According to given statement is the proposition may or not be accurate in terms of the segment's avoidable cost.
How would you define costing?Costing refers to any system for assigning charges to a business component. Costing is widely used to determine expenses for clients, distribution networks, employees, regions, items, product lines, procedures, divisions, and entire companies.
What does a business cost?WHAT DOES IT COST Costing is the process an entrepreneur does to determine the cost of producing or selling any specific product (item or service). WHY IS COST BEFORE PRICING IMPORTANT to be able to fairly and competitively set the product's pricing.
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FILL IN THE BLANK. the term ___ refers to a firm operating in a perfectly competitive market that must take the prevailing market price for its product. group of answer choices price setter business entity price taker trend setter
The term price taker refers to a firm operating in a perfectly competitive market that must take the prevailing market price for its product.
In the field of business, a price taker can be described as an entree firm or company that enters into a market and has to accept the already prevailing market price for the products that it produced.
It is due to the high competition set for that product in the market that the particular business or firm cannot sell the product at its wished price. Due to the high competitive value of the product in that particular market, the product needs to be sold at the given price. A price-taker firm functions in a market that is perfectly competitive.
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an employee claimed the need for special treatment based on title vii of the civil rights act of 1964. what is the first question a human resources professional should ask to determine if this law applies to the employee?
Title VII is an arrangement of the Social equality Demonstration of 1964 which restricts segregation in basically every business situation based on race, variety, religion, orientation, pregnancy, or public beginning. As a general rule, Title VII applies to managers with at least 15 representatives.
Which of coming up next isn't covered by the social equality Demonstration of 1964?
The Social liberties Demonstration of 1964 precluded segregation in view of race, religion, variety, or public beginning out in the open spots, schools, and business. Be that as it may, separation in light of sex was not at first remembered for the proposed charge and was just added as a revision in Title VII trying to forestall its section.
When EEOC guidelines struggle with state or nearby social liberties guidelines which will be adhered to?
At the point when EEOC guidelines struggle with state or nearby social liberties guidelines, the regulation better to ladies and minorities applies. 23) The Pregnancy Separation Act precludes segregation in business in light of pregnancy, labor, or related ailments.
What are my privileges as a representative in Indiana?
Individuals of Indiana are qualified by regulation for work and look for work without being victimized based on their handicap (physical or mental), public beginning, lineage, race, variety, religion, orientation and their status as a veteran.
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Suppose a Keynesian economist recommends a combination of tax increases and spending cuts. This recommednation is most likley an attempt to address high _____.
inflation
Suppose a Keynesian economist recommends a combination of tax increases and spending cuts. This recommendation is most likley an attempt to address high inflation.
How do you explain high inflation ?Accordingly, high inflation is characterised by extremely high costs for commodities and items. As a result, consumers may buy things for less money. Although a little inflation might be beneficial, depending on the situation, it can also harm people's money.The anticipation that inflation could begin to drop is now beginning to materialise. According to the Labor Department, the consumer price index (CPI) for October increased 7.7% over the previous 12 months, which is 0.5% less than the number for September.To return price growth to normal, there is still a long way to go. The CPI increased 0.4% month over month in October, matching the monthly increase from September.Your purchasing power is negatively impacted by inflation, which is its most obvious effect. Your standard of living will ultimately decline if you are unable to purchase as many products and services as you were able to before inflation.Learn more about high inflation refer to :
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8. using the taylor rule the taylor rule specifies how policymakers should set the federal funds rate target. suppose that u.s. real gdp falls 3% below potential gdp, all else constant. according to the taylor rule, the fed shouldraise the federal funds rate target by1.25% . suppose instead that the u.s. inflation rate falls by 3%, all else constant. according to the taylor rule, the fed should the federal funds rate target by .
The "Taylor principle," which states that policymakers must eventually raise the real interest rate in response to inflationary increases in order to maintain inflation stability, has been underlined by Taylor and others.
What is the Taylor rule Fed ?The word Zt, as defined under the ELB-adjusted rule, is the total of prior instances in which the federal funds rate deviated from the balanced-approach rule's recommendations for placing the rate below zero.The Federal Open Market Committee of the Federal Reserve is responsible for setting interest rates, and the Taylor rule is a straightforward equation that can be thought of as a rule of thumb (FOMC).The Taylor Rule states that the target federal funds rate is equal to 2% plus current inflation, 0.5 (current inflation less inflation target), and 0.5 (current output less potential output). This results in 2% plus 3% plus 0.5 1% plus 0.5 0 or 5.5%.To learn more about Taylor principle refer
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in the spectrum of competition, where are perfect competition and mono the perceived demand curve for a group of competing oligopoly firms will appear kinked because of their commitment to do which of the following?poly positioned?
The perceived demand curve of a group of competitive oligopoly firms will appear bent because their commitment corresponds to a price decrease but not a price increase.
Competition for sales between firms is an essential part of our economic system. Economists have established four types of competition: perfect competition, monopolistic competition, oligopoly, and monopoly. Under perfect competition, firms are more competitive because they sell identical products with nearly infinite demand. Since there are many companies that produce goods or provide services, customers can choose from a wide range of products. Monopolistic competition refers to a market in which many firms sell differentiated products. Differentiated products can be created by the characteristics of the product or service, the location from which the company sells the product, the intangible aspects of the product, and the perception of the product.
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A certain company's main source of income is a mobile app. The function hhh models the company's annual profit (in millions of dollars) as a function of the price they charge for the app (in dollars).
The app price that will result in $0 annual profit if A certain companies main source of income is a mobile app. The companies annual profit (in millions of dollars) as a function of the app’s price (in dollars) is modeled by P(x)=-2(x-3)(x-11) is at $3 and $11
the app price that will result in $0 annual profit can be calculate as follows:
x is the app price
P(x) is the profit earned
If we want to find out the app price that will result in $0 annual profit? It means we need to set the function:
P(x)=-2(x-3)(x-11) = 0
<=> (x-3)(x-11)= 0
<=> x - 3 = 0 or x - 11=0
<=> x = 3 or x = 11
So at price 3 and 11, the profit will be $0
your question is incomplete but most probably your full question was
A certain companies main source of income is a mobile app. The companies annual profit (in millions of dollars) as a function of the app’s price (in dollars) is modeled by P(x)=-2(x-3)(x-11) which app prices will result in $0 annual profit?
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which is an essential part of cultural learning that can contribute to productive international business relationships?
Culture influences how nearby qualities impact worldwide business morals. Cultures vary in how much weight they give to particular ethical behaviors.
A person's perception of an issue and the appropriate or inappropriate behavior associated with it are influenced by collective cultural factors.
What role does ethics play in international business?
In international business, ethics aim to establish a company's reputation for ethical and responsible business practices both domestically and internationally. The outcome is a more impartial, principled commercial center, fortified by organizations between organizations that share high moral norms.
In international business, what are the nature of ethics and social responsibility?
based on social and moral standards:Moral and social standards are the foundation of business ethics.It contains business-related moral and social guidelines (rules).This encompasses self-control, consumer protection and welfare, social service, equitable treatment of social groups, and non-exploitation of others, among other things.
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What are the revenue projections for experiential industry player quintevents expected to be by 2024?.
Prior to a pandemic in 2019, Quint had a yearly income of above $75 million. This year, it has brought in more over $200 million. By 2024, Quint projects revenues of more than $400 million.
The definition of revenue:Revenue is the entire amount of money received first from sale of goods or services related to a company's main operations. Revenue, sometimes known as total revenues, is frequently referred to as the "top line" because that appears just at top of both the statement.
An example of revenue:The word income is commonly used in place of revenues. Instances of revenue accounts include sales, industry revenues, collected fees, interest revenues, and interest income. Because credit balances are added to revenue accounts when services are performed and billed, they frequently have credit balances.
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merchant company purchased land for a building site. the costs associated with the property were: purchase price $ 186,000 real estate commissions 16,100 legal fees 1,900 expenses of clearing the land 3,100 what is the total recorded cost of the land?
The total recorded cost of the land is $ 207,100.
What does the term Land acquisation mean?
The ability of the government to seize private property for public use while compensating the original owners and other parties impacted by the acquisition is known as land acquisition.
The contract price, commissions, options, legal fees, title searches, insurance premiums, and unpaid taxes are all included in the recorded cost of land. Additionally, there are costs associated with conducting surveys and preparing the land for its intended use, such as clearing and grading.
The informations given in the question are-
Purchase price of the land = $ 186,000
Real estate commissions = 16,100
Legal fees = 1,900
Expenses of clearing the land = 3,100
The total recorded cost of the land = $ (186,000 + 16,100 + 1,900 + 3,100)
= $ 207,100
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If a listing broker cannot attend closing and sends another broker in her place, only the broker who attends has responsibility.
False
The following statement "If a listing broker cannot attend closing and sends another broker in her place, only the broker who attends has responsibility" is false.
The employing broker is in charge of managing the listing broker, while the listing broker is in charge of ensuring the correctness of closing statements and the six-column worksheet. for the benefit of the buyer and seller, hires a closing service.
A property description and a joint signature are frequently included. The most crucial pieces of paperwork in your closing package are the deeds, which include the clause stating that the seller has transferred to the buyer all ownership interests and rights in the property.
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a. the difference between the mpc and the apc is that multiple choice 1 the mpc is total income divided by total consumption, whereas the apc is the change in income divided by the change in consumption. the mpc is total consumption divided by total income, whereas the apc is the change in consumption divided by the change in income. the mpc is the change in consumption divided by the change in income, whereas the apc is total consumption divided by total income. the mpc is the change in income divided by the change in consumption, whereas the apc is total income divided by total consumption. b. the sum of the mpc and the mps must equal 1 because multiple choice 2 when the mpc and the mps equal 1, the economy is in equilibrium. total income must be spent or saved. all additional income must be spent or saved. these values are determined by macroeconomic policy makers.
In contrast to the APC, which is calculated as total consumption divided by total income, change in consumption divided by change in income. Every extra dollar must be spent or saved.
What is the definition of "income"?The term "income" is typically used to refer to the total sum of cash, assets, or other value transfers received over a predefined timeframe in exchange for goods or services. There is no single, agreed-upon definition of income; rather, it is defined according to the context it's used in.
What kind of revenue is that?Wages, interest, dividends, or profits are typical forms of disposable income. The phrase "discretionary income" refers to earnings from sources other than a person's normal paycheck, such as stock dividends, investments, or side occupations.
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an individual owns a corner lot. this person must decide which of two alternatives to select in trying to obtain a desirable return on investment. after much study, the two alternatives are:
In finance and economics, a monetary indicator of profitability is known as the internal rate of return. Before devoting time and resources to a project, businesses frequently calculate the projected IRR. IRR, to put it simply, is the projected annual return on a project with a zero net present value.
What is internal rate of return?A formula for calculating the rate of return on an investment is known as the internal rate of return (IRR). The formula is "internal" because it does not account for external factors like the risk-free rate, inflation, the cost of capital, or financial risk. Applications of the method can be either ex-post or ex-ante. When employed ex-ante, the IRR is a forecast of a prospective future annual rate of return. When used ex post, it assesses the actual investment return of a prior investment. Sometimes assumptions are used in IRR estimates that don't always hold true for the investment. The negative assumption made by IRR in particular is that there won't be any intermediate cash flows or that those that do exist will be reinvested in the project.
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when an account receivable is written off under the direct write-off method, the accounting equation is kept in balance because
When an account receivable is written off under the direct write-off method, the accounting equation is kept in balance because assets and equity both decrease by the same amount.
Only after specific invoices have been determined to be uncollectible can bad debts be charged to expenses using the direct write off method. Since the amount written off has little effect on an entity's reported financial results and would not affect a decision-maker using the company's financial statements, this method can be regarded as a reasonable accounting method. The Internal Revenue Service (possibly correctly) believes that businesses would be tempted to inflate their bad debt reserves in order to report a smaller amount of taxable income without this method, so it is required for the reporting of taxable income in the United States.
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Tax Drill - Corporate NCG or NCL Complete the following statements regarding the treatment of a corporation's net capital gain or loss. For corporations there net capital gain alternative tax rate. permitted against ordinary taxable income. Corporations may carry back net capital losses as capital losses for years; if losses still remain after the carryback, the remaining losses may carry forward
For corporations, there is no net capital gain alternative tax rate. Net capital loss is permitted against ordinary taxable income. Corporations may carry back net capital losses as short term capital losses for 3 years; if losses still remain after the carryback, the remaining losses may carry forward upto 5 years.
Gain on capital is the increase in value that results from selling a capital asset after it has been held for some period of time. To put it another way, a capital gain takes place when an asset is sold at a price that is higher than the price at which it was initially purchased. A capital asset can be almost any kind of object that you own, whether it is a form of investment or something that you bought for your own personal use. When you sell an asset, you realise a gain in capital when you take the sale price and reduce the initial purchase price from the sale price.
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Zhang industries budgets production of 300 units in june and 310 units in july. Each unit requires 1. 5 hours of direct labor. The direct labor rate is $14 per hour. The indirect labor rate is $21 per hour. Compute the budgeted direct labor cost for july.
The budgeted direct labor cost for july is $6,300.
In June and July, Zhang budgets production plans to produce 300 and 310 units, respectively. 1.5 hours of direct labour are needed for each unit. The hourly wage for direct work is $14. the inverse
The hourly wage is $21.
$6,300 total labour cost = (300*1.5)*14
Normally, the direct labour budget is reported either monthly or quarterly. The production budget's fundamental calculation involves taking the quantity of units to be produced and multiplying it by the average number of work hours required to complete each unit.
All labor-related costs that are directly tied to production are tracked by a direct labour budget. Learn how to create a direct labour budget in this session, as well as how it relates to other kinds of accounting documents.
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question content areaif the price paid per unit differs from the standard price per unit for direct materials, the variance is a a.volume variance b.variable variance c.price variance d.controllable variance
c. price variation is the correct response.
In order to check for unfavorable variances in resources like direct materials, direct labor, and manufacturing overhead, variance analysis is typically carried out in the context of accounting.
Price variance and quantity variance are the two components that can be used to break down a resource's cost variance.
A trader's view of price variation is the difference between a desired or expected price and an order's actual execution price.The difference between the trader's anticipated price and the actual price at which they were filled is known as price variation and is caused by changes in the underlying market.prices.
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which of the following characteristics are qualitative? (select all that apply.) multiple select question. employee satisfaction customer satisfaction appearance allocated overhead cost indirect labor cost net income
The characteristics that are qualitative are:
appearancecustomer satisfactionemployee satisfactionWhat is Employee Satisfaction?Employee satisfaction refers to whether or not workers are content and are getting the things they want and need from their jobs. The most important aspect of employee happiness is that happy workers must perform their duties and contribute in the ways that the employer requires.
The Human Capital sector uses the broader phrase "employee contentment" to refer to how pleased or satisfied employees are with things like their jobs, their working environments, and the companies they work for. Many firms use frequent surveys to measure employee satisfaction and track satisfaction patterns over time because it's one of the main metrics that can assist gauge an organization's overall health.
In conclusion, high level of satisfaction indicates that workers are satisfied with how
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Place the steps of product development in the correct order. (NOTE: The first step in the process should be at the top of your list, the last step should be at the bottom of your list)Idea development
New idea screening
Business analysis
Product development
Test marketing
Commercialization
Idea development ,New idea screening,Business analysis , Product, development, Test marketing,Commercialization the steps of product development in the correct order.
What are the 7 steps in the development of a product?Though it varies depending on the business, the product development process can be roughly divided into seven stages: ideation, research, planning, prototype, sourcing, costing, and commercialization.The idea creation, screening, concept development, product development, and commercialization phases make up the new product development process for small enterprises.The six-step method for developing a new product. The process of bringing a brand-new product concept to market is known as new product development. It can be roughly divided into six stages: ideation, research, planning, prototype, sourcing, and costing, however this can vary by industry.To learn more about product development refer to:
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Disclosures under the _________________ are required when the seller is extending credit to the buyer or anyone other than the buyer or seller is paid in any way to arrange financing.
Seller Financing Disclosure Law
Disclosures under the seller are required when the seller is extending credit to the buyer or anyone other than the buyer or seller is paid in any way to arrange financing.
A Closing Disclosure would be a five-page document that contains final information on the mortgage loan you've chosen. It comprises the terms of the loan, including expected monthly payments, as well as the fees and additional costs associated with obtaining such a mortgage
It contains this very same information as even the Loan Estimate but in a more complete form. This means it includes the loan's fixed expenses as well as the amount you'll really have to pay after closing.
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Which pricing approach for a restaurant would have the greatest risk of adverse selection due to buyers having private information?.
The all-you-can-eat buffet in a restaurant with a set price would pose the biggest threat to the pricing strategy because of the purchasers' sensitive personal data.
The right pricing strategy is essential if you want to stay competitive in markets where volume and price pressure are increasing. It ensures that you receive the payment you are entitled to for the goods and services you render as well as the earnings you need to invest in growth and change.
There are many various pricing tactics, but four are frequently employed by small company owners: competitive pricing, cost-plus pricing, markup pricing, and demand pricing.
The good-better-best price structure, often known as a tiered pricing strategy, can be used by a business to increase sales. When a business provides three distinct product or service bundles, it is effective.
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TRUE/FALSE. with all other factors being equal, hybrid bermudagrass has a greater need for fertilizer than centipedgrass.
It is "true" that, all other things considered, hybrid bermuda grass requires more fertilizer than centiped grass.
Explain about the hybrid bermuda grass?Hybrid Bermuda grasses, as its name implies, are created by crossing regular Bermuda grass with another variety of grass.
This is done to provide the resulting hybrid grass particular desired characteristics, such as disease and pest resistance, color, compact growth, shadow tolerance, etc.Most hybrid bermudagrass cultivars feature one or more advantageous traits, such as improved color, cold resistance, close mowing resistance, etc. Common hybrid bermudagrass cultivars, on the other hand, have the capacity to produce pollen and seed, which, over time, might result in turf with a mosaic pattern.Due to its sterility and inability to generate viable seed, hybrid bermudagrass must be vegetative reproduction propagated and is typically seeded using "sprigs."Thus, it is correctly said that, all other things considered, hybrid bermudagrass requires more fertilizer than centipedgrass.
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If your cost in manufacturing a shipment of clocks consists of a setup expense of $225 plus $11 per clock, and you want your break-even point for a particular shipment to be no greater than 25 clocks, then what is the minimum price that you can charge per clock? a. $20 c. $11 b. $500 d. $225
The minimum price that can be charged for each clock is $20. Hence, option A is correct.
What is the meaning of the term “price”?The sum of money paid or the amount of compensation offered by one party to another in exchange for products or services is known as a price. The cost of production might take on numerous names depending on the circumstance.
If the item is a "good" in a commercial transaction, the cost of the item will probably be referred to as its "price".
A shipment has:
Fixed Cost = [tex]225[/tex] (one time)
Variable Cost = [tex]11[/tex] per clock
If there are x clocks in a shipment, total cost would be:
[tex]Total Cost = Fixed + Variable\\Total Cost = 225 + 11x[/tex]
If there are [tex]25[/tex] clocks in a shipment [tex](x = 25)[/tex], the total cost would be:
[tex]Total Cost = 225 + 11(25) = $500[/tex]
To break even, one must raise $[tex]500[/tex] from the [tex]25[/tex] clocks, so how much would one need to charge??
[tex]500/25 = $20 per clock[/tex]
Therefore, Option A is correct.
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FILL IN THE BLANK. Advertising is used mostly by ______. A) governments. B) business firms. C) social agencies. D) independent professionals. E) not-for-profit organizations.
Advertising is used mostly by business firms. The process and methods used in advertising are intended to draw attention to a good or service.
The process and methods used in advertising are intended to draw firms attention to a good or service. With the help of advertising, businesses strive to draw consumers' attention to their goods and services. Although there are many purposes, the commercial advertisement is the most Advertising frequent. It is typically used to promote a certain commodity or service.
Through "branding," in which consumers link a product name or image with specific traits, commercial advertising frequently aim to boost Advertising consumption of their goods or services. Direct-response firms advertising, on the other hand, refers to advertisements that are meant to prompt a quick purchase. Political parties, interest groups, religious Advertising institutions, and governmental organizations are examples of non-commercial bodies that promote their products or services more than those of commercial companies.
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the libracompany is considering four projects: a, b, c, and d. their correlation coefficients with existing projects are 0.6, 0.3, 0.1, and -0.2 respectively. which of these projects offers the most diversification potential to the libra company?
Project d of these projects offers the most diversification potential to the libra company.
What is meant by Pros and Cons of Diversification ?Diversification is mostly used to reduce risk. You are less likely to face market shocks that equally affect all of your investments by diversifying your investments among several asset classes, industries, or maturities.There are further advantages as well. Diversification may inspire investors to explore new, interesting assets, which some investors may feel makes investing more enjoyable. The likelihood of receiving good news may also rise as a result of diversification.One of the biggest advantages of diversification for you as an investor is that it may actually increase your prospective profits and stabilise your outcomes. You lower the total risk of your portfolio by owning a variety of assets with diverse performance so that no one investment may really harm you.Learn more about Diversification refer to :
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advantage of enormous growth rates in wealthy, older customer segments. in this scenario, the firm is considering engaging in . clara leather company is considering launching an expensive, high-end line of luxury leather luggage to take advantage of enormous growth rates in wealthy, older customer segments. in this scenario, the firm is considering engaging in . product line stretching brand sponsorship product line filling psychographic segmentation micromarketing
Product line stretching brand sponsorship product line filling psychographic segmentation micromarketing.
Line filling is when you upload extra product items to the prevailing products to make the most of the marketplace gaps and decrease the competition. It could imply supplying unique colorations and designs of the identical product.
Line stretching selection is when you increase the whole range of products with the prevailing product variety.
The organization can increase its product line through down-market stretch, up-marketplace stretch, or both methods.
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In an attempt to reach an all-time record for its premier, ads for the highly anticipated Avengers: Endgame are run on all the major networks and cable stations across the country from 8:00 p.m. to 10:00 p.m., or during time. Multiple Choice early fringe O late fringe post-prime O О peripheral O prime
Based on the contextual situation, the cable stations across the country from 8:00 p.m. to 10:00 p.m., or during Late-fringe time.
At the same time as radio and television fluctuate, the morning daypart, or morning power for radio, is morning up till 9:00 or 10:00 a.m. daytime is nine:00 or 10:00 a.m. until three:00 or 4:00 p.m. Afternoon, or early fringe for tv, is after daytime up until 7:00 p.m. Primetime is 7:00 till eleven:00 p.m. overdue night time is from 11:00 p.m, Fringe time is widely utilized in tv to indicate the evening tv hours that precede and comply with the top time.[1][2] The television hours that precede the high time is called early fringe, which is normally between 4 p.m. to 7:30 p.m. overdue fringe is the tv hours that follow the prime time, that's commonly between 11 p.m. to at least one a.m.
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_______________ occurs when two or more brokerages set commission rates, commission splits with other companies, or commission splits with affiliated licensees.
Market allocation
Price fixing
Tie-ins
Boycotting
Answer: Price fixing
Price fixing occurs when two or more brokerages set commission rates, commission splits with other companies, or commission splits with affiliated licensees.
commission rates, prices vary from five% to as tons as 50%, however, the maximum organizations pay is between 20-30%. To find the right fit that aligns together with your income dreams, begin by estimating how lots it would cost to rent people below one-of-a-kind income commission structures—both for complete-time personnel and unbiased contractors.
Commission rates split include 50/50, where the dealer and actual estate agent receive identical sums of cash from a commission break up, but they can also use the 60/forty or 70/30 split alternatives. In those situations, the actual estate agents get a larger sum of the cash than the brokers.
Real estate commissions are virtually negotiable. actual property agents are independent contractors, and although they may be tied to paying a positive amount to their broker, they typically have some flexibility in how many they could rate.
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in applying the lower of cost or market rule, the inventory of surgical supplies would be valued at:
The lower of cost or net realisable value idea states that inventory should be reported at the lesser of its cost or the price at which it can be sold.
The net realisable value of an item is its estimated selling price less the costs associated with production, marketing, and delivery.
Obsolescence, excess supply, flaws, major price decreases, and other like problems might make it more difficult for inventory products to be "realised" (converted to cash). Since the lower of cost or net realizable value applies to inventory, accountants look at it and consider that value.
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Your oldest sister just moved and wants a ninja foodi 8qt air fryer for her new place. How much would your mom save by buying this item on black friday?.
It really depends on the store and the specific item. Generally speaking, Black Friday deals can save you anywhere from 10-50% off the regular price. Some stores may even offer additional discounts or free shipping. It's best to do your research and compare prices from different stores before making a purchase.
What is purchase?
You buy a pair of shoes when you buy them. You could mention your recent purchase of chocolate and offer to share with them if you want to win the approval or favour of new friends. Purchase can be used to describe both the act of buying and the item you purchased. In what is known as the Louisiana Purchase, the United States paid France roughly $15,000,000 for 800,000 acres of land that was then known as Louisiana. The territory acquired in this deal makes up about 23% of the total land area of the United States, nearly doubling its size.
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equipment originally costing $65,000 has accumulated depreciation of $25,000. if the equipment is sold for $30,000, the company should record:
A loss of $10,000.
The sum of all prior depreciation on an asset is known as accumulated depreciation. The starting balance of the accumulated depreciation is increased each period by the depreciation expense that was incurred in that period.
Providing the following details:
Depreciation of $25,000 has been added to equipment with an initial cost of $65,000. The sale price of the equipment is $30,000.
Depending on whether the selling price exceeds or falls short of the book value, an asset can generate profit or loss.
Purchase price - accrued depreciation = book value.
Book Value: 65,000 - 25,000 = $40,000
Equipment gain or loss is calculated as selling price - book value.
Loss on disposal of equipment = 30,000 - 40,000 = -$10,000
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