As an industry enters the decline stage c. Growth becomes negative
The decline stage comes after the growth, maturity, and saturation stages in the industrial life cycle. As consumers begin to favor newer or more inventive commodities, the industry goes through a period of declining demand and even growth. Because demand, sales, and profits fall as the industry moves into the decline stage, the growth rate also turns negative.
The industry may experience more rivalry at this stage from inferior goods or services, which could further impede growth and market share. The survival of many businesses in the struggling industry may be difficult, and some may even fail. To continue growth, some businesses may be able to adjust to the shifting market conditions by diversifying their product portfolios or pursuing new markets.
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an investor anticipates that land values for a site will be worth $150,000 in five years. assume real estate taxes are expected to be $2,000 each year (paid at the end of each year) for the next five years and the investor can rent the parcel for $2,400 per year to a billboard company (also paid at the end of each year). how much can the investor pay today for the site and still earn a 15 percent annual return on his investment?
The site may cost the investor up to $76,497 today, and they'd still get a 15% annual return. An investment's average yearly growth over a certain time period is measured by its annual or annualised return.
We must apply the present value technique to determine how much the investor may spend for the site today and still get a 15% yearly return on investment.
Rental income over the following five years is calculated as follows: PV of taxes and rental income = $2,000(PVIFA 15%,5) + $2,400(PVIFA 15%,5) = $9,649
The greatest price the investor may pay for the site right now and still see a 15% yearly return on their investment is thus:
Maximum purchase price equals the PV of the land value plus the PV of the taxes and rental income.
Maximum purchasing price: $76,497 ($66,848, plus $9,649)
As a result, the investor can purchase the site now for up to $76,497 and still get a 15 percent annual return.
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mary kay ash was one of the first individuals who sold cosmetics directly to customers via independent sales representatives. the company founded by mary kay is now one of the largest and most successful cosmetics companies in the world. mary kay ash would be classified as a(n)
Mary Kay Ash was one of the first individuals who sold cosmetics directly to customers via independent sales representatives. Mary Kay Ash would be classified as an Entrepreneur.
Mary Kay Ash was an American entrepreneur who founded Mary Kay Cosmetics, one of the largest and most successful cosmetics companies in the world. She is considered a pioneer in the direct selling industry, as she was one of the first individuals to sell cosmetics directly to customers via independent sales representatives. Mary Kay Ash was known for her innovative business practices, including her focus on empowering women through entrepreneurship and her use of incentives and rewards to motivate her sales force. She was a trailblazer for women in business and remains an inspiration for aspiring entrepreneurs around the world.
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For many years, there have been limits set on the amount of sugar that foreign producers can sell in the U.S. market. This is mandated by a
Question 14 options:
net profit.
tariff rate quota system.
trade surplus.
subsidy agreement.
The U.S. government has implemented a tariff rate quota system to regulate the amount of sugar that can be imported from foreign producers. option (A) is correct.
This framework considers a specific measure of sugar to be imported at a lower tariff rate, while any imports past the share face higher levies. The motivation behind this framework is to safeguard homegrown sugar makers by restricting how much unfamiliar sugar that can enter the U.S. market and rival homegrown sugar.
The framework is expected to keep a steady homegrown sugar market and keep sugar costs from falling because of unfamiliar rivalry. The standard is generally set yearly and depends on a mind-boggling computation of homegrown sugar creation, utilization, and imports from different nations.
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This question is not complete, Here I am attaching the complete question:
For many years, there have been limits set on the amount of sugar that foreign producers can sell in the U.S. market. This is mandated by a
Question 14 options:
(A) net profit.
(B) tariff rate quota system.
(C) trade surplus.
(D) subsidy agreement.
how much would an investor expect to pay for a $1,000 par value bond with a 9% annual coupon that matures in 5 years if the interest rate is 7%?
The investor would have to pay 1082 dollars.
How to solve for the coupon amountTo calculate the price an investor would expect to pay for a bond, we can use the following formula:
Bond Price = (C / r) x [1 - (1 / (1 + r)^n)] + (FV / (1 + r)^n)
where:
C = annual coupon payment
r = discount rate (i.e. the interest rate)
n = number of periods (i.e. the number of years until maturity)
FV = face value (or par value) of the bond
Plugging in the given values, we get:
Bond Price = (90 / 0.07) x [1 - (1 / (1 + 0.07)^5)] + (1,000 / (1 + 0.07)^5)
Bond Price = (1,285.71) x [1 - (1 / 1.40255)] + (711.78)
Bond Price = $1,079.74
Therefore, an investor would expect to pay approximately $1,079.74 for this bond.
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what two activities are part of the development of a marketing research plan?A. Take marketing actionsDefine the problemDevelop findingsB. Observing peopleAsking people questionsC. determining how to collect dataspecifying constraintsD. Recommending actionAnalyzing dataCollecting data
B. Observing people Asking people questions C. determining how to collect data specifying constraints are part of the development of a marketing research plan.
What are the two primary steps in the process of conducting marketing research?Primary research and secondary research are the two primary research techniques you can utilise to gather your data. Each compiles data from several sources to offer a precise overview of your marketing research plan.
Based on how similar products have fared in the market, you may determine whether a new idea for a business or product will take off, or in other words, if people will find it appealing. You can use it to make smart choices about marketing strategies, product packaging, and promotions.
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all of the following are true regarding business customs in south africa except: question 7 options: men and women in business expect to be treated equally first meetings are less about business and more about establishing a relationship most south africans prefer face-to-face interactions appointments should be made as far in advance as possible
You ought to conceal your lips in a polite manner when yawning. It's rude to spit in public. Always show more respect to people who are older than you.
In South Africa, tips company make up 10% of overall goods costs and are not usually added to the total. In South Africa, company are hierarchical, and decisions are ultimately made after consultation with lower-level employees. Due to the lack of employment goods opportunities in Africa, South Africans are typically exceedingly loyal to their employers and places of employment.
They frequently work for the same company their entire working lives. With the intention of generating income and defending the domestic market, they are imposed on imported goods.
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Most economists agree that ______ are the single most important source of productivity improvements.
A) technological advances
B) discoveries of natural resources
C) increases in human capital
D) increases in physical capital
The correct answer is A) technological advances.usually over a given time period. [The most prevalent example is the (aggregate) labour productivity index, using GDP per worker as one example.
The decision between them depends on the goal of the productivity assessment and/or the availability of data. There are many various definitions of productivity (including some that are not specified as ratios of output to input). How the various productivity measurements differ from one another is typically another important factor (directly or indirectly).Productivity is a measure of how efficiently anything is produced, whether it be a good or a service.
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what can managers do to promote effective group decision making and avoid groupthink insist that a group evaluate all alternatives
It encourages the group to consider a range of options, rather than just the most obvious or popular ones. By evaluating all alternatives, the group can make a more informed decision and avoid the pitfalls of groupthink.
Managers should create a culture of open communication where every member of the group feels comfortable sharing their ideas, concerns, and feedback without fear of criticism or rejection. They should also ensure that everyone has an equal opportunity to speak and be heard.
Managers should encourage group members to think critically and challenge assumptions. This will help the group evaluate all alternatives and avoid groupthink.
Managers can assign a devil's advocate whose role is to question assumptions, challenge the prevailing opinions, and offer alternative perspectives. This will help the group consider all angles and avoid the pitfalls of groupthink.
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The valuation of common stock today primarily depends on:_________
The valuation of common stock today primarily depends on the number of shares outstanding and the number of its shareholders.
What is shareholders?The term shareholder refers to a person to purchase the share of company stock. A shareholder represent the person, company, or institute. A company shareholder right to vote. A shareholder right to purchase company share and sale to another person, institute, or company.
The valuation of the common stock it would be depended on ownership in a company and the right to vote decision to take choose. It was the number of shares outstanding and the number of its shareholders is main concept of the common stock.
As a result, the significance of the shareholder are the aforementioned.
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96.0% complete question monarch machines sponsors a 15% money purchase pension plan and 401(k) profit sharing plan in which the employees are permitted to defer up to 75% of their compensation. monarch machines matches employee deferral contributions 100% up to 6% of deferred compensation. if james, age 31, is a highly compensated employee who earns $250,000, what is the maximum he will receive as an employer match from monarch in 2023 if the adp of the nhc is 4%?
The 2016 limit of annual addition is $53,000 Answer [edited by Y.X.] : $200,000 * 0.15 = $30,000 (Bestpie's sponsorship for the money purchase plan) $200,000 0.03 = $6,000 (Jim's elective Deferal up to 3% according to ADP test, i.e., 1.5%2=3%).
Altough Bestpie would match 100% of 4% of employee deferral contribution, Jim can only contribute 3%, so the company match is $6,000, as much as Jim's contribution. $30,000 + $6,000 + $6,000 = $42,000 If Jim receives an allocation from Bestpie's money purchase pension plan of $30,000, he can only receive an additional of $23,000. According to the ADP test, Jim can only defer up to 3% or $6,000 and because Bestpie matches up to 100% of 4% of employee deferral contribution the maximum company match would be $6,000. When adding the values, Jim would get a total annual addition of $42,000.
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bianca is a business professor who serves on the board of directors for power shake, a nutritional drink company. she brings her unique perspective from the field, and she is qualified, knowledgeable, and independent of the company. bianca is a(n)
Correct answer is Field Director.
A discipline director is defined as any individual who organizes neighborhood outreach and controls the area operations of, typically, political or advocacy outreach.
This commonly entails managing canvassers and setting out the areas and engagement with residents required via the project.
What is the accountability for area director?OVERVIEW OF RESPONSIBILITIES: The National Field Director is accountable for the development and management of assigned area campaigns and yr round discipline activities.
The AFL-CIO implements campaigns at all ranges with country and local federation bodies, affiliated unions and allied organizations.
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https://brainly.com/question/1190099#SPJ1organizational behavior can best be described as question 32 options: a) complex. b) confusing. c) effortless. d) simple. e) insignificant.
Organizational behavior is the study of how individuals and groups behave within an organization ,it the organization's performance. It is a complex and multidisciplinary field that draws on theories and concepts from psychology, sociology, anthropology, economics, and management.
Organizational behavior involves analyzing and understanding factors such as individual and group dynamics, motivation, communication, leadership, power, culture, and change management. It seeks to explain how individuals and groups interact with each other, and how these interactions affect the overall functioning of the organization. Given the complexity of organizational behavior, it cannot be described as effortless or insignificant. It requires a deep understanding of human behavior and the ability to apply theories and concepts to real-world situations. While it may be confusing to those who are not familiar with the field, for those who study it, it is a challenging but rewarding area of study that can help organizations improve their performance and achieve their goals.
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your opportunity cost of attending a game compared with the opportunity cost facing a college student 23 years ago is
The value of best use of someone's time, in addition to the additional expenses that person incurs by choosing to attend college, is what is known as the opportunity cost with that decision.
What is the brief definition of opportunity cost?In economics, the word "opportunity cost" refers to the benefits that are forgone when one alternative is chosen over another. In a nutshell, it represents the worth of the path not traveled. Opportunity costs are simple to overlook, yet comprehending missed chances is essential to making smarter business decisions.
What does opportunity cost and how is it significant?Opportunity cost is just the difference between the worth of a different option and the value of the one that is selected. Opportunity cost is a notion used in decision-making to assist individuals and organizations in making better decisions, primarily by taking the alternatives into account.
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relationship between the exchange rate measured as number of yen per australian dollar and the exchange rate measured as number of australian dollars per yen?
The exchange rate measured as number of yen per Australian dollar is the inverse of the exchange rate measured as number of Australian dollars per yen.
Therefore, if the exchange rate measured as number of yen per Australian dollar increases, then the exchange rate measured as number of Australian dollars per yen decreases. According to this quotation, one US dollar is equivalent to 104.08 Japanese yen. The rate directly relates to the base currency for purposes of currency appreciation. If the exchange rate rises to 110, one US dollar will now purchase 110 Japanese yen, meaning it will strengthen. Exchange rates can be calculated in a variety of ways, and over time, several operational setups have been used to calculate the value of Australia's exchange rate. An exchange rate can be calculated in a variety of ways.
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due to the increased production and use of vegetable cooking oils by food manufacturers, americans need to consume more:
Due to increased production and use of vegetable cooking oils by food producers, Americans need to consume more omega-3 fatty acids.
The required details about omega-3 fatty acids is mentioned in below paragraph.
Omega-3 fatty acids can be found in a variety of foods, including fish, flaxseed, and flaxseed oil. The three main omega-3 fatty acids are eicosapentaenoic acid (EPA), docosahexaenoic acid, and alpha-linolenic acid (DHA). The primary sources of ALA include flaxseed, soybean, and canola oils. The presence of a double bond in the chemical structure of the polyunsaturated fatty acids (PUFAs) known as omega-3 fatty acids, often referred to as omega-3 oils, n-3 fatty acids, or 3 fatty acids, makes them stand out from other PUFAs.
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define a scope limitation and distinguish between client-imposed and circumstance-imposed scope limitations. what reporting options are available to auditors when scope limitations are encountered during the engagement?
Regarding the reporting alternatives available, the auditor is free to provide a different judgement about any financial statement component for which he has not gathered sufficient information to express a conviction about the accuracy and fairness of the financial statement.
Scope limitation in an audit refers to situations where the auditor is unable to obtain sufficient and appropriate audit evidence or carry out the required audit procedures. Scope limitations can arise due to various reasons, including the nature of the business, the complexity of the transactions, restrictions imposed by the client, or circumstances beyond the control of the auditor.
Client-imposed scope limitations occur when the client refuses to provide necessary information, prevents the auditor from accessing relevant documents or facilities, or does not permit the auditor to communicate with third parties. Circumstance-imposed scope limitations, on the other hand, occur due to events beyond the control of the client or the auditor, such as natural disasters, legal restrictions, or unexpected changes in circumstances.
When a scope limitation is encountered during an audit, the auditor must communicate the limitation to the client and, if necessary, obtain management's representation acknowledging the limitation. The auditor must also consider the potential impact of the limitation on the financial statements and the audit report.
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the simultaneous export and import of textiles by india is an example of part 2 a. interindustry trade. b. increasing returns to scale. c. intraindustry trade. d. imperfect competition.
The correct answer is a. interindustry trade.A broad range of fiber-based products, including fibres, yarns, filaments, threads, and other fabric types, are referred to as "textiles."
In the past, "textiles" only referred to woven fabrics. However, weaving is not the only production technique; additional methods were ultimately developed to produce textile structures in accordance with their intended use. Knitting is a common method of producing cloth. Textiles can be used as the primary component in a wide range of modern items, including scrubs, spacesuits, bulletproof jackets, and ordinary clothing. The two categories into which textiles fall are consumer [or domestic] textiles and technical textiles. Consumer textiles put comfort and beauty ahead of technical textiles, which put functionality first. commercial textiles.
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How many estimated agriculture-related career opportunities can students explore? 300 | 400 | 500 | 600 | 700
With an estimated 300 employment options in agriculture, students can investigate a variety of fields.
What does agriculture entail?The art or art of managing the soil, growing crops, and raising livestock is known as agriculture. It involves preparing plant and animal items for human consumption and distributing them to marketplaces.
What distinguishes agriculture from farming?Agriculture encompasses a wide range of activities, including production, research, and development, as well as farming. Additionally, it describes the science or practice of farming, which includes preparing the soil for agricultural growth and raising animals for food, fiber, and other items.
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nora bought a used car and was told that she needed a personal check with guaranteed payment. she obtained a:
For the purchase of her used car, Nora got a certified check.
A certified check is one that has been "guaranteed" by the issuing bank and is drawn from a bank account. The bank certifies that the account holder has sufficient funds in the account to cover the check's amount and guarantees the recipient will receive the money. For large purchases, it is a safer alternative to a traditional check because it gives the recipient more security.
It is used to view certificates for the current user. For the current user, the Certificate Manager tool appears.
Expand the directory for the type of certificate to view your certificates under Certificates - Current User in the left pane.
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Choose the best explanation as to why both consumers and producers perform cellular respiration.a. Although they may obtain their sugars in different ways, both consumers and producers rely on cellular respiration to make ATP.b. Both consumers and producers perform cellular respiration to produce the sugars that will be "burned" to fuel the energy of life.c. Both consumers and producers perform cellular respiration to produce the oxygen necessary to sustain life.d. Both consumers and producers perform cellular respiration to produce the heat necessary to sustain life.
Option - A : Although they may obtain their sugars in different ways, both consumers and producers rely on cellular respiration to make ATP.
Cellular respiration is the process by which biological fuels are converted into energy by oxidation in the presence of an inorganic electron acceptor, like as oxygen, to power the major synthesis of ATP.
Cellular respiration is the process by which organisms mix food molecules with oxygen, directing the chemical energy contained in these molecules towards life-sustaining processes while excreting carbon dioxide and water as waste.A sequence of chemical processes known as cellular respiration convert glucose into ATP, which may then be utilised as energy for a variety of bodily functions.
The citric acid cycle, glycolysis, and oxidative phosphorylation are the three main phases of cellular respiration.The nucleotide ATP is composed up of an adenine base linked to a ribose sugar and three phosphate groups.
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circle view company had 4,000 units in its ending work in process inventory that were 80% complete with respect to materials and conversion, 8,000 units in its beginning work in process inventory that were 65% complete with respect to materials and conversion, and total units equaled 30,000. what are the number of units started into production by circle view? 34,000 26,000 38,000 22,000
Number of units started into production by circle view are 22,000.
You will multiply the equivalent units for units started and finished by the price per equivalent costs unit for materials, labour, and overhead. The answer is OPTION D
No of completed units = ending WIP + Closing WIP - Total unit
= ( 8000/60% ) + ( 4000/80%) - 30000
= 22,000 units
The cost of units finished and transferred, also known as the cost of goods manufactured, will be the sum of these three. All products transferred to the next department are complete with regard to materials and conversion production, thus each unit brings all its costs. To calculate the goods transferred out, simply multiply the units transferred out by the total of the two equivalent unit costs.
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The Wood Shop generates $.97 in sales for every $1 invested in total assets. Which one of the following ratios would reflect this relationship?
A. Equity multiplier
B. Receivables turnover
C. Profit margin
D. Return on assets
E. Total asset turnover
Financial Ratios:
Financial ratios are estimated to assess business performance within a given period. Note that, those ratios are meaningful to evaluate the historical performance, and might not be representative to forecast future growth of the firm under fast-changing market conditions.
Total assets turnover is being highlighted here.
What is total asset turnover ratio explained?The total asset turnover ratio evaluates how well a business utilises its assets to produce income. It is calculated by dividing the total assets of a corporation by its net sales. The income generated per dollar of assets invested is shown by this ratio. Higher ratios are generally regarded as positive indicators because they show that a corporation makes more sales every dollar of assets. However, this ratio must be examined in combination with other financial ratios in order to fully comprehend a business earnings and operational effectiveness. Sales are outpacing asset value by a significant margin. Depending on the company model, a number around 0.25 and 0.5 is considered to be favourable for enterprises.
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what gets prepared firs in accounting balance sheet income statement or statement of stockholder's equity
In accounting, the correct order of financial statements is as follows:1.Income Statement 2.Statement of Stockholders' Equity 3.Balance Sheet
Income Statement: This statement shows the company's revenue, expenses, and net income or loss over a specific period of time.
Statement of Stockholders' Equity: This statement shows changes in the company's equity accounts, such as common stock and retained earnings, over a specific period of time.
Balance Sheet: This statement shows the company's assets, liabilities, and equity at a specific point in time.
Therefore, the Income Statement is prepared first, followed by the Statement of Stockholders' Equity, and then the Balance Sheet. This order is important because the information presented in one statement affects the information presented in the subsequent statements.
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What do sellers do if they expect the price of a good they have for sale to increase dramatically in the near future?
Sellers may decide to keep their items and wait to sell them if they anticipate that the price of a good they are offering for sale will rise significantly in the near future.
A seller is a person or business that makes products or services available for purchase. A seller's main objective is to turn a profit by trading goods or services for cash. In order to draw customers and sell their items in a competitive market, merchants must find strategies to set themselves apart from their rivals. This could entail providing exceptional customer service, producing distinctive or new items, or supplying high-quality goods at affordable pricing. Retail, wholesale, online, and niche markets are just a few of the many sectors that sellers might operate in. While wholesale merchants provide products to other firms, retail sellers sell products directly to customers in real stores or online. Online retailers utilise the internet to advertise their products to a larger audience and conduct direct sales to customers.
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suppose that today, you invested $100,000 into a certificate of deposit that pays 5% per year. how much would your investment be worth 4 years from today?
In four years, the investment would be worth $121,550. invest refers to the action of investing money in a financial product, like a certificate of deposit.
The following formula can be used to determine the investment's future value if the certificate of deposit is compounded annually:
FV = PV times (1 + r)n
where: n = number of periods = 4 PV = Present Value (starting investment) = $100,000 r = interest rate per term = 5% = 0.05
When we enter the values, we obtain:
FV = $100,000 multiplied by (1 + 0.05)4 FV = $100,000 multiplied by 1.2155 FV = $121,550
Consequently, in four years, the investment would be worth $121,550. In this case, the person put $100,000 into a certificate of deposit that offers a 5% annual interest rate. The answer to the question is the investment's future worth after four years, which can be determined using the compound interest formula.
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Question 9 of 10
A group of Congress members is contacted by members
of a committee who would like to submit a bill for a floor
debate. The group reviews the bill as well as the current
schedule of debates. After the review, the group decides
that the bill is not important enough to justify a debate.
The group refuses to schedule a debate, killing the bill.
Which congressional group is most likely described in the passage?
OA. The House Ways and Means Committee
OB. The House Rules Committee
OC. A conference committee
OD. The Committee of the whole
The House Rules Committee congressional group is most likely described in the passage. Thus, option B is correct.
What is congressional?Committees keep an eye on ongoing public administration, spot problems that warrant legislative scrutiny, collect and assess data, and suggest steps to take to Congress.
Every member of the Senate of Congress is a part of the body's subcommittee of its entirety. Every time the House decides to establish this committee, a particular issue needs to be discussed. Once the panel has finished its work, it no longer exists. In this case, the group's assignment was to analyze the bill and the argument timetable.
Therefore, option B is correct.
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denotes that the demand in business markets is closely associated with the demand for consumer goods. a. direct demand b. autonomous demand c. concentrated demand d. composite demand e. derived demand
Option e: Derived demand. Derived demand denotes that the demand in business markets is closely associated with the demand for consumer/customer goods.
In economics, derived demand is demand for one factor of production or intermediate product that results from demand for another intermediate or finished product.
Essentially, a firm's demand for factors of production, for example, depends on consumer demand for the products it produces. The term was first introduced in 1890 by Alfred Marshall in Principles of Economics. Demand for all factors of production is considered derived demand.
This is similar to the concept of common demand or complementary goods, where the amount one consumes is positively related to the amount consumed by the other.
Example: If a good requires capital and is in production, the production rate will automatically increase. That is, direct demand or derived demand.
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there are few, if any, options for adjusting capacity levels for managers involved in what planning level?
Managers working in: have few, if any, choices for altering capacity levels. precise preparation and management.
The lead strategy, lag strategy, match strategy, and dynamic strategy are some of the most popular management techniques. Businesses can gain from using this method in a number of ways, including streamlined operations, greater market share, client retention, and acquisition.
Promotion and using overtime to produce more product might change capacity in aggregate planning.
The three capacity management sub processes business capacity management, service capacity management, and component capacity management reflect this.
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abardeen corporation borrowed $97,000 from the bank on october 1, year 1. the note had an 8 percent annual rate of interest and matured on march 31, year 2. interest and principal were paid in cash on the maturity date. required a. what amount of cash did abardeen pay for interest in year 1? b. what amount of interest expense was recognized on the year 1 income statement? (do not round intermediate calculations. round your answer to the nearest dollar amount.) c. what amount of total liabilities was reported on the december 31, year 1, balance sheet? (do not round intermediate calculations. round your answer to the nearest dollar amount.) d. what total amount of cash was paid to the bank on march 31, year 2, for principal and interest? e. what amount of interest expense was reported on the year 2 income statement? (do not round intermediate calculations. round your answer to the nearest dollar amount.)
Abardeen Corporation borrowed $97,000 from a bank on October 1, Year 1, with an 8% annual rate of interest. The note matured on March 31, Year 2, and interest and principal were paid in cash on the maturity date.
(a) Abardeen paid $3,880 ($97,000 x 8% x 6/12) for interest in Year 1.
(b) The interest expense recognized on the Year 1 income statement was also $3,880.
(c) The total liabilities reported on the December 31, Year 1 balance sheet were $97,000 (the amount borrowed).
(d) A total of $100,440 ($97,000 + $3,880) was paid to the bank on March 31, Year 2, for principal and interest.
(e) The interest expense reported on the Year 2 income statement was $3,880 (the same as in Year 1).
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If the objective of a test of details is to detect overstatements of sales, the auditor should trace transactions from the:
A. Cash receipts journal to the sales journal.
B. Sales journal to the cash receipts journal.
C. Source documents to the accounting records.
D. Accounting records to the source documents.
The answer is "d". The auditor should follow transactions from the accounting records (i.e., sales journal) to the source documents if the goal of a test of details is to identify overstatements of sales (existence assertion) (e.g., customer order, sales order, shipping documents, etc.).
A and C are incorrect choices. The allegation of completeness can be verified by following the trail from the supporting documents to the accounting records (all sales are properly included). The answer is not "b." The cash collected for the sale can only be determined by tracing from the sales diary to the cash receipts journal. Lack of a corresponding cash receipt may simply mean that the sale was performed on account.
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