The process where a company attempts to recover costs by increasing the price for a product with decreasing demand describes the process of price skimming.
The explanation given in the question really contrasts with price skimming, a pricing tactic where a business sets a high initial price for a new good or service and then progressively reduces the price over time as demand declines.
Price gouging is the practise of a business trying to recover costs by raising the price of a good when there is a decline in demand. Price gouging is when a vendor raises prices for products or services that customers need by taking advantage of a brief shortage or an exceptional rise in demand.
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when you shop online for athletic shoes, and you suddenly get inundated with ads for athletic apparel, social media professionals call this behavior by marketers question 5 options: a. unethical b. listening c. spying d. creepy
When you shop online for athletic shoes as well as suddenly get inundated with ads for athletic apparel, social media professionals call this behavior by marketers is "listening."
What do you understand by listening?Listening refers to the practice of monitoring consumer behavior and preferences to better tailor marketing efforts and improve targeting.
Monitoring social media platforms for mentions of your company, those of your competitors, and relevant keywords is known as social listening.
You may monitor each and every reference of your business on social networks in real-time by using social listening. As marketers, listening is a big part of what we do.
The development of every organization or business depends on its ability to listen to an audience effectively. Building rapport, fostering relationships, increasing loyalty, and improving direct development all contribute to a stronger, longer-lasting company.
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which of the following are not counted as final goods and used in the gdp calculation? answer unselected intermediate goods unselected exports unselected consumption goods
Intermediate goods are not counted as final goods and are not included in the calculation of GDP as they are used as inputs in the production of other goods and services. Option A is correct.
Intermediate goods are products that are used as inputs in the production of final goods and services. Examples of intermediate goods include raw materials, components, and unfinished products. Since intermediate goods are not sold directly to consumers, they are not counted as final goods and are not included in the calculation of GDP.
Including intermediate goods in GDP would result in double-counting as they are already accounted for in the value of the final goods they are used to produce. Therefore, only the value of final goods and services produced in a country during a given period is counted towards the GDP calculation.
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in choosing a production technology, how will firms react if one input becomes relatively more expensive?
In choosing a production technology, firms will generally react to an input becoming relatively more expensive by searching for cheaper alternatives.
In the short term, they may also reduce the quantity of the expensive input used in production, switch to a more efficient production technology, or attempt to lower other input costs.
For example, if the cost of labor increases, firms may switch to using machines for production or consider outsourcing the labor to other countries with lower wages. If the cost of materials increases, firms may look for ways to reduce the quantity of materials used in production or explore using a different material for the same product.
Another strategy that firms use is to increase the efficiency of their production process. This could include implementing new technologies to reduce the amount of energy or raw materials used in production, improving worker productivity, or investing in capital equipment that increases efficiency.
Finally, firms may also seek to reduce other input costs such as overhead or transportation. For example, they could look for cheaper transportation options to move their products or use data analytics to improve the efficiency of their operations.
In summary, when an input becomes relatively more expensive, firms will generally search for cheaper alternatives, reduce the quantity of the expensive input used in production, switch to a more efficient production technology, and look for ways to reduce other input costs.
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if the nominal interest rate is 0.090 , and the inflation rate is 0.025 , what is the real interest rate?
The nominal interest rate = 0.090 Inflation rate = 0.025, the real interest rate is 0.065.
We know that the real interest rate is calculated by subtracting the inflation rate from the nominal interest rate. Therefore,
Real interest rate = Nominal interest rate - Inflation rate= 0.090 - 0.025= 0.065
So, the real interest rate is 0.065.
Inflation is a rise in prices, which can be translated as the decline of purchasing power over time. The rate at which purchasing power drops can be reflected in the average price increase of a basket of selected goods and services over some period of time.
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according to the make-or-buy continuum, strategic alliances are more integrated than short-term contracts. true false question.
True as the Strategic alliances involve more integrated partnerships between two companies than short-term contracts.
Strategic alliances are designed to have a longer-term relationship between the two parties, whereas short-term contracts are typically shorter in duration and have more limited scope.
Strategic alliances typically involve sharing resources, such as technology and knowledge, as well as engaging in joint marketing activities.
Short-term contracts may involve a one-time purchase of goods or services, or a limited agreement for a specific period of time.
Strategic alliances often involve a more complete integration of both partners than short-term contracts, with shared investments, goals, and profits.
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on february 3, smart company sold merchandise in the amount of $5,800 to kennedy company, with credit terms of 2/10, n/30. the cost of the items sold is $4,000. smart uses the perpetual inventory system and the gross method. kennedy pays the invoice on february 8 and takes the appropriate discount. the journal entry that smart makes on february 8 is:
The Journal Entry will be:
Debit: Accounts Receivable (Kennedy Company) $5,800
Debit: Cost of Goods Sold 4,000
Credit: Sales 5,800
Credit: Accounts Payable (Kennedy Company) 5,800
When Smart Company sold the merchandise to Kennedy Company, they received the revenue and created an accounts receivable balance, so they debit Accounts Receivable and Credit Sales for $5,800. When Smart Company purchased the items for resale, they created an inventory asset, so they debit Cost of Goods Sold for $4,000.
When Kennedy Company pays for the goods and takes the appropriate discount on February 8, Smart Company receives the payment of $5,652. The journal entry to record this payment is:
Debit: Cash 5,652
Credit: Accounts Receivable (Kennedy Company) 5,800
Credit: Discounts Taken 148
Since Kennedy Company was able to take a discount of 2/10, n/30, they are able to subtract $148 from the invoice, bringing their total payment to $5,652. The journal entry to record this payment is to debit Cash for the amount received and credit Accounts Receivable for the original balance. The discount taken is then credited.
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which of michael porter's generic strategies did the alliance primarily pursue to tackle the new realities of the market?
Leadership differentiation, of Michael porter's generic strategies did the alliance primarily pursue to tackle the new realities of the market. Thus, option (b) is correct.
Michael porter's generic strategies, providing outstanding customer service, and building a strong brand reputation are the main components of leadership differentiation strategy. With this tactic, the alliance may set itself apart from rivals and build a solid market foothold.
The alliance saw the need to differentiate itself from the competition and provide clients with unique value propositions in light of shifting market conditions. In order to draw clients who value distinctive solutions and create a long-lasting competitive edge in the market, they placed a strong emphasis on leadership uniqueness.
Therefore, option (b) is correct.
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Your question is incomplete, but most probably the full question was.
Which of Michael porter's generic strategies did the alliance primarily pursue to tackle the new realities of the market? multiple choice
overall cost leadership differentiation breakaway positioning consolidation focusanalysis of bond returns over a multiyear horizon based on forecasts of the bond's yield to maturity and reinvestment rate of coupons is called
The analysis of bond returns over a multiyear horizon based on forecasts of the bond's yield to maturity and reinvestment rate of coupons is called a "content loaded analysis." This type of analysis involves examining a variety of factors that affect the value of a bond, such as expected inflation, economic growth, and current market conditions.
It involves forecasting the yield to maturity and reinvestment rate of coupons over the multiyear horizon and evaluating their effect on the return of the bond.
In order to perform a content loaded analysis of bond returns, one must first obtain data related to the bond's yield to maturity and reinvestment rate of coupons over the time period of interest. This data can be obtained from a variety of sources, including bond markets, brokers, and other financial websites.
Additionally, one must account for any changes in the economic climate during the multiyear horizon to accurately predict the bond's return.
Once the necessary data is obtained and analyzed, the yield to maturity and reinvestment rate of coupons can be used to make an informed forecast of the expected return of the bond. This content loaded analysis can then be used to make informed decisions about the bond's return over the multiyear horizon.
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on august 1 the natalie co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the appropriate adjusting journal entry to make on december 31 of the first year would be
On December 31 of the first year, the appropriate adjusting journal entry to make for the photocopy machine purchased on August 1 would be a Debit to Depreciation Expense for $1,680 and a Credit to Accumulated Depreciation for $1,680.
The appropriate adjusting journal entry to make on December 31 of the first year, if Natalie Co. purchased a photocopy machine for $8,000 on August 1, and the estimated annual depreciation on the machine is $1,680 would be to debit Depreciation Expense with $420 and credit Accumulated Depreciation with $420.
Companies typically apply depreciation to long-term assets (like buildings, machinery, vehicles, and so on) as they incur wear and tear, which causes the value of the asset to decrease over time. Depreciation is necessary for accurate financial reporting because it reduces the value of an asset over its useful life, resulting in a decrease in the company's total equity.
The steps to calculate depreciation expense are as follows:
Step 1: Determine the useful life of the asset in years
Step 2: Subtract the estimated salvage value of the asset from its cost to obtain the depreciable base.
Step 3: Divide the depreciable base by the number of years of useful life to obtain the annual depreciation.
Step 4: Multiply the annual depreciation by the period for which you want to calculate the depreciation (in months, days, or years) to obtain the period depreciation.
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sumter corporation uses the weighted-average method in its process costing system. the following data pertain to operations in the first processing department for a recent month: work in process, beginning: units in process 6,000 percent complete with respect to materials 60% percent complete with respect to conversion 20% costs in the beginning inventory: materials cost $ 78,200 conversion cost $ 3,600 units started during the month ? units completed and transferred out during the month 70,000 costs added to production during the month: materials cost $ 286,600 conversion cost $ 216,000 work in process, ending: units in process 8,000 percent complete with respect to materials 75% percent complete with respect to conversion 25% what was the cost per equivalent unit for conversion during the month?
a. Equivalent Units of Production:
Materials: 76,000 ; Conversion: 72,000
b. Cost per equivalent unit:
Materials: $4.8 ; Conversion: $3.05
How to solveBeginning WIP + Units started = 6,000+72,000 = 78,000
Units out: 70,000
Ending WIP (75%, 25%): 8,000, 6,000, 2,000
Equivalent units of production:
Materials: 70,000 + (75% x 8,000) = 76,000
Conversion: 70,000 + (25% x 8,000) + 6,000 + (75% x 6,000) = 72,000
b. Cost per equivalent unit:
Materials: $4.8 ; Conversion: $3.05
Cost added during the year:
Materials: $286,600
Conversion: $216,000
Total cost:
Materials: $364,800
Conversion: $219,600
Cost per equivalent unit:
Materials: $364,800 / 76,000 = $4.8
Conversion: $219,600 / 72,000 = $3.05
c. Cost of ending work in process inventory:
Equivalent units of ending WIP:
Materials: 2,000
Conversion: 1,500
Total cost of ending WIP:
Materials: 2,000 x $4.8 = $9,600
Conversion: 1,500 x $3.05 = $4,575
Total cost of ending WIP inventory: $9,600 + $4,575 = $14,175
d. Cost of the units transferred to the next department:
Equivalent units of completed and transferred out:
Materials: 70,000
Conversion: 70,000
Total cost of completed and transferred out:
Materials: 70,000 x $4.8 = $336,000
Conversion: 70,000 x $3.05 = $213,500
Total cost of units transferred to the next department: $336,000 + $213,500 = $549,500
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What happens to inflation and unemployment as you move to the left along the short-run aggregate supply (SRAS) curve?
As you move to the left along the short-run aggregate supply (SRAS) curve, inflation increases and unemployment decreases.
What is Short-run Aggregate Supply Curve? Short-run Aggregate Supply Curve (SRAS) represents the quantity of real GDP that businesses in an economy are willing and able to produce at different price levels. It is short-run because it does not consider all factors like labor market flexibility, capital investment, and innovation over time.The quantity of goods and services that are produced by firms when the prices of some factors of production are fixed.
The relationship between prices and output levels in the short run, ceteris paribus, is determined by the SRAS curve.The SRAS curve, like the aggregate supply curve, is upward sloping. In the short run, however, it is less flexible. This means that the amount of goods and services produced in the short run is more fixed. Price changes in the economy would have less of an impact on the quantity of goods and services produced, as the curve is less sensitive to price changes in the short run.
Inflation and unemployment are two primary factors affected by the SRAS curve. As the aggregate supply curve shifts to the left (SRAS shifts leftward), the price level rises, and the output level decreases, leading to an increase in unemployment and a decrease in inflation. On the other hand, as the SRAS shifts rightward, the price level decreases, and the output level increases, resulting in a decrease in unemployment and an increase in inflation.
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it is difficult for a central planner to determine optimal allocations of resources because: of the simplicity of a modern economy. the incentives exist to manipulate the resources to improve the allocations of resources. of a potential lack of incentives among citizens who are asked to provide the central planner with accurate information. of too many incentives governing the central planner.
It is difficult for a central planner to determine optimal allocations of resources because of too many incentives governing the central planner.
What is central planning?Central planning is the management of the economy by the state through a single economic plan that includes all economic activities. The benefits of central planning are:
* Inadequacy of the invisible hand
* Market failures* Equity and Social Justice
* National defense and the protection of the environment
However, the practice of central planning in real-life settings is difficult because of the following factors:
It is difficult to ascertain the appropriate allocation of resources because it is tough to determine the preferences of everyone in society. The cost of obtaining this knowledge is often higher than the benefit that can be derived from such information.
it is difficult for a central planner to determine optimal allocations of resources because of too many incentives governing the central planner. Incentives are motivations that influence the decisions of an individual. As a result, it is difficult for a central planner to allocate resources appropriately since many interests influence his or her decision.
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derivation inc. has a bond with the following characteristics: par: $1,000 time to maturity: 20 years coupon rate: 4%, semi-annual payments yield to maturity: 4% calculate the price of the bond
The price of the bond issued by Derivation Inc. is $977.48.
The price of the bond can be calculated by using the present value formula, which takes into account the par value, the yield to maturity, the coupon rate, and the time to maturity. The formula is as follows:
[tex]Price of Bond = Par Value * [1 - (1 + YTM/2) ^{-2 x Years to Maturity}] / [YTM/2][/tex]
In this case, the par value is $1,000,
the yield to maturity is 4%,
the coupon rate is 4%,
and the time to maturity is 20 years.
Thus, the price of the bond is calculated as follows:
[tex]Price of Bond = 1000 * [1 - (1 + 0.04/2) ^{-2 x 20}] / [0.04/2][/tex]
Price of Bond = 1000 x [1 – 0.9512258] / 0.02
Price of Bond = 1000 x 0.04877422 / 0.02
Price of Bond = $977.48
Therefore, the answer would be $977.48.
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customizing basic models is an example of which process? batch process job shop continuous flow project assembly line
Customizing basic models is an example of a batch process.
What is a batch process?
A batch process is a processing mode in which one batch is finished before the next batch is started. The term "batch processing" refers to processing the batch of many jobs in a program's stack or queue.
As a result, when the batch is complete, the output is generated. The following are some features of a batch process:
Requires the processing of one job at a time
Requires the complete processing of one job before moving on to the next step or task
It can be automated or done by humans in some cases
It is best for tasks with well-defined processing steps
Batch processing is used in applications like payroll, bank statements, and customer invoicing. To put it another way, batch processing is a kind of program that divides a job into smaller pieces to be executed separately.
Because the segments are independent, they can be executed
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Customizing basic models is an example of a job shop process.
In a job shop process, a batch of work is custom-made to the customer’s specifications, as opposed to mass production of identical items.
It requires a flexible workflow, which can be adjusted for each individual project. This means that the production rate of each project can vary, as certain components may require additional time and effort.
Furthermore, job shop processes often involve producing unique products that require skilled workers, which can slow down production. In summary, customizing basic models is an example of a job shop process.
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Describe the methods of market management of cattle products
Open bids at auction markets, producer or breed association sales, video auctions, computer auctions, direct sales to packers, sales to livestock order buyers, or using the futures or options market as a hedging strategy are further methods for market livestock.
What are the strategies for marketing cattle?Other techniques for determining the price of livestock include open bids at auction markets, producer or breed association sales, video auctions, computer auctions, direct sales to packers, sales to livestock order buyers, or using the futures or options market as a hedging strategy.
Cattle producers need good handling facilities to perform recommended management procedures like immunising, identifying, castrating, dehorning, implanting, and checking for pregnancy.
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a group of affiliated licensees form a team, the xyz team, within the brokerage they work for (abc real estate). abc has a firm license, but xyz does not. whose name must appear in all the advertising of those affiliated licensees?
All affiliated licensees who are part of the XYZ team within ABC Real Estate. They must include the name of their brokerage, ABC Real Estate, in all their advertising.
Since ABC Real Estate has a firm license. All combined agents who work for the brokerage must conduct their business under the name of the brokerage. Indeed if they form a team and use a particular name or crew designation, similar as the XYZ crew, they must explicitly include the name of the brokerage in all their advertising.
This ensures compliance with real estate regulations that demand enterprises with licenses to maintain clarity and expose their identity to the public.
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according to the customer pyramid hierarchy, what is true of the iron segment customers of a retailer?
According to the customer pyramid hierarchy, the iron segment customers of a retailer is the lowest segment of customers. This segment consists of those customers who buy goods on a day-to-day basis for their basic needs and therefore can be considered the largest segment in terms of the number of customers who buy regularly.
The following is the customer pyramid hierarchy:
Platinum Customers: These are the most loyal and satisfied customers of the company who have been customers for a long time and often recommend the company to others. This is the smallest segment customers, but they generate the most revenue.
Gold Customers: These are the customers who make regular purchases and are satisfied with the company's products and services.
Silver Customers: These are the customers who occasionally buy products and may or may not be satisfied with the company's products and services.
Iron Customers: These are the customers who buy goods on a day-to-day basis for their basic needs and therefore can be considered the largest segment customers who buy regularly. These customers are less loyal and less profitable than the other segments.
Bronze Customers: These are the customers who only buy the products on sale or the cheapest products. The segment customers are less loyal and less profitable for the company.
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an advertiser doesn't have much time to create ads, and hopes to use a display campaign to automatically create them. which two building blocks must they supply in order for a display campaign to automate their ad creation? choose two.
An advertiser needs two building blocks for a display campaign to automatically create their ads: content and targeting.
Content is the creative element, such as images, videos, and text that make up the ads. Targeting is the criteria used to decide who will see the ads, such as location, gender, age, etc. To have a successful display campaign, an advertiser must have content that is relevant to the target audience and appropriate targeting criteria to ensure the right audience sees the ads.
This way, the display campaign can quickly and accurately create ads that meet the advertiser's needs.
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Which of the following is directly associated with usury law? Select the correct answer below:
a floor on the maximum interest rate
a ceiling on the maximum interest rate
lowering the equilibrium rate of return
always increasing demand
A ceiling on the maximum interest rate is directly associated with usury law.
Usury law refers to regulations that limit the amount of interest that can be charged on loans. Specifically, a ceiling on the maximum interest rate is directly associated with usury law. The purpose of usury laws is to protect borrowers from being charged excessively high interest rates that they may not be able to afford.
The maximum interest rate ceiling can be set by state or federal government, and it can vary depending on the type of loan and the borrower's creditworthiness. In some cases, usury laws may also establish a floor on the minimum interest rate that can be charged, but this is less common. Overall, usury laws help to ensure that lending practices are fair and reasonable for both lenders and borrowers.
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Salsa Caliente, Inc., employs three hundred workers at four locations in two states. Under federal law, Salsa must provide each employee, during any twelve-month period, family or medical leave of
a. up to twelve days.
b. up to twelve weeks.
c. up to twelve pay periods.
d. no limited duration
In the following question, the statement is said to be Option B). Salsa must provide each employee, during any twelve-month period, family or medical leave of "up to twelve weeks."
What is Family and Medical Leave Act, Family and Medical Leave Act is a federal law that permits employees to take unpaid leave to handle serious family and medical issues without losing their jobs or health insurance coverage.
The applies to all public agencies, public and private elementary and secondary schools, and businesses with 50 or more employees, as well as all public and private employers who meet the Family and Medical Leave Act "employer" criteria. Family and Medical Leave Actentitlement is 12 weeks of job-protected unpaid leave per year for qualifying employees.
Salsa Caliente, Inc., is a firm that hires 300 employees at four locations in two states. According to the Family and Medical Leave Act, the firm must offer up to 12 weeks of family or medical leave to each employee during a 12-month period. Thus, the answer to this question is option b. up to twelve weeks.
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which of the depreciation methods we learned is used by the hershey company? a. double -declining balance method. b. units of production method c. specific identification method. d. straight-line method
The Hershey Company uses the straight-line method of depreciation.
Straight-line method of depreciation is the simplest and most commonly used method of depreciation, where the asset's value is spread out evenly over its useful life. Under this method, an asset's depreciation expense is the same every year until it is fully depreciated. For example, if an asset is purchased for $10,000 and has a useful life of 5 years, then the depreciation expense for each year would be $2,000.
In contrast, the double-declining balance method provides for larger depreciation expenses in the early years of the asset's life, and smaller depreciation expenses in the later years. The units of production method allows for depreciation expenses to be determined based on the number of units produced or sold. The specific identification method is used when each individual asset can be easily identified and its useful life can be estimated.
For these reasons, the Hershey Company has chosen to use the straight-line method of depreciation, as it is the simplest and most commonly used.
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if an activity whose normal duration is 13 days can be shortened to 11 days for an added cost of $1,500, what is the crash cost per period? question 18 options: $500
If an activity whose normal duration is 13 days can be shortened to 11 days for an added cost of $1,500, then the cost per period is $250.
Calculate crash cost per periodThe normal duration of the activity is 13 days
Cost to shorten the activity = $1,500
Number of days the activity was shortened by = 13 - 11 = 2 days.
Thus, to shorten the activity by 1 day, the cost would be $1,500/2 = $750. This cost is called the crash cost per period.
The crash cost per period is $750.
Therefore, the cost per day is $750/1 = $750.
The cost per period is $250 because 1 period is 3 days (normal duration).
Thus, the cost per period is $750/3 = $250.
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estee lauder has a brand portfolio with more than 25 brands in over 150 companies. having a variety of brands allows estee lauder to
Estée Lauder has a brand portfolio with more than 25 brands that span over 150 countries. This variety of brands gives Estée Lauder the ability to appeal to a much broader audience, while still maintaining a unified brand identity.
Estée Lauder's variety of brands allows them to tap into a variety of different markets, allowing them to reach a wide range of people. This is especially beneficial in a global market, as Estée Lauder can now provide different products and services to different regions or countries.
Additionally, having a diverse portfolio of brands allows Estée Lauder to remain competitive in different sectors, allowing them to remain competitive in a range of different industries. Having a variety of brands also allows Estée Lauder to test new ideas or products without having to risk the reputation of their main brand. This allows them to experiment with different products without having to worry about the consequences of failing.
All in all, having a variety of brands allows Estée Lauder to have a strong presence in different markets, remain competitive, and have the flexibility to test new products without risking their core brand.
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Consider the following scenario and Identify which formal research method would be appropriate. You are preparing a comprehensive report on telecommunication practices in your industry. You need some background information on the history of Internet use in professional environments. a. Access traditional sources and electronic sources. b. Conduct primary research for firsthand information c. Conduct a scientific experiment.
The appropriate formal research method for obtaining background information on the history of Internet use in professional environments is to "access traditional and electronic sources". Thus, A is correct.
Accessing traditional and electronic sources, such as books, articles, and databases, is an effective way to gather information and data on a particular topic. This method is appropriate when the goal is to gather background information or secondary data. It is less time-consuming and less expensive than primary research methods, such as conducting surveys or experiments.
In this scenario, the researcher needs to collect information on the history of Internet use in professional environments, which can be easily obtained by accessing traditional and electronic sources.
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you are choosing between investments offered by two different banks. one promises a return of 10% for three years in simple interest, while the other offers a return of 10% for three years in compound interest. you should:
You should choose the investment that offers a return of 10% for three years in compound interest.
This is because compound interest allows your investment to grow faster than simple interest over time. With compound interest, you earn interest on the principal amount as well as the accumulated interest from previous periods. This means that your investment grows exponentially over time. In contrast, with simple interest, you only earn interest on the principal amount, so your investment grows at a slower rate.
Therefore, even though both investments offer a 10% return, the compound interest investment will generate more earnings in the long run.
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the direct labor budget is based directly on the blank budget. multiple choice question. raw materials production manufacturing overhead sales
The direct labor budget is based directly on the production budget. The Option B is correct.
What does production budget means?A production budget is a document that expresses the number of units of a specific product that a company must produce in order to match its estimated sales volume. Production budgets are typically created quarterly or monthly and are part of the overall operating budget.
The production budget consists primarily of three types of components: direct material budget, direct labor budget, and overhead cost. Rent payable, utilities payable, insurance payable, salaries payable to office staff, office supplies, and so on are examples.
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vertical integration is attractive when administrative costs are higher than transaction costs. transaction costs are higher than administrative costs. transaction costs and administrative costs are equal. search costs are higher than monitoring costs.
Vertical integration is attractive when administrative costs are higher than transaction costs. This means that it is more cost-effective for a company to control its entire supply chain rather than deal with multiple suppliers and intermediaries. (option a)
What do you mean by vertical integration ?To determine when vertical integration is attractive, consider the following scenarios:
1. When transaction costs are higher than administrative costs: In this situation, the expenses associated with conducting transactions with multiple suppliers and intermediaries exceed the costs of managing a vertically integrated supply chain. Therefore, vertical integration would be a more cost-effective option for the company.
2. When transaction costs and administrative costs are equal: In this case, the company should evaluate other factors, such as strategic advantages, market conditions, and long-term growth potential, to decide whether vertical integration is the right choice.
3. When search costs are higher than monitoring costs: Search costs refer to the expenses incurred while searching for suitable suppliers and intermediaries. Monitoring costs are associated with overseeing and managing relationships with these external entities. If search costs are higher, it indicates that finding reliable suppliers and intermediaries is difficult and costly. In this scenario, vertical integration might be a more attractive option, as it can reduce search costs by controlling the entire supply chain internally.
In summary, vertical integration is attractive when administrative costs are higher than transaction costs, and it can also be considered when search costs are higher than monitoring costs. However, the decision to vertically integrate should be based on a thorough analysis of various factors, including costs, strategic advantages, and market conditions.
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Complete question: Vertical integration is attractive when
a) administrative costs are higher than transaction costs.
b) transaction costs are higher than administrative costs.
c )transaction costs and administrative costs are equal.
d) search costs are higher than monitoring costs.
cost control involves containing construction costs within the budget established by the cost estimate. question 3 options: true false
Cost control involves containing construction costs within the budget established by the cost estimate. - True
In order to guarantee that the project is completed on schedule and under budget, managers must keep costs in check by managing labor, material, and overhead expenditures. The ability to control costs depends on accurate projections and ongoing project monitoring. It is a crucial component of construction management, which is controlling and keeping track of project expenditures.
This is done to make sure they stay within the financial constraints defined by the cost estimate. To put it another way, it is the process of controlling project costs to avoid going over budget. Monitoring project expenses, spotting possible cost overruns, putting cost-cutting measures in place, and managing changes that influence project costs are just a few of the activities that make up cost control.
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identify and briefly explain any four of the factors that influence the strength or intensity of competitive rivalry among an industry's member firms.
In summary, the intensity of competitive rivalry among an industry's member firms can be influenced by the number of competitors, industry growth rate, product differentiation, and exit barriers. By understanding these factors, companies can strategize and adapt to the competitive landscape of their industry.
What are the four factors?The four factors that influence the strength or intensity of competitive rivalry among an industry's member firms are:
1. Number of competitors: The more competitors there are in an industry, the higher the intensity of rivalry among firms. When there are many firms, it is more challenging for each company to differentiate itself from others, which can lead to increased competition.
2. Industry growth rate: When an industry is growing rapidly, firms can achieve higher profits and expand their market share without having to engage in aggressive competition. However, in a slow-growth or declining industry, firms may be forced to compete more fiercely to maintain or increase their market share.
3. Product differentiation: The degree to which products or services can be distinguished from one another affects the intensity of rivalry among firms. If products are similar or can be easily substituted, competition will be more intense, as customers can easily switch between offerings. In contrast, when products are differentiated, firms may be able to avoid direct competition and focus on their unique selling points.
4. Exit barriers: High exit barriers can make it difficult for firms to leave an industry, even if they are not making a profit. This can lead to increased rivalry, as firms may resort to aggressive pricing or other competitive tactics in order to survive. Factors that contribute to high exit barriers include specialized assets, high fixed costs, and contractual obligations.
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pacific electronics has a website that sells electronic parts to phone manufacturers. which type of e-commerce website does pacific electronics have?
Pacific Electronics has a B2B (Business-to-Business) e-commerce website. This type of website allows them to sell electronic parts to phone manufacturers.
The type of e-commerce website that Pacific Electronics has is B2B (Business to Business).B2B e-commerce refers to online business conducted between companies, rather than between businesses and customers (B2C).
B2B e-commerce is becoming increasingly popular, and it involves one business selling goods or services to another. Manufacturers, wholesalers, and distributors frequently engage in B2B e-commerce.
A B2B e-commerce site can sell goods or services to another business or facilitate transactions between two businesses by acting as a platform. B2B e-commerce portals, such as Alibaba and Amazon Business, act as intermediaries for buyers and sellers, allowing them to connect and trade with one another.
B2B e-commerce has become more widespread in recent years, with many businesses seeing the benefits of buying and selling online. It allows businesses to reach a larger audience, expand their reach, and access a wider range of goods and services. It also speeds up the purchasing process while saving time and money for both businesses.
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