Use this sample letter to dispute incorrect or inaccurate information provided to credit bureaus by a business, under the Fair Credit Reporting Act.
What do you mean by credit report?A credit report refers to a document that provides data about your credit history, credit utilization, and other aspects of your credit behavior and situation.
Disputing over the phone is a faster and sometimes easier process than writing a dispute letter.
Therefore, Contact both the credit reporting company and the company that provided the information to dispute an error on your credit report. Use this sample letter to dispute incorrect or inaccurate information provided to credit bureaus by a business, under the Fair Credit Reporting Act.
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An amount due to a company from another party is recorded by the company
as a(n).
A. cash flow
B. receivable
C. credit memo
D. impulse purchase
Answer: B
Explanation: A receivable is by a company by accounting books when they sell merch or products on credit. It's usually due from another company or party. I hope this helped. :)
Answer: B. Receivable
Explanation: An amount owed by another party is known as a receivable. One of the biggest current assets on a company's accounts typically are its receivables. Because accounts receivable are typically the main source of a company's cash flow, controlling and analyzing this asset is crucial.
Justify the effectiveness of BBBEEE on businesses.
The Broad Based Black Economic Empowerment Scorecard gives your company greater opportunities with the public and commercial sectors.
What was he effectiveness of BBBEEE on businesses ?The Broad Based Black Economic Empowerment Scorecard gives your company greater opportunities with the public and commercial sectors.
In practise, the BBBEE strategy attempts to enable enterprises to identify the most effective means of eradicating unjust racial disparities in the economy. In this situation, the scorecards effectively define goals while letting firms choose the most effective means of achieving them.
The improvement of the South African economy is the program's main objective. It accomplishes this goal through pursuing a multitude of goals, including but not restricted to: expanding the number of black-owned companies. establishing a strong network of sustainable black-owned businesses .
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In the ________ phase of international product life cycle theory, knowledge about how to produce the product is widespread and manufacturing becomes straightforward in many developing countries.a. backward integrationb. formalizationc. standardizationd. simplification
Answer:
c. standardization
Explanation:
In the
standardization
phase of international product life cycle theory, knowledge about how to produce the product is widespread and manufacturing becomes straightforward in many developing countries.
With its estimated outlay of $582.7 billion in fiscal year 2017, the Department of Defense represents which type of B2B organization?
The Department of Defense represents a B2G (Business-to-Government) organization due to its primarily engaging in transactions with government entities.
B2G organizations engage in transactions with government entities rather than individual consumers or businesses. The Department of Defense is a federal government agency responsible for national security and military operations, and its expenditures are funded through the federal budget. The Department of Defense may work with private contractors and other organizations to fulfill its mission, but its primary purpose is to serve the needs of the federal government in safeguarding national security. The Department of Defense is a prime example of a B2G organization, with its estimated outlay of $582.7 billion in fiscal year 2017 being a testament to its magnitude and reach. B2G organizations are subject to specific regulations and requirements, such as bidding and contracting procedures, and may face different challenges and opportunities than other types of B2B organizations.
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New Energy Incorporated has a beginning inventory balance on January 1 of 15,000 units and desires an ending balance of 20% of the next month’s sales. If sales are expected to be 18,000 for January and 25,000 for February, what is the ending balance as of January 31
Balance is having the right amount — not too much or too little — of any quality, which leads to harmony or evenness.
What is the meaning of Amount?A gathering or mass, especially one that cannot be enumerated, is referred to as an amount: quantity of The proper amount of sand wasn't delivered. Animal boarding took up a relatively little amount of area. He donated money to a charity regularly.
The amount can be a noun or a verb, as was said above. Use of a noun A modest amount of water should be added to the dish. A total is the sum of numerous integers or the number of items in a group, as determined by addition or counting.
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Companies must consider a country's economic factors because nations with _, may be poor markets for expensive industrial machinery but good ones for _.
Companies must consider a country's economic factors because nations with low income levels may be poor markets for expensive industrial machinery but good ones for consumer goods.
A country's economic factors play a crucial role in determining the market potential for different types of products. Nations with low income levels may not be able to afford expensive industrial machinery, making them poor markets for such products. Instead, companies may find better opportunities in these countries by focusing on consumer goods that are affordable to the local population. On the other hand, countries with high income levels and developed industrial sectors may provide lucrative markets for expensive industrial machinery that can enhance production efficiency and output. Companies must also consider other economic factors such as inflation, exchange rates, and government policies that can impact their costs and revenues in the target country. Failure to consider these factors can result in suboptimal business decisions that can negatively impact profitability and market share. By carefully analyzing a country's economic factors, companies can tailor their product offerings and pricing strategies to maximize their chances of success in international markets.
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Rebecca Gladlyn budgeted $1,250 for housing and utilities in July. She actually spent $1,162. What is her
budget variance?
D. $88 surplus
$1250 budgeted less $1162 spent = $88 surplus.
Note: Similar to self-test problem #2.
A public utility company (often just utility) is a business that manages the infrastructure for a public service (often also providing a service using that infrastructure).
Many forms of public control and regulation, including statewide government monopolies and community-based organisations, are examples that apply to public utilities.Public utilities, which are created to offer goods and services that are seen as essential, account for a sizable share of the market for things like water, gas, electricity, telephones, and other communication networks. Natural monopoly characteristics may be present in electricity transmission cables or gas pipelines. Competition is useless if the infrastructure is present in a particular area. Or to put it another way, these industries are defined by economies of scale in production.
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Complete question is here:
Rebecca Gladlyn budgeted $1250 for housing and utilities in July. She actually spent $1162. What is her budget variance?
A. $962 deficit
B. $88 deficit
C. $44 deficit
D. $88 surplus
E. $962 surplus
+
Question 3
Which of the following is NOT true about functions?
They replace formulas completely
They are predesigned formulas that come with Excel
They expand your mathematical options considerably
They provide the ability to do complex calculations
I don't know
You answered 0 out of 2 correctly Askin
One attempt
ACME Corp. managers view environmental forces as uncontrollable and thus adjust their marketing
strategies to changes in the marketing environment. This approach is best described as
a. proactive
Ob. controversial
Oc.static
O d. reactive
Oe. offensive
Managers at ACME Corp. consider environmental variables as uncontrolled and, as a result, adapt their marketing tactics to changes in the marketing environment.
What exactly does the term "environmental" mean?
The preservation of the natural world's land, sea, air, plants, and animals is referred to as environmental. Air, water, temperature, soil, natural flora, and landforms are examples of environmental factors. Environmental factors, by definition, have an influence on everyday living and contribute significantly to health inequalities across geographic locales. People consider the environment to be our natural world, which includes the atmosphere, land, vegetation, oceans, rivers, and lakes. Simply said, the word refers to our whole planet's physical surroundings.
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A company has a repetitive manufacturing situation where the master schedule does not vary from day to day and is level loaded.
Under these circumstances, which manufacturing system should be employed?
A. JIT
B.MRP
C. ERP
D. Batch Processing
A company has a repetitive manufacturing situation where the master schedule does not vary from day to day and is level loaded. Under these circumstances, JIT manufacturing system should be employed.
Lean manufacturing is a production approach that focuses on minimizing time inside the production system as well as time between suppliers and customers. It is similar to another idea known as just-in-time manufacturing. Just-in-time manufacturing attempts to match production to demand by only delivering things that have been requested, with an emphasis on efficiency, productivity, and the elimination of "wastes" for both the manufacturer and the provider of goods.
Lean manufacturing employs the just-in-time approach and focuses on lowering cycle, flow, and throughput times by removing processes that bring no value to the consumer. Those that work outside of the production process, such as marketing and customer service, are also involved in lean manufacturing.
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Which option describes an emergency fund?
Answer:
B. A quantity of money set aside in case something bad happens.
Explanation:
Its B because it's the most accurate description of an emergency fund
Answer: option 2
Explanation: it is used by the government or organizations in order to prepare for future disasters and other maladies
Question 5 (1 point)
A common definition of economics is that it is the study of:
O a) maximizing net personal disposable income.
b) the factors underlying financial markets.
c) the allocation of scarce resources to competing wants.
d) maximizing personal financial wealth.
Assignment
Explain some benefits of effective communication to you and your
organisation
In a class of 80 students, 50 students know English, 55 students know French and 46 know Germany language. 37 students know English and French, 28 know French and German and 7 students know non of the languages and then 25 students know English and German
required;
a)represents the above in venn diagram
b)how many students have all the three languages
c) how many students know English but not Germany
d)how many students know exactly two languages
d) how many students know French and German but not English
A Venn diagram is a graphical representation of a set of elements, often used to illustrate relationships between sets.
What are the responses to the questions?a) Venn diagram:
_________
/ \
/ \
/ \
/ \
English/ \French
/ \
_______/_______ _______\________
/ \ / \
/ \ / \
/ \ / \
/ X \
/ / \ \
/ / \ \
/______\ /_____/ \________\___________\
\ / German \
\ / \
X X
/ \ / \
/ \ / \
/ \ / \
/ \ / \
/ E \ / F \
/___________\ /___________\
where E stands for English, F stands for French, and G stands for German.
b) The number of students who have all the three languages is 4.
c) The number of students who know English but not German is 21.
d) The number of students who know exactly two languages is 14.
e) The number of students who know French and German but not English is 10.
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Universal Containers requires a different Lightning page to be displayed when Accounts are viewed in the Sales Console and in the Service Console. How should an administrator meet this requirement?a. Update Page Layout Assignments.b. Define multiple record types.c. Assign Lightning pages as app default.d. Create different user profiles.
While viewing Accounts in the Sales Console and in the Service Console, Universal Containers demands that a distinct Lightning page be shown. Should a manager fulfill this condition Make Lightning Pages the default for the app.
Which universal containers demand a unique lightning page be shown when account?While viewing accounts in the Sales Console and in the Service Console, Universal Containers demands that a distinct Lightning page be shown.
What should the developer do in order to make the custom search tool enforce sharing permission for the logged-in user?To find out if the logged-in user has access to the Account object, utilize the schema describe calls.
What does Salesforce's "universal container" mean?Universal Containers, a fast expanding international supplier of container solutions, comes up with various scenarios by getting users to think from a business viewpoint and also by giving instructions on the industries and scenarios we will encounter and how to deal with them.
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The history of labor relations and the history of human resource management are inseparable. Nonunion managers can therefore learn a lot about what workers want and about the pros and cons of alternative human resource management strategies by understanding labor history. Reflect back upon the events and labor organizations presented in this chapter and identify some reactions of workers and of labor unions to employers' practices and strategies. Next, describe how these reactions inspire a new generation of human resource management strategies.
The term labor relations, or industrial relations, refers back to the gadget in which employers, employees and their representatives and, directly or in a roundabout way, the government engage to decide the ground rules for the governance of work relationships.
Give a brief account on labor relations.The phrases “labor relations” and “industrial relations” are also utilized in reference to diverse kinds of workers' participation;They can also encompass person employment relationships among an company and a employee under a written or implied settlement of employment, despite the fact that those are commonly called “employment relations”.Traditionally, 4 distinct varieties of place of job governance had been defined: dictatorial, paternalistic, institutional and employee-participative; this chapter examines usually the latter two kinds.The nature of the relationships amongst organized labor, employers and the government with appreciate to fitness and safety are indicative of the general status of business relations in a country or an enterprise and the obverse is similarly the case.Traditionally, labor relation systems were categorized alongside countrywide strains, however the validity of this is waning in the face of increasingly more various practices within international locations and the upward thrust of a extra global economic system driven by using international opposition. In countries that have moved from conscious economies to free market economies, industrial relations systems are in transition. Increasingly, typical work-relationship typologies are being drawn analytically as indicators of the form of work-relationship systems.The globalization of market economic systems, the weakening of the state as a pressure force, and the declining energy of stock exchange trade unions in many developed countries pose extreme challenges to normative industrial relations systems.Advances in technology have changed the nature of work and employers, but they still have a significant impact on the extent to which family collective work members can evolve and the trajectories they follow.Employees' traditional shared work schedules and not uncommon control centers have given way to increasingly diverse working hours and job performance in various locations, including within the country, giving companies direct control over their work. There are far fewer directors.To know more about globalization, visit:
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Four jobs are to be done on four different machines. The cost in rupees of
producing ith on the jth machine is given below. Assign the jobs to different machines
so as to minimise the total cost.
Jobs M1 M2 M3 M4
J1 15 11 13 15
J2 17 12 12 13
J3 14 15 10 14
J4 16 13 11 17
The total optimal solution based on the information will be 49 rupees.
How to calculate the valueHere, four jobs and four machines are given, with the assignment matrix.
Find out the each row minimum element and subtract it from that row
Find out the each column minimum element and subtract it from that column.
This assignment problem is being solved using Hungerian Method as the optimal solution is:
J1 to M2, J2 to M4, J3 to M1 and J4 to M3. The total optimal cost is:
= 11 + 13 + 14 + 11
= 49 rupees
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Take Quiz
Krespy Corp. has a cash balance of $7,500 before the following transactions
occur:
The balance in cash after these transactions are journalized and posted is: cash = $5,903. The Option C is correct.
How do we calculate the balance in cash after these transactions?Here's the calculation of the balance in cash after the transactions:
Particulars Amount
Initial cash balance: $7,500
+ Customer payments: $965
+ Services performed $212.50
(25% paid in cash): $850 x 25%
- Ad in the newspaper: $275
- Dividends distributed: $2,500
Final cash balance $4,367.50
So, the balance in cash after these transactions is $4,367.50.
Full question "Krespy Corp. has a cash balance of $7,500 before the following transactions occur:
received customer payments of $965
supplies purchased on account $435
services worth $850 performed, 25% is paid in cash the rest will be billed
corporation pays $275 for an ad in the newspaper
bill is received for electricity used $235.
dividends of $2,500 are distributed
What is the balance in cash after these transactions are journalized and posted?
Cash = $6,027 ($7,500 + $965 - $213 + $275 - $2,500 = $5,903)
Cash = $6,453 ($7,500 + $965 + $213 + $275 - $2,500 = $5,903)
Cash = $5,903 ($7,500 + $965 + $213 - $275 - $2,500 = $5,903)
Cash = $5,477 ($7,500 + $965 - $213 - $275 - $2,500 = $5,903)
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The following costs are allocated to job Q. Calculate the product cost of job Q as would be reported externally on the financial statements. Direct materials 340000Direct labor 810000Variable MOH 64000Fixed MOH 120000Selling costs196000General and administrative costs 20000
The product cost of job Q as would be reported externally on the financial statements is $1,334,000. This is the cost that would be reported on the income statement and used for inventory valuation purposes.
To calculate the product cost of job Q as would be reported externally on the financial statements, we need to add up all the costs that have been allocated to job Q. These costs include:
Direct materials: $340,000
Direct labor: $810,000
Variable manufacturing overhead: $64,000
Fixed manufacturing overhead: $120,000
Adding up all of these costs gives us a total product cost of:
$340,000 + $810,000 + $64,000 + $120,000 = $1,334,000
In addition to these manufacturing costs, the question also provides information on selling costs and general and administrative costs. However, these costs are not part of the product cost and should not be included in the calculation.
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Heide lives in California and it is time to renew her automobile registration. The California DMV sends her a renewal form and indicates that she needs a smog check for her automobile. She takes her car to the smog check station. She completes the smog check. If the smog check is successful, she can then go to the DMV website and renew her registration, paying with a credit card. Two weeks later she receives a new registration form and tags for her license plates. She puts the registration in the glove box of her car and places the tags on her license plates. Required: b. Consider the same narrative as described in the beginning, except in this case the car fails the smog check. Heide must then schedule maintenance service with her dealer. She completes the service and returns for a new smog check. This time she passes the smog check and can complete the process. For each step in the diagram from the beginning, enter the appropriate symbol and label. If two events can occur at the same time, enter information for both. For example, the 2nd and 7th steps are entered. Select from the following symbols a. Start Event b. End Event c. Intermediate Event d. Task e. Exclusive Gateway f. Inclusive Gateway g. Parallel Gateway h. Looping Task i. Intermediate Timer Event j. Intermediate Error Event k. Start Timer Event 1. Start Message Event Select from the following labels a. Complete smog check b. Submit registration renewal c. Receive new registration d. Obtain repairs e. Place registration in glove box f. Place tags on license plate x. No label (If there is no appropriate label for a particular step, select 'No label") Symbol(s) Label(s) Step 1 2 Task and Intermediate Error Event Complete smog check and No label 3 4 5 6 7 Task and Task Place registration in glove box and Place tags on license plate 8
Bring your renewal notification or current registration certificate, your current CA driver's license, and payment for the renewal registration costs to renew your vehicle's registration in California.
How can I update my California registration that has expired?Visit any DMV location in California.
Bring your valid CA driver's license as well as your renewal notification or current registration certificate.
Pay the renewal registration charge for your vehicle.
How long after it expires in California do you have to renew your registration?The current registration expiration date must be renewed at midnight, or within 60 days of the day the registered owner receives notification that the current registration must be renewed (vehicle registration renewal notice), whichever comes first.
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Basic assumptions and principles Identify the accounting concept that was violated in each of the following situations. Pastel Paint Company purchased land two years ago at a price of $250,000. Because the value of the assumptions and land has appreciated to $400,000, the company has valued the land at $400,000 in its most recent balance sheet. Atwell Corporation has not prepared financial statements for external users for over three years. The Klingon Company sells farm machinery. Revenue from a large order of machinery from a new buyer was recorded the day the order was received. Don Smith is the sole owner of a company called Hardware City. The company recently paid a $150 utility bill for Smith's personal residence and recorded a $150 expense. Golden Book Company purchased a large printing machine for$1,000,000 (a material amount) and recorded the purchase as an expense. Ace Appliance Company is involved in a major lawsuit involving injuries sustained by some of its employees in the manufacturing plant. The company is being sued for$2,000,000, a material amount, and is not insured. The suit was not disclosed in the most recent financial statements because no settlement had been reached.
In this case, the photo printer will continue to provide cash for many weeks, so it isn't recognised as an expense. All contingent liabilities that could result in cash outflows must be disclosed.
By the expense, what do you mean?Cost is what expenses simply mean. A cost of operations is what is referred to as an expense in accounting language.or services. Costs can alternatively be expressed as the total of all activities that typically result in a profit.
How do you make an expense list?Expenditure, Type, Date, and Amount are typical columns, in that order from left to right. List all of your expenses in date order, starting with the earliest. Sum up all of the costs, then add the total at the bottom. Next to that, add "Total."
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Gov Economics:
insurance for Kara and
Dan will fully cover $10,000 each
The premium is $450 each
Chance of bad event 3% for each
what is the expected cost for the insurer of this program for these 2 parties?
The expected cost for the insurer of this program for Kara and Dan is $300.
What is the cost of insurance?A fee associated with certain types of life insurance, such as variable and universal life insurance, is known as the cost of insurance. These charges, unlike premiums, are billed to pay for the insurer's administration, mortality, and other responsibilities.
The expected cost for the insurer can be calculated as follows:
We will first calculate the expected cost of paying out a claim for each individual, which would be"
= $10,000 x 3%
= $300.
Then, we will calculate the expected total cost for both individuals by adding up the expected cost of paying out a claim for each individual, which would be:
= $300 x 2
= $600.
Now, we will subtract the expected cost of paying out claims from the total premium collected from both individuals, which would be:
= $450 x 2
= $900
To obtain the expected profit for the insurer, which would be:
= $900 - $600
= $300.
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suppose u.s. nominal gdp changed by -2.00% from 2019 to 2020, and the price level changed by -2.50%. therefore, real gdp changed by approximately_____%
One of the most common is GDP, which stands for gross domestic product.
What is the meaning of Gross domestic product?Gross domestic product (GDP) is a monetary indicator of the total market value of the final commodities and services that nations generate and sell over a given period. This measurement is frequently changed before it can be trusted as an indicator because of how complicated and subjective it is.
GDP calculates the monetary value of the final goods and services—those purchased by the consumer—produced in a nation during a specific period (say a quarter or a year). It accounts for all the output produced inside a nation's boundaries.
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When the Federal Reserve makes a loan at the discount window to a bank which of the following will happen?
Even foreign banks can borrow from the Federal Reserve's discount window loans must be collateralized to the satisfaction.
Banks borrow at the discount window when they experience short-term liquidity shortages and need a quick cash injection.Banks generally prefer to borrow from other banks. Raising the rate makes it more expensive to borrow from the Federal Reserve. That reduces the available money supply,which increases short-term interest rates.Lowering the rate has the opposite effect,it lowers short-term interest rates.A decrease in the discount rate makes it cheaper for commercial banks to borrow money, resulting in an increase in available credit and credit activity throughout the economy financing,efficiently and avoid actions that have negative consequences for their clients, such as withdrawing credit in times.
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You want to borrow $89,000 from your local bank to buy a new sailboat.
You can afford to make monthly payments of $1850, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan?
Please express the interest rate in the form of APR.
What is the Effective Annual Rate (EAR) of the interest rate?
The Effective Annual Rate (EAR) of the interest rate is 0.38%.
What is the effective annual rateTo calculate the highest APR you can afford on a 60-month loan, we can use the loan affordability formula:
Loan Affordability = Payment Amount / [(1 - (1 + Interest Rate / 12)^(-Number of Payments)) / (Interest Rate / 12)]
Plugging in the given values:
$1850 = Payment Amount
$89,000 = Loan Amount
60 = Number of Payments
Solving for the Interest Rate:
Interest Rate = 3.826%
So the highest APR you can afford on a 60-month loan is 3.826%.
To calculate the Effective Annual Rate (EAR), we can use the formula:
EAR = (1 + Interest Rate / m)^m - 1
Where m is the number of compounding periods per year. Since the loan has monthly compounding, m = 12.
Plugging in the interest rate:
EAR = (1 + 0.03826 / 12)^12 - 1 = 0.38%
So the Effective Annual Rate (EAR) of the interest rate is 0.38%.
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Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia. We can conclude that
A) Labor costs are higher for surfboard producers in New Zealand than in Australia.
B) New Zealand has an absolute disadvantage in producing surfboards relative to Australia.
C) Australia also has an absolute advantage in producing surfboards relative to New Zealand.
D) Australia has a lower opportunity cost of producing surfboards relative to New Zealand.
Option D) Australia has a lower opportunity cost of producing surfboards relative to New Zealand.
Comparative advantage refers to the ability of a country to produce a certain good or service at a lower opportunity cost than another country. In this case, since Australia has a comparative advantage in producing surfboards, it means that they can produce surfboards at a lower opportunity cost than New Zealand. This does not necessarily mean that New Zealand has higher labor costs or an absolute disadvantage in producing surfboards, but rather that Australia has a relatively lower opportunity cost in producing surfboards. This means that it is more beneficial for New Zealand to import surfboards from Australia rather than producing them domestically.
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The motivat for writing a business message will help determined
The motivation for writing a business message will help determine the tone, content, and overall purpose of the message. Understanding the underlying motivation will help ensure the message is clear, concise, and effective in achieving the desired outcome.
What steps can be taken to ensure that the motivation for a business message is clear and appropriate?To ensure that the motivation for a business message is clear and appropriate, it is important to consider the intended audience, purpose, and tone of the message. Before writing, determine what action or response is desired from the reader. Keep the message concise and focused on the main point. Use language that is clear, direct, and professional. Avoid ambiguity and stick to the facts. Consider the context and potential impact of the message, and be mindful of any potential cultural or ethical considerations. Finally, review the message for clarity, accuracy, and effectiveness before sending.
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Which of the following is a relatively new kind of management position that developed as companies shifted to self-managing groups?
A. a topmanager
b. a team leader
c. a first-lineleader
d.A middle manager
Team leader is a relatively new kind of management position that developed as companies shifted to self-managing groups.
A team leader is someone who gives advice, course, direction-setting, and leadership to a number of individuals (the team) in order to achieve a key result or set of related objectives. Team leaders act as the organization's compass for a collection of people working towards a mutual goal. The team leader keeps track of the group's qualitative and qualitative successes and presents findings to a management. As a team member, the leader typically carries out the same tasks as other team members while also taking on additional "leader" responsibilities. This is in distinction to executive ups, which frequently has a completely different daily job.
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Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $20 per unit. They send orders electronically to the manufacturer, costing $34 per order and they experience an average lead time of seven days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is three units per day. They are open for business 250 days a year. The supplier decides to offer a volume discount. They will sell the crystal figurines at $10 per unit for orders of 375 units or more. Answer the following questions:
a. How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time. (Round your answer to the nearest whole number.)
b. How many orders will they place in a year?
c. What is the average inventory?
d. What is the annual ordering cost?
e. What is the annual inventory carrying cost?
a. 96 units should the firm order each time.
b. Approx 5 orders will they place in a year.
c. The average inventory is 48 units.
d. The annual ordering cost is $291.67.
e. The annual inventory carrying cost is $297.60.
Cost (C) = $31 per unit
Ordering cost (Co) = $56
Lead time (L) = 6 days
Inventory carrying cost (Cc) = 20% of cost = 20% of $31
Inventory carrying cost (Cc) = $6.20
Average daily demand (d) = 2 units per day
Number of working days = 250 days a year
Annual demand (D) = Daily demand x Number of working days
Annual demand (D) = 2 x 250 = 500 units
(a) Order quantity:
The order quantity, also known as the Economic Order Quantity (EOQ), can be calculated using the formula below.
Order quantity = √(2 × D × C(o))/C(c)
Order quantity = √{(2 × 500 × 56)/6.20}
Order quantity = 95.04
Order quantity = 96 units(approx)
(b) Number of orders:
The Number of orders is calculated as,
Number of orders per year = Annual Demand/EOQ
Number of orders per year = 500/96
Number of orders per year = 5.21
Number of orders per year = 5 approx
(c) Average Inventory:
The formula below can be used to calculate average inventory.
Average inventory = EOQ/2
Average inventory = 96/2
Average inventory = 48 units
(d) Annual ordering cost:
The following calculation is used to determine the annual ordering cost:
Annual ordering cost = Number of orders per year × Ordering Cost
Annual ordering cost = 5.21 × 56
Annual ordering cost = $291.67
(e) Annual inventory carrying cost:
The following formula is used to calculate the annual inventory carrying cost:
Annual inventory carrying cost = Average inventory × Carrying Cost
Annual inventory carrying cost = 48 × 6.20
Annual inventory carrying cost = $297.60
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Suppose the government in this economy decides to decrease government purchases by $250 billion. The decrease in government purchases will lead to a decrease in income, generating an initial change in consumption equal to-$62. 5 billion. This decreases income yet again, causing a second change in consumption equal to. The total change in demand resulting from the initial change in government spending is
The total change in demand resulting from the initial decrease in government purchases of $250 billion is -$125 billion.
This is due to the multiplier effect, which is the effect of a change in spending or income on the total amount of spending or income in the economy.
When the government decreases its purchases, there is an initial decrease in income of $62.5 billion, which decreases consumption by the same amount. This then leads to a further decrease in income, leading to a second change in consumption of an additional -$62.5 billion. The total change in demand resulting from the initial decrease in government spending is therefore -$125 billion.
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