load" (ETL) that serves as a strong and adaptable set of applications, including programs, scripts, and databases designed to enhance the cash flow of businesses and organizations by automating the movement of data between cost recovery systems, electronic billing from vendors, and accounting systems.
In the cost recovery method of accounting, a company only records the revenue it makes from a transaction when the client has paid enough of the invoice to cover all of the transaction's costs.
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what is the primary purpose of a data warehouse? group of answer choices to aggregate information throughout an organization into multiple repositories in such a way that employees can make decisions and undertake business analysis activities. to disaggregate information throughout an organization into multiple repositories in such a way that employees can make decisions and undertake business analysis activities. to aggregate information throughout an organization into a single repository in such a way that employees can make decisions and undertake business analysis activities. to disaggregate information throughout an organization into a single repository in such a way that employees can make decisions and undertake business analysis activities.
The primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository in such a way that employees can make decisions and undertake business analysis activities.
A data warehouse is a primary repository of facts that may be analyzed to make greater informed choices. facts flows right into a statistics warehouse from transactional systems, relational databases, and other sources, usually on a ordinary cadence.
In computing, a data warehouse, additionally called an company records warehouse, is a system used for reporting and information analysis and is taken into consideration a core issue of commercial enterprise intelligence. DWs are central repositories of incorporated facts from one or more disparate resources.
A data warehouse is a type of statistics control device this is designed to enable and guide commercial enterprise intelligence (BI) sports, specially analytics. data warehouses are solely supposed to carry out queries and analysis and often contain massive amounts of historical records.
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suppose that bertie has 2000 hours available in the year. he earns a wage of $10 per hour. the government introduces a welfare program that provides $6,000 in benefits to anyone who is not working. the benefit is reduced by $1 for every $2 the individual earns in the labor market. what is the break even level of hours worked?
Break even time is the amount of time required for the discounted cash flows generated by using a undertaking to equal its preliminary cost.
For example, if it takes two years for a venture to generate $1,000 on a discounted basis to offset its $1,000 startup cost, the project's ruin even time is two years.
How do you calculate ruin even level?To calculate the break-even factor in devices use the formula: Break-Even factor (units) = Fixed Costs ÷ (Sales charge per unit – Variable costs per unit) or in sales bucks the usage of the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.
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https://brainly.com/question/24233845#SPJ4ratio analysis: question 4 options: a) is generally adequate to fully assess an investment's expected return b) serves as an initial evaluation of the adequacy of an investment's expected cash flows c) includes estimating the net present value of the investment opportunity d) requires cash flow estimates for the investment's entire expected holding period
Ratio analysis usually depicts as an initial evaluation of the adequacy of an investment's expected cash flows.
So, the correct option is B.
Ratio analysis is used to provide a preliminary determination of how well-suited an investment's predicted cash flows are. The assessment of several financial data points included in a company's financial statements is known as "ratio analysis." Ratio analysis is employed to learn more about a company's financial health. Analysts use it to evaluate many facets of a firm, including its profitability, liquidity, and solvency.
By examining a company's financial statements, such as the balance sheet and income statement, ratio analysis is a quantitative technique for gaining insight into its liquidity, operational effectiveness, and profitability. A crucial component of basic equity analysis is ratio analysis.
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of the eight core it processes that must be managed for an effective it department, which competency involves development of it staff skills and retention of it talent?
Of the eight core it processes that must be managed for an effective it department, Human capital management competency involves development of it staff skills and retention of it talent.
Social scientists refer to personal qualities that are seen to be helpful in the manufacturing process as "human capital." Employee education, health, and knowledge are all included in it. Individual profits are significantly influenced by human capital. Knowledge, skills, and physical and mental health make up human capital.
Steel, cement, electricity, fertilisers, refinery products, natural gas, crude oil, and coal. The eight core industries make up 40.27 percent of the total weight of the goods covered in the industrial production index. Annexes I and II, respectively, contain details on annual and monthly indices and growth rates.
The Ministry of Commerce and Industry's Department of Industrial Policy and Promotion, Office of the Economic Adviser, is in charge of compiling and distributing the index. The following information is contained in the Index of Eight Core Industries UPSC curriculum.
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perhaps the most striking fact about natural disasters in relation to ais controls is that group of answer choices many companies in one location can be seriously affected at one time by a disaster. losses are absolutely unpreventable. there are a large number of major disasters every year. disaster planning has largely been ignored in the literature.
Perhaps the most striking fact about natural disasters in relation to AIS controls is that many companies in one location can be seriously affected at one time by a disaster.
We know that AIS stands for Automatic Identification System. In the coastal area, this device is used for studying disaster management. Also in navigational safety AIS control is quite important as it continuously transmits information to all the vessels. Although it doesn't indicate commodity specification which means the quality of essential goods that each ship is containing as many coastal communities depend on these commodities for their survival and their betterment.
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The prices of high-coupon bonds tend to be less sensitive to a given change in interest rates than low-coupon bonds, other things held constant.
The statement that the prices of high-coupon bonds tend to be less sensitive to a given change in interest rates than low-coupon bonds, other things held constant is a True statement.
A Bond may be defined as the kind of collateral that is brought or sold by any individual or firm in order to gain profits in the near future. The price of the bond will increase as the bond will earn an amount of interest and bond will earn interest within its maturity period and after maturity period the price of bond will be increased. The coupon rate may be defined as the rate at which the bond will yield an interest. It is the rate which will be paid by the issuer. A high-coupon bond will be the one in which the coupon rate will be more and the interest earned will be more. A low-coupon bond will be the one in which the coupon rate will be less and the interest earned will be less, High coupon bonds are less sensitive as compared to low coupon bonds.
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Complete Question:
The prices of high-coupon bonds tend to be less sensitive to a given change in interest rates than low-coupon bonds, other things held constant. True or False
why do you think that air carriers are so mutually dependent? how have pricing practices changed since the prederegulation days? what was the major form of competition in the prederegulation era? discuss some of the causes of the price wars in the 1980s. do you foresee prices stabilizing in the next several years? why is there a tendency in oligopolistic industries toward price rigidity and nonprice competition?
Mutually dependent in pricing has created an atmosphere of predatory pricing and price competition that has dramatically reduced net profits.
Airline competition is interdependent in terms of services, pricing, routes, etc. - Pricing interdependence has led to a predatory pricing and price-competitive environment, resulting in a dramatic drop in net income. - Today, over 90% of passengers pay on average only about 30% of the full fare.
All airlines on the market plan departure time schedules and offer different fares. The basics of competition between airlines are: Customers choose by price and time, and those who see both airlines as equal choose by a secondary character called quality.
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time management experts often recommend that you write goals for your education or career and leave other areas of life unplanned.
Time management specialists frequently advise writing down objectives like your education or profession while leaving other elements of your life unscheduled, however this advice is untrue.
What is your definition of management?In order to achieve desired goals and objectives, the person or group of people should be challenged and managed, according to the concept of management. Furthermore, the ability to organize, monitor, and help guide is a part of management.
Why is the management important?A manager's job is to give all attempts to achieving organizational objectives general direction and leadership. Increasing effectiveness: Through effective planning, organizing, managing, and directing, management increases productivity, which in turn helps the business become more efficient.
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33) suppose an institution has purchased a $250,000 mortgage loan from the loan originator and wishes to create a mortgage pass-through security. in doing so, this institution will generate revenue by charging a servicing fee of 35 basis points. if the monthly mortgage payment on the loan is $1,250, how much income is passed through to the investor in the mortgage pass through each month (rounded to the nearest dollar)?
Each month, $1,177 is transferred to the investor via the mortgage pass-through. Thus, the right amount is $1,177.
What is a mortgage loan?A mortgage loan, also known as a hypothec loan in civil law nations, is a loan used by purchasers of real property to raise cash to acquire real estate, or by current property owners to generate funds for any purpose while establishing a lien on the property being mortgaged.
First, we use the formula to determine the Monthly service charge,
Monthly servicing fee = Monthly servicing fee rate * Outstanding loan balance,
The service fee is 35 basis points, or 0.35%, and is calculated on an annual basis; we will adjust it to a monthly basis.
= (0.35%/12) * $250,000
= $72.92
To determine the amount that passes through to the mortgage pass, we use the following formula:
Mortgage pass-through amount = Monthly mortgage payment - Monthly servicing fee
= $1,250 - $72.92
= $1,177.08,
= $1,177
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which option for avoiding a labor shortage gives speedy results and the ability to easily change to a different strategy at a later date? multiple choice technological innovation new external hires temporary employees retained transfers turnover reductions
Temporary employees for avoiding a labor shortage gives speedy results and the ability to easily change to a different strategy at a later date.
What are the popular strategies for overcoming a labour shortage ?The two strategies that are most frequently used to address labour shortages are outsourcing and hiring temporary workers. Hiring temporary and contract workers as well as outsourcing work are two of the most popular strategies for overcoming a labour shortage.
The typical organisational response to a labour shortage has been to outsource or hire temporary workers, both of which are quick and highly revocable. Industrialists were unconcerned about the lack of workers or the high cost of living. As machines required significant capital investments, they preferred using human labor.
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in performing an attest engagement, a cpa typically group of answer choices supplies litigation support services. assesses the risks of material misstatement. expresses a conclusion about a written assertion. provides management consulting advice.
In performing an attestation engagement, a CPA typically: expresses a conclusion about a written assertion.
Option C is correct.
What's the procedure for attestation?Attestation is the act of witnessing the signing of a regular document and also also subscribing it to corroborate that it was duly inked by those bound by its contents. Attestation is a legal acknowledgment of the factuality of a document and a verification that proper operations were followed.
What's included in an attestation engagement?An attest engagement is one in which a CPA in public practice( i.e., guru) is engaged to, or does, issue an examination/ inspection, review, compendium or agreed- upon procedures report on subject matter, or an assertion about subject matter, that's the responsibility of another party( generally operation).
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capital budgeting is the process of analyzing: question 6 options: cash outflows only. short-term investments. long-term investments. investments with certain outcomes only. operating revenues.
Capital budgeting is the process of analysing for Long-term investments only.
What is Capital budgeting ?Capital budgeting is the process a company undertakes to evaluate potential major projects or investments. Building a new factory or making a large investment in a foreign company are examples of projects that require a capital budget before approval or rejection.
5 Capital budgeting methods
Internal rate of return net present value Index of Profit Accounting rate of return Payment periodThe concept of the cost of capital of a company is used in capital budgeting as a possible basic discount rate applied to expected future cash flows of a proposed investment project that is considered acceptable or unacceptable.
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assume that markets are semi-strong form efficient. suppose that during a trading day important new information is released by a firm indicating that one of the firm's oil fields, previously thought to be very promising, just came up dry. how would you expect the price of a share of stock to react to this information?
The company's shareholders begin selling their shares as soon as the new information is deemed unfavorable.
c. The value of a share will fall below what is considered appropriate due to decreased demand for the shares, but the price will eventually rise to the appropriate level among the available options.
What takes place when the value of shares drops?The value of the company simply decreases when the price of a share falls. This value change is not redistributed among any parties. The forces of supply and demand determine the direction of the stock market.
When the price of a share drops, what does that imply?If more individuals have any desire to purchase a stock (request) than sell it (supply), then, at that point, the cost climbs. On the other hand, the price would fall if more people wanted to sell a stock than buy it because there would be more supply than demand.
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if the kleenex corporation decided to start an advertising campaign that focused on showing consumers how kleenex is incorporating environmentally-friendly practices into its manufacturing and distribution processes while implying that its competitors don't use these practices, then kleenex would be using which environmental marketing strategy?
The kleenex would be using beyond compliance leadership environmental marketing strategy to shoe the consumers how kleenex is incorporating environmentally-friendly practices.
A marketing strategy is a long-term plan for achieving a company's objectives by comprehending customer needs and forging an identifiable and long-lasting competitive advantage. It includes everything, from deciding who your target audience is to selecting the channels you will use to communicate with them.
With the help of a marketing strategy, you can specify how your business will position itself in the market, the kinds of products you will make, the strategic alliances you will forge, and the forms of advertising and promotion you will use.
Sustainability and marketing terms such as "environmentally friendly processes" are used to describe products, services, rules, and regulations that claim to have little to no negative impact on ecosystems or the environment. There are numerous ways that businesses use environmentally friendly procedures in Europe.
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the pbo was $100 million at the beginning of the year and $106 million at the end of the year. service cost for the year was $12 million. at the end of year, pension benefits paid by the trustee were $8 million. the actuary's discount rate was 5%. at the end of the year, the actuary revised the estimate of the percentage rate of increase in the compensation levels in upcoming years. what was the amount of the gain or loss in the estimate change caused? (enter your answer in million, round to the nearest million, without dollar sign, ex. 123 or -123).
The gain in the estimated change is $3 million
Employees who participate in defined benefit plans will get a fixed, predetermined benefit upon retirement. The fixed benefit offered by this kind of plan is frequently valued by employees. Businesses can typically contribute (and thus deduct) more annually than in defined contribution plans on the employer side. However, compared to other types of plans, defined benefit plans are frequently more complicated and therefore more expensive to establish and maintain.
All amounts are in millions:
Beginning plan benefit obligation = 100
Service cost = 12
Interest cost (100*5%) = 5
Total = 117
Less: benefits paid = -8
Total = 109
Less: Ending Plan Benefit Obligation = 106
The gain in the estimate change = 3
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if mcdonald's and burger king raise prices too high, customers may switch from burgers to tacos. this illustrates porter's force of .
If McDonald's and burger king raise prices too high, customers may switch from burgers to tacos. this illustrates porter's force of Substitutes.
Porter's force:
Porter's forces or Porter's five force is method of analyzing the operating environment of a competition of a business. And it helps to derive five forces that determine the competitive intensity and, therefore, the attractiveness of an industry in terms of its profitability.
Given,
if McDonald's and burger king raise prices too high, customers may switch from burgers to tacos.
Here we need to find the porter's forces used.
While we looking into the given situation we have identified that the customers are switched over from burgers to tacos because the increase in the price of the product.
Therefore, it defies the porter's force of substitutes.
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beauty corp. is planning to add manufacturing capacity by installing new high-tech machines. the machines would increase revenues by $200,000 per year and increase costs by $50,000 per year. the new machines cost $560,000 and would fully depreciated at the time of purchase. investment in net working capital of $30,000 would be required at the time of installation. the firm is planning to keep the machines for 7 years and then sell them for $80,000. the firm has a required rate of return on investment projects of 13% and a marginal tax rate of 25%. what is the initial outlay in the year zero?
The initial outlay for the new high-tech machines Beauty Corp. plans to add to its manufacturing capacity is $450,000.
What is the initial outlay?The initial outlay is the initial investment required for a project.
The initial outlay can be computed by adding the cost of new machines to the operating expenses and subtracting tax reductions recorded in the year zero.
Depreciation in year 0 = $560,000
Marginal tax rate = 25%
Cost of new machines = $560,000
Net working capital = 30,000
Tax reduction in year 0 = (140,000) ($560,000 x 25%)
Initial outlay $450,000
Thus, Beauty Corp. will incur an initial outlay of $450,000 in year zero.
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hat is the difference between a real estate space market and the real estate asset market? group of answer choices
The difference between real estate space market and the real estate asset market is the real estate space market deals with physical capital. While the real estate asset market deals with financial capital.
The real estate assets generally can be described as a real property and shares. The real property in real estate assets including interests in real property and also interests in mortgages on real property or on interests in real property. The examples of commercial real estate market are office, industrial, retail, residential, and hospitality. Real estate property also can be classified as an asset class that plays a significant role in many investment portfolios.
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cost drivers are a. activities that cause costs to increase as the activity increases. b. accounting techniques used to control costs. c. accounting measurements used to evaluate whether or not performance is proceeding according to plan. d. a mechanical basis, such as machine hours, computer time, size of equipment, or square footage of factory, used to assign costs to activities.
Cost drivers are Activities that cause costs to increase as the activity increases.
What are Cost drivers?A cost driver is the immediate reason for a cost and has an impact on the overall cost incurred. For instance, if you need to figure out how much electricity was used during a specific time period, the number of units consumed determines the total electricity bill.
Any action that causes the cost of another thing to increase is a cost driver. An illustration of this might be how the cost of your water bill is based on how much water your office uses each month. The cost is represented by the water bill, while the cost drivers are the water units.
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at the beginning of the lease period, a lease is reported in the lessee's (user's) balance sheet for which amount?
at the beginning of the lease period, a lease is reported in the lessee's (user's) balance sheet for Fair worth of the fundamental resource.
Present worth of anticipated cash inflows from utilizing the fundamental resource. Leases are not announced yet to be determined sheet.
How are working leases detailed in the resident's fiscal reports?
On account of a working lease, the tenant will record a rent cost on its pay proclamation during the period it utilizes the resource. No resource or risk will be recorded on the accounting report.
How would you represent a rent on a monetary record?
A rent will be recorded on the accounting report as a right-of-purpose (ROU) resource and rent risk. The rent responsibility is the instalment commitment over the term of the rent contract, while the ROU resource addresses the control of the resource under the rent contract.
When a rent qualifies as a money rent what sum is recorded as the expense of the right-of-purpose resource?
The right-of-purpose resource is a tenants on the whole correct to utilize a resource over the existence of a rent. The resource is determined as the underlying measure of the rent risk, in addition to any rent instalments made to the lessor before the rent beginning date, in addition to any underlying direct costs brought about, short any rent motivating forces got.
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