We know there will be inflation when various commodities suddenly rise.
The cost of living in a nation or the general increase in prices are two examples of broad measures used to describe inflation. People can understand it as the progressive loss of purchasing power brought on by price increases. The effects of inflation, which raises the cost of necessities like food, can be detrimental to society and affect everyone directly.
In this scenario, most of the commodities being produced can experience inflation, including necessities like housing, food, healthcare, and utilities as well as wants like jewellery, cars or other luxury items. Once inflation is pervasive throughout an economy, both consumers and businesses share a common concern about the possibility of future inflation.
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is a method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions.
Cross-tabulation is a technique for data analysis that enables the analyst to compare the answers to one question with those to one or more other questions.
A mainframe statistical model that works along similar lines is cross-tabulation. Seeing trends, patterns, and connections between your study characteristics aids in your decision-making about your research. The raw data that comes with performing a study is frequently overwhelming.
The purpose of cross-tabulations sometimes referred to as contingency tables or crosstabs, is to group variables in order to help researchers understand and quantify how they relate to one another. It is simpler to identify any patterns, trends, or probability when the data for each variable is stored in a table or matrix and compared.
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which of the following is not a credit in the leed v4 bd c mr category? question 21 options: a) construction and demolition waste management planning b) building life cycle impact reduction c) construction and demolition waste management d) building product disclosure and optimization - sourcing of raw materials
Construction and demolition waste management planning is not a credit in the LEED v4.1 BD C MR category.
We are confident that the rating system achieves those objectives because this version of LEED is the result of countless hours of work by our volunteers and staff.
The world's standard for measuring the efficiency of green building design, construction, and operation is called LEED. With more than 93,000 projects registered and certified globally and more than 19 billion square feet of space, different LEED versions have steadily advanced the global green building market over the past 18 years.
Regions and markets develop at different rates, and we want to be sure we can meet the needs of every member of the green building community. LEED v4.1 is the culmination of a number of improvements that will raise the bar for our standards, promote leadership, and make our platform more accessible, user-friendly, and most importantly, collaborative than ever.
The platform for LEED v4.1 will be the most open and transparent one yet.
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if expected inflation in the united states is 4% per year and in the united kingdom it is 1% per year, and the interest rate in the united kingdom is 3%, then the fisher effect predicts that the interest rate in the united states is:
In the United States, the interest rate is 6%. We need both uncovered interest parity and purchasing power parity for real interest parity to hold.
The Fisher Effect, an economic theory developed by Irving Fisher, explains how inflation and both real and nominal interest rates interact. According to the Fisher Effect, the real interest rate is the nominal interest rate less the expected inflation rate. The Fisher Effect is a key factor in macroeconomics. It explains the causal connection between the nominal interest rate and inflation. It contends that lower inflation results from an increase in nominal rates. According to the IFE, higher nominal interest rates are linked to greater rates of inflation, which lowers the value of the nation's currency in relation to other currencies.
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the triple bottom line approach involves measuring business success of sustainable businesses and sustainable economic development in terms of multiple choice economic, ethical, and environmental sustainability. economic, legal, and environmental sustainability. legal, competitive, and environmental sustainability. economic, legal, and competitive sustainability.
The triple bottom line approach involves measuring business success of sustainable businesses and sustainable economic development in terms of economic, ethical, and environmental sustainability.
A company's long-term progress in terms of its financial, social, and environmental performance is tracked over time by a triple bottom line. TBL may lead to staff retention, an increase in outside investments, a rise in sales from clients with an interest in ESG, and long-term operational efficiency.
According to the triple bottom line (TBL) economic theory, businesses should pledge to give social and environmental issues the same amount of attention as profits. According to TBL theory, there should be three bottom lines: profit, people, and the environment.
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which of the following statements does not describe conformity? a.using rules and guidelines to increase profitability and company stock b.setting boundaries for which employees are expected to perform within c.examples of conformity includes mbo strategies and competency models d.an expectation that all employees should adapt to traditional business practices
The correct answer is option (A.)using rules and guidelines to increase profitability and company stock.
In today's workforce, diversity and individuality are essential elements. More effective work can be produced through the blending of different viewpoints and experiences.
In today's society, there is a strong drive to foster individualism in the workplace. The rationale behind the significance of encouraging individuality is that people are more likely to love their jobs if they feel supported and have the freedom to do so. High job satisfaction increases the likelihood that employees will work more for the business.
The capacity of a corporation to bring its people together and encourage them to work toward shared goals and values is just as significant as diversity. Companies must have rules and policies in place to protect brand integrity while streamlining and regulating output requirements. Because of this, modern organizations value both originality and uniformity, however, it may be difficult to strike a balance between the two.
It's crucial to promote diversity and originality, but this must be done within certain bounds. Running a successful business does not involve letting workers come to work and work how and when they choose. Herein is the role that conformity plays.
Generally speaking, conformity is the assumption that staff members would follow company policies and standards and carry out their duties in accordance with established business procedures. This way of thinking is what gives conformity a bad name. In the modern workplace, successful conformity does not involve restricting uniqueness and pressuring workers to follow social standards. Instead, compliance involves establishing limits within which workers are expected to carry out their duties. The competency models we covered in the section below and the Management by Objective strategy are also instances of conformance rules that assist steer people toward organizational objectives. In this instance, conformity serves as a guide to help employees achieve success and live up to standards rather than the sinister antagonist.
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Which step in the penetration testing life cycle is accomplished using rootkits or trojan horse programs?.
Maintaining access in the penetration testing life cycle is accomplished using rootkits or trojan horse programs.
The 5 levels of penetration testing life cycle. There are 5 penetration testing phases: reconnaissance, scanning, vulnerability evaluation, exploitation, and reporting.
A penetration check (pen test) is a certified simulated assault completed on a computer system to assess its safety. Penetration testers use identical equipment, techniques, and tactics as attackers to find and exhibit the commercial enterprise influences of weaknesses in a machine.
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inventory disclosures must ensure that the presentation and disclosure assertions of occurrence, and obligations, , classification and understandability, and accuracy and are all met. (enter only one word per blank.)
Assertions expressed or implied representations through control concerning the recognition, dimension, presentation, and disclosure of information inside the monetary statements and related disclosures.
1. prevalence and rights and obligations
2. Completeness
three. type and understandability
4. Accuracy and Valuation
This is the declaration that each suitable fact and disclosure are covered in a business enterprise's statements and that all the information provided in the statements is truthful and easy to apprehend. This assertion can also be categorized as an understandability announcement.
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which of the following exemplifies goffman's concept of impression management? you base your sense of self on your personal goals and individual values. you act and dress differently with different social groups. you perform multiple roles, some of which overlap with each other. you move from one role to another without stress or strain.
The statement that exemplifies goffman's concept of impression management is You base your sense of self on your personal goals and individual values.
What is the goffman's concept of impression management ?Goffman's impression management theory can be described as the theories that focus on the identity performances.
It should be noted that the theory focus on how Goffman stressed that the individuals will always present himself based on the perceived audience which can be attributed to their front stage
Therefore, the first option is correct.
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foreign exchange markets can provide some insurance against volatile changes in exchange rates, which is called foreign exchange
Foreign exchange markets can provide some insurance against volatile changes in exchange rates, which is called foreign exchange risk.
Forex refers to exchanging the forex of 1 us off for every other at triumphing trade rates. Allow us to take a close look at the means of forex. Exclusive international locations have exceptional currencies. Foreign exchange converts the currency of 1 USA into every other.
Simultaneous trade: The change of the relinquished property for the alternative assets happens at an equal time. Behind schedule change: this is the most not unusual kind of exchange.
Higher hobby costs offer lenders in a financial system a better go-back relative to different nations. Consequently, higher hobby prices entice foreign capital and motivate the alternate fee to upward push.
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a manufacturing company would typically prepare all of the following budgets except: multiple choice question. cash budget merchandise inventory budget production budget factory overhead budget
A manufacturing company would typically prepare all of the following budgets except factory overhead budget. Other than direct materials and direct labor, a schedule of all manufacturing expenses should be included in the factory overhead budget.
The creation of a predetermined overhead rate for the variable element of the company overhead is necessary when using the contribution approach to budgeting. Divide your monthly overhead expenses by your total monthly sales, then multiply the result by 100 to get your overhead rate. The overhead percentage, for instance, would be roughly 16% if your business had $80,000 in manufacturing cost per month and $500,000 in monthly sales.
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Why don’t more companies create disruptive innovations? more than one answer may be correct.
Adopting disruptive innovation is also hindered by a lack of strategy level orientation, inadequate resource allocation, and a focus on maintaining existing strengths.
Why do few businesses produce disruptive innovations?Market leaders' business environments prevent them from pursuing disruptive innovations when they first appear because they are not initially profitable enough and because their development could divert limited resources from sustaining innovations (which are needed to compete against current competition).
Disruptive innovation frequently has lower margins since it is more accessible and straightforward. Such breakthroughs cannot be pursued by large firms given their business strategies. For the current business, they have a sizable and well-established cost structure, but the meager profit doesn't correspond.
Why do business leaders usually ignore disruptive technologies?Disruptive ideas frequently start off extremely modest and are not very appealing to the mainstream market. They are typically controlled by tiny businesses that can react quickly to customer needs, and as a result, market leaders frequently ignore them.
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rene shows you a report he just finished on the amount of time employees spend checking personal e-mail and instant messaging friends. the report consists of ten pages, six of which are charts with bright colors and large amounts of decoration. he asks for feedback on the report. what advice should you give him?
The major piece of advice would be to put more emphasis on the text and make sure it is organised, clear, and succinct rather than overdoing the visuals and decorations. Effective information delivery should come before aesthetic appeal in the report.
Which of the following is a rule of thumb for creating a successful pie chart?Which of the following best describes a rule of thumb for pie chart constructio. Use a legend to identify each slice if it is not possible to provide the proper labelling information next to each slice.
Which of the following describes typical raster graphics pixel formats?Common raster file formats include BMP (Windows bitmap) and TIFF (tagged image file format), which are lossless, as well as GIF and JPEG (joint photographic experts group), which are lossy formats.
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which state has allocated 25% of the funds generated by its cap and trade system, designed to reduce pollution, for use in disadvantaged communities?
The state that has allocated 25% of the funds generated by its cap and trade system, designed to reduce pollution, for use in disadvantaged communities is Carnifonia.
What is trade system?Trading System can be described a the set of rules that formulate buy as well as sell signals without any ambiguity and other subjective elements.
It should be noted that the signals can be gotten generated by technical indicators or combinations of technical indicators, and this ws used by the Carnifonia and they use the funds generated from this to designed to reduce pollution.
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steve's company has been told to keep costs down and take advantage of economies of scale in all purchasing, manufacturing, and transportation decisions. when a company must focus on cost reduction like this, it is beneficial to use a(n) ________supply chain strategy.
Steve's company has been told to keep costs down and take advantage of economies of scale in all purchasing, manufacturing, and transportation decisions. when a company must focus on cost reduction like this, it is beneficial to use a(n) push supply chain strategy.
What is a push supply chain strategy?
With a push supply chain approach, choices regarding when to create and distribute products are made based on expected customer demand. Seasonal products are an illustration of a basic push supply chain strategy.
A push system starts production in anticipation of future demand, whereas a pull system starts production in response to the current demand. A push system starts production independently of demands, whereas a pull system is triggered by actual demands for finished goods.
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in assessing risks of material misstatement for purchases, an auditor vouches a sample of entries in the voucher register to the supporting documents. which assertion would this test of controls most likely support? group of answer choices completeness. occurrence. accuracy. classification.
Occurrence would be most likely which will control it.
This standard lays out requirements for the method of determining and evaluating the likelihood of a material misstatement of the financial statements.
The auditor's goal is to recognise and accurately evaluate the risks of material misstatement in order to establish a foundation for developing and putting into action countermeasures.
Determine the likelihood of a misstatement using data from risk assessment techniques.
There are several potential causes of material misstatement risks, including both external (such as market and industry conditions) and internal (such as the company's operations and internal controls over financial reporting) elements.
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What system acquisition method has the advantages of freeing up it resources by bypassing the is department and avoids delays, and allows users to control the design of the application and make changes as needed?.
The benefits of using a rapid application development system acquisition strategy include freeing up resources by avoiding the is department and avoiding delays.
Explain about the rapid application development?Although it has been around for a while, the RAD approach is still well-liked by companies seeking Agile application development techniques to keep the software development life cycle in step with expanding customer and company needs.
There are differences in the quick application development process. You divide the project into five phases instead of doing extensive, thorough planning: business modelling, data modelling, process modelling, application generation, and testing and turnover.
Requires a development team and product designers who are very skilled. need user participation at every level of the project. works less well for large-scale initiatives.
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ticky wages occur because: multiple choice employers must wait until the current contract ends to cut someone's pay. unions often negotiate wages for several years in advance. wages can only be changed at the end of contracts, as opposed to final good prices which can change anytime. all of these are true.
Sticky wages happen when an employee's compensation cannot be changed due of an increase in living expenses until the present contract has expired.
In order to gain the upper hand against inflation, cost of living adjustments could be seen of as a system designed to boost benefits that affect people alongside inflation.
When there is no structure in place to fight for people's social benefits, inflation causes commodity prices to rise during its term. If this is not done, people will be severely impacted and won't be able to afford many products on the market. This was the measure implemented in the 1970s and 1980s to assist combat inflation and minimize the impact on people.
It is a contractual requirement that pay increases follow inflation. It often corresponds to the Consumer Price Index's percentage growth. It also refers to a modification of a person's monthly retirement benefit. Calculating the increase in wages as a result of rising living costs is also helpful.
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rashid is looking to promote one of his employees to a supervisory position. he has several people in mind and all of them are qualified. he decides to promote the person that has been with the company the longest. rashid is using as the basis for his decision. multiple choice question.
Rashid is using seniority as the basis for this decision of promoting one of his employees that have been with the company the longest.
Promotion in any firm is done on the basis of three things: first is on merit, second is on seniority and third is on both taking into consideration. Mostly in Multinational Companies, shifting the bigger and topmost responsibility to the one who has been long in the company, served, and known the company for several years, or other words seniority.
There are several advantages of promoting based on seniority:
It develops the potential for loyalty among employees leading to an increment in their morale.Reduce disputes regarding promotion and it limits casteism, nepotism, and favoritism.However, getting a promotion to a supervisory position only on the basis of seniority can lead to the ignorance of a talented young mind who deserves the most.
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state banks are: group of answer choices required by law to belong to the federal reserve system chartered by the state in which they are based more closely regulated than national banks either the same or larger than national banks are accurately described by all of the above
State banks are required by law to belong to the federal reserve system. Option A.
What is the federal reserve system?The United States of America's central banking system is called the Federal Reserve System. With the passage of the Federal Reserve Act on December 23, 1913, it was established in response to the need for centralized control of the monetary system to prevent financial crises following a string of financial panics.
The central bank of the United States is the Federal Reserve System, also known as the Federal Reserve or simply "the Fed." It was established by the Congress to give the country a more secure, adaptable, and stable financial and monetary system.
When a national bank merges or consolidates with a State member bank operating under a State charter, the State bank's membership in the Federal reserve.
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a company that keeps up by imitating a leading company's strategy while ignoring its own strengths and weaknesses is an example of which strategy to avoid?
A company which keeps up by imitating a leading company's strategy while ignoring its own strengths and weaknesses is an example to follow the leader.
What do you mean by strategy?
A strategy describes how the ends (goals) will be reach by the means (resources). Strategy can be intended or can come out as a figure of task as the organization adjust to its environment or competes. It involves activities such as strategic preparing and strategic thinking.
What are the 3 types of strategy?
The 3 types of strategy are :-
Business strategy.
Operational strategy.
Transformational strategy.
What is strategy and example?
A strategy refers to an organization's long-term aim and how it plans to reach them. In other words, it shows the direction to achieve the defined sight. A tactic refers to specific actions taken to reach set goals in line with the strategy.
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you expect a share of stock to pay dividends of $1.60, $2.25, and $2.50 in each of the next 3 years. you believe the stock will sell for $25.00 at the end of the third year. a. what is the stock price if the discount rate for the stock is 10%? (do not round intermediate calculations. round your answer to 2 decimal places.) b. what is the dividend yield for year 1? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) c. what will be the dividend yield at the start of year 2? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)
Part a. Stock price is $23.98
Part b. The dividend yield in year 1 is 6.67%
Part c. The dividend yield in year 2 is 9.08%
The current stock price is the present value of the stock at which it will be traded in the stock market. The yield on the stock is in the form of dividends.
The dividend paid in year 1 is $1.60
The dividend paid in year 2 is $2.25
The dividend paid in year 3 is $2.50
The discount rate is 10%
Part a.
[tex]Stock price = \frac{Dividend 1}{(1+r)^1}+\frac{Dividend 2}{(1+r)^2}+\frac{Dividend 3}{(1+r)^3} +\frac{Selling price}{(1+r)^3}[/tex]
[tex]Stock price = \frac{1.60}{(1.10)^1}+\frac{2.25}{(1.10)^2}+\frac{2.50}{(1.10)^3} +\frac{25}{(1.10)^3}[/tex]
= 1.4545+1.8595+1.8727+18.8728
= $23.97
Part b.
The dividend yield in year 1 is calculated as follows:
Dividend yield = D1/Purchase price
= 1.60/23.97 = 6.67%
Part c.
Firstly, current price of stock in the starting of year 2 is calculated which is as follows:
[tex]Value of stock in year 2 = \frac{Dividend 2}{(1+r)^1} + \frac{Dividend 3}{(1+r)^2} + \frac{Selling price}{(1+r)^2}[/tex]
= 2.25/(1.10)^1 + 2.50/1.10^2 + 25/1.10^2
= 2.0454 + 2.0661 + 20.6611
= $24.7727
Dividend yield year 2 = D2/Purchase price in year 2
= 2.25/24.7727
= 9.0825%
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suppose an economy produces only cheese and fish. in 2010, 20 units of cheese are sold at $5 each and 8 units of fish are sold at $50 each. in 2009, the base year, the price of cheese was $10 per unit and the price of fish was $75 per unit. for 2010, a. nominal gdp is $500, real gdp is $800, and the gdp deflator is 62.5. b. nominal gdp is $500, real gdp is $800, and the gdp deflator is 160. c. nominal gdp is $800, real gdp is $500, and the gdp deflator is 62.5. d. nominal gdp is $800, real gdp is $500, and the gdp deflator is 160.
The nominal GDP is $500, the real GDP is $800, and the GDP deflator is 62.5. The correct answer is option(a).
Nominal GDP is GDP likely in current prices, without adaptation for increase. Current price estimates of GDP are acquired by signifying principles of all merchandise and services caused in the current newsgathering ending. Real GDP is a measure of a country's gross household brand that has been regulated for inflation.
While nominal GDP certainly indicates inflation, real GDP uses a GDP deflator to regulate inflation, so indicating only changes in real manufacturing. Since an increase is mainly a certain number, a country's theoretical GDP is mainly higher than allure physical GDP.
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question 36 options: a) determined by forces external to the firm. b) horizontal. c) the portion of its marginal cost curve that lies above its average variable cost. d) likely to slope downward.
The area of a firm's marginal cost curve that is above its average variable cost is its short-run supply curve in a perfectly competitive market.
What are the five characteristics of perfect competition?
Perfect competition has the following qualities:
The market is populated by a sizable number of buyers and sellers.The market is open to new entrants and exits by businesses.The same product ought to be offered by all businesses.The market should be well-known to both buyers and sellers.Price controls do not exist.According to economic theory, perfectly competitive exists when all businesses sell the same goods, market share has no bearing on prices, businesses can enter and exit the industry without any obstacles, consumers have complete or perfect information, and businesses are unable to set prices.
Therefore, the portion of its marginal cost curve that lies above its average variable cost in a Perfect competition
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the term used to describe the practices that organizations and their managers use for identifying, creating, acquiring, developing, dispersing, and exploiting competitively valuable knowledge is
Knowledge management used to describe the practices that organizations and their managers use for identifying, creating, acquiring, developing, dispersing, and exploiting competitively valuable knowledge.
Information must be kept in a location that is simple to find in order for knowledge management to be successful. Three categories of knowledge—tacit, implicit, and explicit knowledge—are also included in the definition of knowledge management. The coding of the information greatly distinguishes these sorts of organizations. Sharing viewpoints, ideas, experience, and information with others, ensuring that they are accessible at the appropriate time and place to enable informed decisions, and eliminating the need to rediscover knowledge are all goals of the knowledge management process.
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probes, inc. wrote down its inventory to the lower net realizable value. the effect on probes' accounting equation includes a(n) blank
probes, inc. wrote down its inventory to the lower net realizable value. the effect on probes' accounting equation includes a(n) decrease in stockholders' equity
The predicted selling price of an item less the costs associated with its completion, sale, and transportation is its net realizable value. As a result, inventory should be written down to its net realizable value if it is recorded in the accounting records at a value higher than its net realizable value.
Every accounting transaction, or business transaction that must be taken into account for accounting purposes, has an impact on the basic accounting equation. The expressions composing the equation are changed as a result of each transaction in such a way that the accounting equation is satisfied after each such change.
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a bakery buys sugar in 15-pound bags. the bakery uses 5000 bags of sugar each year. carrying costs are $20 per bag per year. ordering costs are estimated at $5 per order. assume that the bakery is open 250 days a year and its daily demand is estimated at 20 bags. it takes 5 days for each order of sugar to be filled. refer to the information above. what is the maximum inventory held in a given eoq cycle?
The maximum inventory that is held in the EOQ cycle is given as 50
What is the EOQ cycle?Managers and retailers frequently have trouble estimating the precise quantity of goods they should order to replenish their stock of a particular item in day-to-day operations. Both are detrimental to any organization and ought to be avoided if you want to maintain the viability of your operations.
These instances of mis-stocking can be prevented with the aid of the Economic Order Quantity (EOQ) calculation. It determines the best number of units you should order such that both the cost and quantity are reasonable.
The greatest amount of inventory is the most material that can be kept on hand. We should not maintain more stock than the allowed amount since doing so will raise the cost of capital as we do not require more stock than the allowed amount.
We have the formula as
[tex]EOQ = {(2*5000*5)/20}^1^/^2[/tex]
= 50
Maximum Inventory that is held = EOQ + Safety Stock
= 50 + 0
= 50
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which act covers private-sector employees over age 21 enrolled in noncontributory (100 percent employer-paid) retirement plans who have one year's service
Some of these benefits are mandatory for companies, such as worker provident funds, statutory leaves, gratuity, fitness insurance, and maternity leave.
Other additional benefits such as bonuses, paid vacations, and dental insurance is situation to the organisation's policies.
Is gratuity a described benefit plan?Defined Benefit Plans
Examples are pension, gratuity, post-employment medical benefit, etc. Contribution and benefit plans can be diverse like State plans, Multi-Employer plans or Insured plans and they require separate disclosures in the financial statement.
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https://brainly.com/question/12143528#SPJ4a company has just signed a 90-day non-trade note payable to borrow $20,000. when preparing its statement of cash flows (using the indirect method), how should the company report the interest paid on the note?
The company should report the interest paid on the note as a cash outflow from operating activities.
The tasks a company performs that are directly relevant to offering its products and/or services to the market are referred to as operating activities. A product or service is manufactured, distributed, marketed, and sold. These are the company's primary business activities.
Operating activities are different from investing and finance activities, which are corporate tasks unrelated to the delivery of goods and services. Operating activities are all the things a business does to consistently market its goods and services.
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a single-payment loan used to finance a purchase when the cash to be used for repayment is known to be forthcoming in the near future is a form of:
A single-payment loan used to finance to be forthcoming in the near future is a form of interim financing.
Interim financing is the use of funds for short-term development, such as the purchase and rehabilitation of single-family homes, and is often obtained through a private lender. It is typically repaid through long-term financings, like a permanent mortgage with a 30-year amortization period. It may be necessary to prevent losing a sale or purchase of an asset.
A single-payment loan is one that is repaid in one lump sum at the conclusion of a predetermined time period. The sum of the loan's principal and interest payments that you must make is its maturity value. The length of time the loan has been granted is referred to as its term. It is interim financed.
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which of the following describe effective responses to minimizing the impacts of the bullwhip effect? (choose all that apply) group of answer choices enable delivery in smaller batches increasing the generosity of return and order cancellation policies shifting to vendor-managed inventory improve information sharing to increase visibility of demand through the supply chain remove incentives for retailers to place orders at the same time (e.g. trade promotions)
The effective response to minimizing the impacts of the bullwhip effect is improve information sharing to increase visibility of demand through the supply chain.
What is bullwhip effect?The bullwhip effect is a phenomena that occurs in the supply chain when orders to suppliers have a tendency to vary more than sales to buyers, which amplifies the unpredictability of demand upstream. As one gets further up the supply chain, this partly causes inventory to fluctuate more in reaction to changes in consumer demand. It is also known as the Forrester effect because the idea initially appeared in Jay Forrester's Industrial Dynamics in 1961. "The observed tendency for material orders to be more variable than demand signals and for this variability to rise the further upstream a company is in a supply chain," is how one definition of it has been put. Stanford University's Department of Science used a Volvo-related tale to help the idea become part of supply chain lingo.
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